Logistics is a significant part of supply chain management that refers to the storage, management, transportation, and delivery of products from one point of origin to the point of termination. The most common logistics business models include services such as packaging and moving, transportation, legal services, warehousing, etc. Lately, logistics market growth has been running off the charts due to its worldwide applications allowing businesses to mark their presence in the global market.

There are several reasons why logistics businesses and transportation software development services are high in demand, a few of them being:

• Expansion of cargo and shipment monitoring technologies such as GPS trackers, Bluetooth, and RFID sensors
• Advancements in computing technologies such as IoT (Internet of Things), AI/ML, Big Data, and Cloud for supply chain and logistics
• Increasing engagement of customers using mobile apps and websites to track orders and shipments etc. while logistics owners adopting app development for startups
• Advancements in vehicular and automobile technologies, such as self-driven cars and vehicles, result in further investments.

Moreover, with the expansion of eCommerce services by over 25%, global attention seems to shift towards investing in various supply chain and logistics management projects. This is probably why companies on a global scale are working on innovative logistics solutions and actively looking for investors for your logistics startups. Studies suggest that the funding for logistics startups almost doubled in 2021 compared to 2020 giving birth to several logistics subsectors.

A recent analysis of a sample of more than 500 logistics startups exhibits investments of $80 billion by investors for logistics. This funding for logistics startups was analyzed by industry, region, time, and according to the impact of the global pandemic.

What Do Investors Look For In a Logistics Startup?

As mentioned above, the global pandemic immensely accelerated the growth of eCommerce by 25% in 2020 and a further 11% in 2021. This is the primary reason why investors are interested in logistics operations, specifically in the largely untapped potential markets. Investors for logistics are keenly interested in funding logistics startups based on eCommerce delivery apps, supply chain visibility, and last-miles management.

An analysis depicts that various last-mile delivery businesses, logistics intelligence providers, road-freight marketplaces, and supply chain visibility easily get funding for logistics startups.

Integrating Supply Chain Visibility In Your Logistics Startup Attracts Investors

The topic of supply chain visibility in the process of logistics investments gained attention when the funding for startups that address visibility tripled in 2021. With more logistics investors realizing there is a need for more flexible and agile digitally transformed supply chains that can quickly adapt to external factors like transport restrictions, visibility is in demand.

Six Steps To Get the Right Investors For Your Logistics Startup

If this is your first time working for a logistics startup, a thorough survey of your niche in the industry is a must. Further, a logistics venture capital studio can help you gain sufficient finance for your startup.

When you are done with your project, you can follow the six ways listed below to find investors for logistics startup;

Build strong network

For new businesses, building networks might be a struggle; however, it is crucial to gain trust from competitors and industry peers to establish a business. Investors closely look at the trust factor, especially when their money is involved; therefore, ensure to mark a good impression.

Research deeply on your potential investors

Before reaching out to your potential investors, it is also essential to know them well so you can understand their demands. On the other hand, you will also be able to analyze what benefits they can get out of your logistics startup. Identify relevant reasons why they should provide funding for your logistic startup.

Pitch a realistic business plan

After you get in touch with your potential investors, create an engaging pitch related to logistics investors and their investments. When you make a pitch, make sure to put yourself in your investors’ point of view. Think, What would convince you to invest in a logistics startup if you were an investor?

Join a seed accelerator program

It is advisable to join a seed accelerator program for new logistics startups. Especially if you have no industry connections, these programs will guide you with mentorships, training, and seed funding to scale your idea. Such programs also offer necessary assistance to help your startup project thrive in times of crisis

Get investors engaged in numbers

This is an obvious step that goes a long way. Rather than just stating benefits by investing in your logistics idea, make sure you show them the ROI in numbers. Demonstrate how you can achieve results in the given time period and when can your logistics partner start gaining benefits.

Create a reputable brand

Getting your investor in logistics is easy; however, maintaining your logistics business for the long run is a challenge. Confident investors only offer funding for logistics startups with a good record in the industry. For this, you can create a little background story of how you came up with the idea and what led to the success of your logistics company. This helps build a level of attachment to your logistics brand and get investment for your startup.

Investors for logistics look out for trending solutions such as storage space advancement, supply chain cloud management, etc., that require low, upfront cost and yield great results.

Learn more: https://appinventiv.com/blog/how-to-get-investors-for-your-logistics-startup/