freight-focused rose rocket Recently raised a $25 million round.
data per enterprise collected by carta, the average logistics-themed Series A round has sported an average cash amount of $8 million and a post-money valuation of approximately $50 million since the start of 2020. The Rose Rocket round certainly outperforms its sector average in dollar terms, and we believe that is measured by valuation as well.
But the money side of the Rose Rocket story isn’t the most interesting thing about the company. It has a market.
The startup is building in the TMS space. What is TMS? A good question, and one I had to ask while digging into Rose Rocket. What does TMS mean? transportation management software, which you can think of as a wide range of products that help truckers and brokers and other players in the freight transport game operate on a digital basis.
Or, as Rose Rocket co-founder and CEO Justin Skye Explained to Nerdshala in an interview, TMS is a somewhat generic moniker that can be compared to ERP (Enterprise Resource Planning). Skye said he often describes what Rose is building as a netsuite for rocket trucking companies.
The trick to startups is going, in Skye’s phrase, “horizontal inside a vertical.” By this, the CEO means that Rose Rocket seeks to coordinate more than one part of the large freight transportation landscape; Instead, the company wants to coordinate All players, allowing a more integrated, less chaotic market.
For example, Rose Rocket provides the same software to both freight brokers and trucking companies. If a freight broker sends work to a trucking company and both use the startup’s software, Sky said work can proceed as if each company were reading the same sheet music. Instead of, say, one of the parties, Chopin is playing Nocturnal while the other puts out a free jazz solo.
Like many vertically themed software plays, Rose Rocket is taking on other market-focused software providers, but also uses Excel and manual processes by customers. Trucking As An Industry, You’ll Be Shocked To Know That Isn’t Right Completely Digital yet. This could provide a large total addressable market (TAM) for selling the Rose Rocket, given how big trucking is as both. a trade (and employer)
The results seem promising so far, with the company claiming that the number of its customer logos has increased almost 9 times in the past year. Sure, logo numbers are far from GAAP, but contracted deal volume has also increased 9x over the same period, so, presumably, the company’s business numbers are doing.
That Rose Rocket is a Canadian company – albeit with a US incorporation, essentially needing to raise funds in North America – is notable. The Canadian startup market has come a long way since Shopify entered the larger business consciousness. We should probably pay more attention to it.
Canadian startups have so far raised about $9.3 billion by the end of the third quarter in 2021, according to data from CB Insights. This figure is higher in 2019 and 2020 than the country’s upstart tech companies Joint. The country is on pace to hit a record number of discrete enterprise tours this year. So Rose Rocket is part of a growing trend of larger and more frequent startup investments in the country.
More when someone dumps an unavoidable $100 million on Rose Rocket’s head.