Slync raised $24M led by Goldman Sachs while its founder faced federal fraud charges

Slync sells software that connects shippers' logistics and ERP systems and automates manual work in container, air freight and specialty cargo processes.

A new CEO and fresh Goldman-led money can convince customers, staff and investors that Slync's logistics technology is separate from its founder's conduct.

More than $100 million in venture debt and equity to date, plus a Paycheck Protection Program loan; about $24 million in January 2023

Slync was founded by Christopher Kirchner and built software to link the disconnected systems that global shippers use. It raised from angels and venture firms and, at one point, was valued at $240 million.

In February 2023 the Justice Department and SEC charged Kirchner with misappropriating $20 million, about 40% of the $50 million Slync had raised from angels and venture firms, for a lavish lifestyle that included a $16 million private jet and failed bids for English soccer clubs. Staff had gone months without pay, vendors and sponsor the Dallas Stars were behind on payments, and the CMO, CRO and CFO had left. Kirchner was suspended as CEO in 2022 and John Urban took over.

SEC filings showed about $24M raised in January 2023, led by Goldman Sachs. CMO Greg Kefer said ARR was growing rapidly and the money would extend the product beyond containerized freight, air freight and specialty cargo. TechCrunch's reporter was skeptical, noting the round was a fraction of the earlier all-equity tranche.

The alleged misappropriation took 40% of everything the company had raised from angels and venture firms.

Unpaid staff, late vendor and sponsorship payments and the loss of the CMO, CRO and CFO made a clean break from the founder necessary.

Goldman Sachs stayed committed to the technology, which let the company keep funding its roadmap.

Supply chain visibility is a crowded field; Slync had to argue its product, not its history, was the reason to buy.

A company can survive a founder's fraud case by suspending him, installing a new CEO and keeping a lead investor, but the price shows up in a smaller round and a harder hiring story.

As of 2023-02-23 Slync said it was cooperating with the federal investigation and planned to expand the team substantially over the next year and widen its technology beyond container, air freight and specialty cargo. It would not give a customer count. The article does not report what happened after the round.