Xometry
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Overview
Xometry is a startup that offers a software platform connecting engineers to a growing network of 500+ machine shops for custom part manufacturing. Their software allows instant pricing of any designed component, lead times, optimal manufacturing process, and immediate ordering - all with click of a button. Think of them as the Amazon of manufacturing.
The magic in their technology lies in their software's ability to provide the above for never before manufactured components. The company gives their software away for free with revenue made from the difference between Xometry's quoted price and what the machine shop charges.
The team is currently ~100 people and has doubled in size within the last year. They have fast growing traction with over 5,000 customers including 15% of Fortune 500 firms (23% when removing Financial Service firms) including GE, BMW, etc.
Why I like Them
There is really nothing quite like this available today. It is a great example of how software can make existing manufacturing processes more efficient. In order to understand how powerful this is, for any CAD object to be created, usually an engineer has to manually send their designs out to manufacturers and wait for quotes to come in. This occurs even at large manufacturing companies building custom parts. With Xometry, this all happens instantly with the software quoted price being what the customer pays since Xometry itself takes on the risk of their price quote being off from what the machine shop actually charge. Design engineers love the product since its a complete upgrade to the standard process with glowing feedback from users.
The company has a huge green field opportunity ahead of it with such a superior product to what is currently industry standard. The nearest competitor are firms like Proto Labs (NYSE: PRLB) which are on demand rapid prototyping companies which offer a single price and fast lead times for any custom part. However, Xometry is a few steps ahead, able to get competitive pricing from hundreds of machine shops giving it the edge.
Disclosure: I have spoken to members of the executive team.
