TLDR:
Key Points:
- VC investment in supply chain has slowed down due to various factors.
- Companies with strategic investment strategies and innovative solutions are still able to fundraise successfully.
The VC tourists have left the building
The Covid pandemic drove interest in supply chain investment, but many of the firms that invested didn’t have much expertise in the space, and those outside investors have slowly left the industry. Ben Hemani, a founding partner of Bison Ventures, pointed out that the days of unlimited venture capital investment in supply chain are now gone due to factors like low interest rates and limited partners deploying less money in venture funds. This has led to a more strategic investment strategy.
High-profile companies like Convoy and Flexport have faced challenges, and the competition in the automation and robotics space remains fierce. However, companies with innovative solutions to big problems are still able to raise funds successfully.
Burak Cendek, a partner with Autotech Ventures, mentioned that good companies with successful teams can still fundraise successfully, although the overall funding environment has slowed down. Technology-related investments, especially in robotics, automation, and large language models, continue to drive excitement and interest in the future.
Both Hemani and Cendek believe that the venture capital market is still strong in 2024, especially for companies that can address macro challenges like decarbonizing supply chains, nearshoring, onshoring, and addressing labor challenges through automation.
