Monitoring super-hot processes, like casting steel, has traditionally been problematic. Due the extreme heat and constant motion one cannot actually see what’s happening inside the processes and traditional camera-systems just can’t take it either. Yet whenever there’s a problem undetected it may cost hundreds of thousands or even millions to a steel mill. Sapotech has invented a laser based imaging solution that allows one to see with unprecedented detail into hot processes. More importantly, due their novel hardware, industrial internet software platform and SAAS -based business model, they’re able to install the system as well as prove the value for the steel mill within days. The approach makes sales cycles extremely short. It’s revolutionary concept in traditionally slow moving industrial automation industry.
Prior to Butterfly’s investment Sapotech had launched their first product, secured multiple pilot customers in the Nordics and several hundred thousands of revenue, as well as filed patent applications for the key technologies.
“For some reason industrial automation and modern service based business models generally haven’t yet met. We’ve been able to marry a few things, unique hardware, our own industrial internet software platform and steel industry expertise into a world class service offering. These ingredients allow us to execute a rapid scale-up into a market that’s worth of billions. Butterfly brings in not just money now and networks needed for follow-on financing later, but also business model expertise, knowledge of IPRs and experience on scaling up businesses internationally. Their support while facing the challenges of ramping up global service business is truly valuable.” (Saku Kaukonen, CEO of Sapotech)
Butterfly invested into Sapotech because of proven customer traction and industry disruptive business model with market potential of billions. The product is mature, fast to deploy and provides instant value to the customer. Furthermore the founder team has very deep knowledge and networks within steel industry as well as rare combination of expertise required; industrial internet, machine vision and user experience. Butterfly’s investment will be used to further confirm the business model, ramping up the customer acquisition as well as developing follow-on products that leverage the existing software platform.