Korean strategic, financial investors back industrial AI start-up
MakinaRocks, a Korean artificial intelligence (AI) start-up that helps manufacturers achieve production efficiencies through the application of deep learning technology, has raised KRW12 billion ($10 million) in Series A funding.
Strategic support came from the venture capital arms of LG Group and Applied Materials as well as from Hyundai Motor. Korea Development Bank, Daesung Private Equity, Shinhan Financial Investment, and HB Investment came in as financial investors. The company observed in a statement that it is unusual for multiple Korean corporates to participate in a Series A round.
MakinaRocks was established in 2017 as an R&D project within SK Telecom and spun out as an independent entity the following year. It secured seed funding from SK Telecom, Hyundai and Naver D2 Startup Factory, an accelerator under local internet giant Naver.
The company - which has offices in Seoul and Silicon Valley - works with clients in the automotive, semiconductor, battery, and pharmaceutical industries that have high process complexity. It develops algorithms that predict equipment failures and product defects, using smart manufacturing to improve efficiency. Strategic investors are also often customers.
The proceeds of the Series A will go towards securing major domestic and foreign customers. MakinaRocks also wants to expand the scope of its services, including the development of a cloud-based software-as-a-service (SaaS) platform that complements existing on-site offerings. In addition, the company will recruit more talent in areas ranging from data analysis to product development.
The application of technology to traditional industrial processes is a prevalent theme in private equity and venture capital across Asia. Numerous companies are developing smart manufacturing or industry 4.0 solutions that involve bringing robotics to the factory floor.
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