Airspace Technologies Brings In $20M to Scale Its Logistics Business
[Updated 5:20 p.m. See below.] Having to wait for a package to arrive generally doesn’t result in severe consequences, besides perhaps a feeling of frustration.
Some deliveries, however, are only useful if they arrive on time.
Logistics startup Airspace Technologies says its software, developed specifically for time-sensitive shipments—donated organs slated for transplant and replacement parts for tarmac-bound airplanes, for example—can process shipments faster and cheaper than other third-party logistics providers.
On Thursday the company announced it had raised new financing, adding $20 million to the $8 million Series A round of funding it announced in August. (That first round actually closed more than a year ago, but the company decided against publicizing it as it worked on the business, CEO Nick Bulcao told Xconomy in a phone interview.)
Airspace, which is based in the San Diego suburb of Carlsbad, provides customers with an automated version of most aspects of third-party logistics, including quotes, routing, and real-time tracking. It relies on a network of contractors who drive goods between shippers and air freight providers or to the goods’ final destination. Bulcao says its network numbers in the hundreds, primarily in major markets, and that it pays better than ride-sharing companies.
Data firm CB Insights earlier this year identified more than 125 tech companies that are looking to disrupt supply chain and logistics incumbents.
The company says it will use the funds to ramp up its delivery network, further develop its enterprise software platform, and to expand internationally.
In 2019, Airspace anticipates making 120 new hires, primarily in sales, engineering and operations, according to a prepared statement from the company. Today it employs about half that many.
Airspace says it has more than 100 companies using its platform, including LabCorp (NYSE: LH), FedEx (NYSE: FDX), and Frontier Airlines. Revenue has risen 240 percent year over year, and 54 percent compared to the previous quarter, according to the company.
Foster City, CA-based Scale Venture Partners led the Series B round of funding. Previous investors Qualcomm Ventures, Defy.vc, Cross Culture Ventures and Schematic Ventures also participated.
As part of the deal, Scale partner Stacey Bishop joins Airspace’s board of directors. [Comments from Bulcao and Bishop added throughout.]
“This isn’t in the space where it’s an Amazon delivery or a FedEx delivery,” Bishop says. “This is in a time frame that’s less than that, and it’s usually these high-value goods that need to get to a certain destination by a certain time. There’s (a) budget because these companies need to get these items to wherever they (need to go).”