Logistics and supply chain management is like classical music: When it’s humming along smoothly it fades into the background unnoticed, but even one sour note can make things unpleasant — and, lately, this seems to be more true than ever.
Optimal Dynamics, an NYC-based startup, wants to keep supply chains running smoothly with the help of AI. And less than a year after its $4 million seed round, the company announced Thursday it has raised an $18.4 million Series A.
VC heavyweight Bessemer Venture Partners led the round, in which several existing investors participated.
Optimal Dynamics’ flagship product CORE.ai uses a “high-dimensional AI” system designed specifically for freight transportation. Its software lets users simulate a range of “what-if” scenarios, which helps them plan ahead for unexpected supply chain interruptions — like severe weather or supply shortages.
“CORE.ai leverages high-dimensional artificial intelligence to allow companies to capture significantly more detail, plan into the future, and, most importantly, manage uncertainty,” co-founder and CEO Daniel Powell said in a statement. “This is the breakthrough that allows our platform to go beyond just providing statistics on a screen, but driving decision automation and intelligence.”
The company’s core technology was developed at Princeton University by Powell’s father and co-founder Warren Powell. Today, the software is mainly used for truckload operations, but over the decades it has been deployed, tested and iterated with trucking companies, railroads and energy companies across the world. In the statement, Optimal Dynamics says its team’s university roots and industry experience give the company a unique understanding of the limitations of existing technology. And this is part of what investors saw in the company as well.
“We were really impressed with the combination of their deep technology and the commercial impact that Optimal Dynamics is already delivering to their customers,” Mike Droesch, a partner at Bessemer, said in a statement. “We look forward to helping them continue to build the future layer of supply chain intelligence.”
Looking ahead, Optimal Dynamics will use this fresh funding to develop new products. It also plans to triple its current team of 25, with a focus on expanding its R&D, sales and marketing efforts.
