Parallel Systems, an electrical rail auto business, has raised $49.55 million in a Series A funding
- ByStartupStory | January 20, 2022
Parallel Systems, a company created by three former SpaceX engineers to develop autonomous battery-electric rail vehicles, raised $49.55 million in a Series A round on Wednesday. The firm is attempting to build a more efficient, decarbonized freight network that runs on top of current railway infrastructure. It has received $53.15 million to date, including a $3.6 million seed round.
According to co-founder and CEO Matt Soule, the cash will be used to create Parallel System’s second-generation vehicle and initiate an advanced testing programme that will assist the business figure out how to incorporate its vehicles into real-world operations.
According to Soule, Parallel Systems plans to use the additional funding — which was headed by Anthos Capital and includes Congruent Ventures, Riot Ventures, Embark Ventures, and others — to hire roughly 60 engineers, the majority of whom will work on software.
Because rail in the United States is privately controlled by owner-operators, Parallel will find it difficult to test its vehicles and the autonomous technologies that drive them on a wide scale. Parallel is aiming to sell or lease its tools to private train businesses, allowing them to run the service on a day-to-day basis while playing a supporting role in terms of providing and integrating technology. The startup won’t be able to test whether its technology can manage real-world operations until it signs a traditional railroad partner.
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