Supply chain technology deals are facing obstacles due to teetering Silicon Valley
According to a report by PitchBook, venture capital (VC) investment in the supply chain technology sector experienced a significant decline in Q1 2023, plummeting by 45.3% compared to Q4 2022. The report suggests that the collapse of Silicon Valley Bank in March likely contributed to this sharp downturn in VC deals. The collapse of the tech lender triggered a major financial crisis that had a ripple effect on VC investment across various sectors, including supply chain technology. However, the report does highlight some positive developments, such as the increased deal value in the freight tech sector, with Sweden being involved in two of the largest deals in that area.
PitchBook's report reveals that the overall value of supply chain tech deals in 2022 returned to levels similar to the average figure observed between 2018 and 2020, prior to the significant increase in deals and VC funding driven by the pandemic in 2021. In terms of specific vertical supply chain tech markets, enterprise supply chain management, last-mile delivery, and warehousing tech saw modest increases in value. The report also highlights a notable VC deal in Q4 2022, where Locus Robotics secured $117 million, nearly doubling its valuation. Locus Robotics specializes in autonomous mobile robots for warehouse operations, offering advantages over traditional materials-handling solutions in terms of flexibility and rapid deployment. The company's robotics-as-a-service business model provides operational flexibility and allows for easy redeployment to other facilities.
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