Flock Freight has successfully raised millions in its Series C funding round, achieving a valuation of over $1 billion. The company has garnered investments from notable backers such as SoftBank, Volvo Group Venture Capital, SignalFire, GLP Capital Partners, and GV (formerly Google Ventures).
Keep reading to explore the intricacies of Flock Freight's fundraising journey and the investors backing this innovative platform.
What Is Flock Freight?
Flock Freight, founded by Oren Zaslansky, is a technology provider in the transportation and logistics industry. Established in 2015, the company operates out of Chicago and San Diego.
Flock Freight uses proprietary algorithms to pool shipments, ensuring faster, safer, and greener transportation. Their innovative approach eliminates inefficiencies and waste, offering a net-zero shipping option.
With a team of 201-500 employees, Flock Freight is committed to sustainability, earning a B Corp certification for its efforts in reducing the carbon footprint of the freight industry.
How Much Funding Has Flock Freight Raised?
- Series A Round
- Amount Raised: $18 million
- Date: January 2018
- Lead Investors: SignalFire
- Motivation Behind the Round: To develop and enhance the proprietary algorithms for pooling shipments and to expand the team.
- Series B Round
- Amount Raised: $50 million
- Date: February 2020
- Lead Investors: SignalFire and GLP Capital Partners
- Motivation Behind the Round: To support product innovation, expand FlockDirect, and redefine the pricing structure associated with the hub-and-spoke model.
- Series C Round
- Amount Raised: $113.5 million
- Date: December 2020
- Lead Investors: SoftBank Vision Fund 2
- Valuation at Round: $500 million
- Motivation Behind the Round: To hire more employees and scale the business, capturing a greater share of the market and improving supply chain efficiency.
Total Amount Raised: $181.5 million
Current Valuation: $500 million
Key Investors
- SoftBank Vision Fund 2
- Details: SoftBank Vision Fund 2 is a global technology investment firm known for its significant investments in transformative companies. Ervin Tu, managing partner at SoftBank Investment Advisers, joined Flock Freight's board following their investment.
- Investment Focus Areas: Technology, AI, robotics, telecommunications.
- Notable Investments: Uber, WeWork, DoorDash.
- Volvo Group Venture Capital
- Details: Volvo Group Venture Capital is the investment arm of Volvo Group, focusing on strategic investments in the transport and infrastructure sectors. They made a new minority investment in Flock Freight as a strategic partner.
- Investment Focus Areas: Transport, infrastructure, related technologies.
- Notable Investments: Peloton Technology, Aurora, TuSimple.
- SignalFire
- Details: SignalFire is a venture capital firm that uses data and technology to support its portfolio companies, focusing on early-stage investments. They led Flock Freight's Series B funding round.
- Investment Focus Areas: Early-stage technology companies, data-driven businesses, innovative startups.
- Notable Investments: Grammarly, Frame.io, Ro.
- GLP Capital Partners
- Details: GLP Capital Partners is an investment firm specializing in logistics and real estate, part of the global logistics provider GLP. They co-led Flock Freight's Series B funding round.
- Investment Focus Areas: Logistics, real estate, infrastructure.
- Notable Investments: Prologis, Gazeley, IndCor.
- GV (formerly Google Ventures)
- Details: GV is the venture capital arm of Alphabet Inc., investing in various sectors including technology, life sciences, and transportation. They are an existing investor in Flock Freight.
- Investment Focus Areas: Technology, life sciences, transportation.
- Notable Investments: Uber, Slack, Nest.
What's Next for Flock Freight?
Flock Freight stands at the cusp of a transformative opportunity in the trucking industry. With the ability to pool shipments into a single shared truckload, the company can significantly reduce carbon emissions and improve efficiency. The trucking industry, which moves over 70% of all U.S. freight, presents a massive market for Flock Freight to capture.
Future fundraising seems promising, given the substantial backing from high-profile investors like SoftBank and Volvo. This financial support positions Flock Freight well for further rounds, enabling them to scale operations and enhance their technology. However, the company will need to navigate competition and regulatory challenges to maintain its innovative edge.
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