Investments in the Transportation Industry

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Investments in the Transportation Industry

The estimated average size of Series A investments in the rail transportation sector across US and Canada is $9.8 million. The estimated average size of Series A investments in the general transportation sector across US and Canada is $4.8 M and average size of Series B investments across the general transportation sector is $15.7 million.

  • The estimated average size of Series A investments in the rail transportation sector across US and Canada is $9.8 million. This estimate was reach via a calculation explained below.
  • The estimated average size of Series A investments in the general transportation sector across US and Canada is $4.8 million and average size of Series B investments across the general transportation sector is $15.7 million. These estimates were reached via a calculation explained below.

Research Strategy

To find relevant companies in rail transportation US and Canada, we searched through respected databases such as Crunchbase, Owler, VCC Circle, Business Insider, Pitchbook, Angel.co, etc. We selected a random sample of companies listed at these sources that have raised capitalvia Series A and B investment rounds.


CALCULATION RAIL COMPANIES

FreightWaves — US

Idle smart — US

Effenco — CANADA

New York Shipping Exchange (NYSHEX) — US


Final calculation for Series A funding for Rail Companies

  • Taking an average of the Series A funding rounds of the above company 13+1.2+12+13/4 = $9.8 million.
  • Hence, the estimated average size of Series A investments in the Rail transportation sector across US and Canada is $9.8 million.

CALCULATION TRANSPORT COMPANIES

Emailage — US

Transit — Canada

Bus.com — Canada

Final Calculation for transport company funding

  • Series A- 5.7+5+3.8/3 = $4.8 million
  • Series B- 10+17.5+19.6/3 = $15.7 million
  • Hence the estimated average size of Series A investments in the general transportation sector across US and Canada is $4.8 million.
  • The estimated average size of Series B investments in the general transportation sector across US and Canada is $15.7 million.


ME THODOLOGY

Unfortunately, we were not able to find a large enough sample size of Series B investment totals in the rail industry to make a high-confidence estimate of the average Series B investment in that industry (rather than the transportation industry as a whole.)

We first looked for the info by checking financial intelligence databases like CrunchBase, pitchbook, StartupDdirectory, MatterMark, Priv co, Tracxn, etc. We hoped to find the data on the equity position of these companies. However, we were only able to find out the funding info on these companies and other financial info like revenue, etc.

We then checked for info on transportation funding in the US and Canada into sources like PRNewswire, Business Wire, and Finance Yahoo, among others. We found data on VC funding transportation companies in US and Canada that had details on the funding amount and how the investment will be used but nothing specific was revealed on the equity position of the identified companies nor any common metric that could be presented as an average across the industry.

We then directly looked into websites and larger web presences of the companies identified in the earlier stages of research. We selected Emailage, Transit, Bus.com, FreightWaves, and others. Found information on equity positions of several of these companies, but this information rarely differentiated between rounds of funding in discussing fundraising.

We then checked the SEC filings of the identified companies to find out if any information on equity positions. However, none of the SEC filings had data on equity positions.

Thinking creatively, we tried backtracking from the investment data to look at the web presences and press releases of the companies that stood out as major investors in the rail companies identified earlier. We used investment databases such as 8VC, Fontalis Partners, Hunt Technology, Edward Frindt, BDC Venture Capital, GE Ventures, Goldman Sachs Principal, Strategic Investments, to identify rail industry investors. We then tracked down press releases and articles from and about these companies in the hope that some mention of average total investments might emerge or at least enough data to make a robust calculation. However, this strategy also failed to produce enough information.
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Sources