About the Startup Business
Based out of New York City, Fero Labs is a software as a service, or SaaS, startup company that implements machine learning and AI for industrial manufacturing purposes. Through the use of machine learning and AI, the business has a mission to help industrial manufacturers increase overall productivity.
According to the startup, its AI and machine learning software can help industrial manufacturers enhance production efficiency, reduce overall industrial waste, and improve overall workplace and product quality. The software developed by the company can detect areas of operation that can be improved. Some of these include workflow optimization, the need for possible equipment maintenance, a reduction in energy consumption, and the insight to predict potential product defects or failures so that corrective action can be taken.
In addition, the AI and machine learning software provides data and reporting tools so that customers can make informed and trusted decisions regarding industrial operations. The business has serviced many large corporations in a variety of industrial sectors such as Ford, Intel, Microsoft, Covestro, Gerdau, Henkel, and Volvo.
AI and machine learning have made their way into nearly every industry that one could think of as it can oftentimes increase overall productivity and lighten workloads for employees. Forbes reported in 2018 that machine learning and AI in manufacturing had increased product defect detection rates by 90%. Additionally, the same report stated that machine learning and AI in industrial manufacturing could also help save potentially lost sales and reduce supply chain errors.
Fero Labs is capitalizing on an AI and machine learning market that has proven the value it can add for industrial manufacturers. Markets and Markets reported in 2020 that AI in manufacturing markets was valued at $1.1 billion in 2026 and is projected to reach $16.7 billion by 2026 — growing at a CAGR of 57.2% from 2020 to 2026.
$9 Million Series A
Fero Labs announced it raised $9 million in a Series A funding round led by Innovation Endeavors. Deutsche Invest VC also participated in this round of funding for the company.
Sam Smith-Eppsteiner, a partner at Innovation Endeavors, said in a statement, “Fero Labs equips industrial manufacturing professionals — like process and chemical engineers — with cutting-edge machine learning capabilities...Not only does Fero Labs drive top-line throughput and bottom-line profitability for manufacturers, but the product also helps the world”s largest producers become more sustainable.”
Despite ongoing issues and restrictive work policies caused by the COVID-19 pandemic, the startup stated that business grew by 400% last year. Moreover, the AI and machine learning startup added that its customers averaged a 10% increase in profitability as a result of using its software.
With the new funding, the manufacturing software company plans to further develop its AI and machine learning software to meet with increasing demand for its product. Furthermore, the business will explore new potential industrial sectors; however, Fero Labs did not disclose specific details.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.