AI software aims to eliminate fabric waste in clothing manufacturing
Shelly Xu Design (SXD) has raised $4.5 million in pre-seed funding for its AI software that optimizes clothing patterns to minimize fabric waste. The technology aims to interlock pattern pieces like a puzzle.

Shelly Xu Design (SXD) has secured $4.5 million in pre-seed funding to scale its artificial intelligence software designed to significantly reduce fabric waste in garment manufacturing. The AI re-engineers clothing patterns, allowing pieces to interlock like puzzle parts and thus eliminating scrap material.
Traditional garment production often results in 10% to 15% of fabric being lost during the cutting process, leading to substantial costs and environmental impact. SXD's solution integrates into existing factory workflows without requiring changes to sewing operations. "It doesn't change how people actually sew cloth together," said founder Shelly Xu. "You're just cutting them into different shapes so that they take up less space on the fabric."
The company has established partnerships with entities like the H&M Foundation and Coop bookstores at Harvard and MIT. SXD has also recently signed a multi-year deal with a major music record label to convert tour merchandise to zero-waste. A planned launch with a European apparel group will introduce SXD's technology to brands such as Uniqlo and Ralph Lauren.
XU's technology is rooted in her childhood experiences in China, where she learned the value of precise resource use and the detrimental effects of waste. She studied sustainable development at Columbia University and honed skills in clothing design and coding. Last year, the company won both the grand prize and the audience award at Harvard Business School's New Venture Competition.