Q5D: The Unicorn of Wiring Harness Automation – CEO Interview

A UK electronics startup, Q5D, is on a mission to achieve a valuation of over a billion dollars in the coming years by revolutionizing the assembly of wiring harnesses and other interconnect components. Located in Portishead, just outside Bristol, the company has leveraged 3D printing techniques to automate the assembly process of wiring harnesses. Initially embraced by electric vehicle manufacturers and their suppliers, this innovative approach is now being adapted for flexible interconnect and printed electronics.

The startup recently secured a funding of $2.3 million and is actively seeking additional investments as it begins shipping the initial versions of its automated assembly tools to customers. With a current pipeline of deals amounting to at least $100 million, Q5D operates on a 'hardware as a service' (HaaS) business model, aiming to achieve the high valuation multiples typically associated with software firms, ultimately reaching the coveted $1 billion valuation mark.

Steve Bennington, the CEO of Q5D, shared insights on the company's progress, stating, "We've engaged in discussions with major OEMs and tier one wiring harness manufacturers. The wiring harness has long been a significant concern for them, exacerbated by the complexities of supply chains, particularly highlighted during the challenges posed by events like Covid and disruptions in Ukraine, a major wiring harness supplier for Europe."

Bennington further explained, "Automating the assembly of wiring harnesses results in a substantial 30 to 50% reduction in wiring for a vehicle. This translates to significant cost savings, especially for large electric vehicle customers in the US, potentially amounting to hundreds of dollars per car. The efficiency gains extend beyond direct labor reduction to savings in shipping costs and inventory management, offering a transformative impact on the bottom line."

Simon Baggott, the chief marketing officer, highlighted the broader industry trends influencing Q5D's approach, stating, "One of the key challenges we face is the scarcity of skilled labor, even in traditionally low-cost manufacturing regions like Mexico. This underscores the critical need for automation and innovative solutions in the manufacturing sector, driving the demand for technologies like ours."