PE Tech Report


Like this article?

Sign up to our free newsletter

MacroFab announces USD15m Series B round led by Edison Partners

MacroFab has received USD15 million in new funding. The round was led by Edison Partners, with prior investors including ATX Venture Partners participating. Altium Limited, a leader in the electronics design software space, joined the round as a strategic investor aligned with the MacroFab mission of digitising electronics production from 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 USD15 million growth round allows the company to accelerate expansion in North America, including increased investment in R&D, sales/marketing and opening of a new distribution center for international logistics this summer. 

The MacroFab digital platform is used by supply chain teams to build everything from PCB assemblies to fully tested and packaged electronics products. Enterprises rely on MacroFab to consolidate vendors or reshore production from China to North America. MacroFab aggregates unused capacity at 75+ factories in the US, 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 turns the physical plant of factories, logistics centers and warehouses used in manufacturing into a cloud resource, driven by software and accessible through modern APIs. MacroFab 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 the need to switch manufacturing partners because Macrofab owns delivery end-to-end throughout the process regardless of factory location. The service provides access to specialised 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,” says Misha Govshteyn, MacroFab CEO. “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. Even the standard practice of airlifting your best engineers to China to troubleshoot your factory line is no longer possible, so more companies are digitising 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. With over 5,000 companies and 11,000 users on the Altium 365 cloud platform, the company 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,” says Ted Pawela, Chief Ecosystem Officer at Altium. “Our investment in, and partnership with MacroFab is a huge step forward in connecting Design, Supply Chain, and Manufacturing to accelerate innovation.” 

The USD156 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 also most motivated to reshore production to North America, as US companies increasingly grow weary of rising prices, long lead times and intellectual property risks in Asia. “MacroFab is at the forefront of building supply chain resilience as the trend to nearshoring and multi-sourcing continues due to rising costs in Asia, component shortages, and the increasing need for agile production. By optimising both factory capacity and breadth of capability while digitising that interface, CEO Misha Govshteyn and his leadership team are unlocking the USD29 billion dollars in manufacturing volume that is currently underutilised in North America. All this, plus expanding economic opportunities and job creation in local manufacturing markets,” says Daniel Herscovici, Partner, Edison Partners, who led the investment and will join MacroFab’s Board of Directors. 

“A typical electronics factory is only 60 per cent utilised according to New Venture Research, which is startlingly inefficient. 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,” adds Chris Church, Founder and Chief Product Officer of MacroFab. 

MacroFab was founded in 2013 in Houston, TX, and run by veteran team of executives with experience in cloud infrastructure, manufacturing and logistics. Seed and Series A financing for the company was led by ATX Venture Partners and Techstars. MacroFab is the second joint venture for Misha Govshteyn (CEO), Chris Church (Founder and Chief Product Officer) and Chris Granberry (COO). Previously, the team co-founded Alert Logic in Houston, which became one of the earliest success stories in the SaaS and cloud cybersecurity space, growing to USD140 million+ in annual revenue and over 4,000 customers. 

Like this article? Sign up to our free newsletter