A growing shortage of manufacturing capacity is emerging across Europe and North America as thousands of small factory owners approach retirement and industrial demand rises sharply. Aerospace, defence, energy and robotics companies are all seeking more production capacity, while many small manufacturers that form the backbone of supply chains are disappearing.
London-based manufacturing startup Isembard says it wants to help close that gap. The company has raised £37.5 million ($50 million) in Series A funding, less than a year after its seed round, to expand its network of AI-powered factories.
The funding round was led by Union Square Ventures, with participation from Tamarack Global and IQ Capital, as well as existing investors Notion Capital and CIV.
Angel investors include Deel founder Alex Bouaziz, Dexory Robotics founder Andrei Danescu, and former Wise CFO Matt Briers.
Plan to open 25 factories
The company plans to use the new funding to open 25 factories by the end of 2026, expand engineering teams, and enter new markets including Germany, France and Ukraine.
Isembard focuses on producing high-precision components used in sectors such as aerospace and defence. The company operates its own factories as well as a network of franchise-operated facilities.
According to the company, the global component manufacturing market is worth about $1.8 trillion annually. However, around 95% of production comes from small businesses, many of which face succession challenges as owners retire.
Industry trends such as reshoring and increased defence spending are pushing demand higher, creating pressure on existing manufacturing capacity.
AI system running factories
Founded by Alexander Fitzgerald, Isembard manufactures high-precision components for many of the world’s most demanding customers. The company operates its own and franchisee factories, differentiated by its proprietary software and AI system, MasonOS, which runs them.
MasonOS integrates quoting, scheduling, supply chain, manufacturing, quality control and delivery into a single intelligent agentic operating layer, automating and continuously optimising factory performance.
The company identifies exceptional operators from manufacturing, the military, franchising and the wider economy and equips them with its technology, brand, engineering standards and access to customer demand.
The company said its model allows experienced operators from industries such as manufacturing, the military or franchising to launch new factories using its technology and operational framework.
Alexander Fitzgerald, Founder and CEO of Isembard, said, “Manufacturing is the origin of our security, prosperity and sense of purpose as nations. This Series A enables us to open more factories, invest in MasonOS, support exceptional franchisees and recruit the best engineers across Europe and the United States. Our mission is to forge industrial acceleration.”
Rebecca Kaden, Managing Partner at Union Square Ventures, said, “Isembard is redefining the process of owning and running a factory. By embedding deep operational expertise into an agentic OS, MasonOS lowers the barrier to operating high-performance manufacturing businesses and enables a networked, capital-efficient path to scale. At a moment when demand for advanced manufacturing is accelerating and interest in SMB ownership is rising, Isembard brings both forces together. We’re excited to partner with Alexander and his team as they expand access to factory ownership and rebuild industrial capacity across the West.”
