Singapore-based predictive maintenance platform Groundup.ai recently closed a $1.8m seed funding round led by Wavemaker Partners. The round also saw participation from SEEDS Capital, the investment arm of Enterprise Singapore.
Launched in 2021, Groundup.ai helps industrial companies prevent unplanned downtime of industrial assets and improve workplace safety.
A graduate of the maritime innovation competition Smart Port Challenge organised by PIER71, it is also active in the maritime industry, working closely with clients including the Republic of Singapore Navy and Jurong Port.
Leon Lim, the chief executive and co-founder, believes the key factor to getting funding is proving real savings for clients.
Lim claims he and co-founder Alex Wong found it easy to tap the venture-capital markets.
“We were back-to-back winners of several innovation challenges in Singapore and the region. As such, venture capitalists started to approach us,” he said, describing the reception Groundup.ai got from the investment community as “kinder than I thought”.
“The interesting thing is that the venture capitalists are on extreme ends. They either get it, or they don’t.”
Lim found that investors involved in deep tech, enterprise, business-to-business and industrial tech quickly understood the product Groundup.ai was bringing to the industry.
‘Complexity of problem’
“They knew and appreciated the complexity of the problem which we were trying to solve, hence when they saw my solution, they were intrigued,” he said while noting the greatest hurdle was finding an investor who was the correct fit.
“We are an early stage company and finding the right venture capital match is equivalent to finding a marriage partner.
“We wanted a partner that provided patient capital with deep connections in the industrial space and later-stage venture capitalists, together with a track record of helping start-ups move to the next level.
“Our chosen partner, Wavemaker Partners, [is] committed to being as founder-friendly as much as it can. This aligned with our style of being fast. After signing the papers, we got the investment money transferred within a week. Pretty impressive, I would say.”
Lim advises other start-ups to ensure the problem they are solving is real and tested with potential clients.
“You have to be confident that you have a winner on hand before going out to seek funding,” he said.
He also stressed that as much as investors have qualifying criteria for start-ups, start-ups need to have a clear idea of the type of investor they want to have.
“Do your best to ask questions,” Lim said. “The great investors will be smart enough to allow you to finish asking all your questions as well. This can literally make or break your success.”
