As Demo Day quickly approaches for the Logistics Tech Accelerator’s second cohort, it’s exciting to reflect, as well as look forward at how the industry continues to quickly evolve - especially related to the impact of startup-corporate collaboration. RocketSpace launched the Logistics Tech Accelerator in collaboration with Kaleido Logistics as the first in our series of Industry Tech Accelerators. We are proud to announce the recent launch of Terra, the food + ag accelerator, founded by Rabobank, and the our newest offering, the Mobility Tech Accelerator founded by BP, and more to come in 2017. One year in, for the Logistics Tech Accelerator alone, we’ve had the pleasure of working with 18 startups and 5 global corporations, supported 20+ pilots, and have had our first formal joint venture result from the program (more on this, in a bit).
Since day 1 of introducing the Logistics Tech Accelerator, we’ve focused on taking a new approach to bringing startups and corporations together. First, by introducing an open innovation approach that draws from the diverse expertise of multiple global organizations (currently: Fiege, Ingram Micro, Lufthansa Cargo, Man Trucking and Kaleido Logistics) and using a pilot-focused program driving real-life experimentation and results. We’ve also introduced specific startup admission criteria, namely: minimum funding requirement (seed or above), MVP or in-market, and finally, each startup technology must fall within one or more of the core tech themes associated with the program. By setting this threshold, the program increases the opportunity for more practical collaboration and partnership opportunities. Under the RocketSpace model, startup participants can gain direct access to leading corporations to fuel their own growth and gain new clients, while corporate partners can explore and execute on new solutions and revenue streams.
Vigo-Spain based Kaleido Logistics and Frankfurt-based startup CargoSteps’ recent formation of a joint venture is a great example of how this new model can result in real business value. Heading into cohort 1 of the Logistics Tech Accelerator, Kaleido Logistics was looking to include an end-to-end track-and-trace solution as part of a bid for one of the world’s leading retailers. Through the program, Kaleido selected and was able to work directly with CargoSteps, a real-time track-and-trace software startup participating in the program.
Since meeting and pilot testing a solution during the program last year, the new breakthrough end-to-end track-and-trace technology solution is already generating new revenue streams for the recently formed ‘Freight Intelligence’ company, and is a trend that both parties hope will transform the global logistics industry. Due to the accelerated pace of the Logistics Tech Accelerator and pilot-led focus, Kaleido Logistics was able to propose a solution to its target customer within just four months of meeting CargoSteps. For CargoSteps, partnering with Kaleido has provided strategic value as they can leverage Kaleido’s corporate relationships and networks to accelerate business development and secure additional revenue sharing opportunities.
Securing the large deal and the added value of the new joint venture, Freight Intelligence, is just the beginning for the two companies who met less than one year ago. Going forward, both companies aim to make the Freight Intelligence solution available to the open market, in an effort to provide greater transparency and optimization to the global air freight industry, and beyond.
Now, we are looking for the next group of industry leaders to join us as we open startup applications for cohort 3 of the Logistics Tech Accelerator in May 2017. Are you a progressive corporation looking to accelerate your innovation roadmap? We want to hear from you! Learn more about the industry accelerator program and benefits for corporate collaborators here.