Why Technology Will Spur The Second Industrial Revolution Venture capitalists have largely avoided the industrial technology space due to concerns about long sales cycles, sector resistance to change, cumbersome distribution channels, and uncertain exits. However, the lack of evolution and innovation in this space portends the coming of a “golden-era” of upgrades –– similar to what we’ve seen in other antiquated sectors. And while current large industrial players recognize the opportunity, they lack the culture and flex- ibility to capitalize on it. Economic necessity will continue to accelerate this change, presenting a significant opening for venture backed technology com- panies to drive new capabilities and efficiencies in verticals where IT spend as 1 a percentage of revenue is amongst the lowest. IT Spending as a Percent of Revenue, by Industry Cross-Industry Average 3.3% So�tware Publishing and lnternet Services 6.7% Banking and Finacial Services 6.3% Media and Entertainment 5.0% Education 4.7% Professional Services 4.2% Healthcare Providers 4.2% Telecommunications 3.8% Insurance 3.2% Pharmaceuticals,. Life Sciences and Medical Products 3.2% Utilities 2.8% Transportation 2.6% Industrial Electronics and Electrical Equipment 2.5% Consumer Products 1.9% Industrial Manufacturing 1.7% Retail and Wholesale 1.5% Chemicals 1.3% Food and Beverage Processing 1.3% Energy 1.1% Construction, Materials and Natural Resources 1.0% Source: IT Key Metrics Data 2014, Gartner Benchmark Analytics 1 IT Key Metrics Data, Gartner Benchmark Analytics