AUGUST - 20228 logisticstechoutlook.comLogistics Technology is a very hot space for Venture Investment, impacting virtually all areas of logistics--including warehousing, last mile delivery, supply chain management, and freight. Logistics Tech has a simple, yet expansive goal--to help their clients improve their supply chain. For example, our portfolio company, BuyItInstalled.com, helps customers find installers for do-it-yourself projects. Our other portfolio companies, Shipsi and HopSkipDrive, offer shared ride and last mile delivery services. The sector benefits from the tailwinds of some enabling technologies and the impact of the COVID-19 pandemic, driving rapid development and innovation in the sector. Several key enabling technologies have expedited the growth of the Logistics Tech sector. Mobile, location tracking, cloud-applications, machine learning/AI, RFID tracking, and Robotics provide the tools that accelerate the development of new Logistics Technology businesses. Mobile and RFID tracking allows for workers to use their wireless devices for tracking inventory. Machine Learning and Artificial Intelligence tools help Logistic Tech companies review large amounts of supply chain data to find anomalies and key insights. Cloud services like Amazon Web Services allow Logistics Technology companies to launch quickly and run secure applications with a low fixed cost structure. There are some very interesting Logistics Tech companies that have raised $1B+ valuations in the past few years, each with their own set of characteristics that have propelled them to prominence. Companies can be divided into five categories--warehouse robotics, last mile delivery, supply chain visibility, supply chain management, and ecommerce. Warehouse robotics include companies like Geek+, Locus Robotics, and Fetch Robotics. Last Mile Delivery names include JumaPeisong, Lalamove, and Bringg. Companies like Convoy, Jusda, and KeepTruckin have brought some incredible innovations to supply chain visibility. Supply chain management companies such as Flexport or Delhivery have enabled businesses to find better supply chain solutions. A wealth of companies like Happy Returns, DoorDash, and Checkout.com have enabled the incredible expansion of ecommerce.With so many companies in the sector, it is helpful to evaluate which of the Logistics Tech companies have the best prospects by evaluating them through the 7M investment framework. ·Market Size: Does the business have a large addressable market?· Management Team: Does the business have a strong team, uniquely positioned to serve this market?· Moat: Does business have some barrier to entry, whether it is intellectual property (patents) or proprietary software, that allow them to succeed?· Mission: Does the company have a strong goal for serving the market beyond just financial metrics?·Margins: Does the company have a path to earning strong gross and, eventually, strong EBITDA margins in the next 2-4 years?· Momentum: Is the company showing some interesting traction in downloads, users, traffic, revenue?· If the company has some of these key M's, the company may be able to raise the"Money".LOGISTICS TECHNOLOGY VENTURE INVESTMENTBy Matt Thompson, Partner and Kevin Wu, Intern, Skyview CapitalMatt ThompsonIN MY OPINION
< Page 7 | Page 9 >