Moov, a data-fueled marketplace for used manufacturing equipment, closed a $41 million Series A funding round led by Tiger Global. Investors joining the round include public semiconductor investor Gavin Baker of Atreides Management, Valor Equity Partners, Avenir Growth Fund and existing investors.
The San Francisco-based company’s co-founders, Steven Zhou and Maxam Yeung, came up with the idea for Moov about a decade ago. The two say they recognized that companies in the industry, such as Qualcomm and Samsung, spend billions of dollars a year buying manufacturing equipment only to be scrapped or forgotten in an offsite warehouse in few years, although they are usable for decades.
“We identified an opportunity that existed based on how long the equipment was used versus how long it was used,” Moov CEO Steven Zhou told TechCrunch in an interview. “There was a billion dollar opportunity to reuse this equipment. This is where the idea of Moov was born. Essentially, it’s about leveraging data automation algorithms and technology to more efficiently match idle equipment and find new homes for it all over the world.
One of Moov’s use cases is to help manufacturing companies recover capital that would otherwise have been lost. On the buyer side, Moov aims to help small businesses and universities around the world that don’t have the budget or the network to acquire equipment to further their innovation.
The platform’s software matches the equipment listed by sellers to the companies that can use it by automatically serving them these lists. Buyers can also manually search through a massive list of equipment. Besides a real-time marketplace, Moov also offers additional services such as logistics, renovation, insurance and asset management software.
As for the new funding, Moov plans to use it to expand its national presence into other semiconductor hubs such as Austin and New York. It also plans to expand its global presence in China, Taiwan, South Korea, Japan and Europe. The company will also hire executives, invest in research and development, and continue to strategically purchase more inventory. Moov also plans to explore acquisition strategies with other industry players who may be connected to its ecosystem.
Moov’s Series A funding round comes amid the current global chip shortage, as many industries have slowed production because manufacturers are unable to obtain the required equipment. Zhou says Moov is working to help alleviate local shortages and the company is able to reduce the time it takes companies to purchase equipment from months to days or hours.
Company data suggests the value of used equipment has more than doubled in the past year, and those numbers are expected to continue to grow, doubling to around $200 billion a year in the next six to eight years. coming years. With nearly $1.5 billion in active and available listings on its platform, Moov plans to play a part in changing the global equipment buying mindset.
Zhou says the company is also proud to have built a marketplace that helps reduce e-waste globally. “As we grow, we’re really excited to play an increasing role in reducing the carbon footprint of global manufacturing and also helping to alleviate the global chip shortage,” he said. declared.