STARTUPS IN SUPPLY CHAIN & LOGISTICS
Investments, acquisitions, and trends to watch
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ABOUT THE PRESENTER
Tech Industry Analyst, CB Insights
Focuses on automotive, transportation, and logistics tech;
additional topics include on-demand and macro VC trends
Published research and data analysis has been featured in The New
York Times, Financial Times, The Economist, and Bloomberg,
among other major media outlets
Previously worked as a management consultant at Simon-Kucher &
Partners
Graduate of Columbia University
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Investment trends and landscape
Corporate participation
UPS & UPS Strategic Enterprise Fund
Spotlight: Rise of trucking tech
Exits & recent deals.
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TABLE OF CONTENTS
Equity Funding Trends
GLOBAL INVESTMENTS, DEALS OUTSIDE US
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Supply chain & logistics tech funding:
$8.4 BILLION
across
938 DEALS
since 2012
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FUNDING SKYROCKETS
TO OVER $4B IN 2016
Investors have steadily
funneled more capital into
this space, with annual
deals and funding rising
every year since 2012.
We define this category
as private companies that
use software to improve
efficiency across the
supply chain and logistics
ecosystems, excluding
vertical-specific (e.g.
grocery delivery) on-
demand companies.
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SUPPLY CHAIN & LOGISTICS ANNUAL FINANCING
2012 2016 YTD (10/19/16)
QUARTERLY DEAL HITS
TRIPLE DIGITS
In Q3'16, deals reached
100, the highest quarterly
deal count on record and
roughly 8x the quarterly
activity seen in the
beginning of 2012.
Two of the last three
quarters have reached
over $1B in funding,
fueled by Asian mega-
rounds.
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SUPPLY CHAIN & LOGISTICS QUARTERLY FINANCING
Q1'12 Q3'16
EARLY-STAGE DEAL
SHARE STRONG
After spiking in 2013,
early-stage (seed to
Series A) investments
have consistently
accounted for over 60%
of all deals in the space.
Meanwhile, corporate
minority stakes and
convertible notes are
driving the sizeable share
of "Other" deals.
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SUPPLY CHAIN & LOGISTICS: DEAL SHARE BY STAGE
2012 2016 YTD (10/19/16)
PE ROUNDS DRIVING
DOLLAR SHARE
Dollar share has tilted
towards towards late-
stage rounds (Series D
and E+).
The Series E+ share in
particular reflects large
private equity
investments, such as the
Chinese firm Best
Logistics' $760M round
in September.
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SUPPLY CHAIN & LOGISTICS: DOLLAR SHARE BY STAGE
2012 2016 YTD (10/19/16)
2015 2016 YTD (10/19/16)
MEGA-ROUNDS PROLIFERATING IN ASIA
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$1.5B
$760M
$550M
$300M
$134M
CHINA
CHINA
INDONESIA
CHINA
INDIA
DIVERSE SOFTWARE &
HARDWARE STARTUP
LANDSCAPE
Many well-capitalized
companies are
concentrating on e-
commerce logistics
enablement or on-
demand delivery services.
A host of startups are
also developing tech-
driven marketplaces for
international freight
forwarding as well as
trucking.
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THE SUPPLY CHAIN & LOGISTICS TECH MARKET MAP
MOST ACTIVE SMART
MONEY VCS
A variety of top venture
capital firms have begun
ramping up their bets in
SCM and logistics.
Among the most active
smart money VCs are
KPCB and NEA, each
having invested in a half-
dozen startups or more.
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For our full list of 24 smart money investors, please see this post.
CORPORATE PARTICIPATION
INVESTMENTS, ACTIVE CORPORATES
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CORPORATE FUNDING
ALSO MARCHES UPWARD
Corporate and CVC
participation in supply
chain & logistics funding
has risen in tandem with
the sector as a whole.
Chinese logistics
companies feature heavily
here as well, with Q3'16
seeing Fosun and Alibaba
affiliate Cainiao
participating in a $760M
round to Best Logistics.
