Before Covid, there were only a handful of investors who understood logistics or were comfortable investing in supply chain platforms and now the tides are shifting. Supply chain tech startups raised $24.3 billion in venture funding during the first three quarters of 2021, according to Pitchbook. A huge influx of cash gives startups in the once-overlooked sector access to capital to build out their businesses, but many Black-led supply-chain companies are getting left behind.
Why This Matters: Silicon Valley investors are no longer confused about what the supply chain is or why it is important. The average pre-money valuation for late-stage supply-chain tech companies reached $120 million in the third quarter of 2021. The money is out there for supply chain founders but the experience of Black-led companies getting capital has been tough.
“Good companies are simply raising much, much more money,” said Julian Counihan, general partner at Schematic Ventures, a San Francisco-based venture capital firm.
