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Overview
With dexFreight, users can find loads and capacity, negotiate online with multiple parties simultaneously, cryptographically sign agreements using smart contracts, and share electronic documents. Additionally, users can track shipments in real-time, settle transactions, and complete payments, effectively digitizing and automating the whole shipment lifecycle. dexFreight is complementary to TMS/FMS, ELDs, and loadboards. Our network is using web3 infrastructure to virtually consolidate the logistics industry while enabling the right tools to better utilize today’s existing capacity.
Our Vision: Be the facilitating force that coordinates world logistics, encourages collaboration and incentivizes a fair equitable distribution of value.
Our Mission: Build the universal decentralized, open-source network that enables collaboration and facilitates the coordinated movement of goods while bringing liquidity to the supply chain.
The Problem
We are working to solve the two major problems of the logistics industry: fragmentation and lack of liquidity.
Fragmentation
We are initially focused on the trucking segment of the logistics industry, this $790B segment (source) in the U.S. is made up of 900,000+ trucking companies, 91% of them running 6 trucks or less. (source) 17,000+ freight brokers and millions of shippers, all using different Transportation Management Software (TMS), Fleet management software (FMS), load boards, electronic logging devices (ELDs) and other individual systems, which causes each individual company to function in its own closed network. This results in a lot of waste, (source) with 1 out of every 4 trucks running empty. Loads and capacity can not be efficiently matched, much less optimized if they live in different networks and cannot see each other. While there is a lot of discussion about the driver shortage being the root cause of the inefficiencies, we believe the solution starts by better utilizing our current active capacity.
Lack of Liquidity
In order to get paid quickly, trucking companies often end up selling their invoices with unnecessarily high interest rates.
Normally, trucking companies get paid after 37 days of providing their services. In the meantime, truckers have to pay for gas, tolls, and other expenses, causing cash flow issues. Given that most of these trucking companies are small businesses, they often solve their cash flow issues by factoring in their receivables for a 3% fee.
The Solution
Reaching real optimization in trucking and logistics can not be done at scale with multiple siloed platforms competing for data and market share capture. dexFreight is bringing optimization through a cooperative backend, where carriers, freight brokers, shippers, and other industry service providers like ELDs, TMS, and load boards can connect and exchange live market information safely, experience cross-company workflow automation through the use of smart contracts, and most importantly, preserve the privacy and ownership of their data. This is the solution to the multi-billion dollar empty mile problem. (Source)
Since every agreement in dexFreight is cryptographically signed by the transacting parties, a digital representation of each rate confirmation is created using NFTs or non-fungible tokens through our patent-pending technology. These digital assets with a defined dollar value are used as collateral to source liquidity in the deFI (decentralized finance) ecosystem, giving users access to immediate, cheaper, and programmable financing options, effectively getting carriers paid as soon as they deliver, hence solving the liquidity problem.
The Market
Even though dexFreight is designed as a global scalable platform for multiple modes of transportation, our initial focus is the US trucking market:
TAM: 2019 Domestic US Trucking market $791 billion USD (source)
SAM: For-hire full truckload market is $360 billion USD (source)
SOM: Our 5th year goal is to process 2% of the for-hire full truckload market, $8 billion (USD) by year 2025 in the US.
Our Traction
In 2020, 16.5 million shipments were posted in dexFreight worth over $18 billion dollars giving plenty of options to carriers in the network, as a result over $2.1 million in freight spend were booked and processed on dexFreight.
In July 2020, we launched the beta version of our decentralized invoice financing solution “dexFI” (patent pending), this service is valued by carriers and brokers so much that 12% of all transactions were financed using it, generating $328K in topline revenue.
In Q3 2020 we added drayage to our marketplace, this functionality helps to streamline the process of moving containers between ports, ramps, and warehouses. This service was well received by our users since it helps them deal with the port congestion and capacity crunch caused by the COVID-19 pandemic. (Source)
We are currently working in partnership with Hutchison Ports ICAVE, the operator of Port of Veracruz, to release our drayage functionality as the spearhead for the Mexican market. (Source) Hutchison Ports is one of the largest port operators in the world. Veracruz, one of the 5 ports they operate in Mexico, moves over 1.12 million twenty-foot equivalent units (TEUs) making it the third busiest container port in Mexico and the most important in the Gulf of Mexico. (Source)
Today, we have over 2,700 companies registered in the network. Our main focus is to accelerate adoption through strategic partnerships with other freight-tech platforms and through the release of features and incentives for carriers to book loads already available in dexFreight.