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SUPPLY CHAIN & LOGISTICS CORPORATE ANNUAL FINANCING
2012 2016 YTD (10/19/16)
CORPORATE
SELECT INVESTMENTS
Curbside, Flirtey, Loggi
Deliv, Deposco, Peloton
Flexport, KeepTruckin, Zipline
G7, Huochebang, Renren Kuaidi
Matternet, Zonar
SCM & LOGISTICS: MOST ACTIVE CORPORATE INVESTORS
20122016 YTD (10/21/16)
QUALCOMM, UPS TOP
MOST ACTIVE CORPS
Startups in this field are
drawing attention from a
range of tech venture
arms and corporations,
in addition to traditional
logistics providers and
auto & truck OEMs.
Last-mile delivery drones
(e.g. Flirtey, Zipline, and
Matternet) have been a
common interest.
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STARTUPS TARGET
LOGISTICS CORPORATES
Many startups in this
space are pinpointing a
range of services
traditionally associated
with logistics giants like
FedEx and UPS.
These companies are
applying technology,
mobile platforms, and on-
demand concepts to
lower costs, increase
flexibility, and streamline
operations.
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STARTUPS UNBUNDLING FEDEX & UPS
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UPS deploys capital into tech
As startups rise to complement and potentially challenge services provided by traditional
logistics companies, UPS seeks to stay competitive by leveraging its Strategic Enterprise
Fund, ramping up internal capabilities, and collaborating with tech companies.
UPS PARENT & VC ARM
INVESTING STEADILY
UPS and its Strategic
Enterprise Fund have
backed a number of
supply chain and
logistics startups in
drones, on-demand,
trucking, and more.
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Note: Zipline investment is through the UPS Foundation
UPS: NOTABLE DRONE INVESTMENTS
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Zipline is building drone airplanes designed
to deliver medical supplies to underserved
and disaster-stricken areas.
Disclosed funding: $47.2M
Select Investors: Techstars, Felicis Ventures,
Sequoia Capital, Andreessen Horowitz,
Visionnaire Ventures, UPS
CyPhy Works is developing drones for aerial
reconnaissance, search and rescue, delivery
and more.
Disclosed funding: $36.9M
Select Investors: General Catalyst Partners, In-
Q-Tel, Lux Capital, Bessemer Venture
Partners, UPS Strategic Enterprise Fund
UPS: NOTABLE ON-DEMAND INVESTMENTS
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Deliv partners with multichannel retailers to
provide same-day delivery via a fleet of
crowdsourced drivers.
Disclosed funding: $40.4M
Select Investors: Upfront Ventures, General
Catalyst Partners, RPM Ventures, Simon
Venture Group, UPS Strategic Enterprise Fund
Roadie operates an on-the-way delivery
network for consumer and business
shipping.
Disclosed funding: $25M
Select Investors: HAX, TomorrowVentures, H.
Barton Asset Management, UPS Strategic
Enterprise Fund
UPS AND CYPHY WORKS TEST DRONE FOR
URGENT COMMERCIAL DELIVERY
September 23, 2016
UPS TECH INITIATIVES IN THE NEWS
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SPOTLIGHT:
RISE OF TRUCKING TECH
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$7
$9
$51
$219
$331
5
8
15
36
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2012
2013
2014
2015
2016 YTD
(11/28/2016)
ELECTRIC VEHICLE TECH ANNUAL GLOBAL FINANCING
HISTORY
2012 - 2016 YTD (11/27/16)
Disclosed Funding ($M)
Deals
$363
(Full-Year Projection)
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(Full-Year Projection)
TRUCKING TECH
FUNDING SKYROCKETS
Since 2012, financing to
trucking startups has
risen quickly, with 2016
on pace to hit fresh highs
in annual deals and
dollars.
