MacroFab, a leading electronics manufacturing platform, recently secured a $ 15 million Series B round of funding, a success that underscores the momentum of the digital transformation of manufacturing.
The company provides cloud-based Manufacturing-as-a-Service (MaaS) solutions to the electronics industry. On its platform, companies can upload component designs, get quotes, place orders, and track progress toward delivery. Businesses can price and order a wide range of parts and products, from printed circuit boards (PCBs) to fully assembled and packaged electronics.
MacroFab’s rapid growth reflects three key ingredients:
First: the ability to unlock new efficiencies through digital solutions. This is a defining characteristic of digital-industrial innovations, and here MacroFab’s focus on the electronics sector reflects that deployed in industrial manufacturing by companies like Fictiv, Xometry and Protolabs. By connecting supply and demand in real time, the MacroFab platform improves capacity utilization, enabling companies to accelerate the development of new designs and scale production at a faster rate. In a recent EMSNOW interview, CEO of MacroFab Misha govshteyn notes that North American electronics manufacturing capacity utilization is just 60%, leaving huge scope for increased efficiency.
Second: the right tools to improve the efficiency and resilience of the supply chain in response to structural changes in world trade and geopolitics. Even before the Covid-19 pandemic hit, global supply chains had been disrupted by an accelerating trend toward protectionism. At the same time, digital innovation on the one hand and rising revenues in China and other emerging markets on the other have greatly reduced the importance of lower labor costs in determining where a manufacturing facility should be located. Govshteyn confirms that many of MacroFab’s clients have been looking to reorient production to North America or Mexico to be closer to their own end customers while reducing exposure to tariffs or other protectionist measures. Additionally, by relying on a manufacturing platform with more than 75 factories in the United States and Mexico, companies gain much greater flexibility in the distribution of production. This flexibility has already proven crucial for companies that now need to cope with a massive surge in demand as the economy enters its post-pandemic recovery.
Third: the potential for electronics manufacturing companies to gain much better visibility into their supply chain. MacroFab’s platform tools allow customers to have much better real-time information on where their components are in the production and delivery cycle, and on the status of their inventories.
MacroFab’s successful Series B round and the quality of the investors involved are a testament to the growing confidence in the industry’s digital transformation; they also underscore the ecosystem approach that defines this transformation.
Edison Partners, who led the funding round, is an early growth investor focusing on high-growth companies; Their involvement, Govshteyn says, indicates that the business model is now well defined and that investors see it as the right bet on important secular trends like restructuring and digital efficiency in electronics manufacturing. Previous investors like ATX Venture Partners they also participated in the round, demonstrating their continued confidence in MacroFab’s growth path.
Altium Limited, which joined the funding round as a strategic investor, is a cloud-based electronics design platform that is very active in the manufacturing and supply chain space and has been collaborating with MacroFab for some time. “The future is not just design, it is design plus manufacturing,” says Govshteyn in the EMSNOW interview. The collaboration between the two companies represents a commitment to joint conviction that connecting design, manufacturing and supply chain solutions is the best way to accelerate innovation and increase efficiency.
Is this confidence in the growth potential of MacroFab justified? Misha Govshteyn notes that the mid-volume electronics manufacturing market in North America is worth more than $ 100 billion, and that digital manufacturing models could easily aspire to take about a fifth before their growth. slows down and competition gets tougher. MacroFab, which has been growing at a rate of more than 100% recently, aims to roll out the new funds to hire more talent in engineering, R&D, product management, sales and marketing, and launch a second distribution center in Mexico. (the current one is in Houston, TX), to stay ahead of the market.
Most importantly, the trend MacroFab is betting on seems to be well established. Globalization has entered a new phase, in which protectionism and strategic national interests will continue to play a greater role. The disruptions of recent years have persuaded more and more companies to restructure and localize their supply chains to be closer to customers and less exposed to various business disruptions. And manufacturing platforms offer increasingly attractive benefits in terms of diversification and speed. Companies like MacroFab are playing an important role in accelerating this transformation and are well positioned to reap the benefits.