Airspace, a technology-based freight forwarder focused on time-critical logistics, has closed a $38 million Series C funding round, signaling the company has matured from its startup roots into a profitable enterprise that investors believe has a low risk of failing.
The latest funding is led by Telstra Ventures, along with HarbourVest Partners. Other participants include return backers Scale Ventures, which led Airspace’s Series B; Defy Partners, which led Airspace’s Series A; along with Qualcomm Ventures and Prologis Ventures, the venture arm of logistics real estate investment trust Prologis.
To date, the company has secured a total of over $70 million in three rounds of funding.
Airspace, which doesn’t own any transportation assets itself, manages complex and sensitive shipments such as organs, parts for aircraft with mechanical breakdowns and repair parts for high-tech machinery.
Corporate spending on time-critical logistics grew to $20 billion heading into 2020, according to Airspace’s primary market research. The coronavirus pandemic further increased demand for reliable, expedited delivery of medical supplies, laboratory samples, e-commerce orders and other critical supplies. Customers include LabCorp (NYSE: LH), Alaska Airlines (NYSE: ALK), Quest Diagnostics (NYSE: DGX) and the American Red Cross.
Airspace, Carlsbad, California, says about a third of time-critical packages are lost or delayed in transit. The company’s value pitch is that its technology platform eliminates human dispatchers by directly connecting to customers and independent couriers in the field to ensure more accurate piece counts, quotes and on-time delivery. The system, which incorporates predictive machine learning, provides real-time tracking on driver location, status, estimated time of arrival and other milestones.
With next-flight-out or dedicated road express services, for example, the software can determine the fastest routing option. The company also offers dangerous goods, international, onboard courier and charter air services.
Airspace, which was founded in 2016, has grown rapidly and is expanding internationally. It recently opened an office in Amsterdam. It says it is working to grow its global network of drivers and its suite of service offerings.
“Our latest Series C funding enables us to continue our rapid growth and succeed not only here in the U.S. but also abroad,” said Nick Bulcao, co-founder and CEO at Airspace. “We’re expanding our services and the markets we reach by providing customers with advanced technology, complete transparency and the fastest delivery options in the industry.”
As part of the company’s Series C announcement, Mark Sherman, managing partner of Telstra Ventures, has joined the board of directors.