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Before diving into the Toolpath story, we need a quick manufacturing acronym lesson.
First, there’s CNC (computer numerical control) programming and machines, which enable manufacturers to perform precise and intricate operations on various materials. Then, we have CAD (Computer-Aided Design) and CAM (Computer-Aided Manufacturing) software that helps machinists design, draft, and create digital models and prototypes of parts.
Now that we’re clear on the basics, we can talk about why it is all important to our daily lives.
The reality is that CNC machining is traditionally a slow and expensive process. And that can make it complicated to bring new products to life.
The team behind Toolpath saw a gap in what software tools were out there for the manufacturing, and they are ready to give the industry an AI and automation upgrade. Toolpath’s AI-driven software platform is designed to help manufacturers to make informed decisions about which jobs to quote, accurately estimate costs, and efficiently plan machining operations inside the shop.
Get To Know The Team
Toolpath was started in Atlanta by co-founder and Head of Product Andy Powell and CTO Justin Gray. Powell, who previously built CallRail, a call tracking and analytics platform, saw potential in applying new technologies to the manufacturing space.
“Machining is a critical process that touches every product we use, and I believe it’s important to build technology that supports American manufacturing,” Powell told Hypepotamus. “By creating AI that increases human productivity in CNC machining, we can help machine shops be more competitive and more successful. It’s a worthy challenge, and I believe we have the right combination of skills at the right time to take it on.”
Earlier this year, Toolpath brought on industry veteran Al Whatmough as CEO. A machinist by trade, Whatmough previously worked as a curriculum developer for CAM software and served as Director of Product Management leading CAM at Autodesk, where he helped grow its user base to over 4.6M.Â
Whatmough only connected with Powell and the Toolpath team in February of this year. By April, he put in his notice and was ready to join Toolpath full time. With a team of the top talent being added to toolpath ranging from Denmark and New Zealand, Whatmough will remain in the West Coast, making frequent visits to the Toolpath R&D shop in Ohio.
Now armed with a new CEO and a new group of investors, Toolpath is ready to scale.
Behind The $10 Million Seed Round
Toolpath recently announced a $10 million seed round from a mix of traditional VC firms and industry experts. The round was led by Leaders Fund, whose Managing Partner Stephen DeBacco is based in Atlanta. Atlanta-based investors Tech Square Ventures and BLH Venture Partners also joined the round alongside individual investors including Carl Bass (former CEO), John Saunders (NY CNC), and Christian Welch.
“In a world where capitalizing on the promise of AI is often elusive, Toolpath has shown up with a practical approach to address a much-needed gap in the manufacturing industry,” Stephen A. DeBacco, Managing Partner at Leaders Fund, said in a statement. “Toolpath is demonstrating that manufacturers remain eager to invest in practical solutions that give them a measurable advantage when running their business. By focusing on the workflow side of the equation, Toolpath is helping where it counts.”
Investor Christian Welch, CEO of Swissomation, added that he was drawn to Toolpath because the platform is addressing the challenges he’s experienced around quoting.
“[Quoting] demands the highest level of machining skill but doesn’t directly generate revenue. Pulling a skilled machinist off the floor for quoting is costly and prone to errors from simple oversights,” Welch added in a statement. “Toolpath helps prevent those oversights and has the potential to free me up to focus on more critical tasks.”
Following the round, Whatmough said the team is focused on building “strong relationships” with early customers so that they can “ensure that we’re delivering value that gives them great results.”