In recent weeks, there has been a daily barrage of news about the choke points in our global supply chain that have been throttled on and off for nearly two years now. The visual evidence is stark: ships that have piled up at ports, long lines of semi-trucks, and stores shelves that have become sparse. The depth of the problem pulses through every stage of manufacturing to doorstep delivery. For brands—especially fast growing, independent brands—the daily uncertainty is hard to manage, especially as consumer demand continues to surge.
We recently led the Series A round in Buffalo Market, founded by Adam Olejniczak and Sean Howell, bringing the amount raised in total to $19.7M. Buffalo provides rapidly growing brands full service distribution through a tech-driven network of fleets and in-store merchandisers who circumvent warehouses and alleviate multiple steps in a regular distribution process. This gives food and beverage brands much more control over a critical piece of the supply chain—delivering their inventory directly to store shelves, circumventing unyielding distribution behemoths, and creating much needed visibility that is only possible through a truly connected and optimized delivery infrastructure.
We formed Construct Capital to invest in connecting and automating the largest and most foundational industries of our economy, and the outdated foundations of our supply chain are at the center of our attention. The mere name of this sector—a “chain” versus a “web” or a “matrix”—portrays how problems waterfall and compound. The team at Buffalo Market is reimagining how a $170B slice of this market should operate, and we love that the team started first with listening to what brands need as they built a new distribution network from the ground up.
The response from both brands and retailers has been remarkable. Many, including some of the largest retailers in the country, were desperate for alternatives to incumbent wholesalers with poor service and low reliability. One recent customer increased sales by 118% in just the first 2 weeks after switching to Buffalo. Another tripled revenue after partnering with Buffalo earlier this year.
And customers don’t just love Buffalo, they love Adam. Adam is one of the fastest moving, most persistent, and hardest working founders we know, who customers universally told us would go above and beyond to deliver for them. He has a big vision for what Buffalo can be and, along with his co-founder Sean, is building an incredibly strong and inclusive company culture to make it a reality. We’re thrilled to be on the ride with Buffalo and our co-investor Forerunner Ventures.