Trucking-Software Startup Convoy Picks Up $16 Million Load of Venture Capital
Convoy, a Seattle trucking-software startup, has pulled in $16 million from investors.
Convoy’s latest funding comes just months after the company made a splashy entrance onto the Seattle tech scene when it announced it had raised a $2.5 million seed round from such heavy hitters as Bezos Expeditions, Salesforce CEO Marc Benioff and Expedia CEO Dara Khosrowshahi.
The new round is led by Menlo Park, California-based Greylock Partners, with participation from high-ranking Amazon.com executive Jeff Wilke, Instagram CEO Kevin Systrom, Acosta Executive Chairman Gary Chartrand and LinkedIn executive Mike Gamson.
Convoy creates software that connects truck drivers with freight that needs hauling. The startup developed a website and app into which freight companies can enter information about what they need moved, including the equipment required. Trucking companies can then swoop in and claim the job.
The traditional model involves companies working with third-party brokers to find truckers. Convoy aims to lower transport costs by cutting out the middle man and automating part of the process.
“We created Convoy to transform trucking and raise the expectations of shippers and carriers alike,” Convoy CEO Dan Lewis said in a statement.
Convoy has grown to 31 employees and is preparing to move into bigger space spanning 6,000 square feet. The company raised the second round because of high demand from the trucking industry and fast growth, head of operations Kristen Forecki said.
“One of the only limits to our growth is how fast we can hire the people that we need,” she said.
Convoy is an easy way to communicate a lot of information, said Mari Taitano, a dispatcher at Carlisle Construction Material in Puyallup. One of her favorite parts of the technology is the tracking system, which shows companies where their freight is at all times.
As soon as a driver completes a job, Taitano automatically gets a document showing the delivery has been completed.
Convoy also is announcing March 23 its expansion into Oregon after starting in Washington. The company will use the new funding round to continue expanding its coverage area throughout the year.
Greylock Partners’ Reid Hoffman, executive chairman and co-founder of LinkedIn, and Simon Rothman both will join Convoy’s board, as will Code.org CEO Hadi Partovi.
|By Rachel Lerman|
The Seattle Times
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