Supply chain startups should not limit themselves or think smaller just because venture capital (VC) funding is currently in a reset phase, according to Kaitlyn Glancy, an investor and former Flexport employee. Despite the slowdown in VC funding, Glancy advises startups to continue aiming high and not settle for incremental changes. Glancy’s career at Flexport began in 2015 when the logistics company had only 20 employees. During her tenure, Flexport grew exponentially and became a unicorn in the logistics sector. Glancy eventually rose to the role of VP, overseeing sales and operations in North America.
Glancy’s transition from Flexport to her new role as an investor at Eclipse, a venture capital firm focused on startups in physical industries, reflects her desire to apply her knowledge of investing in startups. Eclipse has previously invested in companies like 6 River Systems, Axlehire, and Clearmetal. Over the past few years, logistics startups have received billions of dollars in investment as they aimed to address supply chain flaws that became apparent to consumers. However, as supply chains have improved and the broader venture market has cooled down, the landscape for logistics startups has changed significantly.
Glancy believes that the funding environment is currently undergoing a reset and urges companies to take a step back and consider which startups have the potential to solve the core issues in the next decade. Having spent more than eight years at Flexport and over five years at PwC, Glancy has accumulated valuable lessons that she plans to apply in her new role as an investor during these uncertain times. While acknowledging that logistics is a complex and challenging field, Glancy emphasizes the need for a longer time horizon to realize the full return on investment.
One of Glancy’s key takeaways from her time at Flexport is the importance of prioritizing the customer experience. This focus on customer-centricity will also guide her investment decisions, as she intends to seek out startups that address pressing challenges for shippers. For example, she highlights Nuvocargo, a company specializing in freight transportation across the US-Mexico border, as an investment opportunity that aligns with the increasing trend of nearshoring manufacturing operations to Mexico.
In addition to ensuring a large total addressable market, a talented team, and unique technology, Glancy is still looking for founders who are willing to make bold moves and drive generational changes within the industry. She believes that paradigm-shifting language used by companies like Flexport can still have a substantial impact even ten years later. While the logistics industry comprises numerous players with varying technologies, Glancy sees the challenge of integrating and unifying these different components as an opportunity for startups.
Overall, Glancy advises supply chain startups not to be discouraged by the current state of VC funding. By thinking big and focusing on solving core issues, these startups have the potential to bring about significant changes within the logistics industry. As an experienced investor, Glancy will leverage her expertise to identify promising startups that prioritize customer experience and have the potential to drive long-term transformation.
