Introduction to Augury’s Funding

With companies such as Nvidia and SoftBank prioritizing industrial robotics in their future research and development, a startup has secured funding for another aspect of AI application in factory settings. Augury, a developer of AI-based hardware designed to measure vibrations, sound, temperature, and other factors to diagnose machine performance and identify potential issues, has raised $72.5 million. This investment will be utilized to expand its customer base and further develop its technology.

Augury’s Technology and Impact

To date, Augury has monitored over 500 million hours of machine operations, encompassing a wide range of equipment manufacturers and processes. According to CEO and founder Saar Yoskovitz, the company possesses “the largest data set of mechanical signals,” which he refers to as “the malfunction dictionary.”

Yoskovitz explained, “We’ve reached a point where, if you have a pump in your factory, we don’t need to build a model for your specific machine because we’ve seen over 20,000 pumps before.”

Funding and Investors

This equity investment represents the first tranche of a Series F funding round, which is expected to reach approximately $100 million upon completion in the coming months. Yoskovitz confirmed that the valuation is over $1 billion, marking an upround. Lightrock is leading this round, with participation from existing investors, including Insight Venture Partners, Eclipse Ventures, Munich Re Venture Capital, Qualcomm Ventures, Lerer Hippeau Ventures, and Qumra Capital.

The funding comes on the heels of significant business growth since Augury’s last funding round in 2021, with revenues increasing five-fold. The company’s customers include major manufacturing firms like PepsiCo, Nestle, and Dupont, as well as a long list of companies in the gas and energy sector through its partnership with Baker Hughes.

Industry Context and Applications

The Covid-19 pandemic highlighted the importance of supply chains worldwide. However, the adoption of digital transformation in industrial settings has been slower due to the long lifecycles of expensive equipment, which can extend into decades.

Augury addresses this challenge by developing sensors that monitor machine operations, collecting data to train its algorithms and identify potential issues. This information guides humans in repairing machines, and it will remain essential even if fixing robots become more prevalent in the future.

Talent Shortage and Augury’s Solution

Yoskovitz emphasized that the largest challenge facing the industry is a talent shortage, with an aging workforce and a lack of interest from the next generation in pursuing careers in manufacturing.

Augury’s solution is to “digitize the knowledge” and assist factories in repairing their equipment, thereby helping to address the talent gap.

Sustainability Focus

Lead investor Lightrock focuses on sustainability investing, which has become a critical field in recent times. The firm’s approach to investing in companies that prioritize sustainability while building solid businesses aligns with Augury’s mission.

According to Ashish Puri, a partner at Lightrock, Augury is a prime example of a business that combines productivity with a green approach, making it an attractive investment opportunity.