Chattanooga-based FreightWaves has raised another $16 million in capital with the funds earmarked to support a new platform to cut carbon emissions which it unveiled just last month.
“There is a major need in the market for carbon emission transparency and solutions that can help companies actively mitigate their carbon footprint,” said Craig Fuller, chief executive of the freight data and analytics company.
The carbon monitor platform, called FreightWaves Carbon Intelligence (FCI), can provide daily, weekly, monthly, quarterly and annual benchmarking reports, according to the company. Shippers and carriers can see their carbon footprint reduction efforts against historical patterns and other industry participants.
“It will help them manage their carbon footprint,” said Fuller, who founded the privately held startup in Chattanooga in 2017.
The new capital funding will pay for product expansion and go-to-market actions for FCI, which FreightWaves said is built on its SONAR supply chain intelligence platform.
The investment is led by Triangle Peak Partners, a Palo Alto, California-based venture capital firm that partners with companies in the technology and energy transition sectors, according to FreightWaves. Also participating in the latest round are the firms 8VC, Hearst Ventures, Prologis Ventures, Rise of the Rest fund, Fontinalis, and Kayne Partners, FreightWaves said.
In addition, Erik Levy, group head of corporate development for DMGT, the parent company of the Daily Mail Group, personally invested, according to the local business.
Fuller said FreightWaves chose Triangle Peak Partners because of the firm’s understanding of subscription data platforms and energy transition technologies.
The investment follows a growth round last summer with Kayne Partners, which was raised to help the company scale operations, Fuller said.
“We still have all of the capital we raised from Kayne last summer on our balance sheet,” he said. “We finished 2020 much better financially than forecasted, dramatically improving our burn rate and we’re already seeing greater acceleration to-date in 2021.”
Fuller said the added capital will help FreightWaves speed investment in the FCI platform while maintaining a strong balance sheet for opportunistic investments such as acquisitions and product development.
FreightWaves last year secured another $37 million in investment, vaulting it into the top 10 in venture capital raised in Tennessee. Fuller said then that new investment put FreightWaves’ total at about $76 million.
According to FreightWaves, first-quarter annual recurring revenue from the company’s software business grew over 80% compared to a year ago. The company’s media business increased revenue by over 130% versus the same period last year, the company said.
“Over the last 18 months, we have transitioned from an early-stage venture-backed startup to a growth-oriented, but operationally efficient business,” Fuller said.
Later this year, FreightWaves is hosting a national logistics convention in an event slated to attract over 2,000 people. Called F3: Future of Freight Festival, the city’s convention center and downtown will serve as its base but plans are to have venues at more than 30 locations during the Nov. 8, 9, and 10 schedule.
Barry White, president and CEO of Chattanooga Tourism Co., said that such a conference would be one of the largest in the city in a typical year and is “fantastic during a challenging time.”
Fuller said then the company has 168 employees, including about 100 in Chattanooga.
Contact Mike Pare at mpare@timesfreepress.com. Follow him on Twitter @MikePareTFP.