Northbound secures 1.3 million euros in pre-seed financing

Northbound aims to improve operational control in the container supply chain and reduce penalties with €1.3 million in pre-seed funding

Berlin, July 10, 2024 - Berlin-based start-up Northbound has successfully closed a €1.3 million pre-seed funding round to further develop its Software-as-a-Service solution. The funding was led by Apex Black, with participation from id4 ventures, IBB Ventures, Schenker Ventures, MVP Factory and several prominent business angels.

Container supply chain

Northbound is developing a platform that optimizes the operational process within the container supply chain. The startup aims to improve the flow of goods from port to warehouse while reducing penalties such as demurrage and demurrage charges. Northbound's solution helps companies avoid inefficiencies and errors that often lead to millions of euros in penalties and late deliveries.

International importers often face millions in penalties from D&D fees without any real control over them.

Andreas Canel, co-founder and CEO of Northbound

"International importers often face millions in finesfrom D&D charges without any real control over them.Large shipping companies benefit from these fees and have little incentive to change. Our vision is to empower importers to independently prevent these fees through active control and automated optimization of container flows," explains Andreas Canel, co-founder and CEO of Northbound.

Northbound's platform offers an intuitive dashboard that provides real-time data on the location, status and upcoming D&D charges of containers. This enables prioritized and coordinated management of container shipments, optimized flows of goods and delivery commitments met.

First pilot customers satisfied

With the new funding, Northbound plans to expand the AI capabilities of its platform, strengthen the team with key positions in go-to-market and software development, and attract additional customers. Northbound has already validated the scaling of its software solution with the support of its financing partner DB Schenker. Initial pilot customers, including a leading German sporting goods manufacturer, were able to show that over 90 percent of D&D costs could be avoided within two months thanks to increased cost transparency and optimized control. Northbound's AI algorithms automatically flag incorrect invoices, enabling disputes on up to 20 percent of all invoices and preventing unjustified payments.