The ports logistics market is estimated to be at $50B per annum and Dray Alliance is focused on bringing technology to this market that’s traditionally been run with paper and pencil and if sophisticated – a spreadsheet. Dray Alliance’s signature app seamlessly connects truckers and shippers to bring an Uber-like efficiency to the drayage industry. With the app, shipping containers can be easily transported from point A to point at the LA port with unprecedented ease and efficiency, irrespective of their final mode of transportation; whether it be truck or rail. The company has also built a shipment dashboard that provides real-time GPS tracking that sends updates on container status and ETA, keeping all relevant parties informed so that all the moving parts in a shipment are coordinated. Multinational corporations such as Mattel and one of the largest container ship and supply vessel operators, Maersk, rely on Dray Alliances’ services to ease the congestion at the busiest port in the US.
LA TechWatch caught up with CEO Steve Wen to learn more about the company’s latest funding round, impressive growth, and future plans.
Who were your investors and how much did you raise?
Dray Alliance raised $10.2M in Series A funding from Matrix Partners, Craft Ventures, Wonder Ventures, Act One Ventures, and Moving Capital.
Tell us about the product or service Dray Alliance offers.
Our technology simplifies the antiquated process of moving shipping containers across short distances by connecting shippers and trucking companies, with a focus on port and rail moves.
What inspired the start of Dray Alliance?
I spent time building the logistics platform for an e-commerce company that I started which got me very interested in supply chain, then went on to start a small traditional drayage company with a few trucks in LA. Spending time with shippers and truckers really helped me understand the pain points of the drayage industry.
How is Dray Alliance different?
We don’t own any asset and focus on building software to make the overall industry more efficient so that everyone will be better off by working with us.
What market is Dray Alliance targeting and how big is it?
$50B Port Logistics Market.
What’s your business model?
We make a fee per transaction.
How has the business changed since we last spoke after your Seed round?
We have grown 600% since the last fundraise, onboarded hundreds of trucking companies, and partnering with many more enterprise customers.
What was the funding process like?
We spent a bit over one month from starting the fundraising process to signing the term sheet with Matrix Partners. There was a lot of interest from a few Menlo Park-based VCs, but after meeting Jake and Dana at Matrix, we immediately knew they were the right investors for our Series A.
What are the biggest challenges that you faced while raising capital?
The trucking/logistics space has been a very capital-intensive segment.
What factors about your business led your investors to write the check?
I think that the reason investors got so excited about the long-term business fundamentals of Dray Alliance is that this is a software company — not in the future, but today.
I think that the reason investors got so excited about the long-term business fundamentals of Dray Alliance is that this is a software company — not in the future, but today.
What are the milestones you plan to achieve in the next six months?
We will be doubling down on our technology and growing our engineering team and sales team to build more products that solve real problems for our users.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Be scrappy and persistent.
Where do you see the company going now over the near term?
We will have a similar growth rate in 2020.
What is your favorite restaurant in LA?
Kitakata Ramen Ban Nai
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