Everstream Analytics, a supply chain analytics startup, announced on Tuesday it raised $50 million in Series B funding. The round was co-led by StepStone Group and Morgan Stanley Investment Management, with participation from existing investor Columbia Capital.
The company, which was founded in 2012, provides risk performance insights in the world of logistics. It works with the various touchpoints of the supply chain system such as shipping, weather and freight routes to improve efficiency and mitigate climate issues.
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Using predictive analytics, Everstream says it tries to help companies make game-time decisions on how to reroute its supply chains to lower its carbon footprint and operational costs while delivering goods faster.
The California-based startup says it has helped companies achieve a maximum 30% reduction in revenue losses and 70% less time invested in managing risks.
Logistics are losing love
Logistics were largely neglected in the venture world until the pandemic.
The rise in e-commerce habits jammed supply chains during the first two years of the pandemic, forcing investors to pay attention to new opportunities that could leverage existing technologies — the cloud, predictive analytics and AI — to improve the space. Logistics saw a flood of funding in 2021, with over $21 billion invested into the space, according to Crunchbase data.
Then funding to logistics startups fell again in 2022 with around $11 billion invested, a 48% drop year over year.
Project44, another logistics startup, raised $80 million in November. But it’s one of the rare raises in the space as the sector sees new entrants.
Compliance is becoming an increasingly sticky issue in the world of logistics. Various countries have supply chain regulations that tax or ban companies that use logistics services involved in forced labor (like the Uyghur Forced Labor Prevention Act). The European Union also expects any imports or exports to meet its carbon reporting requirements under the Corporate Sustainability Reporting Directive.
Illustration: Dom Guzman
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