# Focal Systems

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/focal-systems

- Industry: Software
- Headquarters: Burlingame, US
- Website: www.focal.systems
- Total disclosed funding: $37M
- Latest round: Series B (Mar 1, 2021)
- Investors on record: 7

## About

Focal Systems Inc. delivers AI-driven solutions that optimize retail operations through an innovative platform, enhancing efficiency in inventory management and order processes.Founded in 2015 in Burlingame, US, Focal Systems Inc. focuses on automating retail operations. The company has secured a total of USD 25.8 mn through multiple funding rounds, with the latest being a Series B in March 2021, led by Point72 Ventures. CEO Francois Chaubard guides the team toward operational innovation in retail technology, with the company achieving 7 significant deals to date.Focal Systems specializes in delivering advanced AI-driven solutions to optimize retail operations through its flagship product, FocalOS. This platform automates crucial decisions made by retail teams, such as order-writing, labor scheduling, and inventory management, enhancing operational efficiencies and potentially doubling EBITDA in a short timeframe. FocalOS leverages a network of small, ruggedized shelf cameras that provide hourly data on stock levels and shelf conditions across sales floors and backrooms. These cameras collect detailed insights that inform automated order generation, improve stock availability, and reduce food waste by approximately 84%. The system is designed for use by retailers across various markets, including North America and Europe, serving a diverse client base that includes large supermarket chains and smaller grocery operations.Focal Systems generates revenue primarily through subscription-based models for its FocalOS platform and associated services. Clients, typically retail partners, enter into agreements to utilize the technology for inventory management and operational optimization. These partnerships often involve tiered pricing structures based on the scale of deployment, with costs reflecting the number of stores and cameras integrated into the system. Retailers pay a monthly fee that includes access to real-time analytics, automated ordering capabilities, and ongoing support. The company’s revenue model positions it favorably within the retail technology landscape, allowing for predictable cash flow while providing significant value to its clients through enhanced operational efficiencies and reduced waste.In March 2021, Focal Systems Inc. raised USD 25.8 mn in Series B funding to support its growth and innovation in AI-powered retail automation solutions. The company plans to expand its global sales and technical teams, aiming to enter new markets across Europe and Asia by the end of 2023. This funding will facilitate the development of upcoming features for the FocalOS platform, enhancing its capabilities and reach within the retail sector.

## Funding rounds

- Series B, Mar 1, 2021, $26M — Costanoa Ventures, Zetta Venture Partners, Zebra Ventures, Point72 Asset Management
- Series A, Oct 1, 2017, $8.5M — Uncork Capital, Costanoa Ventures
- Seed, May 1, 2016, $2.5M — Uncork Capital, Zetta Venture Partners, Seabed VC
- Seed, Mar 22, 2016, $0.1M — Y Combinator

## Investors

- Y Combinator (https://capitalatlas.ai/funds/y-combinator) — Seed
- Uncork Capital (https://capitalatlas.ai/funds/uncork-capital) — Seed, Series A
- Zetta Venture Partners (https://capitalatlas.ai/funds/zetta-venture-partners) — Seed, Series B
- Seabed VC (https://capitalatlas.ai/funds/seabed-vc) — Seed
- Costanoa Ventures (https://capitalatlas.ai/funds/costanoa-ventures) — Series A, Series B
- Zebra Ventures (https://capitalatlas.ai/funds/zebra-ventures) — Series B
- Point72 Asset Management — Series B