Market Overview

Freight Tech Investing Hits $11.7 Billion Through Third Quarter, Pitchbook Report Says

Freight Tech Investing Hits $11.7 Billion Through Third Quarter, Pitchbook Report Says

It's been another banner year for venture capital (VC) investment as investors sunk $11.7 billion in supply chain technology across 371 deals during the first three quarters of 2019, according to a report released by Pitchbook on Dec. 6.

In 2018, VC investors funneled a record $19.3 billion into freight technology services across 534 deals.

Summarizing the report's key findings, Pitchbook analyst Asad Hussain said he sees continued disruption in the last-mile food delivery space as companies continue to bring thousands of small-scale restaurants into their delivery networks.

Through 3Q 2019, according to Hussain, investors have channeled approximately $5 billion into last-mile delivery companies.

An increasing number of autonomous vehicle startups are also moving into the industrial/logistics sectors, driving earlier adoption and revenue generation.

Here are a few other trends and takeaways from the report:

Deal Size, Valuations Grow:

Over the past five years, the median late-stage pre-money valuation of supply chain technology startup deals has risen by a CAGR of 40%. The median valuations of angel and seed and early-stage deals rose by a CAGR of 5% and 19%, respectively. 

Late-Stage Valuations At Record Levels:

So far in 2019, the median late-stage pre-money valuation has risen to $250 million, up 64% compared to last year.

Deal Count Declined:

Despite pouring an impressive $11.7 billion into freight tech companies in 2019, investors are not poised to beat the 2018 record number of deals. Deal count through 3Q 2019 is down 7% compared to last year. 

The value of those deals, however, is about the same as it was during the same period in 2018.

Image by fancycrave1 from Pixabay

Posted-In: Freight freight tech Freightwaves InvestingNews Markets Tech General


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