Dive Brief:

• Caterpillar’s venture capital subsidiary led an $11 million Series A funding round for Alight, which offers real-time analysis and comparison of financial decisions, according to HousingWire.

• Alight currently covers mining and mortgages. Both businesses concern Caterpillar, which makes heavy equipment and machinery. 

• The company says it invested in Alight to help its customer base improve its forecasting and better understand the financial impact of buying or using a machine or other piece of technology.

Dive Insight:

Caterpillar’s investment in Alight wasn’t a one-shot deal. The company has had its eye out for sound tech purchases. It recently acquired Yard Club, a heavy-equipment sharing and management startup. Prior to the acquisition, Caterpillar was an investor and its dealers worked with Yard Club to help them sell and rent equipment through its platform. 

Caterpillar has also invested in drone software startup Airwave. The company plans to use its equipment dealer network to provide drone services to customers.

One reason industry heavyweights like Caterpillar are investing in emerging technology is the ability they afford to save time on projects.

Drones, for example, are helping to improve and accelerate processes such as aerial photography, inspections and site scanning. They also help lower safety risks by flying over hazardous or remote areas instead of sending in humans.

Caterpillar itself has been on an efficiency run, launching a $1.5 billion downsizing initiative in 2015. Those plans called for extensive layoffs and the closure or consolidation of some plants. Meanwhile, the company has benefited from improved optimism around construction activity in the months since the November 2016 presidential election, though declining demand globally caused it to lower its 2017 forecast. For lack of action so far by the Trump administration on infrastructure, one Deutsche Bank analyst made headlines recently when she lowered Caterpillar’s stock from buy to hold in response.

Earlier this year, the company announced plans to move its global headquarters from Peoria, IL, to Chicago, which it says will grow its talent pool and provide easier access to its offices