The darkening economic climate has put the brakes on capital flowing into logistics technology ventures, ushering in a closer look at fundamentals.
There is still a need – and money – for technology that can produce tangible results, but shiny futuristic projects are struggling to get funding.
Chain.io, a cloud-based supply chain integration platform, secured $11m in funding from a group of venture capital firms a few days ago, which four or five months ago would have gone largely unnoticed among a plethora of investment deals.
Then, corporate investors were on the prowl to throw money at tech start-ups, and if those would-be unicorns played in the logistics arena, all the better, as this brought two hot investment areas together.
The pandemic revealed weaknesses in supply chains and drove home the need for digitalisation and automation, as firms have struggled to cope with a drastically increased workload. At the same time, the financial framework made investment in technology easier and prompted venture capital to look for new areas of business.Read the Full Article