Parallel Systems raises $100 million to develop autonomous freight rail technology

Parallel Systems, an autonomous freight rail company founded in 2020 and based in downtown Los Angeles, announced it raised $100 million in a Series C funding round, according to the Los Angeles Business Journal.

The funding round was led by Advance Venture Partners with participation from investors including Santa Monica-based Anthos Capital, Cobalt Capital, and Venice-based Riot Ventures.

Founder Matt Soule, a former SpaceX engineer, started Parallel Systems to innovate in the U.S. railroad sector, which is dominated by legacy players and traditionally difficult for Silicon Valley companies to enter.

Soule emphasized the energy efficiency and capacity advantages of rail freight but noted that its large-scale operation misses opportunities to serve a broader market.

According to the U.S. Department of Transportation, trucks accounted for 63% of transborder freight in 2025, while rail made up only 11%, highlighting the potential for growth in rail freight innovation.

Parallel Systems aims to leverage technology to modernize freight rail, contributing to more efficient and automated transportation infrastructure in the U.S.