We are excited to welcome Leaf Logistics to the Madrona family. Logistics is a growing space, and technology has the power to significantly change the industry, improve customer service, and deliver greater efficiency to everyone from retailers to customers to the people behind the wheel. We were so excited to meet Anshu Prasad and Stefan Friederichs, who are applying AI to the complexity of the freight and transportation industry – and building a platform that has the potential to not only deliver goods faster and more reliably but also reduce CO2 emissions. Madrona participated in Leaf’s $37 million Series B announced this week out of Acceleration Fund 2.
The transportation industry has historically operated in a siloed manner leading to tremendous inefficiencies. Today, more than 30% of the trucks on roads ride empty, representing immense waste in the industry. When participants coordinate across the Leaf platform, over 20% in efficiencies can be identified in this $800 billion industry. Leaf is breaking down these silos by applying an incredible amount of data and AI to the problem and building a trusted technology-enabled network of shippers, carriers, and brokers.
Leaf’s intelligent software uses predictive analytics and AI to identify the best route and resources available for shipping. Built on years of historical freight data from hundreds of shippers, the Leaf platform models freight volume configurations with optimal plannability and predictability. Leaf’s Adapt technology then assembles these configurations into multiple graph models using the power of the network, allowing Leaf to simulate flows through its transportation and logistics thereby helping shippers lower costs, improve operations, and dramatically reduce their carbon footprint. Coordinating across the Leaf network also gives transportation providers more stability to their business so they can maximize asset utilization while providing their drivers with favorable routes and guaranteed rates.
What impressed us the most was the quality of Leaf’s product and the team’s relentless focus to delight their customers. Over the last two years, when the industry was beset by supply chain, trucking and a virtually endless list of issues brought on by the global pandemic, Leaf’s customers have been able to successfully navigate all the ups and downs, keep their costs under control, and deliver goods in a timely fashion. By listening to customers and profoundly understanding the pain points across the entire value chain, (a behavior we see in all great founding teams), the team has built the best solution for this industry. And it is a bold one. The transportation industry is at an inflection point of digitization empowered by next-gen software, and Leaf Logistics is leading that revolution.
We could not be more excited to help Anshu, Stefan and the team build and even more rapidly scale Leaf Logistics. We are honored to be part of the investor group that also includes Sozo Ventures, Playground Global, Floodgate, Schematic Ventures, Supply Chain Ventures, Flexport, and the Intercontinental Exchange.
It’s incredible what the team has built so far, and we are excited for what lies ahead as we welcome Leaf Logistics to the Madrona family!