A growing number of U.S. manufacturing companies are securing significant venture capital investments, reflecting renewed investor interest in businesses that produce physical goods.

One notable example involves a custom sheet-metal and parts business that recently accepted $110 million in venture capital funding, marking a shift for a CEO who had previously avoided such investment.

Separately, Modular data center builder Armada has raised $230 million in funding to build a new factory in Arizona. The investment round includes backing from Johnson Controls, a major industrial company that serves as both investor and strategic partner.

The trend represents a departure from venture capital's traditional focus on software and digital services companies. Manufacturing businesses, which require substantial capital for equipment, facilities, and inventory, have historically relied more heavily on traditional bank loans and private equity rather than venture funding.

Industry observers note that venture capitalists are increasingly willing to invest in companies that manufacture physical products, particularly those with innovative production methods or serving growing markets like data center infrastructure.

The investments come as the U.S. seeks to strengthen domestic manufacturing capabilities across various sectors, with companies requiring substantial funding to build new facilities and scale production operations.