flexport investor presentation
Supply chain agility can help support core business values, like sustainability. Petersens older brother David stayed up all night building and managing an early online video-game community. 41 in 2021). Flexport Skip to content Schneberg has a bachelors degree in economics from Humboldt University of Berlin and an MBA from University of California, Berkeley. Flexport is raising $935 million in a series E round. Exce, To view Flexports complete valuation and funding history, request access, Youre viewing 5 of 34 competitors. Flexport owns no trains, planes or ships of its own. On the ocean side, weve always spent a lot of time on allocation management, and predicting and booking reliably with the carrier. I never want to sell the business. One of the benefits of an IPO; however, is a large infusion of capital that can fund expansion of services, infrastructure or both. Higher yield than a high-yield savings account. You have a purpose. 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. inventory management. Automate orders. 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. LPL Financial Member FINRA/SIPC 3 Notice to Investors: Non-GAAP Financial Measures Management believes that presenting certain non- GAAP financial measures by excluding or including certain items can be helpful t o investors and analysts who may wish to use this information to analyze the The Vice President of Global Ocean at Flexport, Nerijus Poskus, was quoted in May 2021 by FreightWaves.com as saying the volume of global freight business is at 1.5 pre-pandemic levels. Ordering pants, patio chairs, or a couch became a lot more complex amid the global supply chain mess of the last year. CBI websites generally use certain cookies to enable better interactions with our sites and services. It was such a valuable industry and so very undesirable for product builders, Ohanian says. It earns roughly 15 percent of the average $2,000 it costs to move a shipping container around the. Which industries has this organization had the most exits in? 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. They have adapted and grown through the pandemic. Learn how were making Public available in even more places. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. Having already spent the first of SoftBanks $500 million, he realized he needed to shift course. Collison was curious how the backup at Californias ports compared to mysterious bottlenecks in his world of online payments. When a ship ran aground in the Suez Canal last March, Petersen demystified the situation on social media and in interviews, even publishing a supply chain explainer picture book for kids. 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 . Customer Relationship Summary, Open to the Public Investings Fee Schedule. Investors: Flexport works to earn a return on investment for their investors. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. Early on, the unit shipped 350,000 masks from the U.S. to Wuhan. They have all these ways to win, he adds. Past performance is no guarantee of future results. This has happened in the past when they had a four year contract with Western Global Airlines that was beset with multiple mechanical failures and repair delays. 41on last year'sCNBC Disruptor 50list, has raised $2.2 billion to date. To insiders in the famously quiet logistics industry, each interview and TV appearance is more testament to Petersens opportunism than market leadership. See Jiko U.S. Treasuries Risk Disclosures for further details. This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. 136.09K Follower s. Follow. Founder Ryan Petersen has positioned himself as shipping's savior, earning Flexport a new $8 billion valuation. Prior to founding Flexport, Schneberg had transportation and logistics experience and was the Founder and leader of the Next Generation Think Tank. Its easier to gain insight with data that is structured for success. Investors need to know that all ventures have risks if they decide to go public shortly. Its latest funding round was led by Andreessen Horowitz and Michael Dell's MSD Partners, and includes a strategic investment from Shopify. An affiliate of Public may be testing the waters and considering making an offering of securities under Tier 2 of Regulation A. "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. Nowports competitors are Nuvocargo, Moova, DSV, and Flexport. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more. 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. They havent officially begun the IPO process. Cumbersome, prone to error and lacking transparency for companies trying to include freight forwarding costs in their planning, Flexport sought to modernize and simplify the process. Additional information can be found here. But as Flexports revenue doubled past $200 million, then $400 million, and Petersen kept spending to launch offices in ports from Hamburg to Shenzhen, he caught the eye of the worlds leading expert on brute-forcing ones way to dominant market share: SoftBank. For Petersen, the ground shifted fast. Backed by some of Silicon Valleys most prominent VCs and tech billionaires, including Peter Thiels Founders Fund, Yuri Milner and Masayoshi Son, Flexport was founded in 2013 to automate paper customs forms. Flexport said Monday it raised $935 million in a Series E funding round that values the freight forwarding company at $8 billion nearly triple its last reported valuation in 2019, according to. Probably not, actually. It's a pretty ugly situation out there, says Flexport CEO Ryan Petersen on supply chain disruptions, The pandemic drove Clubhouse to a $4 billion valuation that never looked sustainable, WWE taps Fanatics to sell merchandise at live events like WrestleMania, SummerSlam, How Fanatics and MLB are planning to keep the trading card boom going. Flexport says its Transmission app shaves 40 minutes from ship to chassis. It is a licensed customs brokerage and freight forwarder built around a modern web application. In