TAKEAWAYS
SUPPLY CHAIN VC UPDATE Could the relative calm in supply chains in 2023 and 2024 versus the major disruptions in 2021 and 2022 be dampening investor enthusiasm for supply chain-related deals? A Crunchbase analysis indicates as much. Crunchbase data shows total venture funding to supply chain startups has yet to hit $2 billion this year—a pace that, if continued, will result in a 79% drop from the all-time high set in 2021 of $14.7 billion. At its current rate, the total is likely to fall short of the $3.3 billion raised in 2023. There are a few exceptions. Logistics giant Flexport—which less than 3 years ago hit a peak valuation of $8 billion—raised $260 million from partner Shopify in January. And Altana AI, a company that “empowers governments, logistics providers, and enterprises with an intelligent, dynamic map of the global supply chain” nabbed $200 million in Series C funding in July. Otherwise, deal flow in the supply chain sector has declined dramatically, with Crunchbase predicting only slightly more than 300 deals will close this year—a 55% drop from 2021’s 711 and a decrease of more than nearly 150 rounds from last year. Crunchbase notes that venture funding has been down in nearly every sector since 2021, but the decrease in supply chain- related funding has been especially sharp.
ARE YOU UP TO SPEED WITH THE LATEST REGULATIONS? The U.S. supply chain, transportation, and logistics sector is continuously evolving, influenced by new technologies, global trade dynamics, and changing consumer expectations. To keep pace, U.S. government agencies regularly update and introduce regulations that impact how businesses operate in these critical areas. Here is an overview of some of the most significant new and updated regs shippers need to stay abreast of. Federal Motor Carrier Safety Administration (FMCSA) FMCSA, the key agency responsible for regulating commercial motor vehicle safety in the United States, announced four recent updates to address the evolving needs of the trucking industry. 1. Automatic Emergency Braking (AEB) Systems Rule: Last year, FMCSA, in collaboration with the National Highway Traffic Safety Administration (NHTSA), proposed a rule that would require automatic emergency braking systems in U.S. light vehicles and trucks. The rule was finalized in May 2024 and goes into effect in September 2029. 2. Expansion of Drug and Alcohol Clearinghouse Requirements: As of 2023, all state driver licensing agencies are required to use the Clearinghouse to check whether a driver is prohibited from operating a commercial motor vehicle due to drug or alcohol violations before issuing, renewing, or upgrading a commercial driver’s license. 3. Electronic CDL Information Exchange: As of August 2024, states are required to implement an all-electronic system for exchanging commercial driver’s license (CDL) information, including convictions and disqualifications, to streamline and improve the accuracy of CDL record-keeping. 4. Hour of Service (HOS) Updates for Agricultural and Livestock Haulers: FMCSA updated the HOS regulations in 2023 specifically for agricultural and livestock haulers to provide more flexibility for haulers during planting and harvesting seasons while maintaining safety standards.
SUPPLY CHAIN MANAGEMENT VENTURE FUNDING
Source: Crunchbase
18 Inbound Logistics • September 2024
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