“Our customers experienced a perfect storm last year and went 'all in' on cloud-enabled manufacturing.” said Misha Govshteyn, MacroFab CEO. “with impact of tariffs, freight delays and silicon chip crisis, a lot of businesses are digitizing production, and reshoring or moving to a ‘China +1’ model."
HOUSTON (PRWEB) May 26, 2021
MacroFab today announced $15 million in new funding. The round was led by Edison Partners, with prior investors including ATX Venture Partners participating. Altium Limited, a leader in the electronics design software space, joined the round as a strategic investor aligned with the MacroFab mission of digitizing electronics production from earliest design stages to prototype development and commercial production.
The investment follows a strong record of growth driven by adoption of digital manufacturing by production scale customers in industrial, IoT and energy sectors. The $15M growth round allows the company to accelerate expansion in North America, including increased investment in R&D, sales/marketing and opening of a new distribution center for international logistics this summer.
The MacroFab digital platform is used by supply chain teams to build everything from PCB assemblies to fully tested and packaged electronics products. Enterprises rely on MacroFab to consolidate vendors or reshore production from China to North America. MacroFab aggregates unused capacity at 75+ factories in the US, Canada and Mexico to give mid-market companies an alternative to offshoring, where capacity is increasingly constrained and lead times are impacted by supply chain and freight disruptions.
MacroFab turns the physical plant of factories, logistics centers and warehouses used in manufacturing into a cloud resource, driven by software and accessible through modern APIs. MacroFab enables engineers to produce new designs faster and helps supply chain teams economically bring products to market by scaling from prototypes all the way to production without the need to switch manufacturing partners because Macrofab owns delivery end-to-end throughout the process regardless of factory location. The service provides access to specialized electronics factories all across North America, allowing customers to scale through every stage of production.
“MacroFab customers found themselves in a perfect storm last year, and went from being curious about cloud-enabled manufacturing to going all-in.” said Misha Govshteyn, MacroFab CEO. “The turbulence started with the trade war and tariffs, and only accelerated with massive delays in delivering products from overseas and the ongoing microchip availability crisis. The old approach to manufacturing electronics suddenly no longer looks predictable or secure. Even the standard practice of airlifting your best engineers to China to troubleshoot your factory line is no longer possible, so more companies are digitizing their operations, reshoring or moving to a ‘China +1’ model. Supply chain leaders are turning to MacroFab and our digital platform as a way to move faster. If you’re not as big as Apple, but want to build across multiple factories in parallel, our platform is the only way to do so without incurring immense costs”.
Altium joined the round as an investor focused on helping customers innovate, and to transform ideas into smart and connected products. With over 5,000 companies and 11,000 users on the Altium 365 cloud platform, the company is one of the largest players in the electronics design space. "Altium shares MacroFab's vision for digital transformation of manufacturing in the electronics industry," said Ted Pawela, Chief Ecosystem Officer at Altium. "Our investment in, and partnership with MacroFab is a huge step forward in connecting Design, Supply Chain, and Manufacturing to accelerate innovation."
The $156 billion global market for mid-volume electronics manufacturing is growing faster than the overall electronics market, driven by rapid innovation in IoT, industrial automation, energy and robotics. These segments are also most motivated to reshore production to North America, as US companies increasingly grow weary of rising prices, long lead times and intellectual property risks in Asia.
“CEO Misha Govshteyn and his executive team have a proven track record of building successful SaaS and cloud infrastructure businesses together, and are now bringing supply chain innovation to the market at a time when global electronics manufacturing is facing disruption. MacroFab is at the center of driving the digital transformation needed to unlock factory capacity, manufacturing agility and efficiency, and even new economic and labor markets for electronics makers across North America," said Daniel Herscovici, Partner, Edison Partners, who led the investment. Herscovici will join MacroFab’s Board of Directors.
“A typical electronics factory is only 60% utilized according to New Venture Research, which is startlingly inefficient. A number of our customers focused on Environmental and Social Governance (ESG) issues see our ability to tap into this capacity as a step towards ecologically sustainable production,” added Chris Church, Founder and Chief Product Officer of MacroFab.
MacroFab was founded in 2013 in Houston, TX, and run by veteran team of executives with experience in cloud infrastructure, manufacturing and logistics. Seed and Series A financing for the company was led by ATX Venture Partners and Techstars. MacroFab is the second startup effort for Misha Govshteyn (CEO), Chris Church (Founder and Chief Product Officer) and Chris Granberry (COO). Previously, the team co-founded Alert Logic in Houston, which became one of the earliest success stories in the SaaS and cloud cybersecurity space, growing to $140M+ in annual revenue and over 4,000 customers.
MacroFab operates the world’s first digital platform for electronics manufacturing from prototype to high scale production, with a network of 75+ factories across North America. The MacroFab platform enables customers to produce electronics products faster, more cost effectively and closer to their end users in factories located across US, Canada and Mexico, while leveraging MacroFab’s global supply chain and quality control capabilities. The company is headquartered in Houston, TX.
About Edison Partners
For 35 years, Edison Partners has been helping CEOs and their executive teams grow and scale successful companies. The firm's investment team brings extensive investing and operating experience to each investment. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, the Edison Director Network, and executive education programs, Edison employs a truly integrated approach to accelerating growth and creating value for businesses. A team of experts in enterprise solutions, financial technology, and healthcare IT sectors, Edison targets high-growth companies located outside Silicon Valley with $10 to $30 million in revenue; investments also include buyouts, recapitalizations, spinouts and secondary stock purchases. Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners is based in Princeton, NJ and manages more than $1.4 billion in assets.
Altium LLC (ASX:ALU), a global software company headquartered in San Diego, California is accelerating the pace of innovation through electronics. For over 30 years, Altium has been delivering software that maximizes the productivity of PCB designers and electrical engineers. From individual inventors to multinational corporations, more PCB designers and engineers choose Altium software to design and realize electronics-based products.