Why we invested in Paccurate
We’re thrilled to announce our newest investment in Paccurate, a smart cartonization platform that offers the most advanced and flexible packaging optimization API publicly available. Grand Ventures invested in its Seed round alongside SpringTime Ventures, FirstMile Ventures and a few super Angels who will also serve as Advisors.
As in any investment decision, despite the risks, there are typically several reasons why investors build conviction on an opportunity. Here are the three that really brought it home for us.
A relevant and relatable pain point
Packaging has a ripple effect on a business’ entire supply chain. Poorly packed goods take up unnecessary space. If more, larger boxes are used to ship goods, more trucks and planes are required to move those goods. More boxes also require more storage/warehousing space, which requires more labor to move/store items within a warehouse… you get where I am going. In summary, we see higher costs associated with packaging materials, transportation, storage, labor, and broken/damaged goods. In addition, it adds to the company’s carbon footprint, which is an important topic today.
In an era where supply chains are already challenged and margins are being squeezed, a solution like Paccurate’s is more relevant than ever, and it could recoup millions of unnecessary costs caused by improper packing.
Favorable market conditions
Packing is a fundamental part of fulfillment, and it’s always been one of the most chaotic steps in the Order-to-Cash flow. The market timing feels more relevant than ever due to a combination of factors: 1) the explosion of B2C global e-commerce, which was already growing fast years ago but accelerated after covid; 2) surge interest in optimization due to margin pressure created by a broken supply chain; 3) consumer focus on sustainability; and 4) rising carrier rates.
Raving customer testimonials
Customer interviews are always a key component of the due diligence process at Grand Ventures. It’s when we confirm if the company is building something truly special. To say we were positively impressed by the conversations in this process is an understatement. Paccurate’s customers were surely happy with the team and customer service, but what really struck us was how much they raved about the impact the platform was having on their businesses. Paccurate is able to immediately generate savings by reducing used materials, human errors, and providing carrier rate awareness. One customer eliminated 26 box types from inventory on the first day using Paccurate’s modeling engine! Another customer awarded them a five-figure check (not previously negotiated) just for meeting an aggressive cost savings goal.
The cherry on top
Despite the reasons above, we all know that ultimately a team is behind making it all happen. And we couldn’t be happier with Paccurate’s team, which is smart, humble, down to earth, and demonstrates flexibility and emotional intelligence to navigate the challenges ahead of them.
Grand Ventures couldn’t be more excited to partner with them as they embark on this new chapter!
