Steph Curry’s VC firm just backed an AI startup that wants to fix food supply chains

The food supply chain industry has long struggled with inefficiencies, often relying on outdated software systems and manual processes that lead to delays and errors. Enter Burnt, a Y Combinator startup that aims to transform this trillion-dollar U.S. market by harnessing the power of AI agents to streamline operations. Recently, the company secured $3.8 million in seed funding, led by PennyJar Capital, the venture capital firm associated with NBA superstar Steph Curry, alongside contributions from Scribble Ventures, Formation VC, and notable angel investors like Dan Scheinman. Joseph Jacob, Burnt's co-founder and CEO, has deep roots in the food industry. His family's legacy includes a history of exporting shrimp from India to the U.S., starting with his great-grandfather in the 1930s. This familial connection, coupled with Jacob's own experiences working in a shrimp processing factory, has given him a unique perspective on the challenges within the food supply chain. Upon returning to the U.S. and managing extensive seafood imports, Jacob quickly recognized the significant inefficiencies in existing systems, which often depended on Excel sheets and outdated enterprise resource planning (ERP) software. "I managed hundreds of millions of pounds of seafood, but the tracking methods were archaic," Jacob remarked to TechCrunch. He emphasized the critical need for effective supply chain management, especially in an industry with narrow profit margins. After experiencing two failed software implementations, he decided to create a solution tailored for the food sector instead of just working within its confines. Jacob's insights reflect a broader issue faced by many in the industry. Traditional enterprise vendors have struggled to sell comprehensive solutions, leading to prolonged rollouts and frustrations among small and mid-sized businesses that dominate the market. With Burnt, Jacob sees a unique opportunity: instead of overhauling existing systems, the company layers AI on top of them, thereby enhancing functionality without requiring users to abandon established practices. "Everyone we talk to refers to their ERP as a necessary evil," Jacob noted. "Conventional software often forces teams to discard old processes. With our AI, they can keep their systems intact and still get the job done efficiently." Burnt's flagship AI agent, Ozai, automates the time-consuming order entry process for food distributors, handling a staggering 80% of workflows that are typically trapped in legacy systems. Since its launch in January, the startup has processed over $10 million in monthly orders, serving clients in the seafood, specialty goods, and packaged food sectors. Notably, one of the largest food conglomerates in the U.K. is in the process of implementing Burnt's solutions. Despite the unglamorous nature of AI in food supply chains, Jacob argues that this focus is precisely what makes Burnt compelling. Years of failed technology implementations have led to skepticism among operators, who are wary of outsiders lacking industry experience. Jacob and his co-founders, who also have backgrounds in the food sector, are working to build trust in an industry where relationships are paramount. Though securing investment for an AI venture in the food supply chain presented challenges, Jacob was able to find support from PennyJar Capital, which seeks to invest in overlooked industries ripe for technological advancement. Jacob believes that the missed opportunities from two decades of inadequate software adoption could lead to tremendous growth if approached correctly. "Investors who understand this potential know it could be transformative if executed well," he concluded.