Fresh capital: US investor Union Square Ventures (USV) joins forces with Earlybird Venture Capital and business angel Axel Bichara in the Munich-based startup Simscale The company develops and markets a web-based platform for engineering simulations.
"Simulation technology has a massive impact on how high-end manufacturers build aircraft and cars. SimScale brings these capabilities to anyone worldwide with a browser and an internet connection," says Albert Wenger, partner at Union Square Ventures.
New York-based venture capital firm USV has invested in previous startups such as Twitter, Tumblr, and Kickstarter. Simscale is highly praised by industry experts and achieved “Best of Munich” third place.
Simulations are indispensable in technical product development. They allow developers to test flow, structural, thermodynamic, and acoustic properties before a prototype is produced. The problem:
“A license for professional simulation software costs around €50,000 per year,” says Milad Mafi, spokesperson for Simscale.
Added to this are the costs of the hardware required for simulations. For many small businesses and startups, this is simply too expensive. This creates a clear competitive disadvantage for market entrants.
Cloud solution with community access
The company Simscale, founded by five students at the Technical University of Munich at the time, filled a niche in the market and offers its customers two usage options: Those who allow the community to view their own simulation projects can use the cloud-based simulation platform free of charge. Fees are charged only for confidential use. Simscale provides the computing power for the simulation in the cloud. Users work in a web browser. Students can also simulate with Simscale free of charge, shielded from public view, if they wish.
