CarbonSix, an AI-powered industrial automation startup, has raised $4 million in Seed funding to build the next generation of smart infrastructure for manufacturing environments. The round was led by Foothill Ventures, with participation from Storm Ventures, Zeitgeist Capital, Korean VC Xquared, and other institutional investors.

Founded by Terry Moon, Jehyeok Kim, and HJ Terry Suh, CarbonSix is targeting one of the most complex and underserved markets in tech: automating decision-making at the hardware-software interface within industrial operations.

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What CarbonSix Does

CarbonSix is developing an intelligent operating system for industrial machines, enabling factories to optimize workflows, reduce downtime, and adapt in real time to operational changes. Unlike traditional industrial control systems (ICS) that operate in closed, rigid loops, CarbonSix layers in machine learning and real-time feedback mechanisms to adapt dynamically across production lines.

Their platform integrates with both legacy PLC-based machinery and modern sensors, allowing manufacturers to phase in AI-based optimization without overhauling their physical infrastructure.

“Factories today generate a massive amount of untapped data. Our mission is to make that data actionable in real time - without disrupting existing processes,” said co-founder Terry Moon.

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Why It Matters Now

Global manufacturing is under intense pressure. From labor shortages and supply chain volatility to energy constraints and regulatory burdens, manufacturers must now do more with less - while remaining agile.

According to Deloitte, 86% of manufacturers say that digital transformation is a top priority, but over 70% have stalled initiatives due to integration complexity and high switching costs. CarbonSix tackles this directly, offering a low-friction AI overlay that leverages existing equipment and new data streams simultaneously.

But the opportunity runs deeper than optimization. The real inflection point comes when AI agents start making micro-decisions - when the system doesn’t just surface insights, but executes adjustments autonomously.

This is what founders building complex systems need to understand: your product doesn’t just need to be intelligent - it needs to be invisible. CarbonSix’s breakthrough is not in how powerful its technology is, but in how frictionlessly it blends into existing processes. It’s not demanding that manufacturers rewire plants or rethink operations. Instead, it earns its place by showing value without asking for trust up front.

The founders here are solving one of the hardest problems in B2B adoption: how to change everything without looking like you’re changing anything. That’s the kind of product design that moves fast in slow industries - because it respects inertia while still challenging it.

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The Ultra Value Drop for Founders

This is where CarbonSix delivers a powerful lesson for deep-tech and industrial founders: your competitive edge isn’t just in performance - it’s in deployability.

CarbonSix isn’t trying to replace machines - it’s replacing inefficiencies at the protocol layer. That distinction matters. It allows them to integrate faster, avoid procurement deadlock, and prove ROI on shorter timelines. Founders building in complex or regulated industries should take note: the more seamless your product fits into legacy workflows, the more permission you earn to drive transformative change.

If your product requires a tear-down to deliver value, you’ll face friction. If it enhances what's already there and proves value before asking for change - you win adoption faster.

This embedded, modular approach is why CarbonSix isn’t just another automation tool - it’s becoming part of the factory’s nervous system.

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The Market Opportunity

The market for smart manufacturing is growing fast. According to MarketsandMarkets, the smart factory sector is expected to reach $244 billion by 2027, growing at a CAGR of 9.7%. The surge is driven by a global need to improve production efficiency, reduce waste, and enable 24/7 operations without scaling labor.

However, most manufacturers are not greenfield operations. Over 60% of industrial machinery in the U.S. and Europe is over 10 years old, and often incompatible with modern software tools. This creates a massive gap between innovation and implementation.

CarbonSix is directly bridging this gap, offering a “soft landing” for digital transformation by working within physical limitations and delivering modular, scalable automation upgrades.

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Who’s Backing CarbonSix

The $4 million Seed round brought together investors focused on AI infrastructure, deep-tech, and industrial innovation:

• Foothill Ventures, known for backing AI-first enterprise software startups, led the round.
  
• Storm Ventures, with deep experience in scaling B2B SaaS and technical GTM.
  
• Korean VC Xquared, offering strategic access to Asia-based manufacturing giants.
  
• Zeitgeist Capital, backing transformative tech in climate, energy, and automation.
  

Together, this investor group provides CarbonSix with capital, mentorship, and global expansion paths in one of the world’s most intricate ecosystems: manufacturing.

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What’s Next for CarbonSix

With the new funding, CarbonSix plans to expand its engineering team, invest in edge-computer infrastructure, and scale deployments with mid-sized and large manufacturers in the U.S., Europe, and Asia.

They’re also working on vertical-specific modules tailored to industries such as semiconductor assembly, automotive production, and precision tooling, where milliseconds of downtime translate into millions in losses.

Additionally, CarbonSix is developing an API layer to integrate with ERP, MES, and SCADA systems, allowing plant managers to monitor, control, and optimize operations from a single AI-driven interface.

Long-term, CarbonSix aims to become the default automation intelligence layer in industrial infrastructure - where machines talk, adapt, and self-optimize across entire networks.