Why We Invested in CloudTrucks
A virtual trucking carrier that empowers independent truck drivers raises its $115 million growth round. Their success could have a major impact on our nation’s supply chain issues.
I first met the company’s founder Tobenna Arodiogbu when he was a product manager at Zenefits, and I later became an angel investor in his first company, Scotty Labs, an autonomous trucking startup acquired by DoorDash in 2019. I knew Tobenna had a sharp product mind, impressive ability to work with engineers, and deep understanding of the trucking industry based on his recent experience with Scotty Labs. So in July 2019, when Tobenna pitched his vision for a virtual trucking carrier, we quickly agreed to lead his pre-seed round and then doubled down by leading his seed round several months later.
Since then, Tobenna and his team have executed at an astounding clip to solve problems for independent truck drivers. Before CloudTrucks, independent truck drivers would have to secure their own insurance, manage their accounts receivable, and call brokers to book loads. Frustrated by all the administration work, many sacrificed their independence (along with the job flexibility and extra earnings potential it brought) and began working for large trucking carriers.
CloudTrucks’ product solved these pain points by enabling independent truck drivers to drive under the CloudTrucks brand, licensing authority, and insurance plan and to use the CloudTrucks app to instantly book loads and optimize their routes. Since then, CloudTrucks has added truck leasing for drivers who don’t own their own trucks, as well as cash advance and instant pay features. CloudTrucks is constantly gathering customer feedback to build new features that solve headaches for independent truck drivers and help them achieve a more advantageous business structure.
CloudTrucks’ customer-centricity has paid off: they’ve rapidly acquired customers and grown revenue over 10x in the past year. As CloudTrucks has continued to execute, Craft has continued to participate, first in the Series A led by Caffeinated Capital in October 2020, and now in their Series B growth round. I’m also happy to make official the informal advising we’ve been doing by joining the Board.
With today’s supply-chain challenges, there’s never been a better time for the trucking industry to embrace new technology. Understanding this, Tobenna, along with his cofounders Jin Shieh and George Ezenna, have built an incredible business with a single minded vision: to help truckers. We are thrilled to partner with Tobenna, Jin, George, and the entire team as they usher trucking into the 21st century and empower the drivers who are the backbone of America’s supply chain.