Industrial AI startup CVector has raised $5 million in a seed funding round to expand its mission of building an AI-powered “nervous system” for large-scale manufacturing and industrial operations. The New York-based company, founded by Richard Zhang and Tyler Ruggles, is focused on helping industrial facilities make smarter, data-driven decisions that directly impact profitability. The funding was led by Powerhouse Ventures and included participation from Fusion Fund, Myriad Venture Partners, and Hitachi’s corporate venture arm. With the capital, CVector is scaling its team, which has grown to 12 employees, and has secured its first physical office in Manhattan’s financial district. CVector’s platform acts as a bridge between plant operations and financial performance, enabling companies to track how small operational changes—like adjusting a valve—translate into real cost savings or efficiency gains. This concept, which Zhang calls “operational economics,” positions the software as a tool that connects real-time industrial activity with bottom-line outcomes. The company has already deployed its system at several high-profile industrial sites. One key customer is ATEK Metal Technologies, a metals processor in Iowa that produces aluminum castings for Harley-Davidson motorcycles. CVector helps ATEK monitor equipment health, reduce energy waste, and track raw material costs—critical factors in maintaining margins in a competitive, capital-intensive industry. Interestingly, CVector’s technology is also being used by startups like Ammobia, a San Francisco-based materials science company developing low-cost ammonia production. Despite operating in very different sectors, the core use cases are similar: optimizing processes, reducing waste, and improving financial outcomes through AI-driven insights. Zhang noted that the company has found success in attracting talent from finance and fintech, especially from hedge funds, where professionals are already trained in using data to gain a competitive edge. This background aligns well with CVector’s focus on measurable economic impact. The shift in customer mindset has also been striking. A year ago, introducing AI to industrial clients often met skepticism. Today, demand is surging. “Now, everyone is asking for AI-native solutions—even when the ROI isn’t fully clear,” Zhang said. This growing appetite reflects a broader trend: in uncertain economic times, industrial companies are turning to AI to manage supply chain risks, cost volatility, and operational inefficiencies. Ruggles emphasized that CVector’s value lies in its ability to deliver tangible financial results. Whether working with legacy plants in the industrial heartland or innovative clean energy startups, the company’s goal remains the same: to turn industrial operations into smarter, more profitable systems.