NYSHEX Announces First Close of Series C Funding Round Led by Collate Capital, Collaborating with ICE to Launch New Freight Rate Indices
20 November 2024 - 10:00PM
Business Wire
The New York Shipping Exchange (NYSHEX), a leader in digital
contracting and performance management for the container shipping
industry, is excited to announce the first closing of its Series C
funding round, led by Collate Capital. The round attracted
significant participation from all major existing investors,
including Growth Equity at Goldman Sachs Alternatives, NewRoad
Capital, and Blumberg Capital. Intercontinental Exchange
(NYSE:ICE), one of the world’s leading exchange operators, also
participated in the round, solidifying a strategic collaboration
with NYSHEX aimed at introducing freight rate indices for the
shipping industry.
As part of the collaboration, NYSHEX will launch a series of
freight rate indices in 2025, with ICE serving as the calculation
agent for these indices. ICE’s expertise in global markets will
further enhance the credibility and reliability of the NYSHEX
indices.
Gordon Downes, CEO and co-founder of NYSHEX, expressed his
enthusiasm for the collaboration and funding round, saying, “We are
delighted to have completed the first close of our Series C and to
welcome ICE as a shareholder. Our collaboration with ICE and the
additional capital allows us to expand upon our services. Firstly,
we will launch a new set of indices based on actual cargo moving
rates, which will be transparently governed by industry
representatives, and will be freely available for all carriers,
shippers and NVOCCs to use for their index linked contracts.
Secondly, we will launch supporting technology making it much
easier for carriers, shippers and NVOCCs to administer their index
linked contracts, regardless of which index their contracts are
linked to.”
Zach Fields, an investor with Growth Equity at Goldman Sachs
Alternatives, who led NYSHEX’s Series A and invested in NYSHEX’s
Series B and C said, “as we see the container shipping industry
moving toward index linked contracts, there is a growing need for
ways to hedge the volatility of container spot rates. As we help
our clients to manage their freight risk, we fully support NYSHEX
in developing more robust indices that will benefit all shippers,
carriers and NVOCCs.”
Stuart Williams, COO of ICE, echoed this sentiment, emphasizing
ICE’s commitment to fostering efficiency in global markets: “The
container shipping industry is vital for global trade, yet it
remains an inefficient and volatile market. For over two decades,
ICE has worked with our customers to develop a network of liquid
and interconnected markets that provide the price transparency and
risk management tools needed to manage evolving supply chain and
geopolitical risks. We recently launched ICE Digital Trade (IDT) to
support the global shipping industry, and our partnership with
NYSHEX is a further step in that direction.”
The Series C funding round and the strategic collaboration with
ICE position NYSHEX for accelerated growth and greater impact
within the container shipping sector. By providing tools to manage
market volatility through innovative indices, NYSHEX and ICE are
poised to deliver a new level of visibility and efficiency for the
industry.
Mark Weaver, Managing Partner at Collate Capital, the lead
investor, commended NYSHEX's execution and strategic vision: “We
are very impressed with how NYSHEX has delivered on their strategy
and with the influential role they play in the container shipping
industry. The forthcoming NYSHEX indices, coupled with the
involvement by ICE, mark an exciting development that will serve
both NYSHEX’s members and the industry at large.”
About NYSHEX The New York Shipping Exchange (NYSHEX) was
founded in 2015 to solve the problem of poor contract fulfillment
caused by misaligned incentives and disconnected execution. This
results in $23 billion of economic waste that impacts all shippers,
carriers and NVOCCs. NYSHEX offers shared digital infrastructure
that helps to align incentives, connect execution, strengthen
relationships, and reduce manual work.
NYSHEX’s Proactive Performance Management (PPM) technology helps
users to jointly manage allocations and plans, and to be alerted in
real time when any shipment goes off plan. The NYSHEX indices make
it easier for everyone to use contracts linked to an index, which
removes a carrier’s incentive to curtail allocations when spot
rates rise above contract rates, and a shipper’s incentive to shift
volumes when spot rates drop below contract rates.
About ICE Intercontinental Exchange, Inc. (NYSE:
ICE) is a Fortune 500 company that designs, builds and operates
digital networks that connect people to opportunity. We provide
financial technology and data services across major asset classes
helping our customers access mission-critical workflow tools that
increase transparency and efficiency. ICE’s futures, equity, and
options exchanges – including the New York Stock
Exchange – and clearing houses help people invest, raise
capital and manage risk. We offer some of the world’s largest
markets to trade and clear energy and environmental products. Our
fixed income, data services and execution capabilities
provide information, analytics and platforms that help our
customers streamline processes and capitalize on opportunities. At
ICE Mortgage Technology, we are transforming U.S. housing
finance, from initial consumer engagement through loan production,
closing, registration and the long-term servicing relationship.
Together, ICE transforms, streamlines and automates industries to
connect our customers to opportunity.
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version on businesswire.com: https://www.businesswire.com/news/home/20241120284613/en/
NYSHEX Media Relations Kristin Langdon,
kristin.langdon@nyshex.com
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