31 July 2025 | News
Image Courtesy: Public Domain
J.P. Morgan today released its latest Applied Technology Investment Trends Report, revealing that applied technology companies—spanning robotics, semiconductors, space, and defense—accounted for approximately 11% of total U.S. venture capital funding in 2024, underscoring a rising appetite for innovation-driven sectors across the investment landscape.
The report highlights strong investor activity in categories that bridge hardware and software innovation, fueled by macroeconomic tailwinds, industrial reshoring, and accelerating enterprise adoption of AI infrastructure.
“We’re witnessing a notable shift in venture capital strategy toward foundational technologies that power industrial and digital transformation,” said a spokesperson from J.P. Morgan’s Innovation Economy group. “Robotics, semiconductors, and next-generation infrastructure are not just sectors of the future—they are defining the present investment thesis for applied tech.”
Key findings from the report include:
Robust investor activity in advanced robotics and factory automation solutions, driven by labor shortages, cost-efficiency imperatives, and increased demand for precision agriculture, logistics, and manufacturing.
Accelerated capital inflows into semiconductor startups aligned with U.S. policy priorities under the CHIPS Act and efforts to build domestic technology supply chains.
Enterprise CIOs are increasing AI hardware spend, which currently accounts for 6% of IT budgets, with projections reaching 16% within three years—supporting infrastructure providers and chipmakers alike.
Defense and aerospace tech continues to attract long-horizon capital, with stable government contracts offering insulation from broader market volatility.
The report also notes that applied tech startups are benefiting from a maturing ecosystem of specialized investors and strategic partnerships that reduce commercialization risk.
J.P. Morgan’s Applied Tech Outlook builds on insights from market data, client activity, and CIO surveys, providing a forward-looking view of emerging opportunities across the innovation economy.
