Laborup raises $7.7M to solve US manufacturing worker shortage with AI

Artificial intelligence startup Laborup has raised $7.7 million in seed funding to address America’s critical manufacturing labor shortage using voice-first AI recruitment technology. The funding comes as the U.S. faces over 450,000 unfilled manufacturing jobs, with projections that 2.1 million roles could remain vacant by 2030—potentially costing up to $1 trillion in lost output annually.

The big picture: America’s manufacturing boom is creating a paradox where massive industrial investments are driving job creation, but companies lack the workforce to fill critical roles.

• Companies have announced trillions in new U.S. manufacturing investments since 2020 across electric vehicles, semiconductors, defense, nuclear, and clean energy sectors.
• Major players like Apple, Micron, GE, and Philips are doubling down on U.S. production, creating hundreds of thousands of jobs.
• The shortage affects national security, with delayed shipbuilding programs, bottlenecked clean energy projects, and widening skills gaps in aerospace and automotive industries.

Why traditional hiring fails: Legacy staffing agencies use decades-old methods that miss skilled industrial workers who don’t have polished digital profiles.

• Platforms like LinkedIn and Indeed capture white-collar talent but overlook machinists, welders, and technicians.
• Manual screening processes can take weeks to place a single worker, while one missing machinist can idle a multimillion-dollar production line.
• “Every factory runs on two kinds of capital: physical and human,” explains Simba Jonga, Laborup’s founder and CEO. “You can buy the best machines in the world, but without the right people, nothing moves.”

How Laborup’s AI works: The company developed an AI-powered system that sources, interviews, verifies, and routes under-networked industrial workers in days rather than weeks.

• The system understands industrial work nuances, from crane operator certifications to specific welding techniques.
• Teams hire 5-10× faster at approximately 70% lower cost with 2-3× higher retention than legacy staffing.
• Unlike platforms designed for office workers, Laborup creates a dedicated ecosystem where skilled workers can showcase capabilities, certifications, and machinery expertise.

In plain English: Think of Laborup’s AI as a specialized recruiter that speaks the language of manufacturing.

• Instead of relying on traditional job boards that work well for office jobs, it actively finds skilled factory workers who might not have LinkedIn profiles.
• The system matches workers with companies that need their specific skills—like finding a certified welder who knows how to work with titanium for an aerospace company.

What customers are saying: Early adopters report dramatic improvements in hiring speed and candidate quality.

• “Laborup has been instrumental in helping us find skilled talent like maintenance technicians,” said Tonya Shortt, Talent Acquisition Specialist at Colortech, a manufacturing company. “Within days, they delivered qualified candidates who not only met our criteria but were ready for job offers.”
• Michael Gomez, Director of Manufacturing Research and Technology at MSC Industrial Supply, noted: “Instead of forcing manufacturing workers into platforms designed for white-collar professionals, Laborup has created a dedicated ecosystem.”

The funding details: NVP Capital led Laborup’s latest seed round, with participation from Torch Capital, Threshold, Heartland VC, and notable angels.

• Angel investors include Jeff Dean (Chief Scientist, Google DeepMind), James Slavet, and Evan Moore (co-founder, DoorDash).
• Jeff Jordan, General Partner at Andreessen Horowitz, invested personally, citing the “very large” problem of hiring outside white-collar job spaces.
• “The current administration’s desire to reinvigorate the domestic manufacturing base provides meaningful tailwinds,” Jordan noted.

Why investors are betting on industrial AI: The combination of manufacturing reshoring, AI capabilities, and workforce challenges has created investment opportunities in under-digitized sectors.

• Dan Borok, Managing Partner at NVP Capital, explained: “With American manufacturing reshoring due to supply chain fragility and global trade uncertainty—and AI now able to automate previously manual hiring tasks—we backed Simba’s vision.”
• NVP is also investing in related companies like Vulcan Elements (manufacturing automation), Optimal Dynamics (AI for trucking), and Ship Angel (AI for shipping rate management).

The broader context: Manufacturing faces a structural shift from labor surplus to permanent labor shortages, creating opportunities for technology solutions.

• Dr. Marianne Wanamaker, Dean of University of Tennessee’s Baker School and former White House Chief Domestic Economist, notes: “For most of the last century, American companies lived in a world of labor surplus—more workers than jobs. That relationship has fundamentally changed.”
• Industrial roles are particularly vulnerable as they lack the flexibility of remote work or nontraditional schedules available in white-collar positions.