Thinking About Thinking

Why Volition Capital Invested In Globaltranz

Posted in Founder-Owned Businesses, Growth Equity, Technology, Volition Capital by larrycheng on January 13, 2011

Volition Capital announced a $10M investment in Globaltranz this week.  We couldn’t be more excited about the investment so I thought I’d share a little bit about why.  Globaltranz enables small businesses to go online to comparison shop and procure freight capacity – most notably trucking and other modes of transport.  It is somewhat analogous to how consumers use Expedia or Orbitz for airline travel, but in Globaltranz’s case, the end customers are businesses that are procuring freight.  Next time you’re driving on the road, look around at the trucks on the road – Globaltranz probably had a hand in putting cargo on that truck. 

The value proposition is very simple.  Globaltranz offers more selection and better rates to small businesses that ship goods.  In tougher economic times, the ability to save money on non-core functions like shipping is really valuable to small businesses.  On the flip-side, Globaltranz offers freight carriers (e.g. trucking companies) a low cost way to reach the small business customer.  It’s too expensive for carriers to sell small businesses direct, yet they certainly value additional volume given the fixed-cost nature of their business.  The value is very clear to all parties which is probably why the company is growing so aggressively. 

Globaltranz represents exactly the kind of company that Volition loves to invest in.  They are high growth: ~100% year-over-year growth for a number of years in a row.  They have a sizable and diversified revenue base.  They are bootstrapped: having never raised any institutional capital throughout the company’s history.  They are led by an experienced and dedicated management team.  And they have aspirations for greatness: their stated goal is $1 billion in revenue which given the size of this market is attainable.  They have accomplished a lot without any investment, and it is our hope that through our partnership and capital, the company will achieve even greater heights going forward. 

Needless to say, we are very pleased to be the first institutional investor in Globaltranz. 

2 Responses

Subscribe to comments with RSS.

  1. Adrian Meli said, on January 20, 2011 at 7:39 pm

    Larry, interesting re: Globaltranz. I am curious if you see the market limited to smaller business or whether this could affect/take share from the freight forwarders longer term? Definitely an intriguing concept. Thanks, Adrian Meli

  2. casimir capital said, on September 26, 2011 at 7:01 am

    Venture capital is monitory capital given to at the begging stage, high-potential, high risk, growth startup companies. Venture capital is also related with work creation accounting for 22% of US gross domestic product the awareness wealth, and utilized as a proxy action of creation within an economic division or natural features. Venture capitalists are usually very selective in determining what to invest in; as a rule of thumb, finance may spend many chances presented to it. Running a work and one of the aspects that business creation gets most daunting is mobilizing start-up capital.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 90 other followers

%d bloggers like this: