Why Supply Chain?
Since our decision at Grand Ventures to focus on specific investment sectors, people have asked me why we “randomly” picked Supply Chain. But, our decision was far from random, so I thought I would outline the reasons why we’re excited to invest in the future of Supply Chains.
1. Supply Chains are imperative to how the world works
Supply chains are essential to everyday life. They touch every human on the planet whether we are consciously aware of it or not. Effective supply chains are crucial for the company’s success and customer satisfaction. As I heard recently at a Supply Chain Management conference, it “is not seen as a back office activity anymore, it’s now the backbone of a business”. In my opinion, that was always the case, but only now a lot of companies have woken up to it.
2. The market opportunity is huge
According to a recent report from Bessemer Venture Partners, Supply Chain and Logistics represents nearly $11T globally. To put that into perspective, this represents about 11% of the global GDP. Even if it grows at only 5% a year, it adds about $500B in market value every year. Stop and think about this number for a second. It is huge!
The Supply chain management (SCM) market alone is estimated around $29B and anticipated to rise to $45B in 2027.
The market size speaks for itself. Think about the innovation and opportunity a market that size can drive.
3. Supply chains remain inefficient and offline
Complex workflows, data silos, lack of integrations, and many other challenges continue to surround the supply chain universe. For instance, it is estimated that 50% of the largest enterprise shippers in the US still rely on some combination of email and spreadsheets to manage their supply chain. This issue combined with the increased importance to better manage the supply chain due to the frequent disruptions (covid, war, political instability, natural disasters), makes the sector ripe for innovation and digital transformation.
Combine these three factors and you have a massive opportunity ahead of you. Now, let’s go find the best teams to tackle these challenges!
Are you a startup or an investor interested in partnering with us? Join our family of supply chain investments, such as Tealbook, Chain.io, Paccurate, and Terminal49. Please do not hesitate to reach out to us at info@grandvcp.com.