Throughout the journey of developing dexFreight, we have played an important role in educating the industry about the potential of blockchain technology. As thought leaders, we have been speaking at some of the most important events for the freight and blockchain industries, including SXSW, MarketWaves, Transparency 19, BITA, TIA Conference, LaBitConf, Blockchain Academy Mexico, SmartFlorida (formerly known as Florida Blockchain Foundation).
Our efforts have been rewarded with nominations to multiple awards:
At the end of 2019 we were selected among 225 competing companies for the 500 startups Miami Growth Program, and successfully graduated in batch #2. More recently we have completed the Endeavor scale-up program in Q2 2021.
We are also proud to be included in the World Economic Forum’s whitepaper, highlighting the deployment of blockchain for supply chains (Source).
As entrepreneurs solving some of the most challenging problems in logistics, we are often trying technologies not necessarily available to the general public. Forging partnerships and closely working with the teams behind these innovations, is critical to evaluate and successfully implementing them. Here are some examples:
MakerDAO, Centrifuge, Ocean Protocol, Chainlink, RIF Blockchain Solutions, RSK, Money on Chain, TruckerCloud, TruckPark, TAI TMS, Port community of Veracruz.
It is very important for us to deeply understand our customers, and actively participate in industry discussion, being part of industry associations helps us achieve those goals, here are some of the associations we are members of: Blockchain in Transport Alliance (BiTA), and the Florida Blockchain Foundation (FBF).
What We Do
We are taking to market a FinTech-enabled logistics market network, and the necessary underlying web3 infrastructure (decentralized protocols and peer-to-peer communication layer), to enable freight-tech companies to safely exchange real-time loads and capacity availability, while preserving the ownership of their data.
In the dexFreight market network, users can…
Find loads and capacity
Negotiate online
Verify the reputation of counterparties
Establish agreements and rate confirmations using smart contracts
Share electronic documents
Track shipments
Settle transactions and complete freight payments.
Our mobile application, available in both Google and Apple stores, is designed for drivers and owner-operators to manage the whole shipment life cycle, providing smart routing, recording geofenced events, and collecting signatures for documents like bill of ladings, proof of delivery, etc. These events trigger the workflow in the smart contract automating processes between companies from booking to payment.
Machine-Learning Algorithms
Instead of reaching out to brokers for their available loads or posting trucks in multiple load boards spending hours hoping to find a match, carriers can use dexFreight machine-learning algorithms that automatically find the best loads for their equipment.
ELD Providers
Our platform is connected with 80% of the ELD providers so the network knows the position of the equipment in real-time, and the driver's location relative to their HOS (hours of service) clock for better load matching.
Smart Rate Confirmation
One of the most important innovations is our Smart Rate Confirmation. Using smart contracts once the terms and conditions are set and signed by the parties, it secures them in the blockchain so they cannot be changed without your approval and electronic signature. These agreed terms and conditions will self-execute, meaning if users deliver according to terms, your payment will be executed as agreed.
The Business Model
Different from other platforms, dexFreight does not extract rent from every transaction. Our freemium business model focuses on optimization at scale, allowing users to match loads and capacity at no cost while delivering value-added solutions through premium services and SaaS tools including:
Quick payment to carriers is now more important than ever before with shippers and carriers competing for capacity. dexFi, a patent pending low-cost alternative to invoice factoring, enables our users to pay carriers as soon as they deliver without compromising their cash flows.
How We Are Different
A smart contract is a computer program that contains the terms of the agreement between parties directly written into lines of code. The code and the agreements contained therein, exist across a distributed, decentralized blockchain network and are intended to automatically execute, control and document relevant events and actions. As a result, transactions are trackable and irreversible.
We are using this powerful technology to facilitate transactions between freight companies that don't necessarily know or trust each other. By providing an immutable performance-based reputation system and standardized business rules, we reduce the cost associated with slowly building business-to-business trust, which usually relies on unenforceable legal agreements like rate confirmation sheets.
At a larger scale, we used the same principles to implement the necessary protocols to create an open logistics network; designed as a network of networks for freight-tech companies to exchange live market information (real-time loads and capacity availability). This enables end-users to book shipments across multiple networks without having to leave the platform or systems they currently use. This is the solution to the walled garden problem, where shipments and capacity can not be matched because they reside in siloed networks.
This open network combines all available loads and capacity, enabling freight-tech companies to leverage the full power of machine learning algorithms to match and optimize at scale, removing the inefficiencies of the system and gradually reducing empty miles driven by trucking companies. Furthermore, they can develop new products and services to their customers by leveraging the booking to payment functionality powered by blockchain-based agreements and payment rails.
For Techies
The Vision
dexFreight's vision is to simplify logistics for a better world by enabling coordination at scale, encouraging collaboration, and incentivizing a fair and equitable distribution of value.
