The Industrial manufacturing sector is undergoing a massive digital transformation. The macro imperatives of Industry 4.0 and Industrial IoT are providing more insight to operations and resulting in improved efficiency and reduced costs. Datanomix is an emerging player in the space. The New Hampshire-based company is driving digital transformation for industrial manufacturers by delivering real-time production intelligence to shop floor staff in order to increase productivity, collaboration and engagement. Datanomix has produced a simple, turnkey platform that redefines how industrial manufacturers manage their operations.
Competition in this space consists of legacy Manufacturing Execution Systems (MES) and machine monitoring systems, which are helpful at reconciling long-term data, but are extremely painful to use and do not provide real-time insight. Machine manufacturers on the factory floor themselves only provide barebones functionality for their own brand of equipment, but their competency is not software, analytics, deep learning, etc. Homegrown is the other option, but very few shops globally can afford to hire this type of specialized talent.
The Fusion software platform has direct and tangible impact on revenue and EBITDA, unlocking enhanced multiples for the 20,000+ industrial manufacturers in the United States. The Datanomix secret sauce is an ML-based composite score called Fusion Factor. This is a momentum indicator that shows real-time deviations from optimal production using heuristics on the data streams from machines with no human input whatsoever. The company has spent over 18 months building their platform, technology and foundation via strategic partnerships with lighthouse customers, including a 100,000 square foot machine shop who is a paying customer and also a strategic investor.
The founding team consists of John Joseph (CEO) and Greg McHale (CTO). They have deep start-up DNA in their respective domains – John as an early GTM leader and Greg as a from scratch product lead – whose combined superpower is enterprise simplicity both in sales processes and product experiences. They have successfully built and sold turnkey, enterprise class data and analytics products at companies such as Equallogic (acquired by Dell for $1.4B) and DataGravity (acquired by Hytrust). The early product team consists of top-tier talent from cloud analytics, data management and manufacturing process backgrounds.
After successfully launching and piloting their solution to several manufacturers in New England, Datanomix will next be deploying formal sales and marketing programs to the Northeast region of the country and expanding with success and scale throughout the United States. The revenue model is a recurring price/machine model with machine, feature, packages and support upgrade opportunities.
Much of the York IE investment thesis revolves around Internet-enabled/SaaS entrants driving disruption in markets ripe for it. Manufacturing, and especially the CNC (Computer Numerical Control) arena, are perfect examples of that type of opportunity. We believe in the founding team, the value proposition of the product, and the smart and scaling GTM plan. This capital is 20 months and will drive the business to approx. $2M ARR across upwards of 100 customers.