Zuum Transportation is not seeking a Series A … yet.
Instead, the startup is focusing on the launch of its mobile app, which has been in beta since September. The app is slated for an official debut in May, at which point Zuum might shift focus to securing venture capitalist investors, Mobility Buzz has learned.
“We want to start strong and small and work out all the kinks and beta test in a small market first,” Mustafa Azizi, co-founder and chief executive of Zuum, told Mobility Buzz.
Zuum, through its mobile app, works as a freight broker. The app allows purveyors — a person who sells or deals in particular goods — to work directly with truck drivers and fleets. As an automated platform, Zuum eliminates the need for manual tracking, emailing, and billing during a shipment.
Seeking a Series A would be “dangerous” for a company like Zuum because the company has not developed its app product enough, Azizi said, so the expectations from VCs would be too much. Instead, Zuum is focused on reinvesting any net profit it makes — which so far has been $250,000.
“We are focused on bootstrapping and sweat equity,” he said, and “we are trying to strengthen the board to bring people with expertise and experience.”
The company started in April 2016 with a seed of almost $400,000, Azizi said. This amount does not include a freight broker license — worth $500,000 — that was contributed by Co-Founder Victor Garcia, who owns his own trucking fleet.
The company has several other goals in mind for this year, including introducing a social component to the app, Azizi said. The social component, which is projected to be implemented by year-end, would allow a community to be built for companies and individual truckers to find ways to optimize their fleets and connect with partners.11 - Readers Like This Post