Supply chain startup Atomic raised $12.5 million in a Series A funding round. Growth equity firm Klass Capital and Seattle venture firm Madrona Venture Group led the new investment. The round brings Atomic up to just over $15 million in total funding since its inception.
Ex Tesla team built the startup
Atomic emerged from stealth last year. Co-founders Michael Rossiter and Neal Suidan previously worked at Tesla. They built an early version of their system during the 2018 Model 3 production ramp at Tesla. Spreadsheets could not keep up with rapid planning changes during that period.
The company also added longtime Tesla planning director Jeff Goodrich as its chief technology officer and third co-founder. Rossiter serves as chief executive officer, while Suidan acts as chief product officer.
Software automates inventory decisions
Atomic decides inventory levels and locations by running simulations. The software recommends responses or automatically executes them. Annual recurring revenue for Atomic has quintupled since the beginning of the year, according to Jon McNeill. McNeill is a former Tesla president and founder of DVx Ventures, where Atomic was incubated.
Customers now include large companies like DoorDash and HelloFresh. DoorDash runs about 90 percent of its purchasing across hundreds of sites using the platform. The software also helps food-focused customers reduce waste and spoilage.
AI adapts to multiple industries
Atomic is expanding into consumer packaged goods, mobility, and manufacturing clients. The software learns unwritten decision rules from a customer's staff to speed up operations. Decision speed creates a business advantage, according to early principles established at Tesla.
Rossiter stated that finance data traditionally receives more priority than operating data. Atomic plans to continue shifting supply chain planning out of spreadsheets and into advanced software.
