Trace.Space, a Latvian-founded company that uses AI models like Llama and OpenAI's LLM to provide advanced engineering solutions, has raised $4 million in seed funding round. Leading European early-stage venture capital firm Cherry Ventures is the lead investor.
About Trace.Space
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Numerous startups are using generative AI to build platforms that speed up product development, thus helping Western manufacturers compete with their Asian counterparts.
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Trace.Space provides such an AI-driven, cloud computing platform designed for engineers to develop industrial products, especially electric and autonomous vehicles, satellites, robots, semiconductors, and medical devices.
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Founded in 2022 by Janis Vavere, Mikus Krams, and Karlis Broders in Riga, Trace.Space is leveraging modern cloud computing and AI models to enhance collaboration and minimize response times in product development.
“Every company in the world that builds complex regulated products in automotive, medical, aerospace, and so on, faces the issue that these products are becoming more and more complex, especially in design. The legacy tools and processes are struggling. IBM’s tools for this were designed in the late 80s. It’s a desktop client and needs to be installed on every computer,” Janis Vavere, co-Founder and CEO of Trace.Space, comments.
Investment details
Cherry Ventures, a $500 million venture capital firm based in Berlin, London, and Stockholm, led the funding round. The firm focuses on early-stage investments, particularly in pre-seed and seed-stage startups across Europe and has over 130 companies in its portfolio.
The Latvian investment firm Outlast Fund, which specializes in providing venture capital to pre-seed and seed software start-ups in the Baltics and Nordics, also participated in the round, along with earlier investors Nebular, Fiedler, and Change Ventures.
“Manufacturing’s tiniest specification slip-up can mean months of delays and millions lost — a painfully boring problem, but solving it is anything but a rocket-ship. Built in Latvia with a strong US market focus, Trace.Space is turning requirements management into a strategic advantage with AI,” said Marija Rucevska, a General Partner at Outlast Fund.
In December 2024, Outlast Fund launched its new fund primarily focused on key sectors including SaaS, fintech, cybersecurity, and e-commerce enablers. The fund targets pre-seed investments of up to €250,000 and seed rounds of up to €1.5 million.
