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Freight startup Flexport soars from ‘unsexy’ to $800M valuation

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Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#51

Post by [deleted] »

redshirtrob wrote: post #50
throwaway2016a wrote: post #46

Earlier quoted context omitted.

Just because it is in the TV show doesn't mean it's not based on real stuff. Silicon Valley is satire and they have some of the best consultants in the business. A lot of stuff on the show is close to reality. Sometimes it gets it so close I kind of cringe because I've been through similar things in real life. The tabs vs spaces argument comes to mind. Edit: to stay on topic. As other people said, I would take a lowe…

> The tabs vs spaces argument comes to mind. Not refuting your point in the least, but that plot line made me cringe for an entirely different reason--it characterized people who use spaces as though they actually pressed the spacebar once for each space instead of letting the editor handle the work. That said, I think it was a good decision since the majority of the audience (based on my super scientific study where…

[deleted]

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#52

Post by mbateman »

bedros wrote: post #49
fireworks10 wrote: post #4

Congrats. I remember watching Flexport get pitched to PG and Sam Altman during open 'Office Hours' at Startup School in 2013. https://youtu.be/syoqjYLDs48?t=19m30s

I don't get it, from the video, they say brokers make 3-5 billion a year, yet, they value the company at 800 million? I've never seen a startup valued at this large percentage of market size please correct me if I'm wrong

2% of 4B earnings market-wide would be 80M, 10x valuation on 80M is 800M.

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#53

Post by xanadohnt »

xanadohnt wrote: post #45
DenisM wrote: post #18

Much needed publicity for the whole "unsexy" supply chain startup industry. We're in that space too, and we're hiring in Seattle. Ask away, or contact through my profile

Hi DenisM, what's your contact info? Are you hiring a lead role? The industry is very intriguing and would love to learn more.

N/m, found it in your profile. I'll be in touch!

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#55

Post by spiznnx »

bedros wrote: post #49
fireworks10 wrote: post #4

Congrats. I remember watching Flexport get pitched to PG and Sam Altman during open 'Office Hours' at Startup School in 2013. https://youtu.be/syoqjYLDs48?t=19m30s

I don't get it, from the video, they say brokers make 3-5 billion a year, yet, they value the company at 800 million? I've never seen a startup valued at this large percentage of market size please correct me if I'm wrong

A company is usually worth a multiplier of annual earnings, since they make that money every year.

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#56

Post by baybal2 »

As of now, Flexport is just a front-end to few other online shipping companies.

One of many gazillions companies doing the same.

If you ask who can be sold for a lot of moneys, it will be them: all 'seals of approval'(Thiel, YC, big banks waiting in line to underwrite for them), buzzwords, star team, and so much money and resources that they can't possibly screw up operationally

If you ask who will be dominating the market in 3 year term, it WILL be Alibaba's satellite companies, because they already are the biggest on the market, and will only have more opportunities coming as Alibaba will try to plug them as an add-ons to more services.

Another worthy thing to mention is that 'one click shipping' is one thing, and 'Wholly APIsed third party logistics, warehousing, packing, packaging, and inventory management' is another, completely qualitatively different and much higher added value.

The importance of that 'Wholly APIsed 3PL, inventory, and SCM' is that you can basically decouple nearly all physical processes from an average online store (and there are a lot of those online stores as you can guess)

Nor Alibaba, nor SV startups ever touched that 'APIsed 3PL/SCM' thing, and the current leaders on this front come from Singapore and, if my memory does not betray me, India.

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#57

Post by gricardo99 »

bedros wrote: post #49
fireworks10 wrote: post #4

Congrats. I remember watching Flexport get pitched to PG and Sam Altman during open 'Office Hours' at Startup School in 2013. https://youtu.be/syoqjYLDs48?t=19m30s

I don't get it, from the video, they say brokers make 3-5 billion a year, yet, they value the company at 800 million? I've never seen a startup valued at this large percentage of market size please correct me if I'm wrong

He also says he sees the broker business as a foot-in-the-door for a much bigger, broader logistics business. If you go to flexport, it certainly seems they're pushing more a global logistics solution. I'm guessing the valuation is based on more than just the broker business.

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#58

Post by ams6110 »

nightski wrote: post #54

What is the story behind why they have embraced the "unsexy" label? Do they have some sort of complex? Logistics can be an incredibly sexy problem for a variety of technical and even mathematical reasons.

I think because freight forwarding and brokering across borders is decidedly "unsexy" to most people.

Re: Freight startup Flexport soars from ‘unsexy’ to $800M valuation

#60

Post by nightski »

ams6110 wrote: post #58
nightski wrote: post #54

What is the story behind why they have embraced the "unsexy" label? Do they have some sort of complex? Logistics can be an incredibly sexy problem for a variety of technical and even mathematical reasons.

I think because freight forwarding and brokering across borders is decidedly "unsexy" to most people.

Sure, that is fair. I probably didn't word it correctly. I mean if you keep repeating that it is "unsexy" people will probably believe it to be true. Why choose to send that message instead of hey we are this sexy logistics company? It's a minor detail, so I don't mean to make too big of a deal out of it. Just seems odd.
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