On May 3rd, Flexport entered into an agreement to purchase Shopify’s logistics businesses, including taking over its technology and employees, and will become Shopify’s official logistics partner.
On May 3rd, Flexport entered into an agreement to purchase Shopify’s logistics businesses,[1] including taking over its technology and employees, and will become Shopify’s official logistics partner. Shopify, which produces software and payment solutions for e-commerce businesses and trades on the New York Stock Exchange (NYSE), first invested in Flexport in 2022[2] before striking a logistics partnership earlier this year. As part of the agreement, Shopify will also receive an additional 13% equity stake in Flexport.
In a letter to Shopify employees,[3] Shopify CEO Tobi Luetke said Flexport is “the best builder and operator in the world of logistics”, and that Flexport will be Shopify’s preferred logistics partner. For Flexport, we believe a closer partnership with the Shopify platform is exciting, as it allows Flexport to expand into last mile logistics and e-commerce fulfillment and could enable them to further tap into Shopify’s nearly $200 billion gross merchandise volume (GMV), of which roughly 15% is cross-border.[4]
Disclosures
We offer this update on Flexport and Shopify because they are part of the total ARK Venture Fund portfolio. To see the most updated portfolio, please click here. Holdings subject to change. Not a recommendation to buy, sell, or hold any specific security.
ARK Venture Fund is a closed-end interval fund. The fund is considered illiquid and there is no secondary market for investors to sell their shares.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED HERE. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund.
ARK Investment Management LLC is the investment adviser to the ARK Venture Fund.
https://s27.q4cdn.com/572064924/files/doc_financials/2023/Q1-2023-Press-Release.pdf
https://www.businessinsider.com/shopify-invested-in-startups-like-klaviyo-gorgias-and-flexport-2022-8
https://news.shopify.com/important-team-and-business-changes
https://news.shopify.com/shopify-announces-fourth-quarter-and-full-year-2022-financial-results
ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain of the statements contained may be statements of future expectations and other forward-looking statements that are based on ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements.
