• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechPointCloud

This Stealthy Startup Snags $2.5 Million to Make Factories Smarter

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
December 7, 2016, 6:15 AM ET
Alluvium founder and CEO Drew Conway
Alluvium founder and CEO Drew ConwayAlluvium

Modern factories are data rich environments bristling with controllers, sensors, and other computerized gear. The problem is there are too many data sources but not enough real-time flow of that data to the people who need it to ensure smooth operations.

That’s the rather large problem that Alluvium wants to address by applying machine learning to that data.

Now, the thus-far stealthy New York-based startup has $2.5 million in seed funding to boost its efforts. Investors include IA Ventures, Lux Capital, Bloomberg Beta, and Mike Olson, chairman and chief strategy officer of Cloudera.

Machine learning is technology that can glean patterns from huge amounts of data and make useful predictions based on those patterns in applications as diverse as fraud detection and predictive maintenance. How useful is it that a company can replace a part on an expensive machine before that machine actually fails? Machine learning, by detecting anomalies in the performance data of that machine, can facilitate that.

Alluvium’s Floodplain software claims to take data from myriad points—all those aforementioned factory floor sensors, controllers, computers—aggregate that, and provide real-time feedback.

Floodplain, which runs on-premises, initially acts as “a one-way pipe” from all those data sources, to the operator,” Alluvium founder and chief executive Drew Conway tells Fortune. The goal is to make even older factories as efficient as modern entities like Amazon.com (AMZN), which are able to tell you want you want to buy before you buy it because they are built upon massive, recent investments in big data systems and analytics.

Get Data Sheet, Fortune’s technology newsletter

Alluvium competes to some extent with old-school manufacturing software from companies like SAP (SAP) as well as specialized startups like Tachyus in the oil-and-gas industry and Maana.

Cloudera’s Mike Olson is a true believer. The Alluvium team, he says, understands the technology and related analytics, but are also focused on packaging all of those capabilities so larger companies will buy it instead of trying to build it themselves.

For more on the Internet of things, watch:

The advantage of Floodplain over broader industrial solutions like, say General Electric’s (GE) Predix, lies in its promised ability to channel data to operators in real-time, Alluvium proponents say.

Shivon Zilis, partner and founder of Bloomberg Beta, an early stage investment firm backed by Bloomberg LLC, says that the industrial Internet of things has no shortage of data, but it couldn’t make it to the operators in useful or timely manner until now. The ability of machine learning, she says, to separate the key data from extraneous noise has changed that.

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

The fruit fly cancer researcher who built his first prototype out of lollipop sticks and straws
NewslettersTerm Sheet
The fruit fly cancer researcher who built his first prototype out of lollipop sticks and straws
By Allie GarfinkleMay 1, 2026
47 minutes ago
Apple CEO Tim Cook in Washington, D.C. on December 10, 2025. (Tom Williams/CQ-Roll Call/Getty Images)
NewslettersFortune Tech
Tim Cook’s advice for Apple’s next CEO
By Andrew NuscaMay 1, 2026
1 hour ago
Newly appointed Apple CEO John Ternus (left) with outgoing CEO Tim Cook in Cupertino, Calif. (Photo courtesy Apple)
PoliticsMarkets
Apple’s new CEO said he will continue the company’s tradition of secrecy—and Wall Street loved it
By Jim EdwardsMay 1, 2026
2 hours ago
Hitting the ‘GenAI wall’: Where generative AI stops working, and what it means for your talent strategy
AILeadership
Hitting the ‘GenAI wall’: Where generative AI stops working, and what it means for your talent strategy
By François Candelon and Iavor BojinovMay 1, 2026
3 hours ago
Evan Spiegel wears a black t-shirt and speaks into a microphone while on stage.
AITech
Snap CEO praises AI for writing two-thirds of the company’s code but warns fellow tech executives underestimate ‘societal pushback’ to the tech
By Sasha RogelbergMay 1, 2026
3 hours ago
Meta wants to spend more even after it lost $80 billion on the Metaverse and over 20 million users
Big TechMeta
Meta wants to spend more even after it lost $80 billion on the Metaverse and over 20 million users
By Marco Quiroz-GutierrezMay 1, 2026
4 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
4 days ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
18 hours ago
Accenture's Julie Sweet blew up 50 years of company history. She says the hardest part is still ahead
Conferences
Accenture's Julie Sweet blew up 50 years of company history. She says the hardest part is still ahead
By Nick LichtenbergApril 29, 2026
2 days ago
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
Big Tech
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
By Alexei OreskovicApril 29, 2026
1 day ago
With no end in sight, Trump considers new options in Iran war—including the ‘Dark Eagle’ hypersonic missile
Big Tech
With no end in sight, Trump considers new options in Iran war—including the ‘Dark Eagle’ hypersonic missile
By Jim EdwardsApril 30, 2026
1 day ago
America shot its arsenal empty in 2 wars. Now it needs Beijing's permission to reload
Commentary
America shot its arsenal empty in 2 wars. Now it needs Beijing's permission to reload
By Steve H. Hanke and Jeffrey WengApril 30, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.