Lonsdale’s 8VC Partners with Morgan Stanley-Backed Logistics Company


8VC, the Austin, Texas-based venture capital firm led by Palantir co-founder Joe Lonsdale, partners with Lineage Logistics, backed by Morgan Stanley, a company known for its global network of warehousing facilities refrigeration at controlled temperature, to double its investments. in the transport and logistics sector.

8VC Co-Founder and Partner Jake Medwell joins Lineage in an advisory role, while Lineage CIO Sudarsan Thattai also joins 8VC in an advisory role as part of the alliance formalized between companies.

“I admire what Lineage Logistics has built over the past decade and am very happy to be officially a partner,” Medwell told CNBC. “They see technology as a backbone of the business and that goes hand in hand with what I spend my time on at 8VC.”

The pandemic has exposed the fragility of the global supply chain. With facilities in China and elsewhere closed, stores have experienced dramatic shortages of clothing, auto parts and packaging materials.

Yet supply chain software and warehousing technology attracted record support in 2020, with North American and European investors funneling about $ 12.6 billion into more than 550 startup transactions, the data shows. from PitchBook. Growing demand for warehousing space and supply chain solutions, coupled with high levels of venture capital funding, is giving birth to companies like Lineage, which ranked # 17 on the CNBC list. Disruptor 50 of this year.

Founded with the acquisition of a single warehouse in Seattle in 2008, the company offers a global network of temperature-controlled cold storage facilities for protein, baked goods, dairy, and fruits and vegetables. It also manages the processing facilities and automated, port-based and custom warehousing.

Lineage is among the most recent innovators in cold storage, applying the latest in data science and vision technology to what is essentially a square footage challenge.

It “freezes” cold air at temperatures as low as -25 to -35 degrees Fahrenheit on up to 5 million pounds of product per day in a single installation, and using only 40 to 50% of the time required in traditional deep-freezing operations. . This exclusive solution, combining storage space and computing, received one of its multiple awards from the Ministry of Energy – and a patent for the company, which has many more, some of which are still in the process of being redesigned. request.

It uses LIDAR and stereoscopic cameras to map facilities to sub-millimeter accuracy, “effectively playing Tetris in the physical world … to design warehouse racks that store products as efficiently as physically possible,” the company explains. .

“At Lineage, we develop and deploy cutting-edge technology and applied sciences to increase distribution efficiency, advance sustainability, reduce environmental impact, minimize supply chain waste and, most importantly, help to feed the world, ”Thattai told CNBC.

“This partnership with 8VC demonstrates our commitment to building sustainable technological platforms and creating long-term economic and societal value. I am excited about what the future holds for the next generation of supply chain and logistics technologies.

Some of 8VC’s best-known investments to date include Palmer Luckey’s start-up Anduril, which is building a virtual border wall, and Dustin Moskovitz’s software company, Asana, which went public in September. The company has also invested a lot of money in healthcare companies like insurer Oscar Health and men’s health company Hims.

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