Samantha Herrick:
Welcome to the Tech Optimist, brought to you by Alumni Ventures. This is the show where we explore the ideas, innovations, and bold thinkers shaping the future of technology and how it's transforming the way we live, work, and thrive. Whether you're a founder, an investor, or someone who's just passionate about the future, this is your front row seat to the most exciting trends and conversations in the world of innovation. So grab your headphones, open your mind, and let's get started. Welcome aboard.

Jason Park:
Companies on Coldcart's platform are able to reduce cost per shipment by 15 to 50%.

Samantha Herrick:
That is Jason Park co-founder and CEO of Coldcart.

Jason Park:
And are able to reduce refundable late shipments, i.e, spoilage, by 40 to 60% right out of the gate.

Samantha Herrick:
Our AV host today is going to be Jason Bird, an associate here within the walls of Alumni Ventures. One of the most significant challenges is the ever-present risk of spoilage. In fact, Inbound Logistics reports that about one third of all food products are lost or wasted during the supply chain process. And that's me. My name is Samantha Herrick. I'm the guide for this show. You'll be hearing quite a lot from me today. Got some really cool notes to share. Today we're driving into Coldcart, a Chicago-based startup that's turning the frozen and refrigerated parcel logistics world on its head. Founded in 2021 by our guest Jason Park, who also scaled Allstate's Identity Protection. And Matt Salzberg, the founder of Blue Apron. Coldcart combines technology with strategy to optimize the cold chain process. Now, what makes Coldcart a game changer? Their orchestration platform automates decisions for routing, packaging, shipping, while also factor again, cost, weather, and carrier availability in real time. With a network of 15 fulfillment centers and numerous delivery carriers across the U.S, they ensure perishable goods reach consumers on time, and more importantly, in perfect condition.
The results, businesses using Coldcart see up to 50% reductions in logistics costs and a 60% drop in refund claims from spoiled shipments. Plus Coldcart system integrates with platforms like Shopify, WooCommerce, and Salesforce, making it incredibly easy to implement for any companies that are interested. Backed by $6.5 million in seed funding led by Collide Capital, Coldcart initially targeted direct to consumer food and beverage companies, but is now making inroads into the pharmaceutical sector using an asset-like Model. They partner with logistics providers instead of owning facilities, giving them the agility to tackle the unique challenges of cold chain shipping. Whether it's time sensitivity, temperature control, or minimizing spoilage risks, Coldcart is solving problems that have plagued perishable logistics for years. So stay tuned as we discuss how they're reshaping the industry with their innovative approach. We've got an ad and a disclaimer, so you know what to do. Sit tight and we'll be right back.

Speaker 3:
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Samantha Herrick:
As a reminder, the Tech Optimist podcast is for the informational purposes only. It's not personalized advice, and it's not an offer to buy or sell securities. For additional important details, please see the text description accompanying this episode.

Jason Bird:
Welcome to the Tech Optimist podcast. I'm Jason Bird, associate on the Seed Fund here at Alumni Ventures, and I'm here with Jason Park, the CEO of Coldcart. So let's jump right in. I would love it if you could just kick us off with a quick elevator pitch on the company.

Jason Park:
Yeah. So my company, Coldcart is the first end-to-end technology platform for perishable parcel logistics. So the companies in e-commerce, industrials, pharma, and then also third-party warehouses who ship these products for them. And with perishable parcels, the big issue is that they spoil in transit. And so as a result, they require highly, highly customized handling on every individual shipment, which is the 180 degree opposite of traditional operations, which is all about standardization and centralization. And so as a result, traditional supply chain software actually makes you less efficient in perishable parcel logistics, and there hasn't been anything targeted to perishable logistics before. And so for that reason, even at a relatively early stage, companies on Coldcart platform... Excuse me. Companies on Coldcart's platform are able to reduce cost per shipment by 15 to 50%, and are able to reduce refundable late shipments, i.e, spoilage, by 40 to 60% right out of the gate. I think that just shows you the magnitude of how underserved this market's been from a technology perspective.

