Elena Volotovskaya is the Head of Softline Venture Partners.

End-to-end automation is a new wave of the industrial revolution. It is changing our understanding of manufacturing: from lights-out factories (fully autonomous production facilities without a constant human presence) to self-optimizing ones, where digital twins, physical AI and integrated data allow systems to independently plan and adjust processes.

This topic is interesting to those in finance because it opens up new investment opportunities. Thanks to automation, not only are processes being simplified, but new products and niches are being created.

What is end-to-end automation?

End-to-end automation literally means automating the whole production process. If previously companies integrated robotic technologies for certain bits of work—say, a robotic arm to assemble parts or an automated conveyor system—now everything is connected, from order intake through production and sales.

How does it all work? As an example, a client places an order. It updates an enterprise resource planning (ERP) system, which in turn checks warehouse stock. If some components are lacking, the system creates an order to suppliers. The production schedule is adjusted automatically, and machines on the shop floor receive updated instructions. When production is completed, the system organizes delivery (including packaging and necessary documents). The client gets tracking information. All this is done without manual data entry.

What opportunities does end-to-end automation create?

End-to-end automation in manufacturing allows the creation of new products and business models. It lets companies grow without substantial additional expenses. One of the opportunities it gives is scaling without additional personnel. You obviously will need new specialists to handle the system, but what you typically won’t need is to hire dozens or hundreds of people. That means companies can also save money on employee training, logistics and quality control.

Flexibility is another advantage. The ability to customize manufacturing according to clients’ needs is crucial if you want to compete in the market today.

One of the popular examples of end-to-end automation are dark factories. People’s participation in manufacturing is minimal. Plants work 24/7, there is almost no light, and there are no people. Factories like these use robotic technologies, AI, machine vision and automated logistics. Sensors and AI systems coordinate and control the assembly of products, quality control and microclimate control. Thanks to this, companies show impressive results—for example, one dark factory in Beijing can produce about 10 million smartphones per year, which is around one per second.

Another example is the gigafactory. According to Benchmark, there are over 240 operational gigafactories worldwide, and by 2030, this is projected to increase to over 400. In a car maker’s gigafactories, as an example, each step, from car body welding to battery module assembly, is controlled by a digital system that gathers data in real time. “Terawatt-scale production and increasingly affordable energy storage hold the key to a more sustainable future,” states the company’s website.

These examples show that end-to-end automation can be a strategic advantage that allows companies to open new markets. New software, machine vision and quality control systems and robotic technologies appear. End-to-end automation has also stimulated the field of manufacturing as a service (MaaS).

Companies that use end-to-end automation may be able to save money on operational costs, bring products to the market more quickly and generate more predictable income. These are the kinds of models investors are looking for, where technology helps startups reduce costs and increase scale.

Some startups that have raised significant money are already on the market. For example, one German deep tech raised 1.8 million euros in a seed round. The company creates digital infrastructure that automates processes, from buying components to the assembly of complex products.

As another example, an American startup has been building factories for aerospace and defense parts production. In 2022, the company raised $90 million, and in 2025 it got more funding for expansion.

Examples like these show what may be an emerging pattern: Some large venture funds are actively backing end-to-end automation, perhaps as a long-term industrial shift. It may be becoming the foundation of a new manufacturing and operations paradigm. When every stage—from procurement and design to production, quality control and logistics—is digitally connected and algorithmically managed, companies stand to gain something extremely valuable: visibility, predictability and scalability.

The startups building these platforms today are positioning themselves as the infrastructure layer of tomorrow’s industrial economy—and that is, in part, why serious capital may soon be flowing into the space.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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