Why Supply Chain Startups Are Struggling to Secure Funding in 2023

Supply chain management startups face a significant decline in venture funding and deal activity in 2024. Altana AI secured $200 million in a Series C funding round, reaching a $1 billion valuation, despite the sharp industry downturn since its 2021 peak. Venture capital for these startups is under $2 billion this year, indicating a 79% drop from the $14.7 billion in 2021, and deal flow decreased by 55%, with just over 300 deals expected. Flexport raised $260 million from Shopify after challenges, including declining shipping volumes and a CEO departure. The acquisition of Convoy's assets by Flexport highlights sector difficulties. Significant funds went solely to Germany-based CargoBeamer and India-based Shadowfax, alongside Altana and Flexport. Overall, venture funding plummeted 76% from the previous year. AI technology could potentially rebound the sector, as demonstrated by Altana's AI-driven appeal to investors, though recent setbacks and stabilized supply chain operations post-pandemic may affect investor confidence.

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