A Smarter Supply Chain: Our Investment in Starboard

Some 100,000 freight forwarding companies around the world are responsible for getting goods moved from one place to another — and they do so almost entirely through the same manual processes they’ve been using for decades. The analog tools of these logistics businesses aren’t enough to keep up with the digitized commerce customers they serve. Considering just one shipment of goods requires more than 50 different tasks — from booking space with ocean and air carriers, to dispatching truckers and digitizing documents — there are dozens of potential points of failure and countless opportunities for error. Vulnerabilities in this low-tech, cobbled-together supply chain have become even more obvious in recent years as companies struggle to adjust to shifting consumer demands and face disruptions, such as port strikes or geopolitical tensions. As global trade becomes increasingly complex, the tens of thousands of freight forwarding companies that make up the $225 billion freight industry are reaching their breaking point. This is where Starboard comes in. The company is building the AI-powered virtual infrastructure for global trade, providing freight companies with the visibility and controls they need to optimize their operations. As more than 80% of the industry is dominated by small and medium-sized businesses — who collectively handle ~$20 trillion worth of goods per year — Starboard has a real chance to have a meaningful impact on the global supply chain. Today, Eclipse is excited to announce we have led Starboard’s $5.5 million seed round.

This is a huge — and much needed — win for the industry. Prior to joining Eclipse, I spent my career in supply chain and logistics, and saw firsthand how broken the freight industry is. Over my 8 years at Flexport, it was hard to ignore how many of the freight players lack great technology. When you are used to coordinating with dozens of stakeholders via largely manual systems with outdated interfaces, little automation, ineffective collaboration tools, and numerous other shortcomings, even just an ounce of technological improvement can make a huge difference. Starboard’s AI-powered logistics platform allows freight companies to process shipments in real time, reconcile invoices, and win new quotes faster. This frees up freight businesses to focus on strategy and innovation to stay competitive in the increasingly challenging industry. Unsurprisingly, Starboard has already struck a chord with their customers, like UWL, who report faster quote times and up to a 50% reduction in operational expenses. The Starboard team has built something that truly meets the freight forwarding industry’s needs because they themselves are intimately familiar with the problem. I had the privilege of working directly with Founder and CEO Sumeet Trehan at Flexport, where he served as General Manager for Canada. Prior to Flexport, he worked at companies encompassing every aspect of shipping, from land to sea. He’s scrappy, entrepreneurial, and unafraid of hard problems. Perhaps even more important, he’s humble. Although he deeply understands the freight space, he made no assumptions about which tools stakeholders need the most when he was initially thinking of starting a company. He spent months speaking with dozens of freight forwarders to understand their most outstanding problems and needs. Co-Founder and CTO Junyu Yang brings more than 15 years of ML and AI experience from his time at iconic companies, such as LinkedIn, Square, and various startups. Together, they were able to quickly develop an early version of the product and get it out in the wild. Within months, they had letters of intent and customers. Since launching, they’ve grown shipment counts and are on track to hit $2 million ARR in 2025.

The speed at which Sumeet and Junyu developed, deployed, and signed real partnerships for Starboard would be impressive in any industry. In an industry with limited automation, it’s unheard of. And this is just the beginning. Today, Starboard offers a SAAS platform to enable global forwarders. Tomorrow, they could be the default operating platform for the multibillion-dollar global trade ecosystem. More on today’s news from SiliconANGLE.Follow Eclipse on LinkedIn or sign up for Eclipse’s Newsletter for the latest on the Industrial Evolution.