Energize is proud to lead the $20 million Series B investment in Sourcemap, marking our second investment in the supply chain mapping and monitoring software. We are joined by the E14 Fund, an existing investor. Energize’s Juan Muldoon maintains his position as a board director for Sourcemap, and Energize principal Eileen Waris will remain a board observer.
We’re excited to use this latest funding round to support Sourcemap in adding business-critical solutions to their suite of supply chain traceability software and strengthening their global presence.
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When we first invested in Sourcemap in early 2022, we believed the supply chain traceability market was prime for enduring growth. A year later, our conviction has only grown stronger. As supply chain concerns such as forced labor and deforestation make headlines and more due diligence regulations are enacted globally, the need for intelligent end-to-end supply chain mapping, real-time risk monitoring and business continuity planning grows more and more apparent.
For example, of the approximately 2,000 shipments subjected to Uyghur Forced Labor Prevention Act (UFLPA) reviews in the U.S. so far in 2023, nearly 15 percent, have been denied due to UFLPA violations. Sourcemap has stepped up to the challenge, helping customers adhere to the UFLPA, which prohibits the importation of goods, notably cotton, from the Xinjiang region of China. Their enterprise software solution allows customers across sectors to de-risk their global supply chains by safeguarding against social and environmental concerns and ensuring uninterrupted production.
As more regulations have swept across North America and Europe, Sourcemap has experienced unprecedented growth in the last year. In the 12 months following their Series A financing, the New York-based software provider added 100 brands to their customer base, bringing their total customer count to over 250 brands, spanning sectors from food and agriculture, to consumer packaged goods (CPGs), to energy.
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As experienced climate tech investors, the Energize team is particularly excited for Sourcemap’s applications within the energy sector. We view Sourcemap’s use case for UFLPA regulations as a telling example of what’s to come for the energy industry, especially for renewables and electric vehicles (EVs). Many of the Inflation Reduction Act’s (IRA) provisions require energy companies to trace their supply chains back to their source in order to receive incentives, emphasizing the link between resilient and responsible sourcing and our sustainable energy future.
As countries and corporations aim to ramp up renewable energy production to meet net-zero goals and curb climate change, supply chains for photovoltaic solar panels remain opaque, and sourcing and labor concerns have made deploying solar more difficult in the last year. Meanwhile, new U.S. policies are allotting tax credits for EV original equipment manufacturers (OEMs) that can meet materials sourcing and manufacturing requirements. We believe Sourcemap is well positioned to serve as the partner of choice for the energy industry as customers work to adapt to these new rules and governance measures. Just as Sourcemap has helped guide the food and textile industries through cocoa and cotton regulations, the software company is poised to help energy companies find new solutions to emerging challenges.
This latest round of funding will help Sourcemap continue to double down on their existing focuses – including their European presence and their prominence in the food, retail and CPG industries – while expanding into new verticals and supporting emerging supply chain trends in the energy, mobility, electronics and life sciences sectors. It will also enable them to continue innovating and enhancing priority software solutions, such as deforestation tracking and supply chain traceability for Scope 3 greenhouse gas emissions. Congratulations to CEO Leonardo Bonanni and the full Sourcemap team – we’re looking forward to continuing to work together to help ensure sustainable global supply chains!
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