Chicago has been a cornerstone of logistics and transportation in the U.S. since the Civil War. A strategic centralized location, access to navigable waterways, and an expansive interstate highway system have allowed the city to make its mark as a pivotal hub for the movement of goods. Today, nearly 40 innovative early stage ventures, ranging from freight management to last-mile delivery and drone logistics, are transforming traditional supply chains while securing significant venture capital to propel their technologies forward.
Key Subcategories Driving Innovation
1. Supply Chain Visibility
Only 6% of companies report complete supply chain visibility - a crucial factor in minimizing costly inefficiencies caused by delays and disruptions. Startups in this subcategory aim to provide real-time insights, risk simulation platforms, cross-stakeholder collaboration tools, and more.
- Arvist ($1.1 million round): Combines existing security cameras with AI-powered digital twin technology to minimize disruptions and provide actionable insights into operations
- Silkline AI ($1.7 million round): Uses advanced analytics to connect supply bases, enabling seamless collaboration and improved decision-making across supply chains
2. Cold-Chain Logistics
A specialized segment of the supply chain focused on transporting temperature-sensitive goods like food, pharmaceuticals, and biologics — three expansive industries in Chicago – cold chain logistics plays a critical role in ensuring product integrity. Temperature controlled transportation, detailed orchestration and timing of shipments, and comprehensive understanding of the cost around storage, handling, coolant, etc. are critical components to ensuring this segment of the logistics industry runs smoothly.
- Coldcart ($6.55 million round): Specializes in optimizing and scaling perishable e-commerce stores. Coldcart eliminates the complexities of cold chain fulfillment for DTC merchants, ensuring frozen and refrigerated products arrive intact and on time
- FreshX (Undisclosed funding): A digital marketplace offering temperature-controlled logistics services. FreshX’s software enables instant booking, real-time tracking, and automated route optimization for refrigerated freight
3. Freight Management Software
Empty miles—trucks running without cargo—account for 20-35% of all U.S. trucking mileage, leading to significant wasted costs and environmental impact. As supply chains grow more complex, tech innovation in this space is essential to optimize routes, reduce costs, and ensure timely deliveries. Modern freight management software offers centralized platforms that automate repetitive tasks, streamline lead generation, manage real-time data, and generate actionable insights. These tools enhance freight procurement, improve transparency, and empower shippers, carriers, and brokers to make better, faster decisions.
- Torch (Unknown funding): Operates a digital freight marketplace that connects small carriers with high-volume shippers, offering real-time visibility, safety tools, and guaranteed capacity
- Telegraph ($10.1 million round): Develops a cloud-based operating system for freight rail, providing visibility, collaboration, and streamlined logistics across the freight ecosystem
4. Last Miles Logistics
Last-mile is the most expensive segment of the supply chain, accounting for 41% of total logistics costs. Despite a significant pullback in overall logistics startup funding since 2021, last-mile tech has continued to attract significant investment, reflecting their critical role in addressing rising consumer expectations for fast, reliable deliveries. This sector's focus on automation, route optimization, and customer experience makes it a standout in the broader logistics innovation landscape.
- Schlep ($170,000 round): Provides heavy lifting and local delivery services for businesses and customers, including event support, staging, and last-mile delivery, helping various industries simplify logistics challenges
- Locologic (Unknown funding): Offers a cloud-based, real-time delivery tracking platform that optimizes routes and provides delivery status updates, including proof of delivery, improving efficiency and transparency for last-mile operations
Are we missing any ventures in our landscape? Reach out to joey@technexus.com to share your thoughts.