The New York Shipping Exchange, a provider of the first digital forward freight contract for global container shipping, has raised $8.5 million in Series A funding. Goldman Sachs and GE Ventures led the round with participation from other backers that included Blumberg Capital and Tectonic Capital.
NEW YORK, NEW YORK – March 21, 2017 – The New York Shipping Exchange (NYSHEX), the innovator of the first digital forward freight contract for global container shipping, today announces $8.5 million in Series A funding led by Goldman Sachs Principle Strategic Investments and GE Ventures, with participation from Blumberg Capital, Tectonic Capital and other investors.
Founded in 2015, NYSHEX provides the global shipping industry a standardized “over-the-counter” exchange for entering enforceable freight contracts. It is based on proven and relevant principles from the New York Stock Exchange, Chicago Mercantile Exchange and the London Metals exchange.
Leading shippers, carriers and freight forwarders designed NYSHEX to favor all groups equally and be impartially governed. NYSHEX is compliant with all U.S. regulations as well as the Federal Maritime Commission’s contract filing requirements. In addition, NYSHEX facilitates the freight financing and settlement through select first class banks. NYSHEX also supports the technology and maintains the standard form contracts used by the industry. Benefits include:
Shippers can receive fixed rates, enforceable contracts, accurate invoices and a significantly more reliable supply chain.
Forwarders create value for customers with a combination of products and services that best meet their supply chain needs.
Carriers now have 99 percent certainty in future cargo flows, enabling better vessel planning and uptake management, more dynamic pricing, and improved working capital.
“We are honored to have backing from such strategic investors as we work collaboratively to solve a major challenge facing the global container shipping industry,” says NYSHEX CEO Gordon Downes.
“As a leading global capital markets participant and active investor in the exchange space, we are pleased to partner with NYSHEX and support their efforts to innovate in the freight market,” said Rana Yared, Managing Director in Goldman Sachs’ Principal Strategic Investments group.
As the world’s leading digital industrial company, GE is already very familiar with the global container shipping industry, being both a major customer and supplier. According to Mark Chadwick, Executive Sourcing lead at GE, “We are excited to be working with NYSHEX, and expect the exchange will create opportunity for shippers to improve supply chain planning and reliability. Carriers will improve vessel utilization and network planning which will deliver efficiencies desperately needed in today’s challenging market environment.”
Blumberg Capital brings more than 25 years experience building high growth companies in financial services and enterprise technology. “NYSHEX is the unique combination of a veteran team, innovative technology and precise market timing,” said Matt Bornstein, principal, Blumberg Capital. “We believe NYSHEX will create new ways of doing business and generate massive value for the $380 billion container shipping market.”
David Wolfson, a founding partner at Tectonic Capital adds, “One of the team’s strengths is their deeply held belief in working collaboratively with carriers, shippers and forwarders. The point here is counter to the traditional tech “disruptor”, rather NYSHEX was created by shipping people who are trying to do something good for their industry. NYSHEX will bring updated technology and digital to an industry that desperately needs stability – in these cases it’s better to be collaborative than disruptive.”
“Five of the top ten global ocean carriers are actively engaged on NYSHEX; and leading shippers and forwarders are joining daily. By mid-year we will be fully operational within the Transpacific trade and by end of year we intend to be working collaboratively with our members to expand into the Asia-Europe trade,” says Downes.
To learn more about NYSHEX, please visit NYSHEX.com.
About The New York Shipping Exchange (NYSHEX)
The New York Shipping Exchange (NYSHEX) is enabling the transformation of the container shipping industry through two innovations: a new standard form freight contract and new way to trade ocean freight digitally. NYSHEX is a solution developed for the industry by the industry’s leading shippers, forwarders and carriers. The mission of NYSHEX is to help BCOs, forwarders and carriers overcome the historic inefficiencies in ocean freight contracting and in doing so, reveal the $23 billion economic opportunity that exists for the shipping industry each year. For more information visit: https://www.nyshex.com/
About Goldman Sachs Principal Strategic Investments
The Goldman Sachs Principal Strategic Investments (PSI) group seeks to make long-term strategic investments in fast growing technology companies. The global team of investment professionals is deeply connected across Goldman Sachs’ Securities Division as well as Technology and Operations groups. The PSI group’s investments focus on market infrastructure, financial technology and enterprise technology companies, and often engage in a strategic relationship that may include joint product development, IP licensing arrangements, service provision arrangements and market participation agreements. For more information visit: http://www.goldmansachs.com/what-we-do/investing-and-lending/principal-strategic-investments/psi.html
About GE Ventures
GE Ventures identifies, scales and accelerates ideas that will help make the world work better. Focused on the areas of software, advanced manufacturing, energy and healthcare, GE Ventures combines equity investing, new business creation, licensing and technology transfer to deliver an innovation platform designed to drive growth for partners and GE. For more information, visit http://www.geventures.com, or follow on Twitter (@GE_Ventures) and LinkedIn.
About Blumberg Capital
Blumberg Capital is an early-stage venture capital firm that partners with passionate entrepreneurs to innovate and build successful technology companies. The firm specializes in leading Seed and Series A rounds collaborating with angel investors, other venture capital firms and strategic partners. The Blumberg Capital team are active investors and board members – operating as an extension of the entrepreneurs’ network. Blumberg Capital is headquartered in San Francisco with team members in Tel Aviv and New York. For more information, please visit blumbergcapital.com.
About Tectonic Capital
Tectonic Capital is a NYC based venture fund that seeks to partner with outstanding entrepreneurs and invest in category defining businesses. The fund spearheads a number of creative initiatives within the NYC tech ecosystem including support of the founder led investment group – FoundersGuild, an annual event for silicon valley investors called Sandhill.nyc, as well as a tech focused Think Tank called ThinkTank.vc. The founding partners are David Wolfson and Josef Feldman.