Atomic, a Boston-based supply-chain startup founded by ex-Tesla operators Michael Rossiter and Neal Suidan, has raised $12.5M in Series A funding. The round was led by Klass Capital and Madrona Venture Group, bringing the company's total funding to just over $15M. Atomic also added longtime Tesla planning director Jeff Goodrich as CTO and third co-founder.
The company's software simulates supply-chain scenarios and recommends — or automatically executes — inventory decisions. The approach was first built at Tesla during the 2018 Model 3 production ramp, when spreadsheets could not keep up with fast-changing planning needs. According to TechCrunch, customers now include DoorDash and HelloFresh, and DoorDash is said to be running about 90% of its purchasing across hundreds of sites, helping cut waste and spoilage.
Atomic's annual recurring revenue has quintupled since the beginning of this year, according to former Tesla president and DVx Ventures founder Jon McNeill, who is on Atomic's board. He says the product has evolved from giving recommendations to making decisions autonomously. Investor interest was driven by fast onboarding and adaptability across industries; Atomic is now working with CPG, mobility, and manufacturing clients. Rossiter, Atomic's CEO, says the goal is to pull supply-chain planning out of spreadsheets, noting that operating data often gets less attention than finance data.