Maturity Matrix 2020: Supply chain start-ups are a popular investment

Maturity Matrix

Investment in European supply chain start-ups is increasing at an explosive rate. Supply Chain Media’s study of 83 start-ups reveals that, between them, they have raised a phenomenal € 550 million in funding in the past year. This is the third consecutive year that Supply Chain Media has published a Maturity Matrix showing the most important European supply chain start-ups.

The start-up trend can be traced back to Silicon Valley, where countless budding companies – often with ingenious founders – have secured mind-blowing sums of money from investors. Some of those start-ups, especially social media apps and digital payment solutions (‘fintech’), have since become household names. Now, start-ups are taking off in a big way in Europe too. While many of the best-known start-ups – such as Pinterest, Uber, Lyft and Airbnb – are American, fledgling companies in Europe are finding it increasingly easy to convince venture capitalists of their investment potential.

Just two examples of successful European start-ups include HelloFresh, a subscription and home delivery service for meal kits filled with fresh ingredients, and Deliveroo which delivers online orders for takeaway food. The success of both of these start-ups depends largely on the efficiency of their distribution processes. In another example, the Berlin-based start-up Fliit, a digital platform aimed at simplifying fresh food logistics, has raised €10 million in funding over the past year. That investment has enabled the young company to rapidly evolve from a start-up into a scale-up (i.e. by passing the €2 million mark).

Winners and losers

Compared with last year’s version, a handful of start-ups and scale-ups have disappeared from this matrix because they are more than five years old (i.e. they were founded in or before 2014). The huge amount of venture capital makes the supply chain start-up market seem very attractive, but it has also become extremely competitive. At best, there are provisional winners and definite losers. All the signs point to turbulent times ahead in the logistics and supply chain start-up market.

Start-up contest

Supply Chain Media will be organizing the European Supply Chain Start-up Contest for the third time on 7 May 2020. The award will once again be voted for and presented during the inNOWvate Supply Chain Event at The Rijtuigenloods venue in Amersfoort, the Netherlands.

Download: Maturity Matrix 2020

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