Companies that ship products over land using a large fleet of trucks often
lose money when they encounter obstacles such as road repairs. Needless to say,
trucking companies and companies with their own fleet of trucks are always looking
for ways to cut costs. Enter Quebec based
Geocom, which provides software
and services that streamline trucking operations through route optimization.
Its services have gained enough support from customers that the company expects
to close on a $2.2 million series C round of funding from its first U.S. investor.
Geocom was founded in 1993 by CEO Bernard Tetu, who sold controlling
interest in the company before taking it over again in 1999. Tetu had previously
founded software company Berclain and sold it to German IT company Baan.
Geocom has undergone reorganization since Tetu took control of it again.
Geocom's flagship A.Maze service allows the company to develop route optimization
services that it markets to big trucking fleets and couriers. Geocom optimizes
routes using algorithms and detailed maps and is able to minimize amount of
trucks used, travel time, support staff and other expenses. The company claims
that some of its individual customers have been able to reduce daily delivery
route miles by 15%, decrease the number of trucks used by 16% and reduce overall
costs between 10% and 15%.
Investors in the company include MM Venture Partners, which has committed
a total of $1.5 million to the company, Innovatech and Investment
Desjardins. Geocom is also close to closing on $1.4 million from a Boston-based
venture capital firm, the first U.S. investor in the company. The company's
burn rate is approximately $289,000 per month.
The funds will be used primarily to promote its A.Maze service. "We want to
popularize A.Maze and give it an image," says Helen Macaluso, Geocom's
vice president of finance and human resources. Geocom's customers include Koch
Transportation, Napa Auto Parts and Purolator. The company
has offices in Atlanta, Boston and Toronto as well as sales professionals working
from home offices in other parts of Canada and the United States. Geocom plans
to open offices in Montreal and on the West Coast of the United States and possibly
Chicago. The company, which currently has 50 employees, plans to have about
70 employees next year.
"The biggest challenge ahead for them is getting traction with customers,"
says Ron Patterson, a partner with MM Venture Partners. "The product
works, they need to go out and get a bunch of high profile deals and prove that
they're the best solution in the industry". - M.S.