Nov 30, 2017 | Techcelerate Ventures |
STARTUPS IN SUPPLY CHAIN & LOGISTICS Investments, acquisitions, and trends to watch WEBINAR RECORDING WILL BE DISTRIBUTED IMMEDIATELY AFTER www.cbinsights.com 2 The presentation will also be sent to you. Feel free to share with colleagues. The resolution of some slides may be suboptimal due to the webinar software. Those slides will look fine in the presentation that we send you. http://support.citrixonline.com/en_US/Webinar @cbinsights @kerrygwu #logisticstech JOIN THE CONVERSATION ON TWITTER www.cbinsights.com 3 The technology market intelligence platform. CB Insights software lets you predict, discuss and communicate emerging technology trends using data in ways that are beyond human cognition. www.cbinsights.com 4 www.cbinsights.com 5 See what other customers have to say at http://www.cbinsights.com/customer-love The most publicly reference-able customers of anyone in the industry A FEW OF OUR HAPPY CUSTOMERS Kate Barrett Director, New Enterprise Associates "With CB Insights we can quickly and reliably aggregate data across the investing landscape, from sector trends to financing activity. The intuitive user interface and robust set of features have made it a go-to resource for our team, and the customer support is second to none..." Kerry Wu @kerrygwu firstname.lastname@example.org www.cbinsights.com 6 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 8 18 22 27 34 Investment trends and landscape Corporate participation UPS & UPS Strategic Enterprise Fund Spotlight: Rise of trucking tech Exits & recent deals. www.cbinsights.com 7 TABLE OF CONTENTS Equity Funding Trends GLOBAL INVESTMENTS, DEALS OUTSIDE US www.cbinsights.com 8 Supply chain & logistics tech funding: $8.4 BILLION across 938 DEALS since 2012 www.cbinsights.com 9 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. www.cbinsights.com 10 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. www.cbinsights.com 11 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. www.cbinsights.com 12 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. www.cbinsights.com 13 SUPPLY CHAIN & LOGISTICS: DOLLAR SHARE BY STAGE 2012 2016 YTD (10/19/16) 2015 2016 YTD (10/19/16) MEGA-ROUNDS PROLIFERATING IN ASIA www.cbinsights.com 14 $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. www.cbinsights.com 15 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. www.cbinsights.com 16 For our full list of 24 smart money investors, please see this post. CORPORATE PARTICIPATION INVESTMENTS, ACTIVE CORPORATES www.cbinsights.com 17 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. www.cbinsights.com 18 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. www.cbinsights.com 19 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. www.cbinsights.com 20 STARTUPS UNBUNDLING FEDEX & UPS www.cbinsights.com 21 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. www.cbinsights.com 22 Note: Zipline investment is through the UPS Foundation UPS: NOTABLE DRONE INVESTMENTS www.cbinsights.com 23 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 www.cbinsights.com 24 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 www.cbinsights.com 25 www.cbinsights.com 26 SPOTLIGHT: RISE OF TRUCKING TECH www.cbinsights.com 27 $7 $9 $51 $219 $331 5 8 15 36 35 2012 2013 2014 2015 2016 YTD (11/28/2016) ELECTRIC VEHICLE TECH ANNUAL GLOBAL FINANCING HISTORY 2012 - 2016 YTD (11/27/16) Disclosed Funding ($M) Deals $363 (Full-Year Projection) 38 (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 28 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. www.cbinsights.com 29 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). www.cbinsights.com 30 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. www.cbinsights.com 31 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. www.cbinsights.com 32 EXITS & ROAD AHEAD EXIT ACTIVITY, RECENT DEALS, AND NEWS www.cbinsights.com 33 EXIT TRENDS ALSO ON UPSWING www.cbinsights.com 34 33 39 39 45 42 2 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. www.cbinsights.com 35 www.cbinsights.com 36 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 www.cbinsights.com 37 CBINSIGHTS.COM @ cbinsights +1(212)292-3148
Supply chain & logistics tech funding: $8.4 BILLION across 938 DEALs
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