Parallel Systems and the Future of Freight
For over a century, trains have been the backbone of freight transport: dependable, efficient, and scalable. But they’re inflexible — reliant on rigid schedules, fixed routes, and long-haul volume to be economical. That’s about to change. Today we’re announcing our investment in Parallel System’s $38M Series B alongside Anthos Capital and Congruent Ventures. Here’s why we’re so excited to back Matt Soule and the team at Parallel:
1. The Best Bets Look Obvious in Hindsight
Most transformative technologies start out looking either impossible, crazy, or both.
Electric vehicles were a niche novelty. Amazon was “just a bookstore.” SpaceX was a moonshot.
Then, something changes. A fundamental constraint is removed: an economic shift, a technological breakthrough, a regulatory unlock. Suddenly, the improbable became inevitable.
We believe freight rail is at one of those moments.
That’s why we’re excited to announce our investment in Parallel Systems: a company that is reimagining rail with autonomous, battery-electric freight vehicles.
2. The Best Technologies Solve a Simple Problem
A good investment thesis can usually be boiled down to a single sentence.
Here’s Parallel’s: Rail is a great mode of transport, but it’s inflexible.
For more than a century, moving freight by rail has been an incredible tool for economic growth. Trains are efficient, cost-effective, and (compared to trucking) significantly better for the environment.
But there’s a problem: trains only work well when you have a lot of freight to move at once. Railcars must be coupled together in long chains. Routes and schedules are rigid. And if a business doesn’t have enough volume to fill a train, trucking almost always wins.
This is why, despite its advantages, rail has steadily lost market share to trucking for decades.
Parallel fixes this.
The company’s electric railcars operate independently, like autonomous boxcars on rails. They can link together when efficiency demands it—or break apart to deliver smaller loads. This flexibility makes rail more competitive for the short-haul, high-value freight that trucking dominates today.
The vision is simple: Make rail as dynamic as trucking, while keeping its cost and sustainability benefits.
3. The Best Ideas Pass the “Villain Test”
The best solutions don’t rely on moral persuasion.
The electric car thrived when it became better—not just greener.
Renewable energy adoption accelerated when it became cheaper, not just cleaner.
We believe Parallel will follow a similar path. The company’s electric railcars reduce fuel costs, labor costs, and terminal bottlenecks. Their modular, autonomous system allows rail operators to win back business from trucks, not because of environmental pressure, but because it simply makes economic sense.
Put another way: Even if no one cared about climate change, Parallel’s business would still work. That’s the kind of model we love to back at Collaborative Fund.
4. The Best Founders Have a Head Start
Parallel is led by Matt Soule, who spent 12 years at SpaceX, helping build some of the world’s most advanced autonomous systems. He’s assembled a team of top-tier engineers, regulators, and logistics experts; all focused on bringing this technology to market.
This isn’t just a vision on a pitch deck. Parallel has already:
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Secured regulatory approval from the Federal Railroad Administration to begin real-world testing on U.S. tracks.
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Partnered with major freight rail operators, including Union Pacific and Genesee & Wyoming, to pilot their system.
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Built a global strategy, with a commercial pilot launching in Australia to accelerate deployment.
If there’s one lesson from investing in frontier technology, it’s this: Regulation can be a moat.
The fact that Parallel has already navigated the complex world of rail safety approvals gives them a multi-year head start over any potential competitor.
5. The Best Opportunities Don’t Wait
Most investors spend their time looking for certainty.
We look for inflection points – moments when an industry is about to change, even if most people haven’t noticed yet.
Freight rail is there.
Autonomous trucking is still years away from regulatory approval. Electric trucks are struggling with range and charging constraints. Meanwhile, Parallel is bringing a proven technology to an industry that desperately needs innovation.
If they succeed, the impact will be massive: Lower emissions. Less congestion. A more resilient supply chain. And, for the first time in decades, a rail industry that can grow instead of shrink.
That’s the kind of shift we want to be part of.
Welcome to the Future of Freight
Parallel Systems is what happens when first-principles engineering meets a century-old industry ripe for disruption.
It’s a bet on autonomy. A bet on electrification. A bet on economic gravity pulling freight back toward rail.
It’s also a bet we’re thrilled to make.
🚆 Onward.