AVP is excited to announce our lead investment in Basetwo’s $11.5M Series A round, alongside co-investors Glasswing, Global Brain, Deloitte Ventures, SHIMADZU and Chiyoda. After spending considerable time exploring the potential of software solutions in the manufacturing space, we are thrilled to support Basetwo’s innovative AI co-pilot for manufacturing processes. When we first met the Basetwo team over a year ago, we were impressed by their visionary solution to a clear and pressing market need. Below, we highlight the key reasons behind our enthusiasm for Basetwo:

Basetwo is at the forefront of AI-driven manufacturing optimization, entering the market at a time where AI technology is feasible, and companies are eager to adopt. The manufacturing industry is massive, contributing to ~16% of GDP¹, but it remains disproportionately reliant on outdated technology. Despite its size and impact, many manufacturers still rely on legacy tools and desktop simulation software—some dating back to the Windows 95 era. Our calculations estimate Basetwo’s TAM to be approximately $20 billion, primarily focused on chemicals, and around $60 billion when expanded to include other underserved verticals.

At AVP, we seek opportunities in industries primed for disruption, and believe this gap in manufacturing represents a significant opportunity. The industry is grappling with rising costs, labor shortages, nearshoring trends, and increasing competition, all of which are driving demand for greater operational efficiency. We believe Basetwo is uniquely positioned to fill this gap. In verticals such as pharmaceuticals, there is a distinct lack of advanced process optimization solutions, and Basetwo’s technology addresses this need, unlocking substantial value by improving operational efficiency.

Basetwo has a unique value proposition, providing a low-code, user-friendly platform enabling operators to efficiently perform process optimization with quick setup and time to value. The platform leverages best-in-class physics AI models to accurately simulate complex processes and recommend optimization strategies.

What truly sets Basetwo apart is not just the use of advanced AI, but also modern MLOps tools they have architected – creating a comprehensive, end-to-end solution for process optimization. The combination of technical excellence and usability positions Basetwo to drive significant operation improvements across manufacturing.

The ROI potential for process optimization in manufacturing is significant. Even small inefficiencies can compound at scale, leading to millions of dollars in lost productivity. Basetwo’s platform has already demonstrated its value by helping customers identify and eliminate inefficiencies, generating millions in cost savings. As a result, Basetwo has been able to secure early contracts with large Fortune 500 companies—an endorsement of the platform’s effectiveness and real-world value.

At AVP, we prioritize investing in companies with strong leadership, and Basetwo’s management team of three brothers exceeds our expectations. CEO Thouheed and COO Thamjeeth previously co-founded an AI-driven water infrastructure company, which was acquired by Innovyze and later by Autodesk; Thouheed then went on to lead Autodesk’s AI initiatives. Head of Engineering Tawfeeq brings experience from highgrowth tech companies like Lyft, Uber, and Databricks. Their combined expertise gives us confidence in management’s ability to scale and grow Basetwo into a market leader.

Since its founding in 2022, Basetwo has made impressive strides with its cutting-edge platform addressing the significant gap in the manufacturing sector. We at AVP are excited to partner with Basetwo to help manufacturers across the globe unlock millions in cost savings and shape the future of process optimization.

Basetwo, an AI copilot for manufacturing engineers, today announced it has raised USD $11.5M in Series A funding led by AVP with participation from existing investor Glasswing Ventures, Deloitte Ventures, Global Brain Ventures, Shimadzu Corporation, Chiyoda Corporation, and prominent UAE angel investors via Qora71. The investment allows the company to accelerate its mission to revolutionize how pharmaceutical and chemical manufacturers optimize their production processes.

