VCs Help Build Supply Chain

Venture capitalist Tim Sensenig tries his best to make the world,or at least the world's supply chains,better.

As the founder of New Meadows Capital, based here, Sensenig helps fund start-ups in the integral supply chain space.

The New Meadows Ventures Fund 1 provided $10.5 million to Global Logistics Technologies, Mercari Technologies, Links2Go, SupplyWorks, WhereNet and eGlobalGroup.

David Beatson's SupplyLinks (l.) got a capital infusion from Tim Sensenig's New Meadows.

The San Francisco-based company plans to establish relationships with freight forwarders, related logistics providers and B2B exchanges around the world to build the infrastructure for its service provider marketplace, Beatson says. "Our strategy is to streamline the supply chain, improve efficiency and reduce costs for our clients," he says.

Like many other venture capitalists, if New Meadows' advisory board doesn't find a start-up that meets a need in the supply chain, they'll build it from the ground up and install their own CEO, Sensenig says.

The problem is that only a small group of people exists with true logistics expertise, Sensenig says. The key is finding executives that understand the complex supply chain algorithms that will keep a company profitable, he says.

Sensenig says he has found only about 30 people that meet that qualification.

The tight-knit group includes Mitch Weseley, CEO of Global Logistics, and Jeff Herrmann, president and CEO of SupplyWorks, Sensenig says.

"It's a pretty close community that has the credibility of executing in the supply chain market," Sensenig says.

A limited pool of available seasoned executive talent poses problems for other venture firms too, says Bill Glynn, partner and director at Southeast Interactive, a venture capital firm specializing in supply chains and e-commerce start-ups.

Like New Meadows Capital, Southeast Interactive also has a stake in retail value-chain company Mercari. Both firms believe Mercari's collaboration merchanidising optimization engine makes the company a smart investment. "With it, you can take the supply chain beyond the distribution hub," Glynn says.

Companies that focus on local fulfillment, optical networks and wireless technologies will make supply chains more efficient and could make strong venture investments, Glynn says.

Being the first and the biggest and able to make decisions on the fly are important for supply chain start-ups, he says.

"I [tell supply chain executives], 'Run as fast as you can. Grow fast now. There is no tomorrow,' " Glynn says.

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