Why We Invested in Digit
A Game-Changer in Manufacturing and Supply Chain Automation
By: Camila Noordeloos
At Grand Ventures, we’re always on the lookout for innovative startups that have the potential to disrupt industries and create significant value. Our recent investment in Digit exemplifies this strategy. Digit is a promising, innovative platform that offers an all-in-one solution for manufacturing companies to manage inventory and production processes. We proudly invested in Digit’s seed round alongside Assembly Ventures and Hyde Park Angels. Here’s why we believe Digit is poised for success and why we decided to invest.
Exceptional Founding Team
The foundation of any successful startup is its team. Since we invest early at Grand Ventures, we place a lot of weight during our diligence process on the strength of the founding team. Digit boasts an impressive lineup. The three co-founders bring a potent mix of industry and technical expertise, and entrepreneurial acumen.
Their track record includes leadership roles scaling struggling companies to fast revenue growth and profitability, building technical products for different YC companies, and leading finance at various enterprises and startups. This team understands the nuances and complexities behind manufacturing and supply chain, and what it takes to build a useful tool to solve real pain points for their customers.
Innovative Approach to a Well-known Critical Problem
There is a constant battle of point solutions versus comprehensive all-in-one platforms. Our hypothesis at Grand Ventures is that the best approach depends on what market or segment a company is targeting. There could be big winners in both paths. This leads to the second big reason we are excited by our investment in Digit. Its product is tackling a significant gap in the market. Many mid-sized manufacturing companies are caught between outdated, pricey, and very complex all-in-one legacy software or overly simplistic and focused modern applications. Digit’s solution bridges this gap by offering a modern, flexible, and simple all-in-one platform. It allows companies to plan, procure, store, produce, sell, and ship from a single unified system, eliminating the need for manual data transfers between systems. Customers have real-time insights into the entire manufacturing process, from inventory levels to production schedules and order fulfillment.
Early Traction and Market Validation
At Grand, we create a holistic view of market validation by looking not only at revenue and contracts, but also by conducting customer calls, getting expert opinions, and diving into the go-to-market motion. Digit was impressive not only because of its early, initial contracts but also the exceptional feedback from its customers, validating how vital the software was for their businesses. Early sales successes are a strong indicator of product-market fit and validate the urgent need for Digit’s solution in the manufacturing industry.
As the industry continues to evolve and embrace digital transformation, we’re excited to support Digit Software on its journey to revolutionize supply chain and manufacturing processes alongside Assembly Ventures and HPA. We look forward to witnessing their growth and the positive impact they’ll undoubtedly have on the industry. Thanks to all who helped us in this process, especially Jacqueline Lensing, for sourcing this opportunity, and seeing the potential before I met with the team. (Ah and for taking the first stab at this blog, too).
Read press release about Digit’s recent funding round here.