Recent fundings include
tracking with FourKites
($13M Series A) and a
number of platforms and
marketplaces such as
Transfix ($22M Series B).
www.cbinsights.com
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TRUCKING TECH ANNUAL FINANCING
2012 2016 YTD (11/28/16)
TECH-DRIVEN BOOKING
PLATFORMS ON THE
RISE
Companies such as
Transfix, uShip and
Convoy are targeting the
traditional brokerage
business with mobile
platforms, enhanced
performance measures,
and algorithmic
matching.
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Source: WSJ
TELEMATICS SEEING
EXITS
Telematics startups
focusing on fleet
management, safety, and
efficiency for commercial
trucking have become
hot commodities.
Verizon in particular has
announced a pair of
major acquisitions in
2016, acquiring Telogis
and Fleetmatics (IPO'd in
2012).
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AUTOMATION ALSO
MAKING STRIDES
While financing to
driverless car startups
has exploded in 2016,
others seek to apply
automation in the
trucking sphere.
Companies are targeting
trucks' highway-centric
routes first, with fenced
automation and
platooning concepts.
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LUCRATIVE SPACE
WILL CONTINUE TO
DRAW ENTRANTS
Uber quietly launched a
freight portal in late
September, signaling a
push into long-haul
trucking that could
combine its efforts in
automation, mapping,
and carrier/shipper
(driver/passenger)
matching.
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EXITS & ROAD AHEAD
EXIT ACTIVITY, RECENT DEALS, AND NEWS
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EXIT TRENDS ALSO ON
UPSWING
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45
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3
2
2012
2013
2014
2015
2016 YTD (10/26/16)
SUPPLY CHAIN & LOGISTICS EXITS
2012 - 2016 YTD (10/26/16)
M&A
IPO
SUPPLY CHAIN & LOGISTICS EXIT HISTORY
2012 2016 YTD (10/26/16)
Supply chain & logistics
exits have mostly
involved acquisitions
with a smattering of mid-
size IPOs.
Annual exit totals have
also steadily risen since
2012, with 2016 on pace
to continue this trend at
the current run rate.
RANK
COMPANY
VALUATION (M)
QUARTER
TYPE
1
$775
Q1'12
Acquistion
(Amazon)
2
$728
Q2'16
IPO
3
$680
Q3'16
Acquistion
(Uber)
4
$675
Q3'15
Acquisition
(Infor)
5
$585
Q4'12
IPO
SUPPLY CHAIN & LOGISTICS: TOP EXITS
20122016 YTD (10/26/16)
TOP EXITS SHOW MIX
OF M&A AND IPOS
Since 2012, there have
been a series of $500M+
exits in the field,
including both
acquisitions and public
offerings.
The list spans
companies from
warehouse automation
to supply chain
management platforms.
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DEAL
COMPANY
ROUND /
AMOUNT
SELECT INVESTORS
DEAL
COMPANY
DISCLOSED
FUNDING
SELECT INVESTORS
1
Huochebang
Series C
($20M)
International Finance
Corporation
6
Sellpy
Seed VC - II
($1.1M)
H&M CO:LAB
2
Infor
Private
Equity - III
($2.5B)
Koch Industries
7
Postmates
Series E
($141M)
Founders Fund
3
MacroPoint
Growth
Equity
($44M)
Susquehanna Growth
Equity
8
New Dada
Corp.
Minority
($50M)
Walmart
4
Zipline
International
Series B
($25M)
Andreessen Horowitz,
Sequoia Capital,
Subtraction Capital
9
FourKites
Series A
($13M)
Bain Capital Ventures,
Hyde Park Angels,
Hyde Park Partners
5
Rivigo
Series C
($75M)
Warburg Pincus
10
Clearpath
Robotics
Series B
($29.5M)
Caterpillar Ventures,
GE Ventures, iNovia
Capital, RRE Ventures
SUPPLY CHAIN & LOGISTICS:
SELECT RECENT EQUITY FINANCINGS
AMAZON'S NEWEST AMBITION: COMPETING
DIRECTLY WITH UPS AND FEDEX
October 25, 2016
LOOKING AHEAD: TECH & E-COMMERCE CORPORATES ENTERING ARENA
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