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Words by Jos White and Maximilian Eichler

Over the past 18 months we have been increasingly exploring investment opportunities in traditional industries and real-world applications of AI. Our investor DNA is backing exceptional, truly ambitious founders who are building highly scalable, high margin, capex-light, and deeply defensible B2B businesses in large markets. While these criteria were traditionally associated with pure-play B2B SaaS, the increasing commoditisation of software and the decreasing cost of standardised hardware have led us to actively explore opportunities at the intersection of intelligent AI software and hardware. This convergence enables the creation of vertically integrated and defensible businesses addressing "real-world" challenges across sectors like manufacturing, energy, logistics, defence, and robotics. We believe these ventures have the potential to disrupt traditionally underserved markets, offering significant value creation as they have been largely untouched by scalable, software-powered innovation.

After investing in the likes of Quantum Systems, Caeli Wind, and Cogna on the back of a broader vertical integrator thesis, we are now excited to share our investment in Isembard, a company poised to revolutionise manufacturing, through a unique combination of proprietary software, artificial intelligence, robotics, and a unique business model.

A Foundational Industry Facing an Existential Crisis
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Precision manufacturing is a cornerstone of the European industrial economy. Precision parts worth over $200bn are produced in Europe every year. These essential components supply critical industries such as aerospace, defence, maritime, energy, semiconductors, automotive, healthcare and pharmaceuticals. However, this vital sector is in crisis. The market is highly fragmented, with over 100,000 small businesses, 80% of which employ fewer than 10 full-time employees who struggle to scale or adopt the latest technology. This fragmentation results in inefficiencies, with average delivery times of 12 weeks and delay or fault rates reaching up to 30%. Furthermore, the industry is facing a severe labour shortage, with over 40% of machinists expected to retire within the next 5 years. This confluence of factors threatens critical supply chains and risks European de-industrialisation. It also presents a massive opportunity to reinvent one of the world’s largest industries from the ground up.

In the UK alone, companies are set to spend $650 billion over the next three years to move their supply chains and manufacturing closer to home, driven by concerns about supply chain instability, logistical costs, and geopolitical uncertainty. This trend underlines the urgent need and willingness to pay for a more robust and technologically advanced domestic manufacturing base.

Isembard: Architecting the Future of Precision Manufacturing
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Isembard is tackling these deep-rooted issues by establishing technology-first manufacturing facilities powered by their proprietary MasonOS software, artificial intelligence, and robotics. This platform is designed to capture all data flows to orchestrate the entire factory and iteratively automate each step of the production process, from quoting to delivery. Isembard’s aims to achieve 10x faster production at 50% lower costs compared to traditional suppliers. Customers further benefit from partnering with a resilient, modern supplier that can scale with them and has a distributed supply base without critical failure points.

Their comprehensive MasonOS software platform is central to this transformation, acting as a foundational AI layer for manufacturing. It streamlines and automates every stage of the production process, including quoting, procurement, CAM/CAD, production, quality assurance, logistics and team management. Customers will benefit from unparalleled transparency, with live updates on production and the ability to understand the cost implications of design modifications.

What makes Isembard particularly compelling is their innovative business model for scaling. Rather than building large, centralised factories, Isembard will enable expansion by building a supply base of smaller, standardised factories who leverage Isembard's shared technology, go-to-market strategies, talent acquisition, and financing expertise. This approach allows Isembard to maintain the benefits of deep vertical integration, while at the same time unlocking non-linear scaling with lower capital intensity. We believe where roll-ups, pure software applications, and marketplaces have failed, Isembard will succeed. 

Macroeconomic Forces Underlining the Urgency of Isembard's Success
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Several significant macroeconomic trends are providing strong tailwinds for Isembard:

• The Critical Imperative to Re-shore and Revitalise European Manufacturing: Growing geopolitical tensions and economic instability in traditional outsourcing regions are driving the need to re-establish critical supply chains closer to home. The risk of de-industrialisation in Europe underscores the vital need for enhanced efficiency and innovation in the manufacturing sector.
• The Surging Demand in Defence and Strategic Industries: Increasing global instability is leading to higher spending in the defence and critical industry sectors, creating a significant rise in demand for precision parts and an urgent need for suppliers who can scale with their customers’ demand.
• The Escalating Crisis of Skilled Labour Shortages: The ageing workforce and the difficulty in attracting new talent to traditional manufacturing are creating a significant bottleneck. Isembard's automation and technology-centric model can alleviate this pressure and leverage the skills of European engineers seeking new opportunities to build the factories of tomorrow.
• The Demand for More Resilient and Transparent Supply Chains: Recent global events have highlighted the vulnerabilities of conventional supply chains. Isembard's distributed network of manufacturing facilities offers a more dependable and scalable solution for sourcing essential precision parts without critical failure points.
• The Transformative Power of Software and AI in Industrial Applications: Leveraging software and AI for automation and optimisation offers unprecedented potential for efficiency gains and scalability in real-world domains.
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Driven by a Visionary Founder and a Stellar Team
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Isembard was founded in October 2024 by Alexander Fitzgerald, a second-time entrepreneur with a proven track record of building and scaling complex businesses. After starting his career at HM Treasury as a policy advisor, Alexander founded, scaled, and exited the broadband startup 'Cuckoo'. His experience in navigating complex business models, coupled with his firsthand exposure to supply chain challenges in critical industries post-acquisition, uniquely positions him to lead Isembard. 

Alexander has rapidly assembled a talented and mission-driven team, including ex-Palantir and Rolls Royce engineers, as well as tech and commercial talent with deep domain expertise in manufacturing, all united by a strong purpose to drive industrial acceleration for critical industries.

We believe Isembard has the potential to not only disrupt the precision manufacturing industry but also to forge a new era of industrial acceleration in Europe and beyond. We are excited to partner with Alexander and the entire Isembard team on their ambitious journey to transform this foundational industry.

Why Notion? A note from the Founder...
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“Manufacturing is the backbone of economic prosperity, national security and our collective purpose as humanity. Yet our industrial base is dying. At Isembard we are building a new model, one that decentralises production while driving efficiency through software and automation. Notion have a deep, founder-first mentality. Together, we will help forge industrial acceleration.” - Alexander Fitzgerald

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