All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. In 2013, when the company was founded, the freight industry largely functioned still via paper and faxes. tracked annually for greater shipment visibility. This story appears in the February/March 2022 issue of Forbes Magazine. View contacts for Flexport to access new leads and connect with decision-makers. It works with at least 20 more across the globe. How? Flexport is a digital-first freight forwarder and customs broker, backed by Founders' Fund and Softbank, with about 0.3% market share in the global market for freight forwarders. JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (Public) or any of its subsidiaries. The day after his chartered boat tour of the Long Beach harbor, Petersen shared his findings on Twitter. Graduating trilingual (English, Spanish and Portuguese) with an economics degree from the University of California, Berkeley, in 2002, Petersen initially pursued a global microlending career without success. Flexport: Digital Freight Forwarder & Customs Broker Flexport moves freight globally by air, ocean, rail, and truck for the world's leading brands. You can connect with her on Twitter at @juliepierceonos. By that point, it was clear to Petersen that while Flexport was growing fast, the logistics market wasnt one where a hard-charging newcomer could sweep the board. In 2018, China represented 75.2% of U.S. seaborne imports linked to Flexport, while in 2019 that had fallen to 62.8% before declining to 47.8% in the first quarter. Forbes estimates Petersens 9% stake in Flexport is worth $650 million, after our standard 10% private-company discount. Add in a prolific angel investment portfolio and part ownership of a profitable side business, and hes closer to $750 million, knocking on the door of billionaire status. our sites and services. When you enable T-Bill investing on the Public platform, you open a separate brokerage account with JSI (the "Treasury Account"). For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more. Employees: Flexport aims to create a win-win situation for employees. The company is a global freight forwarder and modern logistics platform whose goal is to fix and improve user experience in global trade. That year, any teams request for headcount, they got whatever they asked, Petersen says. Its investors include SoftBank Vision Fund (9984.T) and Shopify. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. (If Forbes valued Petersens stake using the price of Flexport shares on the secondary markets, hed already be there, worth just over $1.1 billion.). Our industry thinks Im a clown, which I dont mind, he says. From soybeans and automobiles to lumber and lobsters, industries across the board have felt the impact as the U.S. seeks to stimulate demand for its goods and China continues to press for greater global economic influence. Copyright 2023 CB Information Services, Inc. All rights reserved. Related: You can learn more about IPOs here. AS the ferry to San Francisco exits Oaklands harbor, Flexports founder and CEO, Ryan Petersen, turns to watch a towering 370-foot crane hook shipping containers, one by one, onto the deck of a cargo ship. Treasuries. Take care of your company, so you can take care of your customers, even in times of rapid change. And we think this is the exact great opportunity for us to go out and start hiring and give people an opportunity to do a reset in their career," said Clark. Petersen agrees: I call our sales process like playing Battleship. See Jiko U.S. Treasuries Risk Disclosures for further details. CNBC's 11th annual Disruptor 50 list will be revealed on-air and online this May. The cuts were also ineffective, crushing employee morale for minimal savings. And when David was accepted into Y Combinator in 2013 for a construction industryfocused startup, Ryan grabbed an air mattress and tagged along. An affiliate of Public may be testing the waters and considering making an offering of securities under Tier 2 of Regulation A. He utilizes the OKRs system created by Intels Andy Grove and most famously used by Amazon. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. Early on, the unit shipped 350,000 masks from the U.S. to Wuhan. When a ship ran aground in the Suez Canal last March, Petersen demystified the situation on social media and in interviews, even publishing a supply chain explainer picture book for kids. In 2020 at the Alcott Global Virtual Supply Chain Summit, Flexports COO Sanne Manders, said the reason they were able to capitalize on the trade wars and COVID-19 crises in 2020 was because they are a smaller organization built on modern technology and therefore they were able to quickly pivot. None of these entities provide legal, tax, or accounting advice. (Photo: Jim Allen/FreightWaves) Global logistics platform Flexport announced Monday it is looking to close a $935 million series E investment round by the end of the first quarter that will value the company at over $8 billion. Flexport Platform Manage your supply chain Order Management Collaborate on orders Customs Clear goods, gain insights Climate Offset carbon emissions Transportation Ocean Freight Ship in a few clicks Air Freight Fly for faster arrivals Less than Container Ship any volume Trucking Go intermodal or direct Shopify Shipping The company was founded in 2013 by Ryan Petersen and is based in San Francisco, California. They havent officially begun the IPO process. The issuers of these securities may be an affiliate of Public, and Public (or an affiliate) may earn fees when you purchase or sell Alternative Assets. But the duo had bigger ambitions. For businesses facing inventory crunches, it built an app for truckers to tap into and learn where theyll be needed 10 days in advance. Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model. Which industries do these Sub-Organization operate in? Trusted data backs every move. That means faster arrivals and lower landed costs. Cumbersome, prone to error and lacking transparency for companies trying to include freight forwarding costs in their planning, Flexport sought to modernize and simplify the process. Hed rather be seen as shippings Mr. Fix-It. Flexport says its Transmission app shaves 40 minutes from ship to chassis. A digitized product library creates speed and consistency across your customs documentation, so you and your broker can work in harmony. What customers wanted, Petersen realized, was an online destination that handled customs and their bigger concern: freight forwarding. For Flexport, it was a marketing masterstroke, though Petersen swears that wasnt his intent. It is a licensed customs brokerage and freight forwarder built around a modern web application. Which types of acquisition does this organization make most frequently. Asked onstage at a June 2016 conference if he would still take Thiels money knowing hed support a politician tough on China trade, Petersen spoke from the hip. You can read more about your cookie choices at our privacy policyhere. Petersen calls it his biggest mistake as a CEO so far. Flexport founder and CEO Ryan Petersen Now the company has over 400 employees in seven offices. 41 in 2021). San Francisco, California, United States 1001-5000 Debt Financing Private www.flexport.com 5,194 Highlights Acquisitions 2 Investments 49 Exits 1 Total Funding Amount $2.4B Contacts 1,016 Employee Profiles 39 Listen to our daily live shows on the latest market news. This means they aim to compete with the big names of DHL, FedEx and UPS. Want help? Flexport's 2018 revenue was $441M - $471M. Learn more. Digitization in the freight industry has been under way for years, with capital flooding into freight forwarders like Flexport, but the expense of upgrading legacy databases with digital tracking systems has slowed the transition. He bases his philosophies regarding prioritizing customer needs on principles he learned from his mentor Charlie Munger. Open to the Public Investing, Inc. Access capital for logistics costs and focus on opportunity. Flexport, a provider of technology-forward freight services, has raised . "Recruiting has been very challenging for the last couple of years. You have a purpose. We want to hear from you. He said, When it went from a Tweet to a tariff, as policy is implemented these days, we were able to engage with our clients within hours. The San Francisco-based company,ranked No. Put your cash to work with a high-yield Treasuries account. Flexport raises $935 million to boost resilience and visibility in global supply chains. The company was founded in 2014 and is based in Chicago, Illinois. All Rights Reserved. Flexport hasnt been in any legal or ethical trouble but they did file a lawsuit against Western Global Airlines (WGA) for failing to provide service due to a long string of mechanical failures and delayed aircraft repairs, disrupting Flexports business. Reporters looking for a wider trend among SoftBank companies pounced. I never want to sell the business. One of the benefits of an IPO; however, is a large infusion of capital that can fund expansion of services, infrastructure or both. Petersen uses two major frameworks in order to maintain company culture and prioritize customer needs. While no one is exempt from risk, if Flexport continues to develop an operating system that assists its clients with solving all of the freight forwarding problems, there is a potential for gain. Ninja Delivery is an e-commerce website that provides delivery for foods, drinks, and household items. Crews from Axios on HBO and 60 Minutes asked him to guide them on their own harbor tours. Flexport owns no trains, planes or ships of its own. LPL Financial Member FINRA/SIPC 3 Notice to Investors: Non-GAAP Financial Measures Management believes that presenting certain non- GAAP financial measures by excluding or including certain items can be helpful t o investors and analysts who may wish to use this information to analyze the Founder Ryan Petersen plans to step into an eventual executive chairman role. Sales reached $3.3 billion in 2021, up from $1.3 billion in 2020 and $670 million the year before (Flexport passes about 80% of its revenue directly . So when Thiel announced his public support for Donald Trump, who was championing big new China tariffs during his presidential campaign, Petersen committed a startup sin. Forget Meta's Sleek Virtual Reality. Flexport has 750 employees, and the revenue per employee ratio is $628,000. : Why do you exist? With tools to help optimize your modal mix and visibility down to the SKU, you can count on more predictable logistics. Use Forbes logos and quotes in your marketing. One challenger with momentum is Chicago-based project44, a pure logistics data play which raised $420 million in January at a $2.6 billion valuation. Exclusive interview: Former Amazon consumer chief Dave Clark has a new job: co-CEO, and eventually sole CEO, of $8 billion-valued supply chain software startup Flexport. With quick uplift to speed delivery, urgent shipments lift sales. He engages where a lot of executives wont. For years, Petersen had tinkered with another idea, a TurboTax for customs paperwork, but he needed to clear a rigorous background check (smuggling is one concern) to move goods across the U.S. border. For years, skeptics have argued that Flexports software does little that you cant find today in competitors offerings big and small. An Oracle survey of 1,000 U.S. adults found that 87% reported being negatively affected by shipping struggles; half said theyd canceled an order in recent months. That work helped inspire the brothers next business, a search engine of global shipping manifests they built with Davids college roommate while Ryan was attending Columbia Business School. Historical or hypothetical performance results are presented for illustrative purposes only. