Former Apple Manufacturing Leaders Launch $33 Million Fund for Factory-Tech Startups

What happened:

After years of developing complex manufacturing processes for Apple, a group of ex-executives has turned their attention to the startup world. The group began a venture capital fund specializing in innovative manufacturing technology, with $33 million in financing. Among the projects the fund hopes to take up is factory automation, robotics, supply chain optimization, and advanced manufacturing technologies.

Why it matters:

Traditionally, manufacturing startups have had less investor attention than software startups. Many need a lot of investment up front, take a long time to make the products, and need to closely work with industrial customers, which is not always what venture capital is about.

This gap in the market, the fund’s founders say, has been created. In the last 10 years, software startups have received billions in investment while many technologies that have the potential to enhance the manufacturing of products have been largely ignored.

Industry context:

In recent years, investor enthusiasm for manufacturing has begun to recover from its lows, sparked by a number of factors including supply-chain problems, reshoring and innovations in AI and robotics. Both governments and companies are interested in increasing their own production capacity, thus opening new opportunities for startups working on technologies developed for factories.

The launch of the fund indicates that some investors believe that manufacturing isn’t a legacy industry, but rather a sector that is ripe for innovation. The team is also backed by founders who have incurred direct experience in scaling manufacturing operations around the world, so they say they can assist startups in facing challenges that are often hard for traditional investors to comprehend.

Hope Indian Manufacturing Innovators and Industrial startups take note.