REDWOOD CITY, Calif., May 29, 2019 (GLOBE NEWSWIRE) — XStream Trucking, a design and engineering company focused on connected hardware for the commercial vehicle industry, today announced that it has secured $10.5 million in Series A funding co-led by Autotech Ventures and Calibrate Ventures, along with participation from the existing shareholders of Uncork Capital, Root Ventures, FusionX and Tandem Capital. The proceeds of the round will be used to accelerate the company’s ability to deliver better fuel economy to the $700 billion U.S. trucking industry through innovative hardware and software solutions.
XStream Trucking’s flagship technology, TruckWings, is an active-aero device that automatically closes the tractor-trailer gap on commercial trucks when the vehicle is at a certain speed and creates an estimated fuel savings of between 4-6%. The company also offers GPS-enabled software that tracks fuel savings information in real-time.
“Fuel is often the largest cost for commercial trucking fleets and our products can help large fleets save millions each year,” said Daniel Burrows, CEO of XStream Trucking. “XStream Trucking’s proprietary technology and state of the art processes addresses a previously neglected area of truck aerodynamics, and we are thrilled to have the support of Autotech Ventures and Calibrate Ventures. Their partnership will allow us to expand our capabilities to deliver further cost-saving technology and software-based insights to America’s trucking companies.”
According to the American Trucking Association, the industry spent more than $105 billion on diesel fuel in 2015, and it can account for as much as 20% of total operating costs1. With more than two million tractor-trailers operating in the U.S., TruckWings’ technology has the potential to significantly decrease the amount of fuel used each year, and could save the commercial trucking industry between $4-6 billion each year.
“The trucking industry is the backbone of American commerce, so technologies that can enhance fuel economy and performance are poised to make a significant impact throughout the value chain,” said Jason Schoettler, Co-Founder Calibrate Ventures. “We expect TruckWings is just the first of many groundbreaking innovations XStream Trucking has in store to tackle the global logistics industry’s greatest challenges.”
Since launching the first road units in October 2016, XStream Trucking has seen tremendous adoption with fleets covering more than 1 million miles per week. With current fuel prices at an average of $3.14 per gallon2, and with a median heavy-duty fleet fuel economy of 7.5 miles per gallon3, a truck driving an average of 120,000 miles per year has a potential annual fuel savings of more than $2,0004 when factoring in a conservative 4% efficiency increase. TruckWings technology has been tested in the wind tunnel, on the track and in real-world over-the-road conditions. The greatest fuel savings has been proven in over-the-road tests where real-world cross-winds are taken into account, producing fuel savings beyond 5% on average.
“We’re extremely excited about our partnership with XStream Trucking and what this investment means for the commercial trucking industry as a whole. TruckWings is a revolutionary product, but the entire XStream Trucking organization represents a dedicated approach to helping fleets solve everyday challenges that save money, pay back quickly, enhance sustainability and optimize a sector that is essential to American commerce,” said Maurice Gunderson, Managing Director, Autotech Ventures. “We look forward to partnering with XStream Trucking to continue pioneering innovative offerings that leave an indelible mark on the global logistics industry.”
About XStream Trucking
Established in 2014, XStream Trucking supplies active aerodynamics to the long-haul trucking industry. Its flagship technology, TruckWings™, automatically closes the tractor-trailer gap, reducing a fleet’s fuel bill without requiring additional actions by the driver or any trailer modifications. Founded out of Stanford University, XStream Trucking has won awards in several DOE competitions including National CleanTech Awards and CalTech’s FLoW competition. TruckWings are currently deployed within carrier fleets that average more than one million miles per week. For more information visit: www.XStreamTrucking.com
About Autotech Ventures
Autotech Ventures is a Silicon Valley venture capital firm that manages funds of more than $200 million focused on startups in the $3 trillion ground transportation industry. Autotech Ventures provides startups with capital, ground transportation market intelligence, and access to its transportation focused network which includes executive talent as well as financial and 25+ corporate investors representing a global market capitalization of over $500B. As a lead or follower investor, Autotech Ventures leverages its network to help portfolio companies recruit top industry talent and engage corporations as scale-up partners.
About Calibrate Ventures
Calibrate Ventures is an early stage venture capital firm that partners with transformative consumer and enterprise technology companies to accelerate growth and drive commercialization through right-sized financing and expert operational guidance. The firm leverages its industry expertise and powerful network of entrepreneurs, investors, and partners to help innovators maximize their potential. Calibrate invests in great companies nationally but calls Southern California home. For more information, please visit www.calibratevc.com.