Chubbies Cofounder Kyle Hency Returns with New Startup Good Day That Raised $7 Million in Seed Funding

Kyle Hency, cofounder of Chubbies, is back in the startup scene with Good Day, a new venture focused on solving one of retail's biggest problems—inventory management. The startup has raised $7 million in seed funding from investors including Ridge Ventures, FirstMark Capital, and Long Journey Ventures. This brings Good Day's total capital raised to $13.5 million.

Good Day's platform is designed to help retailers manage inventory with greater efficiency, particularly in a market where brands must focus on profitability as traditional funding sources like VCs have pulled back. Hency has drawn from his own experience running Chubbies, where inventory challenges nearly led to the company's collapse three times before its acquisition by Solo Stove in 2021.

The startup's focus on AI and data-driven tools is part of a broader shift in the retail and enterprise software space. Amish Jani of FirstMark Capital described Good Day as an "AI-native, ERP-lite" solution, positioning it as a modern alternative to traditional enterprise resource planning systems.

Why Did This Happen?

Hency's return to the startup world is tied to the changing investment and operational landscape in retail. Since 2021, venture capital funding for consumer brands has fallen by over 90%, forcing brands to be more efficient with every dollar. Good Day's platform aims to help brands navigate these challenges by providing accurate inventory tracking and reducing manual labor in operations.

Hency's experience with Chubbies, which faced significant cash-flow issues, has made him acutely aware of the limitations in existing inventory management tools. His new platform is built to address those gaps, using AI to improve visibility and decision-making for brands.

How Did the Market React?

The seed funding round has drawn attention from both new and existing investors. The backing by firms like FirstMark and Ridge Ventures signals confidence in the AI-driven ERP space, as well as the potential for startups to capitalize on the AI boom. New investors including Long Journey Ventures and Adverb Ventures have also joined the round, adding further validation to Good Day's approach.

The startup already has early customers, including Hill House Home and The Normal Brand. These companies have cited the limitations of traditional ERP systems like NetSuite and the need for more agile, real-time inventory management tools.

What Are Analysts Watching Next?

Good Day's approach to inventory management is part of a larger trend where agentic AI solutions are being applied across SaaS and enterprise software. Amish Jani noted that e-commerce brands are likely early adopters of such tools due to their direct impact on labor costs and operational efficiency.

Hency's direct critique of traditional ERP systems is also part of his broader strategy. By positioning Good Day as a younger, more responsive alternative to incumbents like NetSuite, the startup is targeting brands that may be open to switching platforms.

As Good Day scales, analysts will be watching how it differentiates itself in a crowded ERP market and whether its AI-driven approach can deliver the promised efficiency gains. The startup's success could have broader implications for how retailers approach inventory and supply chain management in the AI era.