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Despite its "not very bady" reputation, the logistics sector is attracting mbadive investment from venture capitalists.
With a new $ 97 million Series C financing, NEXT joins a fleet of heavily funded logistics platforms including Flexport, Huochebang and Convoy. The company, which connects shippers and carriers through an online marketplace, raised capital with Brookfield Ventures, with the participation of Sequoia Capital and GLP logistics solutions provider. NEXT declined to disclose the valuation or if its last financing included a debt.
In 2018, global logistics startups raised more than $ 6 billion in venture capital funds, nearly double the $ 3.2 billion invested in space the year before, according to Pitchbook. A significant portion of the capital of 2018 went to Chinese companies at about 40%. Logistics companies in the United States collected 19%, or about $ 1.2 billion, in 114 deals.
"The logistics space is under more pressure than ever before – with more shipments to our ports than the number of drivers and warehouses have the capacity to handle," said Lidia Yan, co-founder and general manager of NEXT, in a statement.
NEXT was founded in 2015 by Yan and her husband Elton Chung. The round brings the total business raised to $ 125 million, including $ 21 million in January 2018.
NEXT, headquartered in Lynwood, Calif., Plans to use this investment to fill 150 positions in 2019, as well as to complete the launch of Relay, a new service targeting "systemic congestion" in ports. shipping.
"NEXT continues to address the critical issues of US logistics management – from national driver shortages to traffic jams and operations in our busiest ports," said partner Omar Hamoui. of Sequoia, in a statement. "We are impressed by NEXT's ability to execute, and the introduction of Relay proves that they have the team and the expertise to continue to innovate in ways that ease the painful points of carriers and shippers. "
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