Business

US Trucking Tech Firms Already Received $2 Billion In Investments For 2019

Trucking technology companies are getting a lot of investments from across the world as investors look to get in on a new field that’s booming, and an economy that’s staying strong.

According to a report from the New York research firm, CB Insights, investors have put a total of $2 billion into tech trucking company startups since May 21. Hyeri Kim, CB, noted that that $2 billion figure was comprised of 27 major deals. For comparison, the entirety of 2018 saw a total of $3.6 billion in investments in the field.

KeepTrucking CEO and Co-Founder Shoaib Makani says that interest on trucking technology from investors is the highest it’s ever been. The San Francisco company recently secured $149 million in a Series D investment, with Greenoaks Capital leading major investors like IVP, GV, Index Ventures and Scale Venture Partners, which brought up the company’s total funds up to $228 million.

Makani says that investors see the value in arming many a trucking company the best technology, connecting the freight to the factory, to the warehouse, and to the truck, keeping everything accounted for all the way.

Makani says that, for the first time ever, America’s trucks are connected. The operational data needed for improved road safety and better asset utilization is now available to the public, and investors recognize the value that this connectivity will give.

CB Insights says that funding activity for trucking tech startups have jumped from $114 million across 34 deals in 2014, up to $3.6 billion across 78 deals in 2018.

As for the supply chain and logistics tech industries, they’re doing just as well, with equity hitting a total of $12.1 billion across 463 deals in 2018, according to data from CB Insights. Forecast from the firms suggests that 2019 is set to go past that, reporting 142 deals resulting in $7.9 billion.

Overhaul CEO Barry Conlon says that part of the demand for tech in the trucking industry is due to the need for real-time data, which tends to be challenging and complex to work with. He notes that, with supply chains increasing in scale and complexity as they are, managers need a way to handle all the data in real-time, which would improve efficiency, safety, accountability and transparency in trucking.