Encube raises USD $23 million to boost AI for hardware makers

Encube has secured USD $23 million in funding from Kinnevik, Promus Ventures, and Inventure. The company is expanding its commercial presence in Europe and the US by offering an AI-powered platform to address costly manufacturing complexities during hardware product development.

Funding objective

The new investment will be deployed to extend Encube's commercial reach and boost its research and development in AI for hardware manufacturing. The platform has already seen adoption at manufacturers such as Volvo Group, Beyond Gravity, Scania, and Birn Group, helping these firms reduce time to market and control rising production costs.

Manufacturing challenges

Hardware product development involves significant early design decisions, which can account for up to 80% of the final production cost. Hidden complexities in these stages often go unnoticed until production, leading to increased expenses or delays from reworking designs. Encube's AI-enabled tools analyse proposed designs early to identify and address these hidden challenges.

Jonas Hellman Peterson, Head of Sales Engineering at Birn Group, said: "Securing competence in our engineering and industrialization functions is very challenging. Many of our key people are approaching retirement. Encube really helps us navigate the risk this creates for us."

Reshoring focus

Countries across Europe and North America are seeking ways to strengthen domestic manufacturing and reduce reliance on offshore suppliers. The Encube platform supports this trend by helping teams streamline workflows and accelerate product launches, aiding efforts to reinforce local manufacturing capabilities and industrial autonomy.

Hugo Nordell, CEO and cofounder of Encube, said: "Hardware development is a balancing act between how a product looks, functions and what it costs to produce. In Europe, we excel at the first two, but our manufacturing know-how is disappearing. At Sandvik and Aker, I saw firsthand how quickly production costs ballooned and competitive edge eroded, when early design decisions weren't made with manufacturing in mind. We built Encube to change that."

Platform capabilities

Encube's cloud-based software platform allows hardware teams to collaborate and make product decisions directly in their browser. Integrated AI features enable rapid analysis of design modifications and assess their impact on manufacturability, eliminating traditionally time-consuming manual processes, and supporting teams in optimising designs to reduce production complexity.

Ralf Usinger, Global Head of Engineering Applications at Beyond Gravity, said: "Encube is one of the most promising innovations I've seen in hardware engineering in the last 30 years. The software's ease of use and the speed of its simulations represent a major leap forward."

Industry uptake

Encube's platform has been tested in R&D programmes by companies ranging from large automakers to aerospace suppliers. Customers report that utilisation of the technology can reduce time to market by up to 50%, lower production costs by 20-30%, and significantly increase engineering productivity.

Mattias Vanberg, Director of Development at Cognibotics, said: "We rely entirely on third parties to manufacture our robots. Encube makes it much easier for us to uncover and mitigate product risk early in development together with our suppliers and customers."

Future plans

Encube plans to use the new investment to grow its presence across Europe and continue developing AI tools tailored for organisations building complex hardware. The company aims to address ongoing labour shortages, shifting supply chain dynamics, and heightened sustainability regulations facing manufacturers.

"AI is fundamentally transforming how products are designed, enabling engineering teams to simulate, iterate and collaborate at unprecedented speed. Encube is pioneering this shift by embedding manufacturing intelligence directly into the engineering workflow, shaping the future of product development. We're excited to partner with Hugo and the team on this journey," said Tatiana Shalalvand, Investment Director, Kinnevik.