Venture Capital funding of supply-chain related companies has collapsed versus record 2021 levels.
According to the Crunchbase.com web site, total venture funding to supply chain startups have yet to hit even $2 billion this year - a pace that if continued will result in a major 79% drop from the all-time high set in 2021 of $14.7 billion.
See the graphic below.
In fact, at its current rate, it will not even match the $3.3 billion raised last year.
Deal flow in the sector has declined almost as dramatically. The industry is on pace to see just more than 300 deals done this year — a 55% drop from 2021’s 711 and a decrease of more than nearly 150 rounds from last year.
Crunchbase notes that venture funding has been down in nearly every sector since 2021 — when all-time records were set for venture investments. But the decrease in supply chain-related funding has been especially sharp.
Source: Crunchbase
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What’s going on? It isn’t clear, though Crunchbase surmises the relative calm in supply chains the last couple of years vs the major disruptions on 2021 and 2022 might be working to dampen investor enthusiasm for supply chain-related deals.
Crunchbase also notes that major investors took the proverbial financial bath with their investments in logistics technology firms Convoy and Flexport, the latter of which went through significant financial and executive turmoil and the former of which went belly up.
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