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Florida-based logistics provider ShipMonk raises $290 million on the back of rising eCommerce demand

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Jan Bednar started ShipMonk with $70,000 in winnings from a string of student business plan competitions and launched the business that just closed on $290 million in new funding from a small warehouse with no air conditioning in the middle of Florida.

While Bednar’s new offices are still inside the warehouse his company operates, they now have air conditioning… and a $290 million financing round from Summit Partners to grow its business.

The Ft. Lauderdale, Fla.-based ShipMonk provides a slew of shipping and logistics services for small to medium-sized eCommerce businesses and right now — given the continuing COVID-19 pandemic — business is good.

We help SMBs and mid-market direct to consumer companies manage their supply chains. Help get their products from suppliers to facilities and connect with all of their sales channels including B2B … order management, transportation management, reverse logistics,” said Bednar. 

The company’s largest customers can book anywhere from $150 million to $250 million in revenue, but most of ShipMonk’s customers are actually small businesses pulling in between $1 million and $10 million on average.

It’s for these businesses that ShipMonk will fill its warehouses in Pennsylvania, California and Florida with 60,000 stock keeping units — managing around 50 different items for each customer it serves.

Bednar said ShipMonk would use the new cash to continue to upgrade its automation services and increase its staffing while also looking to expand internationally.

Profitable from the outset, ShipMonk just came off one of its best years, taking in upwards of $140 million in revenue. 

Bednar began the business alone, but quickly brought on co-founders Kevin Seitz, who handles marketing for the business, and Bosch Jares, a fellow native of the Czech Republic (like Bednar) who serves as the company’s chief technology officer.

The story of how Jares joined the business is indicative of the type of hustle that’s allowed Bednar to grow a booming tech and logistics business from the Ft. Lauderdale beaches.

It was the Florida weather that sold Jares, a college student from one of the Czech Republic’s top technical institutions, on the move to ShipMonk. Bednar had posted an internship opportunity to work (unpaid, but offering room and board) at his company on a college job board in the middle of January. The applications came pouring in, but it was Jares, a programmer who had been working with computers since age 14 who took the slot.

The rest… is ShipMonk history. Jares built the bulk of the backend for the company’s initial services spending nearly 20 hours a day coding.

 The thriftiness and hard work has won ShipMonk a booming business that has grown from 15,000 square feet of warehousing space into nearly 1 million square feet of storage space and a logistics service that spans the U.S. 

Timing for the new round couldn’t be better, as National Retail Federation estimates are banking on a 20% bump in new online sales — which could reach $202 billion this year. 

Black Friday alone raked in $9 billion in online purchases, according to data from Adobe Analytics provided by the company, and consumer spending is only going to continue to move online as the pandemic continues to threaten the health and safety of American consumers.  

ShipMonk’s technology integrates with shopping cart and marketplace platforms like Shopify to import orders across sales channels, which are then processed at the company’s warehouse locations. Customers can save up to 50% on their operational costs, according to the company.

“We believe ShipMonk truly demonstrates the power of a bootstrapped, durable growth mindset. Jan identified a significant gap in the market and, together with the ShipMonk team, has scaled the business in a deliberate and capital efficient manner to address that need. The results have been impressive,” said Christopher Dean, a Managing Director at Summit Partners who is taking a seat on the company’s board. 

 

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Unpacking Chamath Palihapitiya’s SPAC deals for Latch and Sunlight Financial

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This morning, investor and SPAC raconteur Chamath Palihapitiya announced two new blank-check deals involving Latch and Sunlight Financial.

Latch, an enterprise SaaS company that makes keyless entry systems, has raised $152 million in private capital, according to Crunchbase. Sunlight Financial, which offers point of sale financing for residential solar systems, has raised north of $700 million in venture capital, private equity and debt.

We’re going to chat about the two transactions.

There’s no escaping SPACs for a bit, so if you are tired of watching blind pools rip private companies into the public markets, you are not going to have a very good next few months. Why? There are nearly 300 SPACs in the market today looking for deals, and many will find one.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


Think of SPACs are increasingly hungry sharks. As a shark get hungrier while the clock winds down on its deal-making window, it may get less choosy about what it eats (take public). There are enough SPACs on the hunt today that they would be noisy even if they were not time-constrained investment vehicles. But as their timers tick, expect their dealmaking to get all the more creative.

This brings us back to Chamath’s two deals. Are they more like the Bakkt SPAC, which led us to raise a few questions? Or more akin to the Talkspace SPAC, which we found pretty reasonable? Let’s find out.

Keyless locks = Peloton for real estate

Let’s start with the Latch deal.

New York-based Latch sells “LatchOS,” a hardware and software system that works in buildings where access and amenities matter. Latch’s hardware works with doors, sensors and internet connectivity.

The company has raised a number of private rounds, including a $126 million deal in August of 2019 which valued the company at $454.3 million on a post-money basis, according to PitchBook data. The company raised another $30 million in October of 2020, though its final private valuation is not known.

As Chamath tweeted this morning, Latch is merging with TS Innovation Acquisitions Corp, or $TSIA. The SPAC is associated with Tishman Speyer, a commercial real estate investor. You can see the synergies, as Latch’s products fit into the commercial real estate space.

