Baltimore tech startup FactoryFour said Friday it raised $5 million that will enable it to more quickly develop software that helps manufacturers manage production.
The $5 million funding round was led by August Capital, a 20-year-old venture capital firm that invests in “breakthrough” startups in information technology. Refactor Capital, an existing FactoryFour investor, also participated in the round.
FactoryFour, based in the city’s Mt. Vernon neighborhood, created a real time, customizable method for manufacturers to manage production. It’s designed to replace older software and manual spreadsheets that many company’s use. The firm has more than 35 customers in the U.S. and Europe and expects to grow to 100 clients by early next year.
“Traditional manufacturing software is rigid and outdated, unable to capture the nuances in a manufacturer’s production processes,” said Param Shah, FactoryFour’s founder and CEO, in the company’s announcement.
He started the firm in 2015 after leaving Johns Hopkins University, where he had studied computer science. He became interested in manufacturing when he began looking into ways to create affordable prosthetics for markets in third world countries.
Before the latest round of funding, the company had raised $3 million in seed capital.