Source: Fortune
Summary
Vaughn Crowe, co-founder of VC firm NVP Capital, has been investing in manufacturing and industrials since 2020. He attributes the shift in venture capital interest to events like the pandemic and geopolitical tensions, which highlighted the importance of supply chains and critical industries. Crowe said AI is now accelerating changes in sectors like robotics and manufacturing. NVP has backed companies like Vulcan Elements, which is valued at $2 billion. The firm recently closed its second fund at $80 million and sees potential for exits through IPOs and M&A.
Our Reading
The numbers tell one story.
Crowe grew up in Newark, an industrial city, and sees value in manufacturing.
He says the pandemic and geopolitics made industries like defense and energy more venture-worthy.
AI is now pushing the physical world into new territory, according to Crowe.
He believes the U.S. is at a moment where industrial sectors can finally get the attention they deserve.
Author: Evan Null
Background on Vaughn Crowe
Vaughn Crowe has a deep connection to the manufacturing sector, having grown up in Newark, an area historically known for its industrial base. This background has shaped his perspective and investment strategy. He co-founded NVP Capital in 2020, focusing on manufacturing and industrials at a time when these sectors were not considered venture-ready.
The Rise of Reindustrialization
The concept of reindustrialization has evolved from a buzzword to a tangible movement, attracting private capital and venture dollars. This shift is driven by factors such as supply chain vulnerabilities exposed during the pandemic and geopolitical challenges. Crowe believes these factors have made industries like defense and energy more critical to the U.S. economy.
Impact of AI on Manufacturing
AI is playing a significant role in transforming the manufacturing sector. Crowe notes that AI is intersecting with the physical world, influencing areas like space, robotics, and manufacturing. This intersection is seen as a potential catalyst for revolutionary changes in the physical industries.
Investment Strategy and Portfolio
NVP Capital has invested in a variety of companies, including Vulcan Elements, Reaxiomatic, and Haptica Robotics. The firm’s strategy includes a mix of IPOs and M&A for exits. Crowe sees potential for these legacy manufacturers to consolidate and create value through strategic roll-ups.
Future Outlook and Market Position
NVP Capital closed its second fund at $80 million in 2025, positioning itself in a growing market. Crowe believes the firm’s early entry into the space, combined with its unique understanding of the industrial sector, gives it a competitive edge. He emphasizes the importance of demonstrating the critical role of these industries to unlock opportunities in public markets.
