Dave Clark launches Auger, raising $100 million for the AI company

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

Clark's decision to start Auger, based in Bellevue, Washington, comes after a dramatic exit from Flexport, where he served as CEO. Freight forwarder Flexport, valued at $8 billion in 2022, has struggled with a global freight downturn that led to significant revenue declines and layoffs. Founder Ryan Petersen returned as CEO and Clark was ousted after attempting to transform Flexport into a full-service logistics provider.

Despite this setback, Clark was able to develop a deep understanding of the challenges of the global supply chain during his time at Amazon, where he led the rapid expansion of the company's delivery network during the pandemic. In a LinkedIn post, he explained that Auger will use AI to help companies streamline supply chain processes and reduce inefficiencies, which he says current market offerings based on fragmented systems or “franken software” fail to achieve .

A key feature of the Auger platform will be its ability to unify data sources and provide real-time insights, allowing customers to make quick, informed decisions without the need for specialized queries or extensive training.

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

His work in the industry has given him an understanding of the unique challenges these companies face, such as relying on outdated tools like Excel to manage multimillion-dollar supply chains, he mentioned in the LinkedIn post.

“Dave is right to note 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 will bring much-needed perspective to the development of new supply chain and logistics software through his company Auger. Integrating AI is a must, but there is still much work to be done to make AI an effective solution for supply chain and logistics management.”

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

Oak HC/FT, the company backing Auger, is known for its investments in healthcare and financial technology, but sees significant potential in logistics technology.

“The timing is perfect for this innovative solution that 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,” Matt Streisfeld, general partner at Oak, said in Clark’s post.

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

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