Financing projects for startups of supply and logistics chain management, similar to ConvoyIN Uber Freight AND Flexport They increased during the pandemic. But in recent years, the investments of the project in the sector have fallen by 78% from the 2021 summit, in addition to transaction flow.
Despite this slowdown, the possibility of one other global crisis can potentially revive interest and investments in the sector.
Last 12 months, the startups of logistics and supply chain management collected lower than $ 6 billion in 741 announced financial transactions, Crunchbase data might be seen. These numbers are a sharp decline from almost $ 28 billion of such startups collected in 2021 – in a record height of 1554 offers.
Although 2021 was aberration, last 12 months’s financing was even lower than in 2023, when $ 6.7 billion was collected in 965 transactions.
Trend down
The number down contrasts with previous years of investment growth in the industry, which increased even higher during the pandemic. Due to the supply chain and logistics challenges at that point, investors led to intensive investing in recent technologies, hoping for higher visibility and observations to more effectively manage global global supply chains.
However, when the pandemic gave way and stability returned to the space of the supply chain, the startup of the supply chain management-like the technology and platforms of food supply from home-they have a significant withdrawal of investors.
Last 12 months, the space for logistics and supply chain management was lower than a dozen or so transactions in the amount of $ 100 million or more. Some of the major offers covering American startups supported by VC in supply chain management included:
- Logistics gigant in January Flexport collected $ 260 million from a partner and e-commerce Titan Shopify After burning last 12 months for a whole lot of thousands and thousands of dollars, According to the report in the information. The startup from San Francisco achieved a peak valuation of $ 8 billion three years ago after he raised a huge round price $ 935 million.
- In August AI gazeboStartup of supply chain management, blocked an investment in a C series in the amount of $ 200 million conducted by US Innovative Technology Fund This values the company for $ 1 billion. The New York supply chain management platform gives customers deep insight and visibility in the management of world chains of values-from obtaining raw materials to production for sale. The platform uses artificial intelligence to research data points using a supply chain to detect anomalies and risk.
- Private removal and storage company Zappy Shell Closed a contract price $ 180 million from a global investment company Carlyle group in May. The contract also included a recent debt object conducted by JP Morgan Chase. ZIPPY is an alternative to traditional storage and transfer options, providing containers to the client’s location, which are then transferred to the storage or destination for unloading.
Repeated story?
However, like Pandemia quickly accelerated the industry, one other global event can again increase the investments of the project in the logistics space, because corporations are looking for greater visibility and observations in the management of world supply chains.
Startup investors may again consider the space that they left two years ago, when recent global trade problems appear, including significant imports imposed by the US and geopolitical tensions around the world.
US President Donald Trump He said that he was planning to implement a 25% additional tariff for imports from Canada and Mexico and an additional 10% import tariff from China – with which the US already have rocky relationships. In addition, fights in Ukraine and the Middle East have increased the possibility of interference in the supply chains of energy and minerals of the globe.
This leaves a very real possibility that many are looking for recent technology – probably assisted artificial intelligence – in traveling each in matters related to physical travel and various complex matters related to compliance.
Among this uncertainty, many corporations are looking for technological and digital solutions. The logistics and supply chain space may not differ, helping corporations quickly adapt methods of obtaining, revision of stocks and even shipments.
While Venture Capital investments have jumped back in many industries since a small withdrawal in 2022 and 2023, logistics and supply chain management remain an exception. We’ll see how long.