Knocking on wood: Why we’re backing Timberhub to redefine timber trading
When it comes to disrupting an established industry, it’s hard to beat going for one that’s existed for over 2000 years. For extra points, make sure it’s not only vast but complex and thus we arrive at timber. Timber is one of the largest commodities traded worldwide, with the global market expected to reach $870bn in 2022.
Despite its critical nature, the timber industry itself continues to run on manual processes, paper-based logistics and small networks of relationships. But to meet the needs of this evolving market, the industry is changing: that’s why we’re so excited to be backing the seed round for Timberhub, as it builds a new digital platform for the timber industry.
Building a sustainable industry
Wood is so ubiquitous in our lives, it can be easy to forget the immense scale of logistics, planning and processing involved. And right now the demands on this system are growing, particularly when it comes to buildings.
The modern construction industry accounts for 39% of CO2 emissions, but building in wood could lead to a 26.5% reduction in global warming potential. Accordingly, timber needs are expected to triple over the next 30 years, with climate-conscious countries leaning more towards wood to meet their climate targets. France, for example, has mandated that all new public buildings be 50% timber or other natural materials from this year, while the EU has backed its own Build in Wood programme.
Sanding off the edges
Timberhub aims to redefine the market by connecting sawmills with timber buyers, such as pallet manufacturers, construction companies and sellers while managing procurement, payments and transportation of timber materials through its digital B2B marketplace. The platform improves efficiency, (global) access and scale for the industry.
Manufacturers and buyers can input exactly the products they’re after — dimensions, materials, finishes, lead time etc — and Timberhub connects them to relevant suppliers with the right products at the best price and quickest delivery. Their platform then handles the payment, transport and documentation, so both sides can focus on service. In an era of increasing supply chain scrutiny, Timberhub also provides direct insight into the source of the timber, ensuring that forestry remains reliable, sustainable and ethical.
In doing so, Timberhub helps sawmills expand their customer reach and create more efficient orders, while buyers benefit from more competitive pricing, shorter lead times and reduced administrative burdens.
Planting the seeds of growth
The timber market has all the classic markers of a sector ripe for B2B marketplace disruption — a topic I’ve covered before — particularly huge scale, fragmented supply and demand and a lack of transparency.
But it’s notable that it’s taken until now for a business to truly capitalise on this potential, and that’s down to the remarkable team at Timberhub.
Founded earlier this year by former Uber EMEA Head of Pricing, Ion Sergis, former Exponent Engineering consultant Thomas Androutselis, Giannis Androutselis and Dimitris Pagkratis, the leadership team have brought together a unique combination of tech, marketplace, construction, logistics and timber expertise to tackle this ancient industry.
Since raising their €1.5m pre-seed round five months ago, market adoption has been rapid. Timberhub has managed to successfully onboard top industry customers and build strong collaboration and trust.
Timberhub’s team now operates in 15 countries in Europe, ranging from small manufacturers to large construction companies — while also onboarding two of the largest European sawmills, alongside a large number of small and medium operations. The new funding from their seed round will be used to further develop their product, adding new features such as tracking transportation, adding financing options and improving user experience to streamline orders and selling for all stakeholders as they grow their customer base.
Building a greener future
It’s always exciting to find a team that has built the right product at the right time. This is truly a platform of the moment, providing the right technological capabilities at a time when the world needs it most.
Timberhub is poised to create the technological ecosystem that will accelerate decarbonisation through the seismic timber adoption our world so urgently needs. We’re proud to be co-leading their €5.8 million seed funding round with HV Capital, supported by existing investors Speedinvest and the founders of Sennder.
We’re proud to welcome Timberhub to the #Creandumfamily and we can’t wait to see what we build together!
Read more about Timberhub on Sifted.
