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Supply chain management software startup Slync<\/a>, which was at one point valued at $240 million, hasn\u2019t had the easiest go of it lately.<\/p>\n Slync\u2019s founder, Christopher Kirchner, was charged<\/a> by the Justice Department and Securities and Exchange Commission (SEC) this month for misappropriating $20 million from the company to fund a lavish lifestyle, including a $16 million private Gulfstream jet, pro golf tournaments, a $495,000 luxury suite at a local sports stadium and failed bids<\/a> for English soccer clubs. He told private bankers that the $20 million, which amounted to 40% of the $50 million Slync raised from angels and venture firms, represented \u201ca distribution from my company\u201d \u2014 a distribution that Slync\u2019s board of directors never authorized.<\/p>\n Meanwhile, some<\/a> of Slync\u2019s staff went months<\/a> without pay. The company fell behind on payments to vendors and the NHL\u2019s Dallas Stars \u2014 which Slync was sponsoring at the time \u2014 as well. During all this, the startup lost its chief marketing officer, chief revenue officer and chief financial officer.<\/p>\n Understandably, Slync has made a concerted effort to distance itself from Kirchner \u2014 and it\u2019s had some success, seemingly. According<\/a> to filings with the SEC, Slync raised around $24 million \u2014 a combination of equity and debt \u2014 in January. We reached out to the company for more information, and Greg Kefer, the chief marketing officer, agreed to an email interview.<\/p>\n Off the bat, Kefer refused to answer questions pertaining to Kirchner, save that he was suspended from his position as Slync\u2019s CEO in 2022. Kefer referred me to this statement:<\/p>\n We are aware of FBI activities related to an ongoing federal investigation into the personal activities of Slync\u2019s former CEO, Christopher S. Kirchner \u2026 Slync is cooperating with the government in its investigations and, as a victim of Christopher Kirchner\u2019s actions, looks forward to a just resolution of this matter. This investigation is not the company\u2019s primary focus. We have moved on with our new CEO, John Urban, and are focused on delivering next-generation technology to the global logistics industry.<\/p>\n<\/blockquote>\n Kefer disclosed that Goldman Sachs led Slync\u2019s latest round (with participation from\u00a0Blumberg Capital, ACME Ventures, Gaingels) and \u201cremains committed to the Slync value proposition,\u201d despite the recent turmoil. He also said that the company has plans to expand the team \u201csubstantially\u201d over the next year and that annual recurring revenue is \u201cgrowing rapidly,\u201d although he wouldn\u2019t divulge the size of Slync\u2019s customer base.<\/p>\n Kefer claims that the new cash will be primarily put toward \u201cexpanding the scope\u201d of Slync\u2019s technology beyond containerized freight, air freight and specialty cargo processes \u2014 its current focuses. To date, Slync has raised a total of more than $100 million in venture debt and equity, excepting a loan it received as a part of the U.S. Small Business Administration\u2019s Paycheck Protection Program<\/a>.<\/p>\n \u201cObviously the fact that we just raised $24 million helps us weather a lot in the coming months,\u201d Kefer said. \u201cBut this infusion of funds is also an indication that our investment partners see the potential in Slync\u2019s technology.\u201d<\/p>\n So what is Slync\u2019s technology?<\/p>\n At a high level, Slync connects disparate shipping and logistics systems, ingesting and processing data to (ideally) automate various repetitive processes. Drawing on a range of data sources including enterprise resource management systems, customer relationship management systems, and transport management systems, visibility service providers, email, PDFs and spreadsheets, Slync attempts to highlight key information for users, offering collaboration tools and \u201crole-based\u201d workflows for communicating and sharing that info.<\/p>\n \u201cSlync provides a technology platform that allows large global shippers to finally do away with manual processes that continue to plague the logistics industry. There\u2019s a lot of tech out there, and that\u2019s part of the problem, because it\u2019s created disconnected silos of data and operational tools,\u201d Kefer said.<\/p>\n But lots of startups do the same. By one estimate<\/a>, the market for supply chain management software was valued at $15.8 billion in 2022.<\/p>\n Tive<\/a> and Altana<\/a>, firms developing supply chain visibility tools, recently raised $54 million and $100 million, respectively. Supplier experience management platform HICX landed<\/a>\u00a0$30 million not long after, and\u00a0FourKites<\/a> \u2014 which helps manage global freight shipments \u2014 nabbed its own recent $30 million tranche as part of an earlier-announced, strategic partnership with FedEx.<\/p>\n Kefer argues that Slync can stand out \u2014 and succeed \u2014 in the crowded field, but color me skeptical. Setting aside the fact that hiring might be a challenge, given the company\u2019s historical payroll issues, Slync\u2019s latest funding tranche was only a fraction of the size of the previous, all-equity tranche \u2014 suggesting Kirchner casts a long shadow. And while logistics companies were the VC darlings<\/a> of 2021 into mid-2022, funding has slowed considerably<\/a> since then.<\/p>\n For what it\u2019s worth (and to Kefer\u2019s earlier point), Goldman Sachs hasn\u2019t stepped away. Darren Cohen, a partner there, had this to say when contacted for comment:<\/p>\n \u201cDuring the COVID pandemic, loaded container ships anchored offshore and empty store shelves showed everyone what happens when the international supply chain breaks down. We believe the Slync platform provides an innovative solution that brings the global logistics industry fully into the digital realm. The value of this technology is significant in our opinion.\u201d<\/p>\n<\/p><\/div>\n\n