We have been in the Pandemic for almost 2 years and the disruption in the Supply Chain still dominates the headlines. The same thing happens with the headlines in raising funding rounds for technology companies that help solve this problem.

According to Crunchbase , emerging Supply Chain Management startups saw a total of US$11.3 billion in funding from venture capital funds . This represents almost double growth compared to the funding received during 2020.

The numbers not only represent the effects of the pandemic that impacted various elements of the Supply Chain, but much more. They represent a consolidation in the acceptance of the use of technology in areas that were previously being dominated by paper , pens, spreadsheets and recently by excessively expensive solutions.

Investments in technology

The largest businesses during 2021 were concentrated in 4 companies:

• Project44, a Chicago-based platform for supply chain visibility, received $420 million, at a pre-investment valuation of $2.2 trillion.
• Assent Compliance: Ottawa cloud solutions for supplier management and compliance , closed US$320 million in its series D
• Exotec: a platform for robotic order preparation of French origin, obtained US$333 million in Funding.
• Loadsmart: a logistics platform that helps shippers organize their cargo, closed US$200 million.

The awareness of having solutions leveraged in technology has not only come from all the large companies that have prioritized their implementation, but also from large venture capital investors. Before, the Supply Chain was seen as part of the costs of operating, today organizations see it as a fundamental and strategic part to grow appropriately. This has transformed software in the supply chain from a cost center to a profit center.

Among the companies that most attract investors are those that consider AI / Machine Learning among their software to optimize their processes. (Seseri, 2022)

Despite the recent interest, many experts say that the analysis of this type of companies that are being leveraged on technology is only now beginning.

One of them is the renowned investor in this field, Teddi Warder who, through her Insight Partners Fund, has invested in relevant companies such as Project44, PayCargo and Logixboard . Warder warns that this is a more complex segment to understand and for that reason he estimates that the understanding and involvement of new investors in this segment will grow significantly in the coming years.  

Article based on publication by: Crunchbase. Chris Metinko. URL: https://news.crunchbase.com/news/supply-chain-vc-startup-funding/