Kodiact raises $2.5M to help manufacturers simulate raw-material shocks
What's the deal? Chicago-based KodiactDealroom has a profile for this one. Try Dealroom → has raised $2.5 million in pre-seed funding led by Supply Change CapitalDealroom has a profile for this one. Try Dealroom →, with participation from Green Circle Foodtech Ventures and Velocity Catalyst. The startup builds simulation software that helps food, beverage, and consumer goods manufacturers manage the raw materials that drive most of their product costs.
How big is the round? The $2.5 million raise is modest, landing in roughly the bottom third of comparable deals by size. It sits well below larger bets on AI procurement tools — Fragment, for example, launched in October with $56 million.
What's the product? Kodiact, which launched in May 2026, sits on top of ERP systems like SAP and Microsoft Dynamics and connects every material a manufacturer buys to the market forces that move its price. When a commodity spikes, the platform flags exposed products and margins, recommends action, and lets teams simulate a decision before it hits the P&L. It covers over 500 raw materials across 23 categories.
Why now? Input markets are tightening again. GEPDealroom has a profile for this one. Try Dealroom →'s September 2026 index reported shortages rising for the first time since May, led by oil-based materials, alongside higher transportation costs.
What's the endgame? Kodiact aims to replace static annual sourcing plans with strategies that update as markets move. Every decision and its outcome is logged in a single ledger, so a company's buying judgment builds over time rather than resetting with each new hire.
Co-founder and chief executive officer Steve Tucker began his career in commodity procurement. "When I was trading cocoa, the best buyers carried the whole market in their heads, and when they left, that knowledge left with them," he said. Fellow co-founder Dan Daehler serves as chief operating officer.
The signal: The raise reflects growing investor interest in AI-enabled procurement, but with a narrower focus — simulating price and supply shocks rather than automating purchasing. At this size, it reads as an early bet on software to help manufacturers anticipate volatility, not yet evidence of a scaled solution.
Read more: markets.financialcontent.com
Image credit: Generated with Gemini
