Most investors are still evaluating companies as if software and hardware exist in separate universes. Cyberphysical data — the information generated when digital systems interact with physical processes — represents the next frontier of investable innovation, projected to reach $255.3 billion by 2029. Yet the majority of VCs lack the frameworks to recognize which companies
Cyberphysical data advantages create 3-5x higher enterprise value through proprietary data moats, operational efficiencies, and predictive capabilities that pure software plays can’t match. These systems — where sensors, software, and real-world operations converge — are rapidly becoming the decisive factor between $10M and $100M valuations. Picture a founder at $1.2M ARR watching competitors with inferior