Vaughn Crowe: How Manufacturing and Industrials Became Venture's New Frontier
NVP Capital cofounder Vaughn Crowe explains why supply chain shocks, geopolitical pressure, and AI's collision with the physical world pushed manufacturing and industrials into the venture mainstream — and how his Newark upbringing gave him an early edge.
Manufacturing and industrials have moved from the margins of venture capital to one of its hottest corners, and Vaughn Crowe has been investing in the shift since before it had a name. The cofounder of NVP Capital, who launched the firm with Dan Borok in 2020, grew up in Newark, New Jersey, when it was still an American industrial powerhouse. That background, he says, shaped how he sees the sector now drawing billions in private capital.
«I was in the same neighborhood as the airport and the port,» Crowe said. «Before I knew what being a financier was, there was the thought that being a longshoreman wasn't a bad idea. It's a good living and I had friends who went down that path. When you're from that environment, you can apply some critical thinking and understanding that there's value to be created.»
For years, manufacturing, defense, and energy were not considered venture-ready sectors. Crowe points to the COVID-19 pandemic as the turning point, when supply chain failures, travel disruptions, and energy shortages exposed how much of the U.S. economy depended on industries that had been taken for granted. «COVID put a spotlight on supply chain, travel, logistics, energy, power,» he said. «Healthcare is mission-critical for our country, but guess what else is? Manufacturing, shipping, and receiving.»
That recognition was reinforced by geopolitical tensions in aerospace and defense, which pushed the government to support mission-critical industries and reduce reliance on foreign suppliers. Artificial intelligence has accelerated the trend further, Crowe argues, by pushing software intelligence into the physical world. «We're at the intersection of where AI meets the physical world, and it's impacting everything, including space, robotics, and manufacturing,» he said. «We're at the precipice of something truly revolutionary in the physical world.»
NVP's portfolio reflects that thesis across a wide range of companies, including Vulcan Elements, Reaxiomatic, Laborup, Outlast Power, Human Archive, Haptica Robotics, Class8, Optimal Dynamics, and Upwell. The firm was an early backer of rare earths startup Vulcan Elements, now valued at roughly $2 billion. NVP closed its second fund at $80 million in 2025, and it now competes in a space that has grown crowded as venture dollars pour into reindustrialization.
Crowe expects exits to come through a mix of public offerings and mergers and acquisitions. «For some of these legacy manufacturers, there could be a roll-up play,» he said. «The options become real as you demonstrate how critical these industries are and how well they can perform. The public realm and commercial markets will also open up, and there will be enhanced chances for IPOs. There are multiple ways to create venture-like returns in this space.»
What separates NVP from newer entrants, Crowe suggests, is lived experience. The firm now operates from New York and San Francisco, but its cofounder's roots in an old industrial city give it an unusual fluency in the sector's language and rhythms. «My experience of seeing all this live, this unique moment in time, and layering on some of my experiences growing up in an old industrial city, we know enough to be dangerous,» he said. «We can speak the language.»
The reindustrialization wave has become both a buzzword and a measurable reality, with private capital flowing into factories, defense contractors, and energy infrastructure. For Crowe, the opportunity is not a passing trend but a structural shift in where American economic value is created — and venture investors are only beginning to price it in.
