Despite the investor caution narrative permeating the startup world throughout the economic downturn, certain startup-types have been slightly more impervious to market conditions. The worldwide supply chain was considered one of the foremost industrial casualties of the pandemic, so it perhaps goes without saying that corporations tackling issues related to the worldwide supply chain would remain an alluring proposition for otherwise hesitant enterprise capitalists.
Previously couple of months alone, we’ve seen Germany-based IntegrityNext ingest $109 million to assist corporations audit their supply chains for ESG (environmental, social, and governance) compliance; Texas-based Overhaul haul in $73 million for a supply chain security platform; San Marcos-based Everstream secure $50 million to bring predictive insights to provide chains; France’s Sesamm snap up $37 million to offer corporates ESG insights into their supply chain; and India’s Pando pull in $30 million to grow its freight management platform.
Today, it’s Prewave‘s turn to display that the worldwide supply chain continues to be considered one of the most well liked tickets for raising VC bucks. The Austrian startup revealed that it has raised €18 million ($20 million) in what it’s calling a Series A+ round of funding, following on from its €11 million ($12.3 million) Series A round eight months ago.
For its latest money injection, Prewave has also attracted European VC heavyweight Creandum, which has previously backed the likes of Spotify, Klarna, and iZettle.
Founded out of Vienna in 2017 by Harald Nitschinger and Lisa Smith, Prewave touts itself as a holistic supply chain risk platform that spans “every phase of the danger lifecycle,” through identifying, analyzing, mitigating, and reporting these risks.
For instance, corporations resembling BMW, Lufthansa, and PwC use Prewave to observe every entity of their supply chain via channels resembling social media, news reports, and other data sources to grasp not only what is occurring inside corporations of their supply chain, but additionally externalities resembling earthquakes, floods, political unrest, lawsuits, or employee strikes — anything that would impact the worldwide transfer of products.
The corporate says it has developed its own proprietary “crawler” that finds publicly available information across dozens of languages.
“Having our own crawler as an alternative of relying purely on external supply chain data providers allows us to constantly expand and improve our coverage,” Smith explained to TechCrunch by email. “We also connect with several social media platforms and for specific event types we use external data sources as for instance USGS (United States Geological Survey) for earthquake data or GDACS (Global Disaster Alert and Coordination System) for weather information. The mixture of all of those data points ensures a broad coverage of each local and global supply chain risk events.”
Prewave then crunches all the information and delivers a dynamic supplier risk rating that changes in keeping with all the brand new data it ingests.
Supply (chain) and demand
There are quite a few explanation why demand for supply chain insights is skyrocketing, beyond simply improving their bottom line by averting disruptions. These include legal obligations, for instance Germany recently passed a latest supply chain due diligence law that makes it the responsibility of huge corporations to trace human rights violations and environmental risks through their supply chain. A similar directive is currently being proposed for the broader European Union (EU) too.
After which there may be the easy proven fact that consumers increasingly expect the businesses they do business with to have no less than some ethical and moral principles, and aren’t purely beholden to shareholder sentiment.
“Supply chain technology has withstood the economic headwind lately since it has grow to be increasingly vital for corporations to optimize their operations, adapt to external risks and reduce costs inside their supply chain,” Nitschinger told TechCrunch by email. “The pandemic, for instance, exposed critical vulnerabilities in global supply chains, making it clear that companies need to speculate into technologies that improve visibility and sustainability, predict potential disruptions and enable more agile and responsive strategies. As businesses proceed to face economic challenges, the importance of supply chain risk management technology is simply expected to grow.”
With one other $20 million within the bank, Prewave is planning to double down on a recent growth that has seen its headcount grow from 20 employees at first of last yr to greater than 100 today, which Nitschinger says “mirrors the substantial revenue increase” it has seen over the identical period.
Apart from lead backer Creandum, Prewave’s latest investment included contributions from Ventech, Kompas, Seed+Speed, Segnalita, Speedinvest, Working Capital Fund and Xista Science Ventures.