September 20, 2017

ClearMetal wins $9 million funding round for logistics AI platform

Artificial intelligence can mine supply chain data to predict movement of assets, firm says.

By Ben Ames

Logistics tech startup ClearMetal Inc. said today it has landed $9 million in funding to expand its platform for using artificial intelligence (AI) to generate predictive supply chain visibility for manufacturers and retailers, a sector that has drawn tens of millions of dollars in recent venture capital investment.

The investment follows a $3 million seed financing round in 2016 to support the firm's strategy of applying AI to supply chain data to improve inventory management, profitability, and customer service, San Francisco-based ClearMetal said.

The new funding is led by Prelude Ventures LLC and by Innovation Endeavors, an investment fund created by Eric Schmidt, the chairman of Google Inc. parent company Alphabet Inc. Additional investment came from New Enterprise Associates Inc. (NEA), a frequent investor in logistics startups.

Additional funding came from a number of supply chain industry heavyweights drawn to ClearMetal's promise of applying predictive analytics to the movement of shipping containers and other assets, including German software giant SAP's startup investment fund (SAP.io), port operator PSA International's corporate venture capital arm (PSA unboxed), container chassis leasing firm Direct ChassisLink Inc. (DCLI), and from GT Nexus founder John Urban, who is a strategic advisor to ClearMetal.

ClearMetal's software platform allows customers such as global freight forwarder Panalpina to predict equipment, trade, vessel, and shipper needs with unprecedented accuracy, the company claims.

"The global supply chain is suffering from billions of dollars of inefficiency as a result of not having the data intelligence and predictive visibility it needs," ClearMetal CEO Adam Compain said in a statement. "Our customers are eager for predictive logistics and ClearMetal's platform solves their fundamental data challenge while delivering the digital transformation required to drive profitability in the supply chain."

Compain is not alone in seeing an opportunity for AI-powered software to help forge a more streamlined supply chain. In the past year, investors have pumped millions into the sector, including $50 million for Mountain View, Calif.-based Aera Technology's prescriptive analytics software platform and $5 million for Sunnyvale, Calif.-based LevaData's AI-based supply chain procurement tool. Also in 2017, Kennesaw, Ga.-based logistics technology provider Teknowlogi and cloud-computing business software giant Infor have rolled out AI platforms.

About the Author

Ben Ames
Senior Editor
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

More articles by Ben Ames

Technology Videos


Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.

Subscribe to DC Velocity


Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : ClearMetal wins $9 million funding round for logistics AI platform">contact Chief Editor David Maloney. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.