VC investments into tech tackling supply chain issues have dropped sharply in the last few months after a brief period of soaring success during the pandemic, according to new data.
Research published by Pitchbook found that supply chain tech received £2.6bn ($3.3bn) in Q3 this year, a 77% decrease from the same period last year. The Q3 supply chain report also noted that deals in the industry had halved in the last three months.
The pandemic and associated issues have highlighted the importance of supply chain innovations. Travel restrictions and political tensions paved the way for startups to tackle the logistical issues of an industry in need of modern changes.
The year-on-year growth of the sector during the pandemic years of 2020 and 2021 skyrocketed to 80%. While growth can still be expected in the sector, it will likely not reach the meteoric heights of last year.
A number of firms backed during the supply chain wave came from UK backgrounds. British supply chain startups that have been backed recently include Solvo.ai, which raised £3.5m last month and 7bridges, which raised $17m (£13.9m) in January.
Supply chain tech includes innovative solutions to the process of the transportation of goods. International shipping is a particularly complicated process, exacerbated by global conflicts, which therefore benefits from digitalisation and automation.