Fictiv Raises $35M to Revolutionize Hardware Manufacturing

Fictiv Secures $35 Million to Expand its Hardware Production Platform

The complexities associated with hardware production are well-known, yet Fictiv, a startup aiming to simplify this process, has announced a new funding round to further develop its platform.

Positioning itself as the “AWS of hardware,” Fictiv offers a comprehensive platform for hardware creation, enabling users to design, cost, and order components, ultimately managing the entire production and delivery process.

Platform Development and Supply Chain Enhancement

The recently secured $35 million will be allocated to the continued expansion of Fictiv’s platform and the underlying supply chain, which the company refers to as a “Digital Manufacturing Ecosystem.”

CEO and founder Dave Evans emphasized the company’s focus remains on specialized, low-volume production rather than mass-produced items. This includes items like specialized medical devices that don’t cater to broad consumer markets.

The company targets production runs between 1,000 and 10,000 units, a volume often challenging for manufacturers. These quantities are too large to be considered small-scale but lack the economies of scale of mass production. Evans notes this is the range where many products ultimately fail.

Investment Details and Backers

This Series D funding round is a combination of strategic and financial investments.

Key investors include:

• 40 North Ventures (leading the round)
• Honeywell
• Sumitomo Mitsui Banking Corp.
• Adit Ventures
• M²O
• Existing investors: Accel, G2VP, and Bill Gates

This latest funding brings Fictiv’s total raised capital to $92 million, though the company’s current valuation remains undisclosed.

Navigating Global Supply Chain Disruptions

Fictiv’s last funding round occurred nearly two years ago, in early 2019. The intervening period presented significant challenges, effectively testing the viability of the startup’s core concept.

Prior to the pandemic, the evolving trade dynamics between the U.S. and China created considerable uncertainty. The resulting tariff disputes caused a significant disruption to the global supply chain, with widespread shutdowns in China.

Fictiv responded by diversifying its manufacturing base, shifting production to locations in India and within the United States. This proactive approach proved beneficial when the initial wave of COVID-19 impacted China.

As the pandemic evolved, Fictiv continued to adapt, relocating production as plants closed in various countries. Subsequently, with trade tensions easing and COVID-19 contained in China, the company re-established operations there.

Evans believes this adaptability positioned Fictiv favorably during a period of unprecedented disruption.

From Prototypes to Global Manufacturing

Fictiv initially gained recognition by providing prototyping services to tech companies in the Bay Area, specializing in VR gadgets and utilizing technologies like injection molding, CNC machining, 3D printing, and urethane casting.

Customers leveraged Fictiv’s cloud-based software to design and order parts, which were then routed to the most suitable manufacturing facilities.

Today, Fictiv extends its services to large multinational corporations, assisting with smaller-scale manufacturing projects, particularly for new products or those that are difficult to efficiently produce in existing facilities.

For instance, a significant portion of Fictiv’s work with Honeywell focuses on hardware for its aerospace division. Medical devices and robotics represent two other key growth areas for the company.

Competitive Landscape

Fictiv is not alone in pursuing this market opportunity. Several other companies are developing similar marketplaces, targeting different aspects of the hardware production chain.

Competitors include:

• Geomiq (England)
• Carbon (backed by 40 North)
• Fathom (Oakland)
• Kreatize (Germany)
• Plethora (backed by GV and Founders Fund)
• Xometry

Focus on Digital Transformation

Evans and his investors intentionally avoid categorizing Fictiv as solely an “industrial technology” company, preferring to emphasize the broader potential of digital transformation and the platform’s diverse applications.

Marianne Wu, a managing director at 40 North Ventures, views Fictiv as a driver of “digital transformation, cloud-based SaaS and AI,” arguing that the “baggage of industrial tech” can limit perceptions of the opportunity.

Fictiv’s core value proposition lies in streamlining hardware production, potentially reducing lead times from three months to just one week, resulting in cost savings and increased efficiency.

“And when you speed up development, you see more products getting introduced,” Evans stated.

Addressing Sustainability Concerns

Despite the advancements, manufacturing’s environmental impact remains a significant challenge, particularly concerning carbon emissions from production and the resulting goods.

This issue is likely to gain prominence with the Biden administration’s commitment to reducing emissions and encouraging corporate sustainability initiatives.

Evans acknowledges the difficulty of achieving sustainability in manufacturing, admitting that “Sustainability and manufacturing are not synonymous.”

Currently, Fictiv is focusing on implementing better carbon credit programs and exploring the development of a carbon-neutral shipping program, aiming to provide customers with more sustainable choices. The company also plans to launch a tool for measuring carbon footprint.

“Sustainability is ripe for disruption, and we hope to have the first carbon-neutral shipping program, giving customers better choice for more sustainability. It’s on the shoulders of companies like us to drive this.”