January 2019, Petersen sat down to close a deal with Masayoshi Son; 45 minutes later, he walked away with a $1 billion commitment. Crews from Axios on HBO and 60 Minutes asked him to guide them on their own harbor tours. Its freight service includes an online dashboard for businesses to easily understand, purchase, manage, and track the services required for global trade. But three days after the second half of the money was wired, SoftBank-backed WeWork released its ill-fated public offering prospectus. CB Insights Intelligence Analysts have mentioned Flexport in 14 CB Insights research briefs, most recently on Nov 10, 2022. It has experienced rapid growth amid the pandemic-led global supply-chain disruptions. In 2018, China represented 75.2% of U.S. seaborne imports linked to Flexport, while in 2019 that had fallen to 62.8% before declining to 47.8% in the first quarter. Its death by 1,000 cuts.. All Rights Reserved. Empowering companies to connect with their retail investors. This is a profile preview from the PitchBook Platform. Our industry thinks Im a clown, which I dont mind, he says. The company was founded in 2013 by Ryan Petersen and is based in San Francisco, California. Digital freight forwarder Nowports reaches $1.1B valuation. Invest in baskets of securities in a single trade. 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. . But it was also a warning: Disruption to trade with China could devastate Flexports core business. 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. Flexport Is Silicon Valleys Solution To The Supply Chain MessWhy Do Insiders Hope ItSinks? We have a chip on our shoulders. Its rerouting lighter, higher-value products like Everlanes popular sweaters from sea to air. By that point, it was clear to Petersen that while Flexport was growing fast, the logistics market wasnt one where a hard-charging newcomer could sweep the board. But Petersen doesnt want to be seen as a pandemic profiteer, getting rich as his customers pay unprecedented prices. Project44 offers an end-to-end supply chain visibility platform for shippers and third-party logistics firms. Diversity Spotlight (US Headquarters Only), Total amount raised across all funding rounds, Total number of lead investment firms and individual investors, Total number of investment firms and individual investors, Total number of diversity investments made by an investor. Flexport moved $19B in gross merchandise value in 2021 for clients across 112 countries. Cryptocurrencies are not securities and are not FDIC or SIPC insured. The company was founded in 2014 and is based in Paris, France. Kevin Kwok has had 1 past job as the Summer Venture Analyst at IA Ventures. None of these entities provide legal, tax, or accounting advice. So let's look at some potential difficulties investors may face if a Flexport IPO date occurs. AS the ferry to San Francisco exits Oaklands harbor, Flexports founder and CEO, Ryan Petersen, turns to watch a towering 370-foot crane hook shipping containers, one by one, onto the deck of a cargo ship. Their latest funding was raised on Oct 20, 2022 from a Debt Financing round. Flexport has made 33 investments. Get the full list, Youre viewing 5 of 66 investments and acquisitions. If we can fix problems for Flexport, we can fix problems for the wider world, he says. The cuts were also ineffective, crushing employee morale for minimal savings. End Date The Flexport Platform is your supply chain source of truth. They utilize Flexports proprietary modern technology system to help them route supplies to wherever they are most needed in the world. In 2013, when the company was founded, the freight industry largely functioned still via paper and faxes. There is a possibility of loss. 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. U.S. Treasuries ("T-Bill") investing services on the Public Platform are offered by Jiko Securities, Inc. (JSI), a registered broker-dealer and member of FINRA & SIPC. Petersen explained, "The earliest customers for Flexport we got via Google Adwords, SCO, and sign-ups. Which types of acquisition does this organization make most frequently. Its what the public wanted to see., As Petersen positions Flexport to go on offense when the shipping world returns (soon, one hopes) to some semblance of normalcy, hes eager to silence the doubters. Developer of a freight forwarding platform designed to provide visibility and control over the entire supply chain. Organization Name . 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. All Rights Reserved. Amazon's Devoted Cloud Customers Face A Decision After Outages: Leave, Stay Or Diversify? All rights reserved. Within three years, Flexport had over 700 clients across 64 countries. Reddit cofounder Alexis Ohanian, then a YC partner, invested alongside Forbes Midas List star Garry Tan. Insure all of your cargo or cover it by the shipment. Please ensure that you fully understand the risks involved before trading: Legal Disclosures, Apex Crypto. He let go of 50 staffers, about 3% of Flexports workforce. Business Insiders Top 51 Enterprise Startups to Bet Your Career On, Lloyds Loading Lists Freight Forwarder of the Year, #8 on Inc. 5000, a list of the fastest-growing private companies in the U.S, 8th fastest growing company in the USA with a three year growth of 15911%, Breakout Lists Great Companies to Apply For, Clients: Flexport serves and earns money from both importers and exporters, Vendors: Flexport pays to partner with those who own the planes, ships, and trucks. The San Francisco-based company,ranked No. He utilizes the OKRs system created by Intels Andy Grove and most famously used by Amazon. Clark, former consumer chief at Amazon and now co-chief executive at Flexport, said the firm is taking advantage of its strong balance sheet and the less competitive job market for tech talents. It was founded in 2013 and is rumored to be exploring an IPO. Lead Investor . Flexport has not yet filed for an IPO. (The company doesnt expect to stay in the black as it invests in growth.) JPMorgan has released