Samantha Herrick:
In the fast-paced world of e-commerce, managing perishable goods requires precision, intelligence and adaptability. Enter Coldcart, the startup today and a company who is redefining perishable fulfillment with cutting edge technology. At the heart of Coldcart's innovation is its proprietary software, giving businesses total control for the moment of an order is placed to its delivery at the customer's doorstep. The platform offers shipment level optimization, integrating routing, pack out, and even weather-based rules to ensure products arrive fresh and on time. One standout feature is its real-time operations intelligence. This includes live order tracking, inventory, and lot code monitoring and on-time delivery dashboard. For businesses juggling multiple carriers, Coldcart simplifies it all. Managing shipment labels, picklists and even automated vendor communications, there is single user-friendly portal. Now, their tech doesn't stop at logistics though. It drives efficiency with tools like cost analytics, live inventory tracking, and even customizable routing logic. Whether you're managing first-party or third-party providers, Coldcart optimizes every step of the process helping businesses scale while maintaining quality. With Coldcart, it's not just about delivering products, it's about delivering confidence.

Jason Bird:
Absolutely. Can you talk a little bit about how your company is on trend with current market developments?

Jason Park:
Yeah. So the cold chain supply chain problem and perishable parcels as part of that is bigger than it's ever been before. And last year there were 3 billion perishable parcels delivered just in the US, and that number if it sustains the same pace, we'll grow to 10 billion by 10 years from now. And at the same time you look on the supply side and your commercial cold storage capacity in the US has been increasing with 30% year over year for the past five years, and that means a lot more empty space and a lot bigger need for perishable parcel fulfillment to fill that gap or fill that space. And I think no further than what was the biggest IPO in 2024 was Lineage Logistics, who was a global cold source provider in this ecosystem, and the problem is just getting bigger and bigger every year. And the tailwinds are really such that all these buildings of shipments are shipped really inefficiently, frankly, and so that number is just growing until we do something about it.

Samantha Herrick:
Supply chains are already intricate systems, but when it comes to shipping perishable goods, the complexity skyrockets. Perishable parcel logistics demand a specialized approach tackling unique challenges that go far beyond traditional shipping methods. Let's break it down. Time is the enemy when it comes to perishable goods. With every hour in transit, these products lose viability, whether it's fresh produce or life-saving medications. As highlighted the OC Log, ensuring that these goods reach their destination quickly and in perfect condition requires faster and more precise logistics compared to standard shipping. Temperature control is another make or break factor. From farm to table or lab to clinic, perishable goods must stay within strict temperature ranges. According to LOTUS Containers, this involves using specialized equipment like refrigerated trucks or cold storage units. But the real challenge often arises during transitions such as moving products from planes to trucks. Any deviation from the required temperature can compromise an entire shipment.
The packaging is just as critical. Forget your typical cardboard box. Shipping perishables often involves expensive materials like cold packs, dry ice, or insulated containers. OC Log again notes that while these materials protect product quality, they also increase costs and add logistical complexity. Then there's the crazy web of regulations. Food Dive points out the perishable goods, especially food and pharmaceuticals face strict and often changing regulatory requirements. Cross-border trade adds even more layers of complexity requiring compliance with packaging, labeling and transit standards that can vary from one region to another. One of the most significant challenges is the ever-present risk of spoilage. In fact, Inbound Logistics reports that about one third of all food products are lost or wasted during the supply chain process. This necessitates real-time monitoring to catch issues like equipment malfunctions before they escalate. A delay on even a few hours could render an entire shipment useless.
Fortunately, technology is stepping up to mitigate these challenges. IOT sensors, cloud-enabled temperature loggers and advanced analytics are becoming essential tools for perishable logistics. These technologies allow for real-time monitoring, faster issue resolution and compliance tracking as highlighted by LOTUS Containers and Food Dive. Unlike traditional supply chains where the focus is often on cost reduction and standardization, perishable parcel logistics require speed, precision, and adaptability. It's a high-stakes game where every step counts and innovation is key to success. Later on in the episode, we're going to discuss how Coldcart is innovating in this space, and Jason is going to share some insights from his industry and from his company. Stay tuned. All right, we're going to take a second for an ad and we'll be right back, so hang tight.

