“If this truly is the Fourth Industrial Revolution it’ll be of the scale of the past three,” says legendary venture capitalist Duncan Davidson. “If we’re going to do this reindustrialization of America and prepare for the Fourth Industrial Revolution, it’s going to be more AI, more robotics, taking a lot of things like 3D printing, additive manufacturing it’s sometimes called, and putting it in scale operation in this country. Tech has a real part to play in that but this will pervade the whole country.”

Duncan Davidson, General Partner at Bullpen Capital, says that the reindustrialization of America will be powered by tech but pervade the whole country in an interview on CNBC:

Preparing For The Reindustrialization Of America

Amazon might become a $2 trillion company. Digital ads, I think old media is really going to be in trouble here, Retail — if people can get by without the ads in the local newspaper and have the same sales why do they keep advertising? Remote collaboration — that’s an obvious category (to invest in). I think the two that are less obvious are first the gig economy, its thriving, people thought it was on its back legs. The final one is reindustrialization, what some people call the fourth Industrial Revolution, which is the next big thing coming out of this.

I think Marc Andreessen’s piece was terrific. You think about the tech sector, it’s probably more important now to the economy than the auto sector, which has been driving this place for 100 years. We don’t have a really strong voice at the table here. He’s exactly right. We shouldn’t just repair roads and fix bridges, we have to build the future. I think what he’s getting at fundamentally is if we’re going to do this reindustrialization of America and prepare for the Fourth Industrial Revolution, it’s going to be more AI, more robotics, taking a lot of things like 3D printing, additive manufacturing it’s sometimes called, and putting it in scale operation in this country. Tech has a real part to play in that but this will pervade the whole country.

The VC Model Is The Core Driver Of Growth In This Economy

The VC model is the core driver of growth in this economy. If you go back and look at the stats it’s overwhelming. If you think about what we did in VC in the 80s it was PCs, it was hardware, it was disc drives. In the 90s it was software and the internet. More recently, it’s all kinds of things that is spread very broadly across the economy but basically is software-driven, There’s no problem with the VC industry rotating itself back toward industrial things and toward real things and away from software. In fact, it’s exactly the right industry to be agile and move very quickly to finance this next wave of innovation. 

It’s just not here yet. But if this truly is the Fourth Industrial Revolution it’ll be of the scale of the past three. I think the boom in the venture world, let’s say from 2024 to 2032 or some time frame like that, will be bigger than we’ve seen in the last decade and probably rival what we saw in the 90s. What we see is an acceleration of current trends. So Zoom may be overvalued but the direction of remote collaboration tools, no question. Remote learning — universities may have a total change into more teaching online versus people going to the universities themselves. I can go down through the whole list. Look at what’s really surging and think of that as an acceleration that will continue.