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Logistics startups are enjoying a historic funding boom. Here's what 13 recent deals say about where the industry is headed.

Sep 1, 2021, 21:33 IST
Business Insider
Up and down the supply chain, startups landed millions in funding to advance their work in 2021. Justin Sullivan/Getty Images
  • The pandemic directed investor attention to supply chains after massive disruptions.
  • Startups with new ways of moving and tracking goods scored funding years earlier than planned.
  • Supply chain disruption is expected to stick around, creating more runway for startups.
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Depending on whom you ask, the pandemic accelerated e-commerce adoption by somewhere between three and 10 years. Naturally, venture capitalists followed the consumer demand. But, rather than just pouring cash into direct-to-consumer brands and online marketplaces, they went for logistics funding, flooding the startups building the infrastructure e-commerce needs to run.

The logistics funding wave comes alongside an increase in awareness of the workings of supply chains, which has only bolstered the investor community, said Victoria Sun, principal at logistics-focused VC Playground Global.

"People are talking more about supply chain now," Sun told Insider. "Suddenly they're realizing this is important to our day-to-day and how we get our toilet paper and food and groceries."

Up and down the supply chain, logistics startups landed millions in funding to advance their work: helping online retailers manage multiple package shipping companies, bolstering same-day delivery networks, streamlining how trucks are hired and ocean freight is tracked, and more.

The world woke up to supply chains in 2020 and that led investors to get busy in 2021. Here are some of those rounds and the technologies benefitting from the wave of recognition.

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The pandemic bolstered a segment of startups already picking up steam

Power players: Meet the CEOs of 10 logistics startups raising huge rounds to remake the supply chain from port to porch

Fast order fulfillment became crucial, especially for small online sellers

After pumping $11 billion into e-commerce in 5 years, VCs are finally funding the risky warehousing startups they've been avoiding

Bain Capital Ventures leads a $200M investment round in ShipBob to bring same-day shipping to e-commerce businesses anxious to compete with Amazon

Logistics startup ShipHero just raised $50 million to take on much-better funded competitors. Here's how its CEO plans to pull ahead.

As UPS and FedEx added surcharges and cutoffs, new players emerged with fresh ideas and funding

The founder of Amazon Air is launching a startup to liberate retailers from UPS and FedEx

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A startup that cracked the code on ultrafast delivery just raised $20 million. Here's how its CEO plans to snatch market share from UPS and FedEx.

As online furniture sales boom, gig delivery companies are minting money in the 'big and bulky' market many legacy players have avoided

As e-commerce logistics gets more complex, retailers need new tools to keep it all moving

Here's the pitch deck that Salesforce-backed logistics unicorn Bringg used to raise its $100 million Series E round

An exec who spent 19 years building Amazon's supply chain just raised $8 million for a startup helping retailers match Prime's delivery speed

Freight forwarders of all sizes made bank last year wrangling shipments of vaccines and e-commerce. Startup Logixboard just raised $13 million to help them make even more.

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Desperate shippers want to see their freight move with visibility tools

Goldman Sachs just crowned the logistics industry's newest unicorn. Here's how project44 is helping customers like Amazon and Dollar General wrangle supply chain chaos.

Startups say they can make trucking more agile amid an extended period of tight capacity and skyrocketing rates

These 2 startups have raised $27 million to ease a major shipping headache: moving truck cargo over the US-Mexico border

6 trucking-tech startup CEOs reveal how they plan to hang onto the huge gains they made amid pandemic turmoil

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