Pharmaceutical and chemical manufacturers face significant challenges when scaling production from lab to commercial scale and optimizing existing processes for quality and efficiency. When launching new drug compounds or chemical formulations to market, manufacturers must precisely determine numerous production parameters — from reactor temperatures to mixing speeds — while maintaining strict quality standards. At the commercial scale, teams must continuously verify production performance, identify issues, and implement corrective actions to ensure optimal batch quality. Traditional machine learning approaches relying solely on historical data struggle with these complex manufacturing processes, as they can only learn from correlations rather than the underlying physics and chemistry engineers use to control and troubleshoot these systems. This technology gap leads to significant inefficiencies, with 20 cents of every dollar spent in manufacturing going to waste — a staggering global loss of $8 trillion annually.

Basetwo’s Physics AI platform uniquely combines fundamental chemical engineering principles with artificial intelligence to optimize pharmaceutical and chemical manufacturing processes. This results in an up to 40% improvement in cycle times and raw material usage while helping customers achieve a 25% improvement in product quality. The platform enables manufacturers to run virtual experiments and simulate process changes before implementation, significantly reducing the time and cost traditionally required to optimize production processes and eliminating the risks associated with live testing.

“Amid the excitement around generative AI, most applications have focused on consumer use cases using black box models that learn from data patterns and correlation rather than foundational knowledge and principles,” said Thouheed Abdul Gaffoor, CEO and Co-founder of Basetwo. “Manufacturing requires a fundamentally different approach, incorporating decades of engineering expertise and physics-based understanding of how chemicals and equipment interact. Our Physics AI platform enables manufacturers to optimize complex processes with powerful and explainable models.

The confidence of our investors in this Series A round is a testament to the transformative potential of our approach. We’re thrilled to have their support as we expand our capabilities and continue to empower manufacturers with cutting-edge solutions for the challenges of today and tomorrow.”

The funding will accelerate the development of Basetwo’s AutoPilot technology for autonomous, real-time manufacturing control while expanding the company’s presence in the US, Japan, Europe, and the Middle East. Basetwo will continue growing its business development, AI, and software engineering teams to support increasing market demand.

“Basetwo is transforming how global manufacturers optimize their operations,” said Manish Agarwal at AVP. “Basetwo’s Physics AI platform addresses challenges critical for process efficiency and quality control, delivering measurable improvements that impact the bottom line. With their proven success across major pharmaceutical and chemical companies, Basetwo is positioned to become a leader in next-generation manufacturing optimization.”

Basetwo’s low-code platform empowers process engineers to leverage AI technology for critical use cases, such as quickly bringing new products to market and optimizing existing processes. The platform’s physics-based models provide interpretable insights that help engineers understand and control manufacturing systems while meeting regulatory requirements.

“Traditional manufacturing software was built for an era before cloud computing and modern AI,” added Gaffoor. “We’re excited to partner with global leaders across pharmaceuticals, chemicals, and consumer goods to usher in a new generation of intelligent manufacturing optimization that maximizes efficiency, quality, and sustainability.”

About Basetwo

Basetwo is a Toronto-based startup that provides an AI platform designed to enhance manufacturing efficiency. Working with category leaders in the pharmaceutical and consumer goods industry, Basetwo has helped manufacturers improve yield, cycle time, and operational costs by over 20-30%.

About AVP

AVP is a global venture capital firm specializing in high-growth, technology-enabled companies, managing more than $2 billion in assets across four investment strategies: Venture, Early Growth, Growth, and Fund of Funds. Since its establishment in 2016, AVP has invested in more than 60 technology companies in Venture and Early Growth stages in the U.S. and Europe. With offices in New York, London, and Paris, AVP supports companies in expanding internationally and provides portfolio companies with tailored business development opportunities to further accelerate their growth. For more information about AVP, please visit www.axavp.com.

Basetwo, an AI copilot for manufacturing engineers, today announced it has raised USD $11.5M in Series A funding led by AVP with participation from existing investor Glasswing Ventures, Deloitte Ventures, Global Brain Ventures, Shimadzu Corporation, Chiyoda Corporation, and prominent UAE angel investors via Qora71. The investment allows the company to accelerate its mission to revolutionize how pharmaceutical and chemical manufacturers optimize their production processes.

