With $15 million in new funding, MacroFab aims to ignite growth of Manufacturing-as-a-Service for electronics
May 26, 2021
HOUSTON—MacroFab recently announced a $15 million in Series B funding round led by Edison Partners. Prior investors, including ATX Venture Partners, also participated in the round, MacroFab said in a release.
Altium Limited, the developer of electronics design software, joined the round as a strategic investor aligned with MacroFab’s mission of “digitizing electronics production from the 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 MacroFab to accelerate expansion in North America, including increased investment in R&D, sales and marketing, and opening of a new distribution center for international logistics this summer, the company said.
The MacroFab digital platform is used by supply chain teams to build everything from printed circuit board (PCB) assemblies to fully tested and packaged electronics products. Enterprises are said to rely on MacroFab to consolidate vendors or reshore production from China to North America. MacroFab is said to aggregate unused capacity at more than 75 factories in the United States, 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 (www.macrofab.com) is said to turn the physical plant of factories, logistics centers and warehouses used in manufacturing into a cloud resource, driven by software and accessible through modern application programming interfaces (APIs). The digital platform 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 needing to switch manufacturing partners.
The reason, MacroFab said, is that it 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, in the release. “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,” Govshteyn continued. “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. The company is said to have more than 5,000 companies and 11,000 users on the Altium 365 cloud platform, and 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, in the release. “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 the most motivated to reshore production to North America, as U.S. companies grow increasingly weary of rising prices, long lead times, and intellectual property risks in Asia, according to the release.
“CEO Misha Govshteyn and his executive team have a proven track record of building successful SaaS (software-as-a-service) 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,” said Daniel Herscovici, partner, Edison Partners, in the release. “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.” Herscovici will join MacroFab’s Board of Directors.
“A typical electronics factory is only 60 percent utilized, according to New Venture Research, which is startlingly inefficient,” added Chris Church, founder and chief product officer of MacroFab, in the release. “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.”
MacroFab said that its digital platform enables customers to produce electronics products faster, more cost effectively, and closer to their end users in factories located across United States, Canada, and Mexico. It also enables customers to leverage MacroFab’s global supply chain and quality control capabilities, the company added.