Smartex’s AI-driven textile inspection technology leads to fewer defects, and considerably less environmental waste
The climate and how it’s changing is something every single person on the planet is more aware of today than ever before in history. While many of us aim to do what we can to reduce our personal footprints, individual, post-manufacturing actions aren’t enough to move the needle. That’s why we were so excited to invest in a company that has the opportunity to completely transform one of the world’s biggest and dirtiest industries. As the planet grows hotter, more polluted, and more dangerous not just for wildlife but for humanity, Lightspeed is looking for investments that offer innovative ways to meet ever-growing global demand while also reducing environmental impact.
As you can imagine, this isn’t an easy combination of attributes to find, even today. Though we have made prior investments under the same thesis, we continue to devote time and energy to growing this part of our practice.
The textile and fashion industry is the third worst polluter in the world, behind only food and construction. It accounts for 20 percent of global water waste and 10 percent of carbon emissions. Some 15 percent of fabric intended for clothing ends up on the cutting room floor — creating more than 90 millions tons of waste each year.
This impact is one of the reasons we’re co-leading the Series A round for Smartex, which uses AI to make clothing manufacturing less wasteful and more efficient. It promises to be a game changer for the multi-trillion dollar global apparel market, and for the environment.
In textiles production, defect detection is still performed primarily by people. That makes it slow, expensive, and prone to error. (In fact, that’s how Smartex co-founder Gilberto Loureiro got his start — working as a knitting machine operator and textile inspector at his family’s clothing business.)
Smartex brings computer vision and machine learning to this process. When its AI-driven cameras are installed into knitting machines they can identify defects as they occur, then stop the machines before more material is destroyed.
The textile industry operates on thin margins, with a significantly steep defect rate. By automating textile inspection, clothing manufacturers can dramatically reduce the amount of waste, helping to reduce the environmental impact of the fashion industry while making the manufacturing process more efficient and cost effective.
EU based, global in reach
The Portugal-based company fits well with our thesis that the EU is poised for massive growth as a greenfield for visionary startups.
As noted above, CEO Gilberto Lourerio has deep familial ties to the textiles industry, as well as a masters in physics, and experience directing growth at Elsterfeld, an optical wholesaler. His co-founders, CTO Antonio Rocha and VP of Engineering Paulo Ribeiro, bring strong technical backgrounds from the industrial energy and telecommunications fields.
Another reason we are excited to partner with Smartex is the passionate involvement of Tony Fadell and his team at Build Collective. We’ve worked closely with Tony since long before he founded Nest, where Lightspeed invested in the Series B in 2011, before it was acquired by Google.
Tony saw something special in Smartex and suggested we co-lead this round, something his fund rarely does. Our team in Israel first highlighted the company, and we quickly came to the same conclusion, deciding to co-lead this round to help Smartex take the next big step in its evolution.
An easy selling proposition
Though in operation for barely 3 years, Smartex has already been embraced by the textile industry. So far, 100 percent of the company’s pilot projects with manufacturers have converted into sales. Everyone who sees a Smartex machine in action wants one for their factory.
So far, Smartex’s only problem is that they can’t deploy machines fast enough to meet demand. The infusion of nearly $25 million in Series A funding should help them unlock the growth they need to scale.
In the 23 year history of Lightspeed, we rarely see companies like this. Smartex is in an enormous market, with no modern competitors to speak of. We believe Smartex is one of those rare startups that can alter the path of an entire industry while also making the planet a little greener. We look forward to helping them grow.
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