Hypertherm, a Hanover-based manufacturer of industrial cutting systems and software, launched a new corporate venture capital arm, Hypertherm Ventures, in late October to help it expand into other areas of advanced manufacturing technology.
Hypertherm Ventures will partner with universities, startups, entrepreneurs, and early-stage companies to commercialize advanced manufacturing technologies in strategic interest areas. Those areas include industrial cutting, welding, and thermal processing; robotics and automation; machine learning and augmented intelligence; industrial Internet of Things; additive manufacturing/3D printing, and nanotechnology.
Hypertherm is seeking to invest in businesses that will allow the company to expand into new areas, says Nathan Pascarella, Hypertherm Ventures’ business development manager.
Hypertherm Ventures will invest $250,000 to $500,000 for seed-round investments and up to $3 million in later-stage investments, Pascarella says. In addition to the money, Hypertherm will offer companies access to its leadership team and their expertise in Lean, Six-Sigma, and other manufacturing methodologies and advanced technology development, engineering, supply chain management, and global service and distribution networks.
Hypertherm Ventures has already engaged with potential partners, Pascarella says, and would like to make $30 million in investments in the next five years. “We’re looking to make investments in [companies] that can become sizable businesses [generating about $50 million in annual revenue] in a two- to seven-year time period,” he says.
The new venture capital arm will allow Hypertherm to grow, Pascarella says. Hypertherm has 75 percent of the plasma-cutting market share globally, he says, and while the market continues to grow, it is single-digit growth. Most of Hypertherm’s growth in recent years has been through acquisition, he adds. There is the potential that some of the companies and technologies Hypertherm will invest in will eventually become divisions of Hypertherm, he adds.
For more information, to submit a proposal, or to download a pitch book, visit www.hypertherm.com/ventures.