Augury Secures $55M to Predict Machine Failures with AI

Following Amazon’s impending launch of a new enterprise solution designed to assess machine functionality through the analysis of external factors like sound, vibration, and temperature, a leading startup in this field is announcing a substantial funding achievement.

Augury, a company collaborating with major corporations such as Colgate and Heineken to optimize machine performance across their production and distribution networks, has secured $55 million in new investment. According to co-founder and CEO Saar Yoskovitz, this funding will facilitate the expansion of the company’s service offerings, broaden its international customer reach, and strengthen its network of partner companies, ultimately enabling it to serve a wider range of clients, including smaller businesses and growing companies.

This Series D funding round is spearheaded by Qumra Capital, a late-stage venture capital firm headquartered in Israel (Augury was initially founded in Haifa and now maintains a secondary headquarters in New York), with contributions from existing investors including Insight Venture Partners, Eclipse Ventures, Munich Re Venture Capital, Qualcomm Ventures, and Lerer Hippeau Ventures.

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Established in 2011 and operating publicly since 2014, Augury has now raised a total of $106 million, with sources indicating a company valuation between $200 million and $300 million.

This expansion occurs within a dynamic period for the broader industrial technology sector, and in relation to the competitive environment.

A September report from Business Insider revealed Amazon’s development of a new service, internally named AWS Thor, which appears to directly compete with Augury by offering businesses the ability to monitor machine performance characteristics and identify potential breakdowns or maintenance needs. Reports suggest Thor could be available as early as this month – making Augury’s capital infusion to broaden its customer base and enhance its analytical capabilities particularly opportune.

More broadly, this funding and Augury’s growth are occurring at a crucial time for the industrial market. Services like these represent one of the first practical business models within the realm of IoT – a market that has long promised substantial returns but has yet to fully deliver.

Furthermore, the current global context is playing a significant role. The COVID-19 pandemic and its widespread consequences have heightened the urgency for businesses to adopt digital systems that support remote work processes.

While much attention has been given to the impact on “knowledge workers” – those whose jobs primarily involve computers and desk work – the same trend is unfolding for those working directly with machinery on assembly and production lines.

Augury provides not only tools for identifying machines operating below peak efficiency, but also delivers this information to maintenance personnel to expedite repairs and prevent irreparable damage. The company is also developing a comprehensive partner network to facilitate the ordering and delivery of necessary replacement parts.

“Store shelves are empty, and manufacturers suddenly require tools for improved collaboration and risk management,” stated Yoskovitz, emphasizing that machine failures, particularly during periods of high demand, can create significant disruptions throughout the supply chain.

Augury’s partners include ProPac in Germany, Caverion in Finland, Pluriservice in Italy, Fuse IoT in Latin and South America, and 42 North in North America. Strategic investors, such as Munich Re, a leading insurance company, also play a key role. Additional OEMs and service providers include Grundfos, Carrier, Trane and DSV.

“The Covid-19 crisis has highlighted critical weaknesses in the global supply chain,” said Sivan Shamri Dahan, managing partner at Qumra Capital, in a press statement. “The scarcity of essential goods, driven by increased demand and manufacturers’ inability to meet supply requirements, underscored the urgent need for digital transformation in the manufacturing sector. Augury, a key player in this digital revolution, is experiencing substantial growth. Its proven track record of expansion and execution positions it as a potential leader in the expansive IIoT market. We are pleased to support Augury and participate in its promising journey.”