A fast-growing electronics manufacturing company has secured a $42 million raise to help further its growth amid changes in supply chains.
Houston-based MacroFab announced the Series C raise on Jan. 18, confirming the additional funding would take its total funding raised to $82 million. The funding will be used to continue the company's growth trajectory and to further develop its cloud-based manufacturing services.
The round was led by Colorado-based Foundry and California-based BMW iVentures. Returning investors include Austin-based ATX Venture Partners and New Jersey-based Edison Partners.
MacroFab highlighted increased shipments and other expansions in its announcement, noting it opened a facility in Mexico and doubled its workforce in 2022. The company develops a digital platform that allows small to medium-sized customers to build, test and package everything from electronics components to fully assembled electronics products.
MacroFab uses capacity at more than 75 factories in the U.S., Canada and Mexico to manufacture products for customers, reducing risks of supply chain and freight disruptions from other suppliers around the globe.
CEO Misha Govshteyn, who took over in 2018, said the round’s investors recognize trends in manufacturing related to supply chains. MacroFab's shipments were up 275% year over year, as more companies moved their electronics production to North America, according to the release.
"We are in the earliest stages of repositioning the supply chain to be more localized and focused on what matters to customers most — the ability to deliver products on time, meet changing requirements and achieve a more sustainable ecological footprint,” Govshteyn said.
In 2020, MacroFab was highlighted by the Houston-based investment fund Texas Halo Fund — which includes MacroFab in its portfolio — as a company that had avoided significant disruption during the Covid-19 pandemic.
A blog post from Foundry partner Seth Levine said that Foundry connected to MacroFab through the Colorado-based early-stage investment business Techstars, one of the participants in MacroFab’s $2 million seed round raised in 2015.
The latest raise follows MacroFab closing $15 million in Series B funding in 2021, which it used to hire additional sales and marketing roles and to invest in research and development. In 2019, the company raised $6.56 million of a $9.56 equity offering from 13 investors.
MacroFab is the brainchild of Chris Church, who co-founded local cybersecurity company Alert Logic alongside Govshteyn and currently serves as MacroFab’s chief product officer after stepping down as CEO.
MacroFab was named No. 30 in the Houston Business Journal’s 2022 Fast 100 List, which ranks privately held companies by revenue growth from 2019 to 2021. Church was named as a 2022 finalist for Ernst & Young’s 2022 Entrepreneur of the Year in May.
