A Westerville startup has grown by about 75% each of the past two years as it persuades more manufacturers to adopt predictive maintenance to avoid costly downtime.
AssetWatch Inc. has grown to more than 200 clients, with new ones joining daily, CEO Brian Graham said.
Its system of remote sensors with software alerts manufacturers that a motor or part seems on the verge of failing and suggests steps to prevent a breakdown.
"There is definitely word of mouth and sharing within our customer base (and) within the industry," Graham said in an interview. "The value we deliver is clearly there and recognized.
"Once you start getting momentum, it really does play out – if you continue to deliver the service and value the customer is expecting."
While growing and on track for its path to profitability, AssetWatch has raised $38 million toward growing customer support and adding product features.
"This is a multi-year, multi-decade journey – we believe it will be truly transformational when our clients fully embrace what a proactive maintenance culture is," said Will Zell, co-founder and executive chairman, in the joint interview.
Wellington Management, a global independent asset management firm, led the Series B.
The round increased AssetWatch's valuation, although the total is not disclosed. In a tough year for VC investing, many tech startups have instead gone through what's known as "down rounds."
"We have an investable business – arguably one of the most investable in this space," Graham said.
Wellington was drawn to the company's "unique technology, strong team and proven impact on manufacturing productivity." Sean Petersen, Wellington's sector lead for private climate investing, said in a release.
“They are uniquely positioned to lead the predictive maintenance revolution and we’re looking forward to the company’s next phase of growth.”
Repeat investors from the previous round also joined this latest round, including G2 Venture Partners, Triangle Peak Partners, Standard Investments, Osage University Partners and JobsOhio Growth Capital Fund, which is the VC initiative of the statewide economic development organization.
"That's a testament to (the Series A investors') continued faith in the team and the business that we've grown," Graham said.
Both Wellington and G2 focus on sustainability and AssetWatch fits by keeping clients from wasting energy and materials on equipment breakdowns.
Wellington also can introduce the company to its wider network.
"They really understand what is needed in the longer term in the context of potentially an IPO or a strategic sale," Graham said.
The former Nikola Labs Inc. changed its name in 2023. Graham said the rebranding led by Zell has helped AssetWatch stand out at trade shows.
Based in Westerville, the company has grown to about 190 employees nationwide in a hybrid office and remote model, up from 100 just over a year ago.
"We'll always have a core base here in Ohio – that will never change," Graham said. But AssetWatch needs a distributed workforce to serve clients; it's about to establish a Canadian presence.
Clients span various industries, including chemicals, metals, plastics, packaging and energy.
In addition to its sensors that detect vibration or overheating in moving parts, the company is releasing new products that monitor oil levels.
The latest round brings AssetWatch to $93 million cumulative outside investment since inception. Revenue is not disclosed.
Columbus-based Worthington Industries (its former name) was one of the first customers when the system rolled out in 2018, providing feedback that helped refine the product, which launched more broadly in 2019.
Worthington since has expanded the system to multiple facilities. And now it represents two clients, as it split at year's end into Worthington Enterprises and Worthington Steel.
"We test new innovations in their facility – that’s the partnership we have," Graham said.
On average, clients save $8 for every dollar they spend on AssetWatch, according to its website.
The company shifted its strategy six years ago to focus on proactive equipment maintenance based on customer demand – essentially becoming a new company.
"What we want to build is a category-defining company that is built to last," Zell said. "Our relationships with customers will last 20-30 years. ... It is not a business that is built to sell; it is a business built to endure."
