Start-up funding in logistics: Adjusting to a new reality

Funding for logistics start-ups fell by nearly 50% in 2022 due to a more challenging macroeconomic environment and a decline in the growth of e-commerce. There was a substantial drop in investment in logistics start-ups, with the steepest decline occurring in the year’s second half as higher interest rates took a severe toll on venture capital activity.

Why this is important

• 💰 Investment in logistics start-ups fell by nearly 50% year on year, with the steepest drop occurring in the year’s second half as higher interest rates took a severe toll on venture capital activity.
• 🌏 Funding for logistics companies that market sustainable services increased by 12% in 2022, with sustainable logistics start-ups growing their share of total logistics start-up funding from 16% to 36%.
• 📈 We believe that the long-term, upward trend in logistics start-up funding won’t be reversed by the recent short-term decline, and consolidations and clear pathways to profitability will be key for future success.

Please read the full report here.