The Flexport platform streamlines supply chain workflows enabling real-time communication and data-backed decision-making. (Photo: Jim Allen/FreightWaves) Global logistics platform Flexport announced Monday it is looking to close a $935 million series E investment round by the end of the first quarter that will value the company at over $8 billion. People [were] just finding us on the internet [and] signing up for the service." Finally, to raise funds, Petersen's main philosophy was giving off the impression that Flexport would succeed whether or not the investors decided to . One vocal critic frequently refers to Petersen in dismissive LinkedIn posts as Private Ryan. [Flexport has] made a lot of enemies in the space, says a veteran industry exec who didnt want to be named for fear of losing business with Petersen. As these new tariffs will affect even more shippers and just as we enter the critical peak shipping season we expect companies to try and get ahead of the September 1 deadline. Put your cash to work with a high-yield Treasuries account. As it navigates all of these different regulatory bodies, there is the risk that they will struggle to maintain compliance as the complexity of the business increases. "Recruiting has been very challenging for the last couple of years. It primarily caters to the automotive, building materials, consumer goods, food and beverage, manufacturing, oil, gas, and chemicals, and retail industries. Shippeo develops a multimodal transportation visibility platform. There is a possibility of loss. Its death by 1,000 cuts.. Petersen moved to China in 2005 for two years to source the product firsthand. Customer Relationship Summary, Open to the Public Investings Fee Schedule. No surprise, then, that powerful investors keep piling in. Buy fractional shares of fine art, collectibles, and more. Early in lockdown, he sent hundreds of thousands of units of personal protective equipment to Wuhan, Chinathen set his team to routing much more back when the virus reached U.S. shores, booking special planes to ship masks by the millions while rallying the public to donate funds. Flexport's valuation more than doubled to $8 billion on Monday after a funding round led by venture capital firms Andreessen Horowitz and MSD Partners, as logistics companies attract investors . Forget Meta's Sleek Virtual Reality. Julie Pierce Onos is a Massachusetts-based writer and Organization Development expert. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Petersen also plans to build out a fulfillment product that can identify high-priority goodssay, for direct-to-consumer brandsand ship them faster through a virtual HOV lane., Flexport is the definitive next-gen winner in the space, full stop, says David George, a growth-stage investor who co-led Flexports latest round on behalf of Andreessen Horowitz. Flexport is a digital-first freight forwarder and customs broker, backed by Founders' Fund and Softbank, with about 0.3% market share in the global market for freight forwarders. Onboard suppliers. Get the full list, Youre viewing 5 of 7 board members. For Flexport, there are 43 regulators in just the US who take an interest in imported products, and there are additional ones across the globe. Petersen was accepted into YCs 2014 batch as one of the last founders under Grahams direct mentorship. Exclusive: Amazons Consumer Chief Dave Clark Joins Supply Chain Startup Flexport As CEO. The above content provided and paid for by Public and is for general informational purposes only. She loves the stories that numbers tell us about business, relationships and health. Flexport manages the shipping of 25 products from a factory in China to two hubs in California and Kentucky and offsets their carbon footprint. Additional information can be found here. The CB Insights tech market intelligence platform analyzes millions of data points on vendors, products, partnerships, and patents to help your team find their next technology solution. Two major ones are regulators and vendors. The company reported consistent growth from around $30 million in 2014 to $1.7 billion in 2020. Higher yield than a high-yield savings account. Flexport International, LLC considers itself 'the OS of global trade'. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower, Founder: Ryan Petersen (CEO)Launched:2013Headquarters:San FranciscoFunding: $2.2 billionValuation: $8 billionKey technologies: Cloud computingIndustry: LogisticsPrevious appearances on Disruptor 50 List: 2 (No. Access capital for logistics costs and focus on opportunity. Title At Company . Find the right balance of cost and speed for any shipment. But no one can dispute Petersens efficacy. In January 2019, Petersen sat down to close a deal with Masayoshi Son; 45 minutes later, he walked away with a $1 billion commitment. Flexport's latest funding round was a Line of Credit for $200M on October 20, 2022. : Where does your team feel a sense of belonging and inclusivity? The founders of Flexport are Ryan Petersen and Susanne Schneberg. It earns roughly 15 percent of the average $2,000 it costs to move a shipping container around the. Flexport would try to become a profitable business now. Schneberg has a bachelors degree in economics from Humboldt University of Berlin and an MBA from University of California, Berkeley. Flexport has more than 10,000 clients and suppliers in 112 countries and doubled its revenue last year, bringing in $3.2 billion while reporting its first EBIT positive year. inventory management. If the UK leaves the EU without a trade deal in place, the UK loses access to the European single market with its free movement of goods. Flexport is a full-service global freight forwarder and logistics platform using modern software to fix the user experience in global trade. When you enable T-Bill investing on the Public platform, you open a separate brokerage account with JSI (the "Treasury Account"). Flexport's mission is to fix the user experience in global trade and bring the world free trade through technology. Please see Open to the Public Investings Fee Schedule to learn more. Flexport has made 33 investments. He appears sometimes uninformed, says Robert Khachatryan, who founded the 55-person freight forwarder Freight Right Global Logistics in greater Los Angeles in 2007. Flexport peak revenue was $471.0M in 2022. Companies of all sizesfrom emerging. Which types of acquisition does this organization make most frequently. tracked annually for greater shipment visibility. Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank. None of these entities provide legal, tax, or accounting advice. Once you sell your business, youre just another rich guy. For businesses facing inventory crunches, it built an app for truckers to tap into and learn where theyll be needed 10 days in advance. As recently as 2020, Flexport did not seem to be exploring an IPO. Last year, the San Franciscobased firm generated its first profit, posting net income of $37 million. To view the presentation, or for more information about the 2023 Annual Meeting, please visit: www.VoteforPitneyBowes.com.Shareholders who have any questions or need assistance voting may contact . Privately held Flexport is one of the most valuable logistics startups after raising more than $2 billion in funding. Get the full list, Youre viewing 5 of 66 investments and acquisitions. But Petersen doesnt want to be seen as a pandemic profiteer, getting rich as his customers pay unprecedented prices. Antidumping duties (ADD) are applied to goods that have been dumped into the U.S. market, sold at prices lower than what would be charged in the exporting countrys home market. Petersen also hasnt been shy about building his public image. Petersen admires the neat rows of rectangles colored blue, rust red and an occasional teal, stacked on the post-Panamax-class ship bound for Yokohama, Japan. Every crisis needs a hero, and Ryan Petersen positioned himself as the face of this, concedes Craig Fuller, who runs an industry data-and-news site called FreightWaves. If we can fix problems for Flexport, we can fix problems for the wider world, he says. The, tion ullamco laboris nisi ut aliquip ex ea commodo consequat. : What metrics do you use to measure success and maintain focus? These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Petersen calls it his biggest mistake as a CEO so far. Invest in baskets of securities in a single trade. For years, Petersen had tinkered with another idea, a TurboTax for customs paperwork, but he needed to clear a rigorous background check (smuggling is one concern) to move goods across the U.S. border. They have adapted and grown through the pandemic. Sons $10 billion investment was on life support. Conversely it tooks days before they heard from competitors if at all. End Date Fractional shares are illiquid outside of Public and not transferable. Automate orders. Got a confidential news tip? But three days after the second half of the money was wired, SoftBank-backed WeWork released its ill-fated public offering prospectus. Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model. Hed rather be seen as shippings Mr. Fix-It. As an investor, you are normally granted access to company-wide performance data such as sales, revenue, profit or loss statements, and so forth. Seed, Series A, Private Equity), Alternate or previous names for the organization, Tags are labels assigned to organizations, which identify their belonging to a group with that shared label, Whether an Organization is for profit or non-profit, General contact email for the organization, Total number of sub-organizations that belongs to a parent Organization, Edit Lists Featuring This Company Section. Alternative Assets. Use Forbes logos and quotes in your marketing. It now has offices in 23 countries and is nearing 3,000 employees. Customizable reporting and analytics let you find advantages and plan to expand. Their latest acquisition was Crux Systems on October 10, 2019. Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value. Win whats next. Personalize which data points you want to see and create visualizations instantly. Its freight service includes an online dashboard for businesses to easily understand, purchase, manage, and track the services required for global trade. October 2019 acquired Crux Systems for an undisclosed amount. You have a purpose. Heres the breakdown of financing over the years: Flexport reached unicorn status in 2019 with a $3.2 billion valuation. The company is a global freight forwarder and modern logistics platform whose goal is to fix and improve user experience in global trade. He created his own list of six questions to help him stay on track: Two other guiding characteristics are discipline and accountability. Nowports competitors are Nuvocargo, Moova, DSV, and Flexport. Delivering humanitarian aid from Point A to Point B isnt as easy as, well, getting from Point A to Point B. Demand is at a record highglobal trade volumes rose 8.3% in 2021, according to Allianz subsidiary Euler Hermes. Any container ship on the West Coast, I guarantee we are on there.. Past performance is no guarantee of future results. Order Management delivers orders to suppliers, who book shipments across a global logistics networkright in the Flexport Platform. Flexport.org is a social good and sustainability initiative that partners with nonprofits shipping goods to areas of need, companies with excess goods to donate and companies that are looking for innovative ways to reduce carbon emissions. Long Beach Mayor Robert Garcia sent the list to his staff; the city eased restrictions on stacking containers the next day. But its Flexports visibility tools that allow marketers and store managers to know when to expect new shipments thats really valuable, says Rothys COO, Heather Skidmore Howard. They started with an undisclosed amount of funding in a seed round from Initialized Capital. Flexports aggressive fundraisingit has secured more than $2 billion to datemeant dilution for Petersen personally, who today owns just 9% of his company despite having no cofounders. Turns out Full Container Load shipping (FCL) isnt really full. 136.09K Follower s. Follow. Petersen uses two major frameworks in order to maintain company culture and prioritize customer needs. : Why do you exist? Walk into the offices of Flexport and Expeditors, a 40-year-old publicly traded freight forwarder with a market cap of about $19 billion, then strip away all the corporate logos and branding, and youd see that the operations look exactly the same, they claim. Its software platform makes it easy for its clients to engage in trade globally. