Friday Funding: Seattle’s Newest Unicorn

Flexe Raises Fresh Funds

Despite the volatility in the venture capital space, deals are still getting done. In fact, another Seattle-based company became a unicorn this week. Flexe, a 9-year-old company, just crossed the $1 billion mark after raising $119 million in a Series D round.

The company operates a programmatic logistics technology platform that assists brands with everything from distribution and storage, to e-commerce fulfillment. As retailers continue to grapple with the snarled global supply chain, Flexe has seen demand for its services surge.

Pandemic Causes Demand to Jump

Nearly a decade ago, Flexe began by helping online retailers find on-demand warehouse space. Rather than retailers paying a fixed-cost for space, Flexe set out to help these companies turn this expense into a variable-cost, or something they only pay for when they need it. This helped brands scale easier through the ebbs and flow of demand.

When the pandemic hit, and the supply chain became more complex, demand for this flexible model skyrocketed. In fact, 60% of the largest retailers in the US use Flexe. This is why major funds including Blackrock, Tiger Global, and Redpoint Ventures decided to invest in Flexe.

Investors Interested in Supply Chain Tech

In comparison to last year, it’s been harder to raise capital for late-stage, growth-focused technology companies in 2022. This is because publicly traded growth companies have seen their share prices fall as a result of rising interest rates.

This fresh funding for Flexe shows some investors are still interested in logistic and supply chain technology that can help companies navigate a new normal. So far, VC-backed logistic startups have raised roughly $11.5 billion in 2022. Although this is slightly below last year’s pace, which saw $24.5 billion raised in the space, it still illustrates where private capital is flowing.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.
Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22070803