Tech startups engaged in developing digital technology solutions for logistics processes are getting more and more investment. The Wall Street Journal reported this. This interest is mainly due to the current global logistics crisis.
Out research by the American business newspaper shows that the number of investments in tech startups of digital technology for logistics processes, the supply chain, has increased significantly in the past year.
Increased investments
Based on data from data analyst PitchBook Data, the newspaper finds that tech startups for logistics technology have raked in more than 21 billion euros (24.3 billion dollars) in investments in the first three months of this year. This was more than half of the total amount raised in the whole of 2020. Ultimately, this has also resulted in a significant increase in the number of tech startups for logistics processes, with the ‘unicorn’ status worth more than $1 billion.
The tech startups for the logistics sector get investments not only from private investment companies, but also from other players. Think of large multinationals in the logistics sector such as shipping company AP Moller-Maersk A/S and the American business conglomerate Koch Industries.
Interesting logistics tech startups
The research further shows that investments in logistics tech startups are mainly focused on those companies that are working on tools for managing storage spaces, matching freight loads with the available transport quality and figuring out the most cost-effective transport routes.
Other tech startups that are attracting investor interest include those that are developing tools for streamlining supply lines and achieving greater distribution efficiencies, among other things.
Small disadvantage
The increasing interest tech startups in the logistics sector also has a small drawback, the Wall Street Journal points out. Early investors in these companies are now less likely to exit, because selling a ‘unicorn’ is more difficult than if these companies do not yet have this status. This means that they are not yet able to monetize their investments.
