Novity Announces $7.8M of Funding
Novity Secures $7.8 Million in New Funding to Revolutionize Predictive Maintenance with its TruPrognostics AI
San Carlos, CA, Feb 21, 2024. – Novity®, the provider of the TruPrognostics™ AI, a truly predictive maintenance AI for process industry clients, is pleased to announce the successful closure of $7.8 million in financing. The investment will accelerate Novity's mission to transform how industries manage and optimize their maintenance operations. On the heels of Novity’s commercial traction, which includes Fortune 1000 (F1000) customers, the investment was led by WERU Investment in a global consortium of investors including Myriad Venture Partners and METAWATER, Co., Ltd.
Unplanned downtime costs industrial manufacturers more than one trillion dollars per year, according to Siemens' True Cost of Downtime report, and predictive maintenance has long been considered a potential solution to this problem. Developing high-performing predictive AI models requires large amounts of relevant historical data, which is often lacking in industrial environments. Novity's TruPrognostics AI is a breakthrough solution to this problem, implementing a novel combination of machine learning and physics-based models of equipment, enabling failure prediction accuracies of better than 85% in production at customer locations.
"This investment marks a significant milestone for Novity and reaffirms the value of our unique approach to truly predictive maintenance,” said Markus Larsson, co-founder and CEO of Novity. “The results from our commercial installations are extremely encouraging, with prediction accuracy of better than 85%. We are proud of the commercial traction we have already achieved and look forward to using this funding to continue innovating and delivering value to our clients.”
After spinning its team and technology out of Xerox PARC in 2022, Novity is now serving a growing number of Fortune 1000 clients who recognize the transformative potential of truly predictive maintenance. The TruPrognostics AI has been instrumental in reducing unplanned downtime, maintenance costs, and operational disruptions across various industries, including manufacturing, oil and gas, and chemicals.
Tadashi Takiguchi of WERU Investment, Chris Fisher of Myriad, and Shigematsu Nobuyuki of Metawater, all expressed their enthusiasm for Novity's future. Takiguchi stated, "Based on our extensive research of this domain and the broad industrial needs that drive it, we see tremendous value in the combination of Novity’s technological DNA and the deep industrial foundation of its origin. We are proud to support Novity following their spinout and look forward to continuing to work closely together with them and the other investors to bring a fundamentally new era in operational technology to the broader industry.”
“With factories losing billions of dollars annually due to unplanned downtime, cost reduction is crucial,” said Fisher. "Myriad seeks out visionary companies strategically positioned to drive meaningful change in critical sectors. We eagerly support Novity’s journey in democratizing predictive maintenance for process industry operators, enabling them to avert unplanned downtime, enhance productivity and elevate safety and environmental performance.”
Shigematsu concluded, "Novity’s TruPrognostics enabling truly predictive maintenance is of key strategic value for any industrial vertical. As Japan’s leading water treatment company, we are excited to participate in this investment.”
Following early success with commercial installations in the energy sector, Novity will leverage WERU’s expertise in industrially critical deep tech ventures, Myriad’s extensive network of large US industrial companies, and Metawater’s expertise in water and environmental businesses to rapidly replicate that success in the wider chemicals, manufacturing, and water/environmental sectors.
The $7.8 million in funding will be used to further enhance Novity's TruPrognostics AI, acquire additional customers, and improve its software product. The company is fully dedicated to its mission of enabling process industry clients to operate more predictably, more efficiently, and more cleanly.