Warehouse Exchange Wins $2.2M Seed Funding|
May 29, 2020
Exchange (aka WEx), a flexible, on-demand
warehouse platform powered by artificial
intelligence (AI), closed a $2.2 million USD
seed funding, including investments by major
real estate firms including Xebec Realty.
Private investors from notable e-commerce,
retail and distribution companies also
participated in the round.
"Warehouse Exchange offers the unique
combination of technology and supply chain
expertise that will deliver a unique digital
marketplace," said David Thomas, Principal
at LBA Realty. "The company uses technology
to address the current inefficiencies in
warehouse inventory usage and gives
corporate users flexibility in length of
term and size of warehouse space."
Warehouse Exchange has also added operator
and investor Richard A. Moran as a strategic
advisor. His experience includes serving as
a Managing Partner at Accenture where he was
a leader in the Change Management Practice.
He served as the CEO of Accretive Solutions,
as a Partner at the Venture Capital firm
Venrock, and as President of Menlo College.
Commercial real estate experts Jones Lange
LaSalle project that 30 percent of warehouse
space leased in the next ten years will be
flexible space. Accelerated by the COVID-19
pandemic, the world is experiencing seismic,
systemic shifts in the supply chain and
warehousing industries. According to
Warehouse Exchange customer research, the
current supply of warehouse space doesn't
work for a new generation of entrepreneurs
leading e-commerce companies and managing
small businesses nationwide.
are three main hurdles for small business
owners in finding warehouse space today --
painful lease requirements, outsized space
minimums, and restrictions on access to
their inventory. Warehouse Exchange solves
these challenges for customers looking to
buy space," said Grant Langston, CEO of
Warehouse Exchange. "We also help warehouse
owners quickly monetize their underutilized
space, getting premiums over market rate.
Our vision is to bring advanced technology
to the warehouse industry so we can reinvent
the business, similar to what Airbnb created
one of the world's largest marketplaces for
unique, authentic places to stay."
Warehouse Exchange provides a solution with
its advanced, digital marketplace that
empowers e-commerce companies and small
businesses to quickly find warehouse space
at lower costs with shorter time
commitments, typically under a year.
Co-founded in 2017 by Jonathan Rosenthal,
CEO of Saybrook Management, and Dan
Pimentel, previously CFO/COO of startup Hub
TV, Warehouse Exchange has had 22,000 buyers
search for space on their site over the last
18 months, with buyers and sellers in
California, and other states coming soon.
Warehouse Exchange plans to use the funding
to hire additional talent at its Los Angeles
headquarters, build out its advanced AI
algorithm and technology platform as well as
invest in its marketing and sales processes.