During the economic downturn, many investors have demonstrated caution, particularly in the start-up world. Despite this, some types of start-ups continue to be successful, particularly those that address issues related to the global supply chain which, having been significantly impacted by the pandemic, has become an attractive proposition for venture capitalists.
In recent months, there have been numerous funding rounds for start-ups tackling supply chain issues. Germany-based IntegrityNext raised $109 million for their ESG (environmental, social, and governance) compliance auditing platform, Texas-based Overhaul secured $73 million for their supply chain security platform, and San Marcos-based Everstream garnered $50 million to bring predictive insights to supply chains. Other investments include France’s Sesamm, which raised $37 million to provide ESG insights, and India’s Pando, which obtained $30 million for its freight management platform.
Austrian start-up Prewave has recently joined this list, securing $20 million in a Series A+ funding round. European VC Creandum, which backed companies like Spotify and Klarna, also contributed to this round. Prewave offers a holistic supply chain risk platform, catering to the entire risk lifecycle. Clients such as BMW, Lufthansa, and PwC use Prewave’s services to monitor their supply chain entities, allowing them to access critical information about their suppliers and potential external risk factors.
Offering proprietary data crawling technology, Prewave’s platform scans multiple languages and connects to external data sources, such as the US Geological Survey for earthquake data, and the Global Disaster Alert and Coordination System for weather information. Companies receive a dynamic supplier risk score based on the data collected, ensuring that they stay informed about potential risks within their supply chains.
There is a growing demand for supply chain insights due to several factors, including legal obligations, consumer expectations, and the need to mitigate disruptions. The recent supply chain due diligence law in Germany and a similar initiative proposed for the EU highlight the increasing legal responsibility for companies to address human rights violations and environmental risks in their supply chains. Additionally, consumers now expect companies to maintain ethical guidelines and principles.
Since the pandemic exposed critical vulnerabilities in global supply chains, investment in supply chain risk management technology is expected to continue growing. Prewave plans to use the recently acquired funds to support this growth, with the company already having increased its headcount from 20 to over 100 employees, matching the rise in its revenue.