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. It is advised that any businesses importing to or exporting out of the UK be prepared for a no-deal Brexit. Commission-free trading of stocks and ETFs refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. They have raised a total of $1.3 billion from many investors including Softbank, Founders Fund, DST Global, Cherubic Ventures, Susa Ventures and SF Expresslead. An Oracle survey of 1,000 U.S. adults found that 87% reported being negatively affected by shipping struggles; half said theyd canceled an order in recent months. Third-party logistics, of which freight forwarding is a big part, amounts to nearly $1 trillion. With logistics partners in more than 80 countries, companies of any size can transport goods to and from more places with greater ease and agility. Forbes estimates Petersens 9% stake in Flexport is worth $650 million, after our standard 10% private-company discount. The cuts were also ineffective, crushing employee morale for minimal savings. It was founded in 2013 and is rumored to be exploring an IPO. WeWorks larger-than-life cofounder Adam Neumann was out in matter of weeks. Orkestra Supply Chain Solutions (SCS) is a logistics and technology company that removes complexity through an intelligent platform and experienced people. With fresh. Customer Relationship Summary. (If Forbes valued Petersens stake using the price of Flexport shares on the secondary markets, hed already be there, worth just over $1.1 billion.). Stocks and ETFs. Flexport can utilize that data to determine whether it should invest in building out a new product line, enter a new customer vertical, or even just outright acquire the firm it invests in. I dont think we took a deep breath for three months, he says. Petersen remains as CEO and Schneberg is now the founder and leader of Flexports impact arm, Flexport.org. All Rights Reserved. Its easier to gain insight with data that is structured for success. Flexports software analyzes and optimizes a customers supply chain, then automates it, often coming up with ways to shave days off delivery and save customers millions in late fees. The following slide deck was published by International Paper Company in conjunction with their 2023 Q1 earnings call . Sales reached $3.3 billion in 2021, up from $1.3 billion in 2020 and $670 million the year before (Flexport passes about 80% of its revenue directly . He engages where a lot of executives wont. CNBC's 11th annual Disruptor 50 list will be revealed on-air and online this May. Treasuries. Flexport navigated the global pandemic well and is poised to benefit from the current industry demands for freight forwarding and future predicted trends towards increases. It sounds like bravado, but for Petersen, 41, its simple math. Supply chain agility can help support core business values, like sustainability. For more information on risks and conflicts of interest, see these disclosures. JPMorgan reveals details of First Republic deal in investor presentation. They utilize Flexports proprietary modern technology system to help them route supplies to wherever they are most needed in the world. Petersens thread was quickly retweeted more than 15,000 times, including by Coinbase billionaire CEO Brian Armstrong. Petersen agrees: I call our sales process like playing Battleship. The platform provides access to delivery tracking, automates customer processes, and estimated- time of arrival (ETA) accuracy with the help of its proprietary machine learning algorithm. The platform arranges goods to be transported and tracks the inventory in real-time in orders carried by the ocean, air, and road freight, enabling logistics companies to optimize transportation routes and inventory management. Investors including Andreessen Horowitz and Michael Dell's MSD Partners are valuing the logistics tech at $8 billion. Flexport is funded by 90 investors. "This investment signals that the market recognizes the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale," Petersen said in announcing the deal. Regulators and vendors are two big ones. Petersen realized he didnt really know. Developer of a freight forwarding platform designed to provide visibility and control over the entire supply chain. It tracks shipments for shippers and logistics service providers helping them leverage transportation to deliver better customer service. Learn more. Explore 9,000+ stocks with company-specific analysis. Average folks who never gave a thought to the global supply chain are paying attention now. It depends how desperate we were. Soon he was on the phone with Thiel to explain himself. On the ocean side, weve always spent a lot of time on allocation management, and predicting and booking reliably with the carrier. Even when importers are willing to pay a premium for a specific spot on a boat on a certain day, capacity has been so limited that no amount of premium payments are sufficient because the existing contracted space is the entire capacity of the transporter ships. No 21-year-old in college is lying awake at night saying, I need to build the next Flexport.. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Flexport is the company aiming to untangle those knots. Sign up for a free trial to see revenue data from 2021, 2018, 2017 and more. Incumbents still relied heavily on sending faxes or PDFs back and forth, or freight email forwarding. Within a few months, Flexport had stitched together a working cloud-based version of its software. Trusted data backs every move. Its team of logistics experts lets focus on core business by ensuring goods arrive at fulfillment/distribution centers on time and at the lowest cost.

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