An Austin startup that makes AI-powered software to analyze factory inventories has raised $15 million in new funding. It will use the funding to grow its team and expand globally with more manufacturers.
LeanDNA, which was founded in 2014 by CEO Richard Lebovitz, uses predictive analytics to help factories avoid shortages and be more consistent with deliveries. Its software is used by large scale companies, including aerospace companies Spirit AeroSystems and Safran.
The new investment was led by Austin-based S3 Ventures.
“Nobody understands the factory management gap like LeanDNA,” Charlie Plauche, a partner at S3 Ventures, said in a news release. “With the company’s track record of rapid expansion and several multibillion-dollar manufacturing companies among its existing customers, we’re confident LeanDNA’s unique platform can capture a significant share of the massive manufacturing market."
Plauche joined LeanDNA's board of directors as part of the deal.
Also in on the new round were Next Coast Ventures and Rony Kahan, co-founder of Austin-based careers site Indeed, which backed LeanDNA's $4.5 million Series A in 2017.
“LeanDNA’s major successes over the last few years are emblematic of the company’s scalability, commitment to their customers and promise to impact the manufacturing industry,” Next Coast Ventures co-founder Mike Smerklo said in a statement.
While LeanDNA was founded in 2011, it formally launched in 2014 with software to help manufacturers deal with shifting supply chains and the associated reporting and analysis required to find efficiencies.
The company currently has 43 employees. It's projected to grow to about 95 by the end of 2020. It currently has five positions listed, including roles in customer success, engineering and sales.
In one of its case studies, it reported that an international aerospace manufacturer cut its spending by $80 million by spotting and correcting inventory shortages on the LeanDNA platform.
“Having spent the past 30 years working directly with global factories, one thing is abundantly clear: Factories have been left behind," Lebovitz said. "In collaboration with our pioneering, global manufacturing customers, we have proven that a data-driven approach to factory management is critical to unlocking working capital across the supply chain.”
