Parallel Systems raises $100M for autonomous freight rail vehicles

Parallel Systems has raised $100 million in a Series C funding round to scale production of its third-generation autonomous electric rail vehicle, the Panther, and speed its commercial rollout. AVP led the round. Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Capital, and Collaborative Fund also participated.

The startup says its vehicles can move several tons of freight for up to 500 miles without an operator. They can travel independently or in short platoons, and their coupler-free design lets them split up in a train yard without human intervention. Sensors monitor the track ahead for obstacles after a Panther is cleared to operate on a section of track.

Parallel was founded in 2020 by Matt Soule and co-founders after they worked on rocket avionics systems at SpaceX. The company is pursuing shorter freight routes that railroads have often left to trucking. The source reports that about 60% of U.S. freight trips are under 500 miles, and that trucking companies handle most of them.

Parallel received Federal Railroad Administration approval 18 months ago to operate near the Port of Savannah, Georgia. It has been running on 160 miles of track there to demonstrate the system’s safety. Soule told TechCrunch the company is working toward its first commercial payload “very soon.”