Fintech startup MakersHub raises $4.5M seed round
MakersHub, a fintech startup building a modern order flow management system for the advanced manufacturing industry, raised a $4.5 million seed round, Axios has learned exclusively.
Why it matters: Vertically focused fintech platforms are emerging across various industries — like construction, logistics and manufacturing — that still operate on antiquated billing and invoicing systems.
Context: CEO Phong Ngo says advanced manufacturers need to source both off-the-shelf components and custom componentry from machine shop suppliers.
- Today, those parts are sourced by email and phone, while order tracking and submitting invoice payments are done manually. And when it comes to payment, buyers and suppliers get stuck waiting for invoices to be paid.
- "Oftentimes, the manufacturer has to bear the cash flow constraints, and that is a major challenge, especially for small- and medium-sized businesses," Ngo says.
How it works: MakersHub is building a platform for advanced manufacturers to source, track, manage and pay for components they need, while also helping them get paid for the materials they produce.
- It contains a marketplace of 12,000 suppliers across North America, an order flow management dashboard to simplify quotes and the order process, and an invoicing tool that can offer working capital and help both sides get paid faster.
- "In our view, these are very credit-worthy borrowers because of how the industry structure works," says MakersHub president Charles Howe. "But because of how these businesses are set up, the way a bank would seek to understand them is very challenging."
Of note: MakersHub was founded by Ngo, who led operations at advanced manufacturer General Plasma and felt these pain-points firsthand, and Howe, who previously worked at Citi Ventures and brings fintech and payments expertise.
- The seed round was led by TTV Capital, with participation from QED Investors, Canapi Ventures, Dash Fund and Saluda Grade.