BlueTrace, a software startup that provides traceability solutions for the seafood industry, has raised $4.3 million in seed funding to continue scaling its business and modernizing the seafood industry, according to a recent filing with the U.S. Securities and Exchange Commission.
The company, based in Castine, has developed cloud-based software that lets seafood companies easily tag and trace their products “from tideline to table,” which is becoming increasingly important as the federal government tightens rules around seafood traceability.
“Our mission is to keep the seafood supply chain safe, efficient, and compliant by digitizing key transactions to make seamless traceability possible,” Chip Terry, BlueTrace’s co-founder and CEO, said. “We have a long list of desired features from our clients — this new funding will help us deliver them.”
The funding—led by York IE, Maine Venture Fund, and CEI Ventures, with participation from SeaAhead and several angel investors—brings BlueTrace’s fundraising total to more than $5 million.
The company first announced the new funding on its website in mid-February. At the time, it said it had raised $3.2 million. However, the company—whose legal name is Shellfish Solutions Inc.—filed an amended Form D with the SEC on Thursday reporting that it had, in fact, raised $4.3 million.
BlueTrace reported in its February announcement that it had grown its customer base in 2022 from 150 clients to more than 350, including customers in all but two coastal U.S. states and most Canadian provinces.
“BlueTrace is bringing a unique digital solution to a traditionally non-digital, tech-laggard industry,” said Joe Raczka, York IE’s co-founder and managing partner. “Chip and the rest of the talented team have proven their product market fit and will continue improving the seafood landscape.”
Raczka has been added to BlueTrace’s board of directors, joining existing board members Abigail Carroll and Dave Ford.
Terry and his co-founders founded the company in 2018 as Oyster Tracker after identifying a need for oyster farms to better manage and track their harvests. Terry shared his founder story with MSI back in 2020.
In 2021, the company changed its name to BlueTrace as the scope of its business grew and began attracting an increasing number of clients using the platform to manage other types of shellfish, such as clams and mussels. Since then, it’s begun expanding its digital platform to support the broader seafood landscape.
BlueTrace’s funding round comes as the FDA’s final food traceability rules for the Food Safety Modernization Act are set to take effect in 2023. The platform is already enabling seafood businesses to comply with these increasingly stringent requirements.
“BlueTrace is a game-changer that’s meeting the unique needs of the seafood industry,” said Joe Lasprogata, vice president of new product development at Philadelphia-based Samuels and Son Seafood. “Our company moves millions of pounds of seafood each year, which obviously means a lot of moving parts. BlueTrace’s platform helps us organize our shipments and give us confidence that we’re staying compliant. ”
