Trucking compliance software provider LogRock announced it has closed an additional $2 million seed round led by Better Tomorrow Ventures with participation from previous investor Dynamo Ventures, which led the company’s initial $3.5 million seed funding in May.
LogRock co-founder and CEO Hunter Yaw told FreightWaves carrier compliance has not always been the “sexiest” transportation topic to discuss but is a necessary one.
“If you look at trucking from the outside, you would think the most important thing to keep your eye on is the driver. Yet, many of the challenges carriers face on a daily basis come from issues with compliance,” he said.
| Funding details | LogRock |
|---|---|
| Funding amount | $2 million |
| Funding round | Seed round |
| Lead investor | Better Tomorrow Ventures |
| Secondary investors | Dynamo Ventures |
| Business goals for the round | Expand product solutions |
| Total funding | $5.5 million |
These challenges can include insurance prices, recruitment capabilities, maintenance and building shipper partnerships — all evergreen problems that attracted the investors of its most recent round.
“A lot of investors in this investment period are focused on evergreen problems — challenges that happen no matter what the supply and demand markets are doing,” he said.
According to LogRock, in 2022 alone, over half of fleets that have gone through an FMCSA audit have received a “conditional” or “unsatisfactory” status.
“[Department of Transportation] compliance was always important for trucking companies,” said Jake Gibson, a founding partner at Better Tomorrow Ventures. “With lawsuits on the rise and freight markets cooling, LogRock is well positioned to help fleets save real money by staying off the FMCSA’s radar and steering clear of avoidable court cases.”
Related: Viewpoint: How the Supreme Court’s decision on C.H. Robinson could upend trucking
LogRock’ intends to use the latest funding to expand its product suite and grow strong partnerships with other solutions providers.
“By listening to trucking company owners as we likely enter a recession, we have been able to develop features to help them survive the storm. This additional round of investment will help us to accelerate development of new features that will directly affect trucking companies’ financial stability,” said João Bosco, LogRock co-founder and chief operating officer.
Bringing all of these solutions together and creating long-term value for clients is why Dynamo Ventures continues to support LogRock.
“Trucking companies need to actively monitor data from up to 10 different systems simultaneously to stay compliant,” said Jon Bradford, managing partner at Dynamo Ventures. “The universal feedback from LogRock’s clients is that LogRock’s ability to consolidate this information into an easily understood dashboard with real-time integrations to ELDs, the FMCSA, driver recruiting tools and others is a game changer.”
Watch now: LogRock Raises $3.5M In Seed Funding
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Lori
Half of audited fleets in 2022 were conditional or unsatisfactory? If that is accurate, i would think that would be a topic FreightWaves would have covered. Sounds like a made up statistic.