#USA #San Francisco #True Ventures #Tenkara #Benjamin Stern

Tenkara Secures Funding to Improve US Manufacturing Efficiency

In the world of manufacturing, operational efficiency is paramount. Tenkara, a company focused on enhancing operational processes for small to mid-sized manufacturers across the United States, has recently announced a remarkable funding round. With a solid investment of $7 million led by True Ventures, along with participation from several notable investors including HF0, WndrCo, and Articulate Capital, Tenkara is well-positioned to drive significant change in this industry.

Background of Tenkara

Founded by Benjamin Stern, a seasoned entrepreneur and a former contestant on Shark Tank, Tenkara aims to address crucial inefficiencies that many manufacturers face. Stern, a Thiel Fellow, has firsthand experience with both the challenges and the intricacies of manufacturing systems. Over the past decade, he has spearheaded the development of factories and product lines for various consumer brands. Tenkara emerged from his desire to remedy the often chaotic supply chain structures that plague the manufacturing world.

The U.S. manufacturing landscape consists of approximately 600,000 firms, with a staggering 98% of these businesses classified as small enterprises. These companies are not primarily built to excel in logistics; rather, they focus on product creation. As a consequence, many suffer from strained resources, leaving their procurement and operational teams overwhelmed. Without adequate support or infrastructure, the consequences are evident: material costs escalate, project timelines extend, and compliance lapses occur. With an average penalty of $19,000 for compliance failures, it is clear why most mid-sized manufacturers struggle to maintain healthy profit margins.

Tenkara's Mission and Solutions

Tenkara is dedicated to transforming the procurement process through its innovative operational agents. These agents carry the back-office load, allowing lean teams within these manufacturing firms to operate as if they were ten times larger. In just the first 18 months since its inception, Tenkara has secured multiple contracts that each exceed seven figures, a testament to the industry's demand for such solutions.

According to Benjamin Stern, "American manufacturing doesn't experience a talent shortage but rather suffers from a significant infrastructure gap. The expectations placed on a three-person procurement team in a mid-sized factory compare to those of a fifty-person department at a Fortune 500 company. Our software aims to bridge that gap."

True Ventures co-founder Phil Black acknowledged the potential of this approach, stating, "For the past 20 years, we have championed founders who genuinely understand the challenges before solving them. Ben exemplifies this, boasting a wealth of experience in integrating manufacturing plants. His insights into the issues faced by customers will be crucial as domestic manufacturing becomes increasingly vital. Tenkara could become foundational in the future of American factories."

Future Growth and Expansion

With this new funding, Tenkara is ready to take its growth to the next level. Stern has plans to expand the team further and develop advanced technology that will still enable U.S. manufacturers to compete globally. Tenkara's agents will automate essential operational functions such as supplier discovery, procurement management, compliance verification, and freight logistics. This will not only enhance efficiency but also restore confidence in domestic supply chains.

The Tenkara team is already gathering talent from diverse backgrounds. Alongside Stern, the founding members Evan Adkins and Jonah Stillman have also been successful entrepreneurs in their own right. Together, they are on a mission to redefine the operational experience for American manufacturers, starting at the grassroots level where many of these companies began.

As Tenkara forges ahead, the impact of their work will likely be seen throughout the American manufacturing landscape, ultimately leading to more resilient and capable production facilities ready to face the challenges of the future.