Paris-based venture studio OSS Ventures has announced the first closing of $47.3 million for its new investment vehicle, which targets a total of $88.7 million. This fund is dedicated to providing follow-on financing for industrial software startups created within its own studio. The capital will support the scaling of these companies across European and American manufacturing sectors, with backing from lead investors Decathlon Pulse and Teknor Apex.
A Hands-On Approach to Industrial Innovation
OSS Ventures distinguishes itself with a deeply embedded, hands-on philosophy, building companies directly within factories rather than funding abstract ideas. Founder Renan Devillières emphasizes this practical approach, stating that their offices are in the workshops and meetings are held in safety shoes. This ensures solutions are grounded in the real-world constraints and needs of operators and managers on the shop floor.
The new fund is positioned as an "amplification vehicle," designed exclusively to accelerate the growth of companies that have already proven their value. Instead of backing external teams at the ideation stage, the capital is channeled into startups built internally by the studio. This strategy reflects the firm’s conviction that successful industrial transformation requires a close and continuous link between software development and operational reality.
Addressing the Reindustrialization Challenge
This initiative arrives at a critical time, as Western nations confront the challenges of deindustrialization and the need to rebuild manufacturing capabilities. Devillières argues that modern reindustrialization cannot rely on outdated systems but requires software designed for the contemporary factory floor. The fund directly addresses this by fostering technology that enhances productivity and competitiveness in a struggling sector.
The venture studio actively works to bridge the significant cultural and operational gap between the technology and industrial worlds. Historically, industrial software has attracted only a fraction of venture capital, despite manufacturing's substantial contribution to the economy. By focusing on this underserved market, OSS Ventures aims to cultivate a new generation of tech talent and solutions tailored for the factory environment.
Strategic Partnerships and Proven Success
The fund's credibility is bolstered by strategic investors, including a key partnership with Decathlon Pulse, the investment arm of the global sports retailer. Decathlon Pulse highlighted the goal of creating more agile and resilient industrial operations by connecting product design with manufacturing through practical digital tools. This collaboration underscores the strong industry demand for the solutions developed within the OSS Ventures ecosystem.
Since its founding in 2019, OSS Ventures has built a strong track record, having launched 22 active companies that now equip over 3,600 industrial sites globally. Its portfolio, which includes successful scale-ups like industrial performance platform fabriq and field operations tool Kraaft, has collectively raised over $118 million. This history of success provides a solid foundation for the new fund's objective of scaling its next wave of innovators.
With $47.3 million secured toward its $88.7 million goal, OSS Ventures is strongly positioned to advance its unique, factory-first investment model. The new vehicle will accelerate the international expansion of its portfolio companies, directly contributing to the digital transformation of manufacturing in Europe and the United States. This strategic injection of capital marks a significant step toward building a more competitive and resilient industrial base for the future.