Prewave Secures $67 Million in Funding to Enhance AI-Driven Supply Chain Intelligence

In 2023, Prewave reported a threefold increase in revenue, illustrating the growing demand for sophisticated supply chain solutions amid evolving global challenges. The startup's technology aims to address the persistent issues of supply chain disruptions, which range from natural disasters to labor disputes. These disruptions have long plagued businesses, often costing them between 6 to 10 percent of their annual revenues.

Recent geopolitical instability, workforce shortages, and inflation have exacerbated these supply chain risks. Moreover, the increasing regulatory demands across Europe and globally are compelling companies to comply with complex reporting and compliance standards. These include the EU’s Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CS3D), along with national regulations such as the Dodd Frank Conflict Minerals Provision in the US, Loi de Vigilance in France, Lieferkettengesetz in Germany, and VSoTr in Switzerland.

Prewave addresses these challenges by leveraging the power of AI to deliver what it describes as "supply chain superintelligence." This technology not only makes supply chains more transparent, compliant, and resilient but also streamlines the management of a wide array of risks. Harald Nitschinger, Co-founder and Managing Director at Prewave, elaborates on the company's vision, stating, "We founded Prewave because we are convinced that data and AI can play a major role in making supply chains more transparent, resilient, and sustainable – and help to power the vital currents of global economic progress. We believe that in the face of rapidly accelerating regulatory complexity, businesses shouldn’t be aiming to take a tick-box approach, but to use regulatory compliance as a vehicle to become more resilient."

Founded in 2017, Prewave’s platform automates the identification and management of approximately 140 types of global risks. This capability enables businesses to foster more transparent, compliant, and resilient supply chains. The system automates the mapping, scoring, and monitoring of millions of nodes within supply chains. Utilizing a robust AI engine, it detects risk signals from various data sources, including news and social media content in over 400 languages, company certifications, annual reports, and government data feeds.

Prewave provides real-time predictive and reactive alerts, accompanied by recommended actions for customers to manage their supply chains, risky suppliers, and sub-tier networks. The platform’s comprehensive approach integrates all supply chain risk scenarios, enabling effective end-to-end risk management throughout the lifecycle, from identification and mapping to prioritization, mitigation, and reporting and control.

Sabina Wizander, Partner at Creandum, highlights the critical nature of this technology, especially in today's volatile market environment: "We saw during the pandemic how vulnerable global supply chains can be. Full supply chain visibility is a top C-suite priority especially given expanding regulations, geopolitical instability, and climate change. Prewave has the best product to meet this business need, as shown by the traction it is getting with customers. They have strong momentum and this new investment is going to help turbocharge their growth."

With this new round of funding, Prewave aims to further solidify its position as a leader in AI-driven supply chain risk intelligence, offering innovative solutions that not only meet but anticipate the needs of modern enterprises navigating complex global landscapes.