NewSpring’s Investment in aPriori and the Future of PCM Software
October 23, 2019
In today’s highly-competitive global manufacturing landscape, time-to-market and cost containment can make or break the success of a product launch.
Product cost management (PCM) in manufacturing has become a critical function to ensure a product meets its profit and cost targets. Product designers must make sure they are not overpaying for outsourced parts, introducing costly production delays, or failing to notice faulty designs.
Gaining visibility into all of these moving parts and how they interact to form the bigger picture presents challenges. Traditionally, the PCM process has been complex, opaque, and could only be performed by highly-trained specialists. However, PCM remains critical to protecting product profitability and accelerating time to market.
Thankfully, the introduction of new PCM technologies are changing the way these functions are performed, and this market is growing fast. After being valued at $43.5 billion in 2017, the PCM software market is expected to reach $63.2 billion by 2023. NewSpring has prioritized this fast-growing market by funding transformative companies that are focused on bringing powerful PCM capabilities to more manufacturing facilities.
aPriori is doing just that. The company’s cost simulation and manufacturability software are bridging the gap between product development and production for the world’s top manufacturers.
aPriori Helps Top Manufacturers Compete
NewSpring completed a $12 million financing round in aPriori to help accelerate the growth trajectory of the company and ultimately get its industry-leading PCM software into the hands of more manufacturers and product designers. aPriori’s software and services generate product cost savings for manufacturing and product innovation companies. Using aPriori’s real-time manufacturability and product cost assessments, employees in engineering, sourcing, and manufacturing are empowered to make more-informed decisions that drive costs down pre- and post-production.
With aPriori, manufacturers can launch products at cost targets, maximize savings in re-work projects, and avoid overpaying for sourced parts. Its formula is already working for companies like Boeing, Ford, and Halliburton.
aPriori is also strategically expanding its footprint into new areas. With its recently announced partnership with Autodesk, aPriori is expanding into the concept design phase of product development by integrating its manufacturing cost insights for generative design. With aPriori, Autodesk customers can now for the first time ever view manufacturing cost estimates for every design result in their generative study.
In addition to aPriori’s fast growth, competitive industry position, and leading software and technologies, NewSpring also found a strong, well-established management team led by aPriori President and CEO, Stephanie Feraday, who has created an innovative culture of employees with a clear vision for the future of the company.
Our partnership with aPriori further expands our investments in companies providing innovative technologies that are transforming industries, including NuORDER, Arrive, and ExecOnline.
We’re excited to work with Stephanie and the rest of the management team at aPriori, as well as our co-investors Autodesk, Sigma Prime, Sigma Partners, and Gutbrain, to expand the reach of this technology and further modernize the PCM process.
To view the entire Growth portfolio or to learn more about NewSpring Growth’s investment criteria, please visit the strategy page, here.