Industrial AI startup CVector, based in New York, has successfully completed a $5 million seed round. The round was led by Powerhouse Ventures, with participation from Fusion Fund, Myriad Venture Partners, and the corporate venture capital division of Hitachi.

CVector was founded by Richard Zhang and Tyler Ruggles, aiming to develop an AI software layer for large industrial enterprises, similar to a "brain and nervous system." Its core idea is "operational economics," which uses AI technology to directly convert small industrial actions (such as opening and closing valves) into specific financial gain models, helping companies find optimal solutions for cost reduction and efficiency improvement in complex production processes.

The system is already being used in fields such as utilities, advanced manufacturing, and chemical production. One notable case is providing support to ATEK Metal Technologies, a company that produces aluminum castings for brands like Harley Davidson, helping it monitor energy efficiency, predict equipment maintenance needs, and track commodity prices that affect raw material costs in real time.

With the completion of the funding, the CVector team has grown to 12 members and has established an office in the Manhattan Financial District. The company is currently attracting a large number of talent from finance and hedge fund backgrounds, leveraging their experience in data processing and finding financial advantages to drive digital transformation in the industrial sector.

Key Points:

  • Industrial Nervous System: The AI software developed by CVector aims to connect factory operations with financial benefits, accurately converting industrial operations into economic value models.

  • Support from Capital Giants: It has received support from Powerhouse Ventures, the lead investor, as well as strategic investors such as Hitachi, with a seed round fundraising amount reaching $5 million.

  • Cross-Industry Practical Applications: Its client base includes traditional metal processing giants and emerging materials science startups, helping industrial companies achieve cost control through AI amid supply chain fluctuations.