a presentation for investors with more detail about its deal to buy the bulk of failed lender First Republic. You can connect with her on Twitter at @juliepierceonos. Regulators: Flexport applies for and maintains licensure through regulatory bodies. The Office of the United States Trade Representative (USTR) announced the procedure by which companies can request exemptions from the additional 25 percent tariffs placed on List 3 goods imported from China under section 301 of the Trade Act of 1974. Of course, the doubters still doubt. When? Graduating trilingual (English, Spanish and Portuguese) with an economics degree from the University of California, Berkeley, in 2002, Petersen initially pursued a global microlending career without success. I wish I could look inside with a HoloLens to see which containers are Flexports, he says, imagining that Microsofts augmented-reality glasses had an X-ray feature. Fractional shares are illiquid outside of Public and not transferable. Flexport, one of the most valuable logistics startups, is looking to add about 400 engineers to double its technical team by next year, a top company executive told Reuters. 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. Thats just the reality of being a new company in such a big, complicated business, says Ben Braverman, a longtime Flexport executive and Petersen confidant. We let them understand what the consequences were for their portfolio of products. 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. Forget Meta's Sleek Virtual Reality. (purpose, mission, vision, and impact). Flexport raised $935 million led by venture capital firms Andreessen Horowitz and MSD Partners earlier this year at a valuation of $8 billion. Petersen agrees: I call our sales process like playing Battleship. And we think this is the exact great opportunity for us to go out and start hiring and give people an opportunity to do a reset in their career," said Clark. Which industries do these Sub-Organization operate in? Their latest investment was in Portao3 as part of their Seed VC on January 1, 2023. Exclusive interview: Former Amazon consumer chief Dave Clark has a new job: co-CEO, and eventually sole CEO, of $8 billion-valued supply chain software startup Flexport. Venture Capital-Backed Primary Industry Business/Productivity Software Other Industries Logistics Primary Office 760 Market Street 8th Floor San Francisco, CA 94102 United States +1 (415) 000-0000 Flexport Timeline 2020 2021 2022 2023 Financing Round Captured Employee Count Estimated Employee Growth Want detailed data on 3M+ companies? Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value. JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 par value (the T-bills value at maturity). Flexports goals go beyond having the lowest price; they want to provide the best software and systems to help clients book, track and pay for shipments. 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. Past performance is not indicative of future performance. Open to the Public Investing, Inc. The, tion ullamco laboris nisi ut aliquip ex ea commodo consequat. No 21-year-old in college is lying awake at night saying, I need to build the next Flexport.. Prior to starting Flexport, Petersen founded and led a data-as-service company supporting global shipping for businesses called ImportGenius.com with his brother. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. October 2019 acquired Crux Systems for an undisclosed amount. Petersens thread was quickly retweeted more than 15,000 times, including by Coinbase billionaire CEO Brian Armstrong. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. Nov 2 (Reuters) - Flexport, one of the most valuable logistics startups, is looking to add about 400 engineers to double its technical team by next year, a top company executive told Reuters. Personalize which data points you want to see and create visualizations instantly. But industry rivals say the 41-year-old near-billionaire and his startup are all show. Molekule scales its stock by coordinating with suppliers in the Flexport Platform to ensure cargo-ready dates. In fact, in April 2020, CEO Petersen was quoted in a TechCrunch article as saying, Im just having fun. Which investors participated in the most funding rounds? The following slide deck was published by International Paper Company in conjunction with their 2023 Q1 earnings call . Lets explore what type of risks investors might need to consider with a Flexport IPO. Pickup Trucks: With lines of semis now a familiar sight at major hubs, like these at the Port of Oakland, every minute counts. There isnt a silver bullet for this.. According to the website, the Flexport vision includes building the first Operating System for Global Trade, a strategic operating model that combines technology and analytics, logistics infrastructure, and hands-on supply chain expertise. 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. Which industries has this organization most actively invested in? Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. This story appears in the February/March 2022 issue of Forbes Magazine. Want help? Privately held Flexport is one of the most valuable logistics startups after raising more than $2 billion in funding. Americans spent 20% more on goods last fall than in February 2020. San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Visibility is a solution to a problem that shouldnt exist, says Adam Banks, the former chief technology and information officer for Maersk, the worlds second-largest ocean carrier, with $40 billion in annual revenue. He bases his philosophies regarding prioritizing customer needs on principles he learned from his mentor Charlie Munger. Flexport hasnt been in any legal or ethical trouble but they did file a lawsuit against Western Global Airlines (WGA) for failing to provide service due to a long string of mechanical failures and delayed aircraft repairs, disrupting Flexports business. Flexport is the company aiming to untangle those knots. PitchBooks comparison feature