The technology-driven freight forwarder Flexport has raised a Series B round of $65m to fund their global expansion, bringing their total capital raised to $94m.
This new funding was filled out almost entirely by existing Flexport investors including Founders Fund, Bloomberg Beta, Felicis Ventures, First Round Capital, Susa Ventures, Yuri Milner, and others. They are joined by a new investor, Joe Lonsdale of 8VC. Trae Stephens from Founders Fund will join the board.
The funding, they say, will help them to hire and retain more smart, driven people to tackle the many challenges they face, and will allow the continued rapid international expansion. In 2016 alone, Flexport opened offices in Amsterdam, New York, and Hong Kong, and already have more than 30 people working in those locations.
Flexport states their mission is to fix the user experience in global trade. Ryan Peterson, CEO of Flexport, said: “We’re reminded everyday just how hard modernizing shipping is. Logistics is a world of exceptions and we’re surrounded by problems that occasionally seem intractable. So we’ve been fortunate to have visionary, patient investors who have continued to support us round after round. We live in an increasingly connected world, and yet it’s still too hard to ship products across international borders. To fix that, we’re building a new operating system for global trade that will unite the world in a seamless web of commerce. This matters because increasing international trade is one of the few proven ways for a country to boost economic growth and improve the well-being of its population.”
Mr. Peterson continued: “By any ordinary standard, $65M is an enormous amount of money, but this is no ordinary industry. Logistics is 12% of global GDP, and companies spend $1.1 trillion dollars on freight forwarding alone. There are few markets this big, and probably none as untouched by the Internet and its accompanying technologies. And yet, the problems we’re solving go far beyond freight forwarding. Our vision is to build the operating system for global trade, creating a seamless web of global commerce. It’s an immensely complex undertaking, and one that will take many years to achieve.”