Up front, Latch is not a company that is only reporting future revenues. It has a history as an operating entity. Indeed, here’s its financial data per its investor presentation:

Doing some quick match, Latch grew 50.5% from 2019 to 2020. Its software revenues grew 37.1%, while its hardware top line expanded over 70% during the same period. So, the company’s revenue mix shifted more towards hardware incomes in 2020.

That could be due to strong hardware installation fees, which could later result in software revenues; the company claims an average of a six-year software deal, so hardware revenues that are attached to new software incomes could lowkey declaim long-term SaaS revenues.

While some were quick to note that the company is far from pure-SaaS — correct — I suspect that the model that will get some traction amongst investors is that this feels a bit like Peloton for real estate. How so? Peloton has large hardware incomes up-front from new users, which convert to long-term subscription revenues. Latch may prove similar, albeit for a different customer base and market.

Per the deal’s reported terms, Latch will be worth $1.56 billion after the transaction. And the combined entity will have $510 million in cash, including $190 million from a PIPE — a method of putting private money into a public entity — from “BlackRock, D1 Capital Partners, Durable Capital Partners LP, Fidelity Management & Research Company LLC, Chamath Palihapitiya, The Spruce House Partnership, Wellington Management, ArrowMark Partners, Avenir and Lux Capital.”

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Calling Swedish VCs: Be featured in The Great TechCrunch Survey of European VC

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TechCrunch is embarking on a major project to survey the venture capital investors of Europe, and their cities.

Our survey of VCs in Stockholm, and Sweden generally, will capture how the country is faring, and what changes are being wrought amongst investors by the coronavirus pandemic.

The deadline is the end of this week.

We’d like to know how Sweden’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and, generally, how your thinking will evolve from here.

Our survey will only be about investors, and only the contributions of VC investors will be included. More than one partner is welcome to fill out the survey. (Please note, if you have filled the survey out already, there is no need to do it again).

The shortlist of questions will require only brief responses, but the more you can add, the better.

You can fill out the survey here.

Obviously, investors who contribute will be featured in the final surveys, with links to their companies and profiles.

What kinds of things do we want to know? Questions include: Which trends are you most excited by? What startup do you wish someone would create? Where are the overlooked opportunities? What are you looking for in your next investment, in general? How is your local ecosystem going? And how has COVID-19 impacted your investment strategy?

This survey is part of a broader series of surveys we’re doing to help founders find the right investors.

https://techcrunch.com/extra-crunch/investor-surveys/

For example, here is the recent survey of London.

You are not in Sweden, but would like to take part? That’s fine! Any European VC investor can STILL fill out the survey, as we probably will be putting a call out to your country next anyway! And we will use the data for future surveys on vertical topics.

The survey is covering almost every country on in the Union for the Mediterranean, so just look for your country and city on the survey and please participate (if you’re a venture capital investor).

Thank you for participating. If you have questions you can email mike@techcrunch.com

(Please note: Filling out the survey is not a guarantee of inclusion in the final published piece).

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Goalsetter raises $3.9 million to teach financial literacy to kids

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Goalsetter, a platform that helps parents teach their kids financial literacy, announced the raise of a $3.9 million seed round this morning, led by Astia.

PNC Bank, Mastercard, US. Bank, Northwestern Mutual Future Ventures, Elevate Capital, Portfolia’s First Step and Rising America Fund and Pipeline Angels also participated in the round. The round also saw participation from a handful of individual investors including Robert F Smith, Kevin Durant, Chris Paul, Baron Davis, Sterling K. Brown, Ryan Bathe, CC Sabathia and Amber Sabathia.

Goalsetter launched in 2019 out of the Entrepreneurs Roundtable Accelerator. Founded by Tanya Court, who lost over $1 million in the 2001 bubble burst, the platform teaches financial literacy to children of all ages, helping them learn economic concepts, lingo and the principles of financial health.

After long stints at Nickelodeon and ESPN, Court understands deeply how kids learn and what keeps their attention. She vowed to make sure that her children were never ignorant of what it takes to protect their wealth and create more.

The app also allows parents to give allowance through the app, and even pay out their own specified amount for every quiz question the kid gets right in the app. Plus, family and friends can give ‘goal cards’ instead of gift cards, helping kids save for the things they really want in the future.

The company recently launched a debit card for kids, as well, letting parents control the way the card is used and even lock it until their kids have passed the week’s financial literacy quiz.

Families save an average of $120 a month on the platform, and Court says that two families saved over $10,000 in the last year.

The company is also launching a massive campaign next week for Black History Month with the goal of closing the wealth gap among Black children and kids of color through financial education.

“It’s one thing to put a debit card into your teenager’s hands,” said Court. “That’s great. That teaches them how to spend money. It’s another thing to teach kids the core concepts about how to build wealth, or to know the difference between putting your money into an investment account, or putting your money into a CD versus a mutual fund versus a savings account. We teach what interest rates are, and what compound interest means. Our focus is on is financial education because it’s not enough to teach kids how to spend.”

Goalsetter raised $2.1 million in 2019 and now adds this latest round to that for a total of $6 million raised. This latest round was oversubscribed, giving Court the opportunity to be super selective about her investors.

“Every single one of these investors has a demonstrated commitment prior to people marching in the streets in April, to social justice and to investing in diversity and inclusion initiatives and people,” said Court. “Every single one of them. That was really important because we were oversubscribed and we had the luxury of being able to pick who our investors were. Every one of the investors that we invited to our table were investors who we knew invited folks who look like us in 2019 and 2018 and 2017 to their table.”

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