Estonian on-demand metal fabrication platform Fractory raised €4.8M
Estonian on-demand metal fabrication platform Fractory raised €4.8M from lead investor Finnish VC Kvanted, and existing company’s backers, such as Estonian Trind Ventures and Specialist VC (former United Angels VC), Estonian accelerator Startup Wise Guys, Finnish Superhero Capital, Amsterdam-based OTB Ventures, and Swiss investment firm Verve Ventures.
Founded in 2017 by Martin Vares, Joosep Merelaht, and Rein Torm, Fractory is a platform where it is possible to order metal fabrication online. First, the customer uploads CAD files with drawings of the metal models, chooses the desired material type, thickness, and quantity that suits him, and selects the delivery address. The price quote includes laser cutting, bending, threading/countersinking, and powder coating. In addition, the startup provides CNC machining services - manufacturing technology to produce custom metal and plastic parts.
If the client agrees with the price, Fractory sends his order to production and delivers within nine days. The startup partners with manufacturers from the United Kingdom. Mainly, the company operates in Scandinavia and the UK, but it has already delivered parts to the United States, the Baltics, and other countries. Fractory employs 64 people.
In the first quarter of 2023, Fractory was one of the biggest payers of labor taxes in Estonian county Tartu - €300K. And in 2022, the company’s turnover was nearly €15M.
Fractory will use the investment to expand in existing markets, such as the United Kingdom and Scandinavia. It will focus on offering the clients an increase in production capacity and volume.
Helsinki-based Kvanted is an early-stage VC with a focus on companies building industrial technologies in Northern Europe. The initial ticket ranges from €0,5M–€3M. Kvanted has just launched its €70M fund. The firm intends to invest in approximately 20 companies.
Specialist VC is a venture capital fund supporting companies from the Baltic region, Finland, and Ukraine. Usually, it starts financing from €250K. The fund started its work in Tallinn in 2017. At the beginning of 2022, Specialist VC launched a new €50M, which gets support from Estonian LHV pension funds and the European Investment Fund through the European Guarantee Fund and the Baltic Innovation Fund 2.
Trind Ventures is an early-stage venture fund with an initial ticket of €0,1M-€1M, and follow-on investments up to €5M per company. The partners are Joel Aasmäe, Ivar Siimar, Kimmo Irpola, Taavi Lepmets, and Reima Linnanvirta. In September 2022, the company closed Fund II at €55M. It aimed to invest in 30–40 startups in four years.
Launched in 2012, Estonian Startup Wise Guys is an accelerator that invests in early-stage startups from the Baltic, Central European, and African regions. It has invested in more than 350 startups and had 13 exits. Startup Wise Guys typically invests up to €500K per startup through multiple funds, which manage €45M and are backed by more than 150 investors. The CEO of Startup Wise Guys is Сristobal Аlonso.
