Warehouse Exchange (aka WEx), a flexible, on-demand warehouse platform powered by artificial intelligence (AI), today announced the closing of $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.
“There 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.
