Fractory, the manufacturing technology business, today announces a new funding round. The £4.2m round is led by a brand-new early-stage investment company, Kvanted, whose focus is on companies building industrial technologies in Northern Europe.
Other participants in the funding round include all those venture capital groups, angel investors and entrepreneurs who have bought into Fractory since it launched in 2017, amongst them Superhero Capital, OTB Ventures, Trind Ventures, United Angels VC, Startup Wise Guys and Verve Ventures.
Fractory employs 70 people. The company is headquartered in Manchester at the Bonded Warehouse. This year it placed 32nd in the Financial Times’ ranking of Europe’s 1,000 fastest growing companies in 2023.
The increased capital will be used to grow Fractory in markets and territories where the company already operates, and where foundations are well-established, most especially the UK. Specifically, Fractory aims to become an irreplaceable partner for its growing client base, achieving this by increasing the capabilities it offers and the capacities it handles.
Martin Vares, co-founder and CEO of Fractory, explains:
“Kvanted understands exactly what we are doing. They have a longer-than-average investment period to align with the lengthier development cycles in industrial tech. And they act as a connector, in our case bringing innovative technology providers together with traditional industrial companies. Kvanted has broad industry experience and unique networks, and their fund investors include prominent industrial players such as Oras Invest. It’s the best possible strategic partnership for Fractory at this stage.”
Kvanted's founding partner, Axel Ahlström, says,
“There’s a lot of untapped potential in the industrial sector, and our aim is to accelerate industrial innovation, connecting industrial technology startups with established corporations. Fractory, which is one of those startups, is already on an impressive trajectory, with increasing client numbers, and our aim is to help it become more widely adopted across industry. Fractory’s important position in the world of manufacturing is clear to us and we see the scope for its growth increasing through this partnership.”
Kvanted is a just-launched early-stage investor, having raised its first fund of 70 million euros. It is based in Finland and Fractory is its first investment.
Other Participants
VCs, angels and entrepreneurs who have been with Fractory since launch have also taken part in this raise.
“That existing investors are increasing their interest is a sign of approval,”
says Martin Vares, Fractory CEO.
“VC’s, like Superhero Capital, continuing to back us is a vote of confidence in our considerable potential. Also, that entrepreneurs like Taavi Kotka are with us again in this round is very special.”
Jakob Storå, a partner at Finland-based Superhero Capital, says:
“Superhero participated in Fractory’s first investment round back in 2019. As we've been able to witness Fractory’s progress close-up and see its great potential, we are happy to support the company in this round as well. Fractory is building a connected manufacturing ecosystem that has the potential to revolutionise manufacturing procurement and we are super-excited to be part of the next step on this journey.
“We’re also happy that Kvanted joins us as an investor in this round. With its industry expertise and connections, Kvanted can help Fractory’s solution get an even stronger foothold in the market."
About Fractory
Fractory has been trading since 2017 and was founded by mechanical engineer-turned entrepreneur Martin Vares along with Joosep Merelaht and Rein Torm. Fractory is an online platform connecting engineers with production capacity. It has automated the manufacturing procurement process so that engineers simply upload design files to get instant quotes and delivery times, with Fractory taking responsibility for every aspect of the order. Customers use Fractory for series manufacturing, project manufacturing and prototyping too.
About Kvanted
Founded in 2023, Kvanted is an early-stage investor focusing on industrial technology. Founded and headquartered in Helsinki, Kvanted focuses on early-stage companies developing new software, hardware, and service solutions for the industrial sector with a mission to build a more sustainable future. With their first fund of €70 million, Kvanted is the first pure-play industrial technology investor in the Nordic region. The founding partners of Kvanted are Eerik Paasikivi, Maria Wasastjerna, and Axel Ahlström.
With a mission of building a more sustainable and efficient industry, Kvanted connects traditional industries with innovative technology startups. Kvanted invests in both hardware and software alike, as well as service companies developing new solutions for the industrial value chain, with a strong focus on industrial automation, sustainability, and supply chain resilience.
The first fund will invest in around 20 companies, with initial investments ranging from €0.5 to €3 million, and a longer-than-average investment term to align with the longer development cycles in the industrial domain.