The inspiration behind FactoryFour was the byproduct of the innovation from a non-profit that was manufacturing orthopedic treatment in the foothills of Himalayas. Drawing on the founder’s experience, FactoryFour streamlines archaic manufacturing processes by replacing legacy, fragemented software and spreadsheets with a unifying, real-time system of record that is easy to use, highly customizable, and quick to deploy. THe platform is suited for manufacturers from various industries, and it is flexible enough to ideal for uses that require unique workflows and traceability.
LA TechWatch spoke with CEO Param Shah to learn more about FactoryFour, its future plans, and the company’s latest round of funding, which brings the total funding raised to $5.2M over two rounds.
Who were your investors and how much did you raise?
Series A – $5M, August Capital led the round and Refactor Capital reinvested
Tell us about the product or service that FactoryFour offers.
FactoryFour is reinventing manufacturing management around a modern technology stack. We are replacing legacy software and spreadsheets with a real-time system of record that is highly customizable, simple to use, and quick to deploy.
What inspired you to start FactoryFour?
Prior to FactoryFour, I was running a nonprofit that provided orthopedic treatment and devices to children in rural India. We manufactured and created the devices in a lab built in the foothills of the Himalayas. We initially were trying to find a way to more effectively collect data from the field and create devices, as the current manual process was archaic. We built out the initial software products in order to solve this problem, and we realized that many other manufacturers in multiple other verticals had the same issue. The software we built then eventually became the foundation of FactoryFour’s product.
Types of manufacturing that require unique workflows and traceability, such as ones with human labor, custom production, etc. This primarily includes batch and job manufacturing across multiple verticals.
What market you are targeting and how big is it?
We target manufacturers with complex production processes across multiple industries, ranging from electronics to medical devices. The issues we solve for them include traceability, managing custom production, and more.
What’s your business model?
We are a SaaS company that sells our product to manufacturers of all sizes on an annual or multi-year subscription basis. Our business model is unique in that we don’t charge our customers an implementation fee.
What was the funding process like?
The funding process was quick, productive, and educational. I had built a strong relationship with Villi Iltchev from August Capital prior to raising funding, so we knew we wanted to partner together. We discussed several strategies and the business prior to doing the formal raise, and by the time we got to where it made sense to raise, we were ready.
What factors about your business led your investors to write the check?
Our software is a foundation product: it is something off of which manufacturers can build their business, harness digital technologies, and use well into the future to manage their production. This makes us a staple in a manufacturer’s ecosystem, and with our modern technology stack and unique interface, we’re a much-needed refresh on decades of past technology.
What are the milestones you plan to achieve in the next six months?
We plan to invest heavily in sales and marketing, expanding our global footprint, and utilizing the products we’ve built to serve a fast-growing customer base.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
If you are first looking for capital, remember that you are raising money from a human, not a firm or a corporation. Make a great relationship with that person and make sure they believe in you and your mission, and the capital will take care of itself.
What is your favorite restaurant in LA?