Autodesk Ventures, the investment arm of Autodesk, has taken an equity stake in startup CapacityWeb.com, which is developing an online manufacturing marketplace.
Autodesk, a maker of design software used by architects and engineers, will own nine per cent of CapacityWeb and take a seat on its board. Financial terms of the agreement were not disclosed.
CapacityWeb is creating a web-based marketplace for buying and selling manufacturing capabilities which it claims will protect members from the boom and bust cycle of the manufacturing business.
Dominic Gallello, executive vice president of Autodesk's design solutions division, said the platform will remove the inefficiencies linked to manufacturing, such as cyclical market demands or idle machinery.
He claimed that marketplace members will be able to save time and costs by matching orders between manufacturing businesses.
Arvind Kapur, co-founder and chief executive of CapacityWeb, said Autodesk is a "perfect partner" because it can take advantage of the software maker's large customer base of mechanical designers.
Formed in 1999, Autodesk Ventures creates, acquires and invests in new internet businesses that are strategic to Autodesk. The company's customers include mechanical engineers, architects, civil engineers, utility operators and digital content creators.
The investments are typically seed or first-round financing and range from $500,000 to $2m. One of its first investments was the spin-off of buzzsaw.com, the building design and construction industry hub that delivers integrated business to business collaboration and ecommerce services in the building industry.
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