Growth equity investment firm Edison Partners led a $15 million investment in Houston-based electronics manufacturing-as-a-service platform MacroFab, the firm announced May 25.
The financing round includes an investment from publicly-traded electronics design software company Altium Ltd. MacroFab will use the funds to accelerate sales and marketing of its cloud manufacturing platform for mid-market industrial, energy IoT, robotics and computing enterprises.
The $156 billion global market for mid-volume electronics manufacturing production is expected to grow 8% through 2025, according to Edison Partners‘ announcement. MacroFab aggregates the unused capacity of 75-plus factories in North America to give mid-market manufacturers an alternative to offshoring.
“MacroFab is at the forefront of building supply chain resilience as the trend to nearshoring and multi-source shoring continues with rising costs in Asia, component shortages, and the increasing need for agile production. By optimizing both factory capacity and breadth of capability while digitizing that interface, CEO Misha Govshteyn and his leadership team are unlocking the $29 billion dollars in manufacturing volume that is currently stranded in North America. All this, plus expanding economic opportunities and job creation in local factory markets,” said Edison Partners Partner Daniel Herscovici, who led the investment.
Herscovici will join MacroFab’s board of directors.
Customers rely on MacroFab to scale prototype through pre-production and into full production. The company doubled in both revenue and headcount in 2020 and is on pace to do the same this year.
“Trying to fit smaller volumes in factories designed to do millions of units is a pain point for mid-market manufacturers. MacroFab unlocks access to a curated marketplace of factories that meet their need for agility, response time and transparency,” said MacroFab Chief Executive Officer Misha Govshteyn in a prepared statement. “Further, MacroFab addresses the reshoring trend accelerated by the challenges of 2020. Dan’s domain expertise and the Edison team’s counsel will be invaluable as we accelerate our platform and factory footprint.”
MacroFab is Edison’s 270th investment since its inception in 1986 and Herscovici’s sixth. Herscovici started his career on the floor of a plastics injection molding factory and later led mobile phone manufacturing operations teams at Lucent Bell Labs and Motorola.
