New funding supports development of tools for rapid, compliant product development amid U.S. manufacturing challenges
Cofactr, a supply chain and logistics platform for hardware manufacturers, announced that it has closed a $17.2 million Series A funding round. Bain Capital Ventures led the round along with investors Y Combinator, Floating Point Ventures, Broom and DNX. This brings Cofactr’s total funding to $28.8 million.
The funding comes as the United States struggles to scale up domestic manufacturing, especially in critical sectors such as drone production. Concerns about dependence on Chinese drones have increased pressure to strengthen U.S. manufacturing capabilities. But companies face significant obstacles, including complex regulatory compliance and the need for fast, adaptable supply chains.
Cofactr’s platform aims to solve these challenges by helping manufacturers accelerate innovation while addressing compliance and operational challenges.
Simplify complex supply chains
Cofactr’s platform addresses the increasing speed and compliance demands in hardware manufacturing. Innovation often requires companies to move quickly from prototype to finished product. However, traditional internal processes and external regulations can cause delays.
“Traditional supply chain management has left a critical gap for innovative companies exploring the electronics and mechanical sectors,” said Matthew Haber, CEO and co-founder of Cofactr. “We are filling this by creating a seamless link between product life cycle management (PLM), enterprise resource planning (ERP), and manufacturing execution systems (MES).”
Cofactr provides tools to manage component sourcing, supplier procurement, and logistics while complying with strict government and corporate policies. The platform integrates features such as a pre-verified supplier network, payment processing, and real-time inventory tracking.
Solutions for highly compliant industries
The need for a strong domestic supply chain is especially acute in regulated industries such as aerospace and defense, where companies receiving government contracts must source from verified suppliers located in the United States or an approved country. These requirements have made supply chain management more complex. This is especially true for industries like drones, which must increasingly scale up production to meet demand.
“For these companies, it’s not about agility or rigor, it’s both,” said Phillip Gulley, chief strategy officer and co-founder of Cofactr. “We’re giving oversight departments the control, visibility and processes they need, while giving product engineers the tools they need to get products to market quickly.”
ITAR compliant and operating entirely in the government cloud on AWS, Cofactr’s platform ensures manufacturers meet high compliance standards while maintaining speed and efficiency.
Meet the needs of engineers and procurement teams
Ajay Agarwal, partner at Bain Capital Ventures, pointed out that electronic components account for a significant portion of costs in industries such as aerospace and robotics. Existing procurement tools often fail to meet the specialized needs of these sectors.
“Cofactr is the first modern AI solution for end-to-end electronics procurement and logistics that meets the needs of engineers, procurement teams, and suppliers,” said Agarwal.
Cofactr’s customer base includes divisions of some of the world’s largest technology and automotive companies.
Strengthening domestic manufacturing
U.S. efforts to reduce dependence on Chinese drones highlight the urgency of agile, compliant domestic manufacturing solutions. Cofactr’s tools can play a critical role in enabling hardware manufacturers to meet these needs by streamlining production processes and ensuring regulatory compliance.
With this new funding, Cofactr plans to introduce additional product categories, with several new applications scheduled to be released each year. The company’s efforts reflect the growing importance of an efficient and compliant supply chain in hardware manufacturing.
To learn more about Cofactr, visit Cofactr. To learn more about Bain Capital Ventures, visit Bain Capital Ventures.
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Miriam McNabb is the Editor-in-Chief of DRONELIFE, CEO of JobForDrones, a marketplace for professional drone services, and a keen observer of the emerging drone industry and the drone regulatory environment. Miriam has authored over 3,000 articles focused on the commercial drone space and is an international speaker and recognized industry figure. Miriam holds a degree from the University of Chicago and has over 20 years of experience in high-tech sales and marketing of new technologies.
If you would like to consult or write about the drone industry, please email Miriam.
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