TransRisk, the budding futures market for the trucking freight and logistics industry, received $3.4 million in seed financing in a funding round led by venture investment firm Fontinalis Partners.
TransRisk seeks to create a futures market where trucking companies, investors and shippers could hedge against spot market price moves and reduce their risk from seasonality, regulations, weather events, capacity and other factors that impact their costs. TransRisk also plans to attract speculators to add liquidity to the market by accepting risks and actively trading as prices change.
TransRisk recently teamed with DAT Solutions to announce the market would use the DAT Truckload Rate Index as the underlying value for its futures contracts. The TransRisk index will be traded on the Nodal Exchange, a regulated derivatives exchange that offers more than 1,000 electric power and natural gas contracts.
Fontinalis focuses on mobility companies, investing in developers of technology related to autonomous and connected vehicles, infrastructure, mapping and logistics. One prominent leader is William ‘Bill’ Ford, executive chairman of Ford Motor Co.
Fontinalis investments include Inrix, Lyft, Telogis and Nutonomy, the autonomous tech firm purchased for $450 million in October by auto parts supplier Delphi.
TransRisk is led by CEO Craig Fuller, who built Xpress Direct, the on-demand capacity provider of U.S. Xpress, and TransCard, the fleet card payments firm that was later sold to U.S. Bank.