INSUBCONTINENT EXCLUSIVE:
Fearing weak fundraising options in the wake of the WeWork implosion, late stage startups are tightening their belts
(6%), and Oyo (5%) that have all cut staff to slow their burn rate and reduce their funding needs
faster and with greater clarity and purpose
asked today if it had seen layoffs like its peers.Flexport CEO Ryan PetersenFlexport had raised a $1 billion Series D led by SoftBank at a
$3.2 billion valuation a year ago, bringing it to $1.3 billion in funding
The company helps move shipping containers full of goods between manufacturers and retailers using digital tools unlike its old-school
spokesperson explained.Flexport still had a record year, working with 10,000 clients to finance and transport goods
The massive headroom for growth plus its use of software to coordinate supply chains and optimize routing is what attracted SoftBank.The
Flexboard Platform dashboard offers maps, notifications, task lists, and chat for Flexport clients and their factory suppliers.But many
As of November, SoftBank had only managed to raise about $2 billion for its Vision Fund 2 despite plans for a total of $108 billion,
Further layoffs at its portfolio companies could further stoke concerns about entrusting it with more cash.Unless growth stage startups can
cobble together enough institutional investors to build big rounds, or other huge capital sources like sovereign wealth funds materialize
for them, they might not be able to raise enough to keep rapidly burning
spirals, or just not provide enough money.Flexport has managed to escape with just 3% layoffs for now
But while other SoftBank startups had to spend tons to edge out direct competitors or make up for weak on-demand service margins, Flexport
at least has a tried and true business where incumbents have been asleep at the wheel.
