Non-Invasive Sensor Maker Continues Industry 4.0 Charge

Guidewheel, a Santa Cruz-based company specializing in AI-driven solutions for factory operations, has closed a $31 million oversubscribed Series B funding round.

The new round was led by Decarbonization Partners, a partnership between BlackRock and Temasek. Ecolab, Rethink Impact, and GSBackers also participated, alongside existing investors Greycroft and Breakthrough Energy Ventures.

Guidewheel has developed a platform branded as FactoryOps that connects factory machines to a cloud-based system using non-invasive sensors. These sensors, which clip onto a machine’s power source, transmit real-time data to Guidewheel’s AI platform. This data enables manufacturers to monitor and optimize production processes, reduce downtime, and increase overall efficiency.

Guidewheel’s technology can be connected to machines of all ages and types, addressing a key challenge in the manufacturing industry, where many machines remain disconnected from the cloud due to the prohibitive costs and complexity of existing products and systems.

In addition to expanding its FactoryOps platform, Guidewheel is introducing new features branded as Scout, which incorporate predictive maintenance capabilities to identify potential issues before they result in downtime or equipment failure.

The new funding will be used to accelerate Guidewheel’s product development and support the expansion of its AI team. One of Guidewheel’s corporate goals is to improve the efficiency of manufacturing operations while simultaneously reducing energy consumption and related emissions to create more sustainable industrial practices.

Supporting the momentum of Guidewheel’s product development are the AI and IoT digital transformations occurring within manufacturing, commonly known as Industry 4.0 technologies. Guidewheel offers scalable, cost-effective equipment and programs that require no advanced technical skills to implement. According to the company, this accessibility has driven the platform’s adoption across a diverse range of industries. According to a report by McKinsey & Company, the global market for smart manufacturing products and systems is projected to reach $620 billion by 2025, driven by the need for greater efficiency, cost savings, and sustainability.

“A new industrial revolution is taking place that will reshape not only manufacturing processes but entire business models—and the importance of manufacturing has never been clearer,” said Lauren Dunford, CEO of Guidewheel. “Equipment in factories often lasts for decades, and a significant number of machines are not yet even connected to the cloud. Historically, the only available solutions have been cost-prohibitive and required specialized skills. Guidewheel changes that by providing a fast, scalable solution that minimizes operational disruption to swiftly connect all machines—across all ages, makes, and models—at a fraction of the cost of competitive solutions.”

Customers of Guidewheel, which include General Motors, Igloo, Kimberly-Clark, TricorBraun, Reliance Steel & Aluminum, BorgWarner, U.S. Steel, and Johnson & Johnson, have reported an average of 41% more production from their manufacturing assets that utilize Guidewheel technology.

“Guidewheel requires no programming and no advanced computer knowledge, but its reports and data are sophisticated and useful,” said Jim Campbell, CEO of North Carolina-based Automated Solutions, a Guidewheel customer. “I don’t think another tool like this exists where remote, centralized support provides all the technical expertise required.”

“We’re excited to support Guidewheel not just because their technology solves an important problem for manufacturers, but because they’ve found a way to build sustainability into the core of manufacturing operations,” said Dr. Meghan Sharp, Global Head and Chief Investment Officer of Decarbonization Partners. “By using Guidewheel to help manage their factory operations, customers can not only improve efficiency and reduce costs, but also reduce energy consumption and emissions.”

Competition for smart manufacturing equipment and programs includes several key players, such as Uptake Technologies, FogHorn, Litmus, Sight Machine, and SparkCognition. However, Guidewheel’s focus on a universally applicable, easy-to-use platform sets it apart in a market that is increasingly crowded with specialized solutions.

“Reaching net zero starts with how we build things,” said Carmichael Roberts , the co-lead of the investment committee of Breakthrough Energy Ventures. “We believe Guidewheel can play a critical role in global industrial decarbonization by enabling manufacturers to better track and manage energy use. Guidewheel is empowering factories globally to reach sustainable peak performance, and the company’s continued growth is a testament to the technology and the team behind it.”

Breakthrough Energy Ventures, founded by Bill Gates, invests in technologies that aim to reduce greenhouse gas emissions. The firm focuses on early-stage companies and manages a $2 billion fund dedicated to achieving net-zero emissions by 2050. Breakthrough Energy Ventures is headquartered in Kirkland, Washington.

Decarbonization Partners focuses on late-stage venture capital and early growth private equity investments in companies that advance global decarbonization efforts. The firm, founded in 2021, is a joint venture between Temasek and BlackRock, and recently closed a new $1.4 billion fund. Decarbonization Partners maintains headquarters in New York City and Singapore.

Greycroft is a venture capital firm based in New York and Los Angeles that invests in early to growth-stage companies across various sectors, including technology and healthcare. The firm, founded in 2006, manages several funds with a combined total of over $2 billion in assets under management.