Investors ignored manufacturing startups for years. These ex-Apple engineers raised a $33 million fund to change that.

In a bold move to reshape the manufacturing landscape, two former Apple executives, Simon Lancaster and Sabrina Paseman, have established Omni Ventures, a new investment firm aimed at fueling innovation in the manufacturing sector. With a fund of $33 million, they plan to make investments ranging from $700,000 to $1 million in early-stage manufacturing technology startups. The fund has gained backing from Allocator One, which specializes in supporting emerging fund managers, alongside additional investors from 14 different countries. Paseman emphasizes the critical role of manufacturing, stating, "Manufacturing is not just one industry; it underpins every strategically significant sector such as semiconductors, defense, pharmaceuticals, aerospace, robotics, and energy. All these sectors utilize the same digitization stack we are focusing on, including software, sensors, AI, and robotics." Omni Ventures is launching at a time when investors are increasingly interested in the physical realm, spurred by advancements in AI, declining hardware costs, labor shortages, and the geopolitical imperative to reshore supply chains. As interest in software investments wanes, venture capital is pivoting towards robotics, chips, and what has been termed "physical AI"—a concept popularized by Nvidia's CEO Jensen Huang, highlighting AI systems that can operate in real-world environments. Investment in global robotics and physical AI is projected to soar from approximately $4 billion in 2019 to an estimated $26 billion by 2025, according to PitchBook. So far in 2023, companies in this sector have raised upwards of $23 billion. Omni Ventures has already invested in promising startups such as Uptool, an AI quoting platform for machine shops; Cargo Robotics, which develops robotics solutions for industrial logistics; and Dystr, an AI platform targeting hardware and engineering professionals. The duo, who coincidentally left Apple in the same month in 2019—Lancaster after a 12-year stint and Paseman after six—have cultivated their investment strategies over the past few years, initially when venture capital was predominantly funneled into software. Their journey began with angel investing and running an incubator for hardware startups, which affirmed their belief in the potential for manufacturing innovation. Reflecting on their early experiences, Paseman remarked, "Three years ago, when we began shaping this investment thesis, the prevailing sentiment was that manufacturing was too niche. Now, larger funds are recognizing its potential to drive significant change in the coming decades. Who could become the next Taiwan?" Even as recently as last year, potential investors expressed skepticism about the fund's focus. "They would say, 'This is cool, but it feels too niche,'" Lancaster recalled. "Now, that narrative has shifted dramatically." The name 'Omni Ventures' serves as a reminder of their mission: to invest in the myriad applications of manufacturing technology across various sectors. While the firm will primarily focus on investments in the United States, Lancaster and Paseman are also keen on the opportunities to modernize manufacturing practices globally. Describing their investment philosophy as 'global dynamism,' they aim to support founders who are not only technically skilled but also possess a strong commercial sense, often with a decade or more of experience in manufacturing. Paseman concluded, "We are backing founders who are tackling the most pressing challenges in their fields, ensuring a product-market fit that is both practical and innovative."