We plan to expand globally with the 2022 release and rollout of the Spanish version of our Web 2.0 platform in Latin America. By 2023, we expect to reach 1 million full truckloads and drayage shipment processing with freight spend over $1 billion.
By 2025, dexFreight aims to process $8 billion in freight spend on shipments from booking to payment. By then, we will be a global technology player in the logistics industry servicing additional verticals with presence in the Americas, European and Asian Markets.
WHY INVEST
With an average of 20 years of experience, managing and growing both SMBs and Multi-billion dollar organizations, our multidisciplinary leadership team brings together the necessary knowledge and capabilities in logistics, technology, and entrepreneurship. We understand firsthand the pains and challenges of the industry.
Message From Our CEO
Over $28 billion has been invested in logistics by VCs since 2018. The rise of Amazon and eCommerce has increased the ever-growing importance of efficiently moving goods. With COVID-19 impacting the economy, finding an efficient method for shipping products has only grown.
As an industry made up primarily of small businesses working independently from one another, such fragmentation leads to massive inefficiency and waste.
dexFreight leverages the power of blockchain technology and self-executing contracts (smart contracts) to streamline and improve logistics back-office operations. Our solution focuses on better utilizing existing market data to provide more efficient solutions and visibility to the industry.
The dexFreight team is composed of proven experts in transportation and technology. Our current investors and early adopters are from the industry. They believe the industry needs a new solution to assure the efficient movement of goods more cost-effectively and the flow of payment to those providing these much-needed services.
The industry is ripe for improvement. With dexFreight, the solution is just within reach. Join us!
- Jim Handoush, CEO and Co-Founder
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Company | : | dexFreight, Inc. |
Corporate Address | : | 1401 Sawgrass Corporate Pkwy, Sunrise, FL 33323 |
Offering Minimum | : | $9,999.60 |
Offering Maximum | : | $1,069,992.30 |
Minimum Investment Amount(per investor) | : | $390.00 |
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 5,128 |
Maximum Number of Shares Offered | : | 548,714 |
Price per Share | : | $1.95 |
Pre-Money Valuation | : | $30,054,917.10 |
Voting Rights of Securities Sold in this Offering
Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
*Maximum number of shares offered subject to adjustment for bonus shares. See bonus info below.
Investment Incentives and Bonuses*
Time Based:
Champion:
Invest within the first 10 days from launch and receive 20% bonus shares.
Early Bird:
Invest between 10 - 20 days from launch and receive 10% bonus shares.
Supporter:
Invest between 20 - 30 days from launch and receive 6% bonus shares.
Amount Based:
All investors
Regardless of the investment amount, will be provided access to our community Slack channel, Telegram channel, and receive a dexFreight branded tumbler.
Tier 1 (< $1000)
Receive 5% bonus shares and a 10% discount on dexFreight platform products for 6 months.
Tier 2 ($1000 - $4999)
Receive 8% bonus shares and a 15% discount on dexFreight platform products for 8 months.
Tier 3 ($5,000 - $25,000)
Receive 12% bonus shares and a 20% discount on dexFreight platform products for 10 months.
Tier 4 (> $25,000)
Receive 15% bonus shares and a 25% discount on dexFreight platform products for 12 months.
Disclaimers:
1. Investors can receive either a time-based or an amount-based bonus (whichever is greater), but not both.
2.Platform discounts are tied to amount of investment regardless of when the investor purchased the shares.
3. Platform discounts will apply regardless of number of users in the company.
4. The discounts do not apply for our Next Day Payment services.
5. Trucking companies and freight brokers in order to receive the platform discounts must be registered with FMCSA/USDOT and have an active authority at the time of registration into the platform.
6. Platform discounts are valid for the said number of months from the time a company self registers in the platform. If the company is already a registered user in dexFreight, we will activate/provide the discount accordingly. In order to receive the platform discount, please send the name of the investor(s) and a documented proof that the investor is affiliated or employed by the company. Such proofs may be a LinkedIn profile or email from the company owner/director attesting that the investor is employed or affiliated with the company.
*All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
dexFreight, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $1.95 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $195. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Hello Supporters,
dexFreight's campaign is closing today, March 28th, at midnight. Once again, big thanks to all the early investors who supported the company and successfully helped us close this funding round!
To all those campaign followers and users on the waitlist, we would love to keep in touch and share all the exciting dexFreight news, updates, and, why not, future investment opportunities. We encourage you to 👉🏻 subscribe to our Investor Mailing List.
