Key facts
- Atomic, a supply chain startup founded by former Tesla employees, raised $12.5 million in Series A funding.
- The company's platform uses AI to simulate scenarios and automate inventory decisions.
- Customers include DoorDash and HelloFresh, with DoorDash reportedly using Atomic for 90% of its purchasing across hundreds of sites.
- Atomic's annual recurring revenue has quintupled this year.
- The new funding brings Atomic's total funding to over $15 million.
- Jeff Goodrich, a former Tesla planning director, joined Atomic as CTO and third co-founder.
Supply chain startup Atomic has raised $12.5 million in a Series A funding round led by Klass Capital and Madrona Venture Group. The company, which emerged from stealth last year, was co-founded by former Tesla employees Michael Rossiter and Neal Suidan, who aim to automate inventory management and decision-making for businesses.
Atomic's platform simulates supply chain scenarios to determine optimal inventory levels and locations, a system that originated from their work during Tesla's 2018 Model 3 production ramp. The company has seen significant growth, with its annual recurring revenue quintupling this year, according to Jon McNeill, a former Tesla president and Atomic board member.
Customers like DoorDash and HelloFresh are utilizing Atomic's software. McNeill noted that the product has evolved from providing recommendations to making autonomous decisions, with DoorDash reportedly using the platform for 90% of its purchasing across hundreds of sites. The company is also working with consumer packaged goods, mobility, and manufacturing clients.
Jeff Goodrich, a longtime Tesla planning director, has joined Atomic as its CTO and third co-founder. Rossiter highlighted the adaptability of their AI model, which can tailor itself to various supply chain systems, and the company's ability to onboard new customers quickly. McNeill emphasized that decision speed is a key advantage, a principle he learned at Tesla.