As reported by Forbes last week, “Flexport, a software-focused freight forwarder [founded in 2013] that helps businesses transport their goods to their point of sale, announced a $1 billion funding round led by SoftBank’s Vision Fund on Thursday, with existing investors Founders Fund, DST Global, Cherubic Ventures, Susa Ventures and SF Express all participating. The investment […] values the San Francisco-based company at $3.2 billion, according to a source with knowledge of its terms.”
The article goes on to say:
The investment comes as Flexport continues to grow its business at a clip atypical for startups at its scale. It brought in revenue of $441 million for 2018, a previously unreported total that represents annual growth of 95%.
Today, [Flexport’s] scale includes a network of 10,000 import and export experts and customers who spend millions – some more than $10 million per year – for Flexport to manage their supply chains through a combination of software, local experts and physical assets like its warehouses.
Is this a smart $1 billion bet for the investors, or to quote former Federal Reserve Board chairman Alan Greenspan, a case of irrational exuberance?
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For related commentary, see Is Every Company a Technology Company?