Pharmaceutical and chemical manufacturers face significant challenges when scaling production from lab to commercial scale and optimizing existing processes for quality and efficiency. When launching new drug compounds or chemical formulations to market, manufacturers must precisely determine numerous production parameters — from reactor temperatures to mixing speeds — while maintaining strict quality standards. At the commercial scale, teams must continuously verify production performance, identify issues, and implement corrective actions to ensure optimal batch quality. Traditional machine learning approaches relying solely on historical data struggle with these complex manufacturing processes, as they can only learn from correlations rather than the underlying physics and chemistry engineers use to control and troubleshoot these systems. This technology gap leads to significant inefficiencies, with 20 cents of every dollar spent in manufacturing going to waste — a staggering global loss of $8 trillion annually.

Basetwo’s Physics AI platform uniquely combines fundamental chemical engineering principles with artificial intelligence to optimize pharmaceutical and chemical manufacturing processes. This results in an up to 40% improvement in cycle times and raw material usage while helping customers achieve a 25% improvement in product quality. The platform enables manufacturers to run virtual experiments and simulate process changes before implementation, significantly reducing the time and cost traditionally required to optimize production processes and eliminating the risks associated with live testing.

“Amid the excitement around generative AI, most applications have focused on consumer use cases using black box models that learn from data patterns and correlation rather than foundational knowledge and principles,” said Thouheed Abdul Gaffoor, CEO and Co-founder of Basetwo. “Manufacturing requires a fundamentally different approach, incorporating decades of engineering expertise and physics-based understanding of how chemicals and equipment interact. Our Physics AI platform enables manufacturers to optimize complex processes with powerful and explainable models.

The confidence of our investors in this Series A round is a testament to the transformative potential of our approach. We’re thrilled to have their support as we expand our capabilities and continue to empower manufacturers with cutting-edge solutions for the challenges of today and tomorrow.”

The funding will accelerate the development of Basetwo’s AutoPilot technology for autonomous, real-time manufacturing control while expanding the company’s presence in the US, Japan, Europe, and the Middle East. Basetwo will continue growing its business development, AI, and software engineering teams to support increasing market demand.

“Basetwo is transforming how global manufacturers optimize their operations,” said Manish Agarwal at AVP. “Basetwo’s Physics AI platform addresses challenges critical for process efficiency and quality control, delivering measurable improvements that impact the bottom line. With their proven success across major pharmaceutical and chemical companies, Basetwo is positioned to become a leader in next-generation manufacturing optimization.”

Basetwo’s low-code platform empowers process engineers to leverage AI technology for critical use cases, such as quickly bringing new products to market and optimizing existing processes. The platform’s physics-based models provide interpretable insights that help engineers understand and control manufacturing systems while meeting regulatory requirements.

“Traditional manufacturing software was built for an era before cloud computing and modern AI,” added Gaffoor. “We’re excited to partner with global leaders across pharmaceuticals, chemicals, and consumer goods to usher in a new generation of intelligent manufacturing optimization that maximizes efficiency, quality, and sustainability.”

About Basetwo

Basetwo is a Toronto-based startup that provides an AI platform designed to enhance manufacturing efficiency. Working with category leaders in the pharmaceutical and consumer goods industry, Basetwo has helped manufacturers improve yield, cycle time, and operational costs by over 20-30%.

About AVP

AVP is a global venture capital firm specializing in high-growth, technology-enabled companies, managing more than $2 billion in assets across four investment strategies: Venture, Early Growth, Growth, and Fund of Funds. Since its establishment in 2016, AVP has invested in more than 60 technology companies in Venture and Early Growth stages in the U.S. and Europe. With offices in New York, London, and Paris, AVP supports companies in expanding internationally and provides portfolio companies with tailored business development opportunities to further accelerate their growth. For more information about AVP, please visit www.axavp.com.