Speaker 3:
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Jason Bird:
We'd love to hear what is something unusual or surprising about your company that maybe people wouldn't expect?

Jason Park:
So we're often told that we are, I guess, quote, "unusually mature" for a company of our stage. And that's not necessarily a compliment, that's just a objective statement, and what people... I'm not, not a pat on the back statement, but I think what they're referring to is the level of internal processes we have as well as the level of scalability and security of our technology and infrastructure. And practically we are every bit as enterprise grade, so to speak, is a much larger company while still being flexible and agile like that early stage company. And this was by necessity that we had to evolve this way because our business requires us to replace one of the most mission-critical processes for our customers, as well as the 3PLs on our platform, which sensitive packages, shipping to your end customer, literally touching every one of your end customers, and so the bar is very high to earn that level of trust.
And so from day one, we had to be able to stand up to any procurement process or any IT audit, or any kind of enterprise level scrutiny. And so I think what we often hear from people, whether they're joining from other startups or as people get to know us, they're like, "This feels like a bigger company than it is and relative to your stage," just because we've had to [inaudible 00:13:25] that way by a [inaudible 00:13:27].

Samantha Herrick:
So now we're going to answer some burning questions that you still might have about Coldcart. So let's start with the big one. How is Coldcart different from a traditional 3PL? Unlike traditional 3PLs Coldcart doesn't own or operate physical facilities. Instead, they leverage a robust network of fulfillment partners and carriers tailored for perishable goods. What really sets them apart is their powerful routing and optimization technology, which goes beyond the basics to provide customized delivery solutions. Another frequent question is about carrier flexibility. So Coldcart works with a vast array of national and regional last mile carriers. Plus if your preferred carrier isn't part of their network yet, chances are it'll be added soon. Integration is seamless too. Coldcart supports platforms like Shopify, Salesforce, and WooCommerce like we had mentioned earlier, and even offers a public API for custom systems.
In fact, you can start using your routing and packaging optimization tools in just a day, with full network integration taking only one to two weeks. Coldcart clients love the flexibility, whether you prefer using their competitive shipping rates or sticking with their own, the platform adapts to your needs. And if you're already working with trusted 3PLs or handling fulfillment in-house, there's no need to switch. So Coldcart enhances your operations without disruption. So if you want to learn more about Coldcart's network, cost savings or how they cover 98% of the US with two-day shipping, reach out to them or check out their website.

Jason Bird:
What is your primary ask or need at the moment, or how can the Alumni Ventures community help you in the business?

Jason Park:
Yeah. So we were just talking about how there were 3 billion perishable parcels shipped in the US last year, which means that every American on average has received at least 10 packages with ice and insulation in them. It could be food, it could be medication, and it's common enough that we don't even notice it. I hear that from friends all the time who learn about what I do every day, and they are like, "Oh, I never thought about that." And so anytime anyone receives a box with ice or insulation in it, take note of who it is and would love to hear who shipped that to you because there are thousands of companies with these products, and we are literally learning about new companies every week. And often there are a lot bigger than maybe we anticipated or would've thought just from looking at their website, etc. So please, just the doors wide open. Any names of brands or 3PLs who are shipping this product to you, we'd love to hear about it.

Jason Bird:
Awesome. I appreciate that. Well, that concludes the interview for today. Jason, it was a pleasure having you on. Always a pleasure talking to you and learning more about the business. Thanks again for joining us.

Jason Park:
Thanks so much for having me, Jason.

Samantha Herrick:
Thanks again for tuning into the Tech Optimist. If you enjoyed this episode, we'd really appreciate it if you'd give us a rating on whichever podcast app you're using, and remember to subscribe to keep up with each episode. The Tech Optimist welcomes any questions, comments, or segment suggestions. So please email us at info@techoptimist.vc with any of those, and be sure to visit our website at av.vc. As always, keep building.