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. EPS of $0.53 beats by $0.06 | Revenue of $5.02B (-4.14% Y/Y) misses by $9.58M. CBI websites generally use certain cookies to enable better interactions with. PitchBooks comparison feature gives you a side-by-side look at key metrics for similar companies. Flexport can utilize that data to determine whether it should invest in building out a new product line, enter a new customer vertical, or even just outright acquire the firm it invests in. Flexport is combing through customer data trying to fill each precious container more completely (most ship only 70% full). Its easier to gain insight with data that is structured for success. Its death by 1,000 cuts.. The founders of Flexport are Ryan Petersen and Susanne Schneberg. Learn how were making Public available in even more places. Flexports goals go beyond having the lowest price; they want to provide the best software and systems to help clients book, track and pay for shipments. Another challenge is Flexport uses other companys transportation modes such as planes, trucks and ships. As an investor, you are normally granted access to company-wide performance data such as sales, revenue, profit or loss statements, and so forth. 2023 CNBC LLC. Sign up for a free trial to see Flexport's valuations in February 2019, April 2018, September 2017 and more. JPMorgan has released a presentation for investors with more detail about its deal to buy the bulk of failed lender First Republic. What? Nor have they officially released any statement indicating they are exploring one. According to the website, the Flexport vision includes building the first Operating System for Global Trade, a strategic operating model that combines technology and analytics, logistics infrastructure, and hands-on supply chain expertise. After Cloud Paper onboarded with Flexport, they saw a 600% sales increase in two weeks, decreased container fees by 13%, and doubled their carbon offsets. But three days after the second half of the money was wired, SoftBank-backed WeWork released its ill-fated public offering prospectus. Flexport Is Silicon Valleys Solution To The Supply Chain Mess, Flexports CEO On The Suez Ship; Plus VC In Oklahoma! Regulators: Flexport applies for and maintains licensure through regulatory bodies. This content is not investment advice. It depends how desperate we were. Soon he was on the phone with Thiel to explain himself. Correction: This story has been updated to reflect the correct percentage of third-party logistics compared to U.S. gross domestic product, and to clarify a Flexport customer. By the time Thiel and Founders Fund led a $20 million Series A investment in Petersen in 2015, Flexport was billing itself as a new-look digital freight forwarder. Petersen explained, "The earliest customers for Flexport we got via Google Adwords, SCO, and sign-ups. Apex Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. October 2019 acquired Crux Systems for an undisclosed amount. Explore 9,000+ stocks with company-specific analysis. Take San Franciscobased shoemaker Rothys, a Flexport customer since 2017. Why? Exclusive: Amazons Consumer Chief Dave Clark Joins Supply Chain Startup Flexport As CEO. Its software platform makes it easy for its clients to engage in trade globally. Demand is at a record highglobal trade volumes rose 8.3% in 2021, according to Allianz subsidiary Euler Hermes. The Flexport Platform is your supply chain source of truth. He engages where a lot of executives wont. The following slide deck was published by Tango Therapeutics, Inc. in conjunction with this . Flexport is a full-service global freight forwarder and logistics platform using modern software to fix the user experience in global trade. Organization Name . Here are some key takeaways. Visibility is a solution to a problem that shouldnt exist, says Adam Banks, the former chief technology and information officer for Maersk, the worlds second-largest ocean carrier, with $40 billion in annual revenue. Founder Ryan Petersen has positioned himself as shipping's savior, earning Flexport a new $8 billion valuation. But as one of the fastest-growing players in a space called digital freight forwarding, Petersens eight-year-old company is already. I wish I could look inside with a HoloLens to see which containers are Flexports, he says, imagining that Microsofts augmented-reality glasses had an X-ray feature. Shipping underwent one of its periodic global crises not long after, when the worlds seventh-largest shipping line declared bankruptcy and had ships seized in Chinese ports amid a pricing crash. Once you sell your business, youre just another rich guy. Nov 2 (Reuters) - Flexport, one of the most valuable logistics startups, is looking to add about 400 engineers to double its technical team by next year, a top company executive told Reuters. It hasnt stalled; but they were affected by the global pandemic in the sense that their business was affected by shortages of consumer goods and increased demand for shipping. Flexport manages the shipping of 25 products from a factory in China to two hubs in California and Kentucky and offsets their carbon footprint. Title At Company . The company is a global freight forwarder and modern logistics platform whose goal is to fix and improve user experience in global trade. Flexport has more than 10,000 clients and suppliers in 112 countries and doubled its revenue last year, bringing in $3.2 billion while reporting its first EBIT positive year. Automate orders. But truthfully, Flexport competes with multiple freight forwarding companies that exist in online marketplaces that focus on winning the price war. Pretty much any Asia-bound ship will have at least a container or two filled with California almonds or auto parts put there by Flexports software. She loves the stories that numbers tell us about business, relationships and health. Book logistics. Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Container stacking had limited impact, Khachatryan says. Data is a real-time snapshot *Data is delayed at least 15 minutes. Funding Round . Flexport was founded to modernize and fix the freight industry.
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