Dave Clark launches Auger, raises $100M for the AI venture

Dave Clark, a former Amazon and Flexport executive, announced Tuesday he has embarked on a new venture with the launch of Auger, a logistics software startup. Backed by $100 million from the investment firm Oak HC/FT, Auger aims to power supply chain management operations using AI and other automation to optimize decision-making for companies of all sizes.

Clark’s decision to launch Bellevue, Washington-based Auger comes after a dramatic exit from Flexport, where he served as CEO. Freight forwarder Flexport, valued at $8 billion in 2022, struggled amid a global freight downturn, leading to significant revenue losses and layoffs. Founder Ryan Petersen returned as CEO, and Clark was ousted after trying to transform Flexport into a full-service logistics provider.

Despite that setback, Clark’s time at Amazon, where he led the rapid expansion of the company’s delivery network during the pandemic, allowed him to develop a deep understanding of global supply chain challenges. He explained in a LinkedIn post that Auger will leverage AI to help companies streamline supply chain processes and reduce inefficiencies, something he believes current market offerings, which rely on fragmented systems or “franken-software,” fail to achieve.

A major feature of Auger’s platform will be its ability to unify data sources and provide real-time insights, enabling clients to make fast, informed decisions without needing specialized queries or extensive training.

Clark told The Information that the software will primarily target midsize to large businesses, which, he said, often lack the resources to manage complex supply chains effectively.

His tenure in the industry has given him an appreciation for the unique challenges these businesses face, such as reliance on outdated tools like Excel to manage multimillion-dollar supply chains, he mentioned in the LinkedIn post.

“Dave is correct when he states that midsize and even large companies lack the ability to thoroughly analyze their logistics data and make better business decisions,” global supply chain expert Brittain Ladd told FreightWaves.

“I believe Dave is going to bring much-needed perspective to the creation of new supply chain and logistics software via his company, Auger. Incorporating AI is a must-have, but there is still lots of work to be done to turn AI into an effective solution for supply chain and logistics management.”

Ladd also said partnering with companies like Pallet or ThroughPut AI could accelerate Clark’s vision for the newly founded company.

Oak HC/FT, the firm backing Auger, is known for its investments in health care and fintech but sees significant potential in logistics technology.

“The timing is perfect for this innovative solution, which will redefine the future of global supply chains with a true operating system for planning, forecasting, and financing. Auger is poised to deliver the supply chain product the market has been waiting for,” said Matt Streisfeld, general partner at Oak, in Clark’s post.

Clark also mentioned to TechCrunch that while Auger has not yet acquired customers or generated revenue and will be updating the industry soon on product development and company growth.