Contract manufacturing cloud platform developer MacroFab has gotten a boost to its pocketbook with a $42 million infusion of growth capital.
The funding was led by venture capital firm Foundry and joined by BMW i Ventures, as well as existing investors Edison Partners and ATX Venture Partners. To date, MacroFab has raised a total of $82M, enabling the company's accelerated growth amid the ongoing transformation of global supply chains.
"Electronics manufacturing is moving toward resilience and flexibility to reduce supply chain disruptions. These are long term trends recognized by Foundry and BMW i Ventures, who joined this round as investors," said Misha Govshteyn, MacroFab's CEO, in a release. "We are in the earliest stages of repositioning the supply chain to be more localized and focused on what matters to customers most - the ability to deliver products on time, meet changing requirements and achieve a more sustainable ecological footprint."
MacroFab is a cloud manufacturing platform for building electronics from prototype to high-scale production, with a network of more than 100 factories across North America. Several factors have come together to boost the market for contract manufacturing networks. The trend towards reshoring to reduce supply chain disruptions was just the start. The everything-as-a-service model—where companies want to pay only for equipment output instead of investing in equipment—has opened the market for contract, quick-turnaround manufacturing. Combined with renewed focus on made-in-America products and new import rules on electronics from certain regions in Asia, these factors have created a sweet spot for distributed contract manufacturing networks such as MacroFab and Protolabs, a similar network that focuses on manufactured parts.
MAcroFab reported its shipments were up 275 per cent year-over-year, as more companies moved their electronics production to North America. The company has doubled its workforce and opened a new facility in Mexico.
"Given MacroFab's compelling solutions to electronics manufacturing challenges and Foundry's successful history with parallel companies, our investment is a perfect fit. This is a unique opportunity to be part of next generation cloud manufacturing," said Foundry Partner Seth Levine. Foundry manages more than $4 billion and has invested in hundreds of companies.
"Most companies have felt the pain of inflexible and fragile supply chains. MacroFab's cloud manufacturing platform is transforming contract manufacturing, enabling 'Made in North America, faster design iteration, and increased supply chain resiliency, among its benefits. Edison Partners shares the company's vision for addressing this $100B+ global market," said Daniel Herscovici, Partner, Edison Partners, a growth equity firm focused on technology-enabled and SaaS solutions.
"MacroFab is on track to continue rapid growth based on the strength of its technology platform, extensive manufacturing network, and seasoned management team. MacroFab is well positioned to serve the most pressing needs of customers focused on modernizing their electronics production," said BMW i Ventures Partner Baris Guzel. BMW I Ventures manages investments in technology companies in the United States, European Union and Israel.