Our Investment in Supply Chain Digitization – Parade Secures $12.7M Funding to Accelerate Expansion
Investment to speed digital adoption, expand capabilities, grow its team, and strengthen connectivity with its 3rd-party partner ecosystem
By Brent MacDonald – Principal at Rising Tide
Underneath the surface of the freight transportation industry is a fragmented and incredibly complex relationship between shippers, brokers, and carriers that ensures the transportation of goods. Approximately, 20% of the $800 billion in U.S. freight movement today is coordinate by freight brokerages, who total over 17,000 and play a crucial and underappreciated role in matching shippers with carriers and managing logistical details. In addition to this mixing, supply chain digitization is at a tipping point, as logistics service providers increasingly rely on more connected workflows to maximize efficiency and speed.
Parade has given us the runway to book an infinite number of ordersAlex Mauer, VP Operations, Jones Logistics
Book More Freight Than Ever Before
Parade.ai empowers all freight brokers to go digital, with market-leading tools and technology to optimize workflows. Parade’s capacity management solution for brokers is an industry first. The Company’s AI-powered CRM or Customer Relationship Management platform improves carrier relationships, enables smart pricing, automates communication workflows, and allows full digital booking. Parade’s automation and streamlined processes help brokers get more done in a day, ultimately leading to more bookings and more time to focus on the things the computer cannot do: building relationships with carriers and bringing in new business. One broker customer saw a productivity increase of 15% in the first year of using Parade. Fortune Logistics saw brokers go from booking 20-30 loads per week to upwards of 50 loads per week within months of implementing Parade. At Fortune Logistics, brokers saw a 10%-20% increase in loads booked almost immediately. Customers continue to recognize and reward Parade for innovation and for providing best-in-class freight brokerage software as the industry shifts towards more real-time and collaborative ways of doing business. In fact, Parade customers today are automating upward of 30% of their bookings, which is transformative for brokerages running at modest margins.
Reimagine Freight Brokerage Operations
Parade.ai announced earlier this year that it has closed a $12.7 million series A led by Menlo Ventures and plus a number of undisclosed angel investors within the freight-tech and supply chain communities. According to Parade co-founder and CEO Anthony Sutardja, the Company plans to use the funds to speed up tech enablement for freight brokers by expanding its current load-matching capabilities, growing its own sales and development teams, and continuing adding integrations with third parties to add more value to its customers. Parade’s team of executives comes from industry-leading companies like Convoy, P44, and Trucker Tools.
Why we are excited: Parade is the leader in software for freight brokers, offering truckload capacity management that drives carrier access and digital transformation. Parade empowers top freight brokerages to cultivate best-in-class carrier relationships by leveraging artificial intelligence to give customers business-critical insights and smart carrier engagement. Brokers and 3PLs or Third Party Logistics Brokers grow profits by booking more loads, increasing operational efficiencies, and boosting productivity. The team at Parade.ai will continue to help customers realize huge gains in these areas by re-utilizing carriers to find the right truck at the best price at the right time.
See the funding press release here.
Fun Facts About the Trucking Industry
- Trucks moved 11.49 billion tons of freight, 71.4 percent of the nation’s tonnage freight.
- Trucking’s revenues accounted for 80.3 percent of the nation’s freight bill.
- Trade – especially with Mexico and Canada – is essential to trucking. Trucks moved 67.4 percent of surface freight between the U.S. and Canada. That is up 3.6 percent from the prior year. They transported 83.5 percent of cross-border trade with Mexico, up 10.2 percent from 2017.
- The industry employs 7.8 million people in trucking-related jobs. That’s up 100,000 from the previous year. The figure includes 3.5 million drivers.
- Women make up 6.6 percent of the industry’s drivers, and minorities account for 40.4 percent of truckers.
- Most motor carriers are small companies. About 91 percent of fleets operate six or fewer trucks. More than 97 operate 20 or fewer trucks.
Source: Trucks.com, 2021
Rising Tide Fund Managers, LLC and its affiliates (“Rising Tide” or “We”) is a United States venture capital firm investing primarily in the information technology and healthcare/life sciences markets. Over the last 35 years, we have partnered with family funds, high-impact investors, and strategic partners to help launch and expand startups in a variety of industries across three continents. We are dedicated to cooperating with our entrepreneurs at all stages: from financing to leveraging our international networks to facilitating exits by design. For more information, visit www.rtf.vc.
The portfolio companies described herein do not represent all the portfolio companies purchased, sold, or recommended for portfolios advised by Rising Tide. The reader should not assume that an investment in the portfolio companies identified were or will be profitable. Past performance is not indicative of future results. Investors should be aware that a loss of investment is possible.