Starboard Secures $5.5M in Funding to Transform Global Trade with AI-Driven Logistics Solutions

The Eclipse-led round positions Starboard to meet soaring demand for AI-powered logistics solutions, addressing increasingly complex global trade challenges

TORONTO, Dec. 17, 2024 /PRNewswire/ -- Starboard, an emerging leader in AI-powered logistics solutions, announced today it has raised $5.5 million in funding led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. This funding will fuel Starboard's mission to create the default digital platform for global trade, expanding its engineering team in Toronto and accelerating its AI-driven product development to simplify supply chain complexities.

As global trade grows more complex, the logistics industry is under immense pressure to adapt. Recent events like the U.S. port strike highlight the vulnerability of the global supply chain and the critical need for innovative solutions to streamline operations and reduce costs for operators. Notably, U.S. business logistics costs reached $2.4 trillion in 2023, accounting for 8.7% of the nation's GDP, reflecting the challenges companies face in adjusting to shifting consumer demand.

Starboard is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize their operations. This includes processing shipments in real time, reconciling invoices, following up on payments, and more. With strong demand for AI-powered logistics, Starboard's tools have demonstrated the ability to reduce operational expenses by up to 50%, allowing smaller freight businesses to focus on strategic tasks and improve competitiveness in a complex industry. Given that small and medium-sized enterprises (SMEs) represent about 90% of businesses worldwide and more than 50% of employment, Starboard's solutions have the potential to make a substantial impact on the global supply chain.

"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."

Since launching its AI-powered platform, Starboard has grown shipment counts and is planning to reach $2M ARR in 2025. Recent product milestones include the launch of the Starboard Control Tower, which helps freight forwarders streamline shipment operations. Their AI reduces manual data entry, automates document generation, handles regulatory filings, and follows up with vendors, making global trade easier and more efficient. It also launched a real-time quoting tool that leverages AI and machine learning to enhance quoting accuracy and speed.

"As global trade becomes increasingly complex, there is a growing need for AI-driven transformation in logistics," said Kaitlyn Glancy, Partner at Eclipse. "By addressing these complexities, the Starboard team is delivering solutions that make logistics more efficient and accessible, empowering companies of all sizes — and economies — to thrive."

Fueled by this funding round, Starboard will continue to build a robust engineering team based in Toronto and accelerate its product roadmap.

"Starboard's successful funding round demonstrates Toronto's growing strength as a global hub for AI and logistics innovation," said Stephen Lund, CEO of Toronto Global. "As Toronto continues to enable and grow transformative companies like Starboard, we're seeing the real impact of combining artificial intelligence with traditional industries to solve global challenges."

"It will take a special combination of domain expertise and technological savvy to truly penetrate this market," said Rishi Taparia, Co-Founder and General Partner at Garuda Ventures. "That's why we were thrilled to partner with Sumeet and the Starboard team earlier this year as they got started, and excited to welcome Katilyn and Eclipse to the team as we reimagine logistics and global trade with AI."

"Starboard has, within record time, gained investor and customer confidence. This successful seed fundraise is a testament of the potential we see in the big idea and initial solution portfolio," said Kamal Aissa, Partner at Kearney, MEA.

For more information, visit www.starboard.biz.

About Starboard
Starboard is building virtual infrastructure for global trade. Their flagship product is an AI based TMS and rate management system that helps mid sized freight forwarders operate more efficiently and win more business. Based in Toronto, Starboard's team combines legacy industry expertise with advanced technology from companies like Flexport, Maersk, Google and Linkedin. For more information, please visit www.starboard.biz.

SOURCE Starboard