Moov raises $41M - aims to help solve global chip shortage
Moov, a marketplace for pre-owned manufacturing equipment, has raised USD 41 million in a Series A funding round led by Tiger Global. Other investors joining the round are public semiconductor investor Gavin Baker of Atreides Management, Valor Equity Partners, Avenir Growth Fund and existing investors.
The Tempe, Arizona based company says that it will use the funds to expand its domestic presence into other semiconductor hubs such as Austin and New York as well as their global presence in China, Taiwan, South Korea, Japan and Europe. The company will also hire executives, invest in research and development, strategically purchase inventory and examine merger and acquisition strategies with other key industry players, a press release reads. The current global semiconductor shortage has resulted in the slowdown of a number of major industries, simply because manufacturers cannot find the equipment needed to develop chips quickly enough. This is where Moov sees itself as the solution as the company has structured and automated a real-time marketplace that connects buyers and sellers around the world along with offering additional services such as logistics, refurbishment, insurance, and asset management software. But even beyond the issues surrounding the global chip shortage, Moov has a very green angle and intends to be a part in drastically reducing electronic waste globally. Fueled by the chip shortage, the semiconductor equipment sales market is growing at levels never seen before and is set to reach USD 100 billion in 2022. Moov’s data indicates that the value of used equipment has more than doubled over the past year, and these numbers are expected to continue to grow as innovation and technology drive the market, doubling to around USD 200 billion per year within the next six to eight years. With close to USD 1.5 billion in active and available listings, Moov will play a pivotal role in shifting the global equipment purchasing mindset. “This round of funding will allow Moov to achieve critical mass and propel us to beyond $1 billion in gross merchandise value in the next several years,” says Steven Zhou, co-founder and CEO of Moov in the press release. “Moov has hundreds of buyers and sellers, yet there are still roughly 10 million factories globally with unmet equipment needs and surplus equipment for sale. We are confident Moov will become the #1 platform to buy, sell and manage all used equipment globally.” "The pandemic has highlighted the importance of the semiconductor supply chain, and exposed the existing inefficiency of connecting buyers and sellers of semiconductor manufacturing equipment,” adds Griffin Schroeder, Partner, Tiger Global. "Moov’s efficient global marketplace is helping to solve this issue. With strong demand, a hungry and experienced management team, and a strong network of partners, we believe Moov is poised to become the global leader."