CHATTANOOGA, Tenn. (WDEF)- Thursday, it was announced that the U.S. had the worst financial quarter since reporting began in 1947.
But, Freightwaves, a local Chattanooga company, has been increasing their growth.
For small businesses, a venture capital investment is a way for companies to grow and make an impact on local economy.
Last week, Freightwaves announced a 37 million dollar venture capital investment.
The investment will bring revenue into Chattanooga and has the potential to bring jobs as well.
Craig Fuller, Freightwaves CEO and Founder says, “We’ve got about 140 employees in the Chattanooga metropolitan area. A lot of that capital will go to the existing employee’s to increase incentives for them to continue to perform well and grow the company. In addition to, any additional folks that we may hire.”
The general economy took a hit this quarter.
But, during the pandemic, freight has still been able to make a profit.
Improving demand and truckload fundamentals are expected to drive third-quarter growth. The carrier’s growing cash balance garners some attention.https://t.co/MMRPaICAfF
— FreightWaves (@FreightWaves) July 30, 2020
“The things that do move freight are in high demand. People are buying new patio furniture, they’re building pools, the residential home market is actually doing exceptionally well. So, those things are driving a lot of freight demand and that certainly helps increase a lot of demand for our products which is related to media and data,” adds Fuller.
The Chattanooga Chamber says that this is only the beginning to a larger investment.
Charles Wood, the Vice President of Economic Development for the Chattanooga Chamber says, “This brings their total VC investment that’s happened with the company to about 75 million, which is in the top ten largest in the state, in the state’s history. So, this is a big deal. It would have been a big deal last year, when the economy was good. But, it’s a huge deal if you think about what is happening right now.”