Hello Supporters,
Thank you to all those who joined our live Q&A session yesterday! We will soon share the recording with those who registered for the online event. We are incredibly grateful for your support, interest, and commitment to the future of this company.
dexFreight's crowdfunding campaign is closing on Monday, March 28th. We will soon move all our investor communications to a different channel. If you would like to continue receiving company updates, progress reports, and notifications about future investment opportunities, we encourage you to Subscribe to our Investor's Email List.
Thank you for trusting dexFreight and believing in the future of global logistics!
Regards,
dexFreight Team
Hello supporters,
We are thrilled to share that dexFreight's crowdfunding campaign is oversubscribed! We are grateful to each of the 910 investors who helped us reach our current offering max few days before the closing date.
You can still submit an "indication of interest" by joining the waitlist. This is not an investment and does not guarantee a place in the offering. If your indication of interest is accepted, you will be notified to sign your binding agreement. You will have only 72 hours to sign the approved indication of interest. If you do not sign the agreement within 72 hours of being notified, you will be bumped to the bottom of the waitlist. If your binding agreement is pre-signed, the investment will automatically get pushed through once off the waitlist.
Webinar Reminder - This Thursday, March 24th
Don't forget to join our live webinar this Thursday, March 24th, at 11 am PT | 2 pm ET. Our Founders will go over achievements made throughout the campaign, the company's current state, and will finalize with an open Q&A.
Hello Supporters!
We have no words to explain how grateful we are for this incredible community. Thanks to your support, we hit the $1M mark!
Big thanks to our 870+ investors for believing in dexFreight!
Hello Supporters,
dexFreight recently reached 92% of its current funding goal, with more than $100K raised in the last 24 hours! Our team is incredibly grateful for your support on this mission.
There are only 10 days left on this campaign, and we are less than 8% away from hitting our fundraising goal. Yesterday, dexFreight became the first Reg CF company to be featured on the StartEngine's home page, getting the company in front of hundreds of potential investors.
Don't forget to join our live investor's webinar next Thursday, March 24th, at 11 am PDT | 2 pm EDT. Reserve your seat HERE!
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, dexFreight Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in dexFreight Inc. be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Hello Supporters,
With just 11 days away from closing the campaign, we are happy to share dexFreight surpassed $900,000 in funds raised. Thank you to all the 811 investors for helping us reach this significant milestone!
You are all invited to join dexFreight Founders on one last live Investor's Q&A Session, next Thursday, March 24th at 11 am PDT | 2 pm EDT. Our team will go over achievements made throughout the campaign, the company's current state, and will finalize with an open Q&A for those interested in engaging with the founders.
Hello Supporters,
dexFreight campaign is closing in 13 days! We encourage you to join our shareholding community with over 760+ investors working together for a more efficient logistics industry.
Last month, we announced our latest partnership with LoadBoard Network, a load posting consolidator. Our development team, led by dexFreight's CTO & Co-founder, Adrian Giannini, has achieved remarkable progress providing the back-end infrastructure for this new load aggregator. Since its launch, dexFreight has enabled connections with over 18 load boards and 1 of the most popular transportation management software providers.
Some of the participating companies include Trucker Path and 123Loadboard.
dexFreight campaign raised over $44K in the last 15 days. Don't miss out on the chance to become an early investor in the future of logistics!
Hello Supporters,
dexFreight round on StartEngine will close in less than 20 days!
It has been quite a journey since we open this funding round. Let us share with you some highlights of the progress we have achieved so far:
In this same period, dexFreight was named by Freight Waves (one of the world's leading supply chain intelligence platforms) as one of the most disruptive companies in the freight industry.
Also, as established in our roadmap, we began dexFreight's expansion to the Latin American market by partnering with Hutchison Ports Mexico. This partnership was featured in multiple industry magazines, including the American Journal of Transportation, a leading publication since 1999.
Finally, we became the technology providers for the Load Board Network to consolidate load visibility among multiple transportation management software and load boards in the industry.
Your trust and support are taking this company to the next level! We stand by our vision of becoming a collaborative network platform to coordinate world logistics.
⏰ The clock is ticking! Last days to become a shareholder!
Hello Supporters,
We are eager to share that dexFreight was named one of the best Florida Based Supply Chain Management companies by BestStatup.us.
Read the announcement here.
BestStatup.us and Best Startup US Magazine showcase and promote the latest innovations, businesses, and breakthroughs from American companies globally.
dexFreight was selected this year for taking a variety of approaches to innovate the Supply Chain Management industry through its cutting-edge technology to bring to market a decentralized logistics network.
dexFreight's Chief Strategy Officer and Co-founder, Hector Hernandez, talks about our unique business model and how we perceive competition in the space.
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