A surge in funding for logistics start-ups in 2021 was followed by a decline of almost 50 percent at the end of last year, senior partner Ludwig Hausmann and colleagues note in their analysis of 600 logistics start-ups. Due in part to higher interest rates and a shift in consumer spending habits from goods to services, start-up funding decreased sharply in three logistics sectors: distribution and fulfillment, first- and middle-mile brokers, and digital last-mile platforms.
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A bar graph shows the percentage change in total funding for logistics start-ups by industry category from 2021–22. Warehouse management systems, at +319%, and brokers and digital freight forwarders, at +206%, are the top 2 industry logistical sectors with the biggest percentage change. The sectors with the largest start-up funding decreases were distribution and fulfillment, –90%; first- and middle-mile brokers, –70%; digital last-mile platform, –65%; other first- and middle-mile solutions, –62%; real-time visibility, –48%; and physical last-mile delivery, –47%.
Source: CB Insights; Crunchbase; company websites
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To read the article, see “Start-up funding in logistics: Adjusting to a new reality,” May 16, 2023.