Financial giant Goldman Sachs is investing $60 million in Dallas-based Slync.io to help the logistics software company expand.
Slync.io, which left San Francisco for a new home in Dallas in June, got the Series B funding through the Goldman Sachs Growth investment division. The funding is intended to give proven companies the assets to grow from startups to serious market competitors.
Slync.io’s mid-pandemic departure from California left it without an actual headquarters, but CEO Chris Kirchner and many of its employees already have relocated to North Texas.
“A good portion of this investment will be making Dallas home,” Kirchner said. “We are looking for a headquarters office and we are hiring people to support what we do.”
Goldman Sachs Growth organizes small business investments targeting high-growth companies that already have some customers but need capital to expand. Slync.io earlier received an $11 million investment in a round that included ACME Ventures, 235 Capital Partners and Correlation Ventures.
Now it’s working to move beyond the startup stage.
Slync.io’s focus is on providing back-end software to major logistics and shipping companies.
“When people think about software startups, or Silicon Valley-based companies, they think of buzzwords like apps and hardware,” Kirchner said. “We are far more focused on basic things.”
Slync.io’s software helps track and analyze shipments, and the company is working with major shipping and freight companies such as BASF and DHL in Germany and large firms in Japan. The new funding should help Slync.io grow those relationships and acquire new customers.
The shipping and freight business is one of the oldest and most mature on the planet, but is sometimes still working with antiquated systems, Kirchner said.
“It’s hard to understand those businesses, but to put in more structure and more organized processes with a better software system, we can make them more efficient,” he said.
Slync.io is focused on finding a new headquarters building. Kirchner said the company is looking for space near DFW International Airport, which already has a large number of nearby shipping, distribution and manufacturing firms.
The company also is hiring software engineers, a chief revenue officer and people to help manage customer relationships. The firm had 50 employees in December, but it hopes to be up to about 175 by the end of 2021.
Slync.io’s move was prompted by an expiring office lease in San Francisco and the need to relocate somewhere with a better business tax climate and better quality of life for employees than the Bay Area.
Being in California was essential as a startup, Kirchner said, but Slync.io was able to look elsewhere after becoming established.
“The taxes, the regulation, the employment law, everything is incentivizing business owners to leave,” Kirchner said. “When you look at the quality of life, we want a place that’s great for our people to live.”
With the Goldman Sachs’ investment, the bank’s John Giannuzzi is taking a place on Slync.io’s board of directors. Dallas-Fort Worth is one of Goldman Sachs’ largest employment centers outside New York. It has more than 2,000 employees in downtown Dallas and Richardson.
The supply chain management software market is projected to grow to just under $9 billion by 2024.
Last year, Dallas-based o9 Solutions received a $100 million investment from private equity giant KKR that values the software company at more than $1 billion. Its cloud-based software uses artificial intelligence to help clients forecast demand for products by analyzing data from external sources, such as customer demographics and weather, and applies that to supply chain operations.