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Supply Chain Tech

Market Map: Tech investors do their part to untangle the supply chain

While the supply chain continues to unsnarl, geopolitical issues ranging from China’s zero-COVID policy to the war in Ukraine have prevented a complete return to normal.

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While issues with the supply chain have eased somewhat from previous quarters, lingering effects from the pandemic and other geopolitical issues, such as China’s recently relaxed zero-COVID policy and the war in Ukraine, have prevented a complete return to pre-pandemic normal.

Recent policy by the United States, shifting away from unrestricted free trade, has introduced complications in the supply chain as businesses look to comply with the new restrictions and take advantage of incentives for domestic manufacturing. American investment in China has plummeted, raising questions as to how the supply chain will adapt going forward, given previous reliance on Chinese manufacturing and labor.

As the supply chain continues to unsnarl and with the new policy by the United States, where are VCs investing? The market map below outlines the global supply chain VC ecosystem. Explore the enterprise supply-chain management segment by clicking on the green tile.

 
To go deeper, read our Q3 2022 Supply Chain Tech Report. PitchBook clients can also explore the full market map with details on more than 1,800 companies. 

Spotlight: Enterprise supply chain management

Companies fall into five subsegments of the sector: 
  • ERP & inventory management: Managing all parts of a business's operations, from inventory to logistics to finances, from a single platform.
  • Asset tracking & management: Tracking physical items as they move through the supply chain.
  • Procurement & sourcing: Procuring both goods and services for the business as well as finding and contracting suppliers for those goods.
  • Supply chain finance & payments: Ensuring that suppliers can receive early payments, thereby reducing the risk of a disruption in the supply chain.
  • Other: Other ways of managing the supply chain for businesses.

How deals and exits are trending

 


In Q3, there were 188 deals worth $3.3 billion tracked by PitchBook, which marked a sharp drop quarter-over-quarter, posting a decline of 37.7% for deals completed. 

The decline in deal value was even steeper, with a nearly 68% decrease quarter-over-quarter. Deal value has declined 77.2% in Q3 2022 compared to Q3 2021. This year so far, there has been a total of $27.7 billion spread over 831 deals.

Early-stage deals experienced the biggest decline in deal value, according to PitchBook analyst Jonathan Geurkink, while seed stage and late-stage deals have also seen a similar drop year-over-year.

There have been some notable deals despite the slump, such as a $935 Series E for freight forwarding platform developer Flexport, a $768 Series E for online marketplace and delivery startup Getir and a $552 million Series D for financial services provider Qonto
 
 


There have been 63 exits worth $20.5 billion to date in 2022, according to PitchBook data, both significantly down YoY.

Buyout activity increased for the year-to-date period, according to Geurkink, although those make up a small proportion of all exits. Public listings, on the other hand, are down by 73%.

Still, there were several notable exits, especially among Asian startups that have exited via IPOs. A $451 million public listing for Chinese logistics platform provider GigaCloud Logistics was the most prominent one in Q3. Other notable exits included a $4 billion public listing for warehousing tech company Delhivery, and a $2.8 billion public listing for transaction and service platform Huitongda

More market maps:
Featured image by Travel mania/Shutterstock

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    Written by Jordan Rubio
    Jordan Rubio is a Seattle-based data visualizations editor at PitchBook. He previously worked at the Houston Chronicle as a data journalist and at the Victoria Advocate as a digital editor. A native of Jacksonville, Fla., Rubio graduated from TCU.
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