Top Supply Chain Startups Identified by Venture Capitalists

In 2022, prominent venture capitalists identified 41 supply-chain startups as the most promising in the sector. The selection process allowed VCs to nominate startups from their portfolios and those with which they had no pre-existing relationships, focusing on companies poised to address and alleviate the global logistics challenges brought about by ongoing disruptions.

Emerging Players in Supply Chain Innovation

Among the highlighted startups is Universal Hydrogen, which secured $62 million in Series B funding in 2021. The company is developing a scalable, capital-light hydrogen logistics system using modular capsules for fuel transport. This innovation has already attracted interest from Canadian airlines.

Another notable company, Veho, focuses on last-mile delivery, primarily serving the e-commerce sector. With approximately $300 million in venture backing and a valuation of $1.5 billion, Veho has achieved positive unit economics in mature markets, some of which have reached profitability.

Greenly offers a carbon-management platform tailored for small and medium enterprises, enabling them to assess and report on both operational and supply-chain carbon emissions. This service is particularly valuable for businesses lacking in-house carbon expertise.

Technological Advancements in Logistics

Several startups are leveraging technology to optimize logistics. Portex modernizes procurement and payments in the logistics industry, while Nuvocargo digitizes truck booking and compliance for freight crossing between the US and Mexico, adding customs and financing services to its offerings.

Motive provides a fleet management technology platform for long-haul trucking, and Outrider is developing autonomous yard-operation vehicles to enhance sustainable freight transport by automating repetitive tasks.

Wise Systems employs machine learning to optimize last-mile delivery-route planning, adding reliability through visibility into traffic and routing delays. Similarly, Therma uses sensor technology to improve refrigeration efficiency, preventing food spoilage and reducing associated costs and emissions.

Focus on Sustainability and Efficiency

Circulor is an industrial supply-chain-traceability startup using blockchain and AI to monitor materials, emissions, and compliance. Its technology offers enhanced transparency for industries aiming to meet sustainability goals.

FreightVerify integrates real-time transportation visibility and business intelligence with existing supply chains, providing detailed updates on vehicle and part deliveries, a service currently benefiting companies like GM.

Refiberd focuses on textile recycling, offering recycled polyester and cellulose threads, contributing to resource conservation in the textile industry.

Innovative Solutions for Modern Challenges

Wayve is developing autonomous driving software that mimics human driving, facilitating adaptability across various urban environments. The company has formed partnerships with major entities such as Microsoft and Virgin.

Parallel Systems is introducing automated, zero-emissions rail vehicles, supported by $4.5 million in grant funding from the US Department of Energy, aiming to expand railroad markets and enhance infrastructure utilization.

Sourcemap offers supply-chain monitoring services in the US and EU, with a clientele that includes global brands like BMW and Hershey's, underscoring the increasing demand for visibility and accountability in supply chains.

The emergence of these startups highlights a broader industry trend toward integrating advanced technologies and sustainable practices in supply chain management. As the world continues to adapt to pandemic-induced disruptions, the role of innovation in logistics is becoming increasingly critical.

Overall, the startups identified by venture capitalists represent a diverse array of solutions addressing multiple facets of the supply chain and logistics industry. From enhancing operational efficiency and sustainability to leveraging cutting-edge technology for visibility and automation, these companies are well-positioned to redefine the landscape of global logistics.