Trace.Space Secures $4M to Transform Manufacturing Workflows Through AI

Trace.Space, an AI-powered platform specializing in requirements management, has successfully raised $4 million in seed funding to help modernize industrial production processes. The funding round was led by Cherry Ventures, with contributions from Outlast Fund, Nebular, Fiedler Capital, and Change Ventures. This funding marks Cherry Ventures’ first major investment in the Baltics, underlining growing interest in startups that target efficiency in large-scale manufacturing.

Modern manufacturing is no longer limited to assembling mechanical parts; instead, it involves integrating complex software systems, ensuring regulatory compliance, and fostering collaboration across multiple suppliers. However, traditional tools used in many factories are proving insufficient, creating bottlenecks, miscommunication, and compliance risks. This is particularly problematic in industries dealing with sensitive and high-stakes projects like electric vehicles, medical devices, and aerospace technology.

By addressing these challenges, Trace.Space aims to bridge the gap between outdated processes and the demands of modern engineering. Its platform offers automated traceability, real-time collaboration, and built-in compliance features, reducing inefficiencies and enhancing coordination among engineering teams. In an era of rapid industrial change, companies that fail to upgrade their workflows risk falling behind more agile competitors.

The newly raised capital will be instrumental in expanding the company’s engineering and product development teams. Trace.Space plans to enhance its platform’s AI-driven automation tools, which are designed to reduce manual workloads and streamline complex production cycles. The company is also looking to broaden its international presence, with a particular focus on the U.S. market, where there is a growing demand for digitized production management solutions.

Founded by Janis Vavere, Karlis Broders, and Mikus Krams, Trace.Space is headquartered in Latvia but operates with a global vision. The founders bring extensive expertise in enterprise software and industrial solutions. Janis Vavere previously led sales at Jama Software, providing him with key insights into the challenges faced by engineering teams. Karlis Broders has significant experience implementing requirements management in sectors such as automotive and government. Meanwhile, Mikus Krams was integral to scaling companies like Lokalise and Chili Piper, showcasing his ability to develop scalable enterprise platforms.

What sets Trace.Space apart from legacy solutions is its foundation on modern cloud architecture and AI technologies, making it more adaptable and scalable. Unlike traditional systems, it can easily integrate with existing workflows, reducing the need for extensive customization and lengthy implementation timelines.

The involvement of experienced investors further strengthens Trace.Space’s position. Cherry Ventures, known for supporting transformative startups, leads a consortium that includes notable funds like Outlast Fund, Nebular, Fiedler Capital, and Change Ventures. With this financial backing, Trace.Space aims to not only refine its platform but also establish itself as a go-to solution for manufacturers worldwide.

As manufacturing evolves to meet new technological demands, the pressure to adopt AI-driven solutions is increasing. By securing this strategic investment, Trace.Sp