gives you a side-by-side look at key metrics for similar companies. Listen to our daily live shows on the latest market news. The basis of this belief is that if you dont prioritize your customers, your business will not be sustainable. Duis aute irure do, prehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Access capital for logistics costs and focus on opportunity. Flexport International, LLC considers itself 'the OS of global trade'. Flexport Platform Manage your supply chain Order Management Collaborate on orders Customs Clear goods, gain insights Climate Offset carbon emissions Transportation Ocean Freight Ship in a few clicks Air Freight Fly for faster arrivals Less than Container Ship any volume Trucking Go intermodal or direct Shopify Shipping Flexport Inc. is an American multinational corporation that focuses on supply chain management and logistics, including order management, trade financing, insurance, freight forwarding and customs brokerage. Demand is at a record highglobal trade volumes rose 8.3% in 2021, according to Allianz subsidiary Euler Hermes. Subscribe. Claim your profile to get in front of buyers, investors, and analysts. A single dashboard speeds workflows and surfaces insights. The start-up was Flexport, and its founder is Ryan Petersen, then an importer of Chinese motorbikes who, frustrated by the complexities of the logistics process, was on a mission to make global trade easy for everyone. His father was a government economist, using 1970s-era computers to crunch numbers on Soviet defense spending and running a coding business on the side. Got a confidential news tip? T-bills are purchased at a discount to the par value and the T-bills yield represents the difference in price between the par value and the discount price. Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. Petersens bolder proposals, such as the creation of a government-sponsored railhead depot, remain untouched. 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. It works with at least 20 more across the globe. US Import Gain Means Flexport Sees No Recession for Some Months, Flexport founder Ryan Petersen reveals his secret for startup recruiting, Tech Moves: Former Expedia leader joins Peerspace; Flexport adds another Amazon exec, Supply Chain Management Companies With More Than $10M in Revenue. One challenger with momentum is Chicago-based project44, a pure logistics data play which raised $420 million in January at a $2.6 billion valuation. In addition, 2021 was the company's first positive year in earnings before interest and taxes (EBIT). : Why do you exist? Flexport is funded by 90 investors. He appears sometimes uninformed, says Robert Khachatryan, who founded the 55-person freight forwarder Freight Right Global Logistics in greater Los Angeles in 2007. It is assuming $122 billion in . Petersen is used to the sniping by now. Flexport is the platform for global logisticsempowering buyers, sellers and their logistics partners with the technology and services to grow and innovate. The day after his chartered boat tour of the Long Beach harbor, Petersen shared his findings on Twitter. Customers choose Flexport not because Petersen reinvented the wheel but because its one-stop software suite simplifies their lives. Its not one of those things where you have a product or you dont, says Founders Funds Trae Stephens. By continuing to use this site you are consenting to these choices. Petersen also hasnt been shy about building his public image. "Recruiting has been very challenging for the last couple of years. This transcript may contain forward-looking statements about, among other things, our anticipated operating and financial performance, business plans and prospects; expectations for our product pipeline, in-line products and product candidates, including anticipated regulatory submissions, data read-outs, study starts, approvals, post-approval clinical . site you are consenting to these choices. A Division of NBCUniversal. Flexport is a full-service global freight forwarder and logistics platform using modern software to fix the user experience in global trade. T-bills are subject to price change and availability - yield is subject to change. The company was founded in 2013 by Ryan Petersen and is based in San Francisco, California. And in February 2020, when Covid-19 shutdowns in China started to reverberate through the supply chain, Petersen panicked. Covering venture capital, cloud and startups. It sounds like bravado, but for Petersen, 41, its simple math. The company was founded in 2015 and is based in Boston, Massachusetts. Developer of a freight forwarding platform designed to provide visibility and control over the entire supply chain. You can read more about your cookie choices at our privacy policyhere. Forward-Looking Statements of Pfizer Inc. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. In 2018 they were recognized on the following lists: In 2019 they were recognized on the following lists: Flexports guiding principles have been consistently employed from the beginning. Customer Relationship Summary. Lots of people would rather work with project44s Switzerland rather than a brash competitor like Flexport, CEO Jett McCandless argues. Flexports biggest competitors are: Telenet Global Logistics, a private travel and leisure company; Bremer Lagerhaus, a publicly traded travel and leisure company; Global Tranz, a travel and leisure company that is a subsidiary of another company; and Echo Global Logistics, a publicly traded tech company. Plus Flexport's in-house experts across transportation, customs, cargo insurance, and working capital deliver an all-in-one solution for large global brands and small businesses alike. If a vendor has poor performance or a disaster, this will affect Flexports ability to deliver on its promises to its own clients. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy. 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. No money or other consideration is being solicited and, if sent in response, will not be accepted.
