Encube Startup Gets $23M in Funding to Focus on Hardware Development

Stockholm, Sweden-based Encube reports its official launch with $23 million in funding. Through the investment, the company says it plans to scale its commercial footprint and deepen its investments in artificial intelligence as it seeks to secure European and US industrial competitiveness.

Encube develops an AI-powered platform that assists hardware teams in understanding which product design choices drive manufacturing complexity and how to avoid them, according to Encube. 

“Hardware development is a balancing act between how a product looks, functions and what it costs to produce," says Hugo Nordell, CEO and cofounder of Encube. "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,” says Hugo Nordell, CEO and cofounder of Encube.

Paradigm Shift

Manufacturing is being reshaped by geopolitical realignment, a deepening talent crisis and the accelerating transition toward sustainable production, according to Encube. Adding to industry pressures, tightening European sustainability regulations are requiring manufacturers to rethink how products are designed and built, the company adds. Smarter product development and digital workflows at the design stage are becoming essential to improve both economic performance and environmental impact.

Cost of Early Design Decisions 

In hardware development, up to 80% of a product's cost is determined once the design is locked, as Encube explains. However, many design decisions have an impact on manufacturing costs and the carbon footprint in ways that are not immediately obvious until they enter the production phase, according to the company. As a result, businesses are left with a choice: accept decreased profitability or redo designs and delay market launch.

Encube, founded in late 2021 by former Sandvik and Aker executive Hugo Nordell, together with Skype and Klarna veteran Johnny Bigert, address this challenge. First, with a collaborative software platform that helps entire organizations align and make faster product decisions, directly in the browser on any device. Second, with AI-powered capabilities embedded inside the platform. These capabilities enable teams to eliminate common bottlenecks in hardware development projects.

The platform has been tested in R&D programs by a range of partners, including Volvo Group and specialized space companies such as Beyond Gravity. 

With a long-term goal to help rebuild, secure and strengthen European industrial competitiveness, Encube will use its new financing to expand its commercial footprint across Europe, deepen existing partnerships and accelerate investments in hardware-focused AI.

About Encube

Encube is a European deep-tech startup developing AI-powered tools and workflows for hardware development. The company also conducts research in AI for hardware design, aiming to address complex challenges in the development process. Founded in 2021 by Hugo Nordell and Johnny Bigert, the company is headquartered in Stockholm, Sweden and backed by investors including Kinnevik, Inventure and Promus Ventures.