CEO Misha Govshteyn and his leadership team are unlocking the $29 billion dollars in manufacturing volume that is currently stranded in North America.
PRINCETON, N.J. (PRWEB) May 25, 2021
Edison Partners, the growth equity investment firm, today announced leading a $15 million growth capital investment in Houston-based MacroFab, a leading platform in the electronics manufacturing-as-a-service market. The financing round includes strategic investment from Altium Limited, a publicly traded electronics design software company. MacroFab will use the funds to accelerate sales and marketing of its cloud manufacturing platform for mid-market industrial, energy IoT, robotics and computing enterprises.
The $156 billion global market for mid-volume electronics manufacturing production is expected to grow at a forecasted CAGR of 8% through 2025, with the market shift to onshore likely to drive North American growth faster than the global trend. MacroFab aggregates unused capacity at 75+ factories in the US, Canada and Mexico to give mid-market manufacturers end-to-end production and an alternative to offshoring, where capacity is increasingly constrained and lead times are impacted by supply chain shipment disruptions.
“MacroFab is at the forefront of building supply chain resilience as the trend to nearshoring and multi-source shoring continues with rising costs in Asia, component shortages, and the increasing need for agile production. By optimizing both factory capacity and breadth of capability while digitizing that interface, CEO Misha Govshteyn and his leadership team are unlocking the $29 billion dollars in manufacturing volume that is currently stranded in North America. All this, plus expanding economic opportunities and job creation in local factory markets,” said Daniel Herscovici, Partner, Edison Partners, who led the investment. Herscovici will join MacroFab’s Board of Directors.
Many customers rely on MacroFab to scale from prototype, through pre-production and into full production. The company has experienced a 2x growth in both revenue and headcount in 2020 and is on pace to do the same in 2021.
“Trying to fit smaller volumes in factories designed to do millions of units is a pain point for mid-market manufacturers. MacroFab unlocks access to a curated marketplace of factories that meet their need for agility, response time and transparency,” said MacroFab CEO Misha Govshteyn. “Further, MacroFab addresses the reshoring trend accelerated by the challenges of 2020. Dan’s domain expertise and the Edison team’s counsel will be invaluable as we accelerate our platform and factory footprint.”
An Edison Partners X investment, MacroFab is Edison’s 270th investment since inception in 1986. This is also the sixth investment for Daniel Herscovici, who started his career on the floor of a plastics injection molding factory and later led mobile phone manufacturing operations teams at Lucent Bell Labs and Motorola.
MacroFab is the second Texas-based supply chain transformation leader Edison has invested in, alongside Austin-based Overhaul. MacroFab also joins the good company of Edison’s vertical marketplace investments including Austin-based LawnStarter, Boulder-based The Pro’s Closet, and NYC-based Yieldstreet.
The investment comes on the heels of Edison achieving its fourth consecutive record year for total exit proceeds. In the last six months, Edison investments and exits have spanned behavioral intelligence company Jornaya, remote patient monitoring leader Health Recovery Solutions, go-to-market solutions platform Terminus, and ad tech leader TripleLift.
MacroFab is a cloud-enabled electronics manufacturing platform designed to make it easier, faster, and less expensive to get new electronics manufactured while providing complete transparency in the process. MacroFab's technology takes information directly from the customer, via a modern easy-to-use web interface or via REST APIs, to the manufacturing floor reducing the up-front cost and complexity of getting manufacturing jobs running. All assembly is performed on MacroFab's manufacturing line in Houston, TX. Founded by a team of entrepreneurs and electronics engineers in 2013, MacroFab is angel funded and based in Houston, TX. For more information, visit http://macrofab.net/.
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.