Quartermaster has raised $140 million in Series B financing, just months after closing a $43 million Series A in May. The Arlington, Virginia-based startup is using cameras, radios, and weather-resistant hardware mounted on ships to collect real-time maritime data for governments, shipping companies, and insurers.
The new round was preempted by software-focused venture firm Insight Partners, according to founder and CEO Neil Sobin. He told TechCrunch that disruptions to shipping linked to the war in Iran also increased interest in the company’s technology.
About $100 million came from Insight Partners, new investor Overmatch Ventures, and existing backers including First Round Capital. The remaining $40 million came through a debt facility from investment bank Stifel.
SmartMast Collects Real-Time Data From Ships
Quartermaster’s SmartMast combines cameras and radios in a package mounted on a vessel’s mast. It captures and relays real-time maritime information, providing more detail than the Automatic Identification System, or AIS, which mainly transmits vessel location data.
The company has described the lack of detailed ocean data as the “largest blind spot on Earth”. Quartermaster says its data can support uses including collision avoidance, monitoring congestion in shipping lanes, and locating mariners who have gone missing.
Each SmartMast records tens of gigabytes of data per day, Sobin said. Quartermaster and its customers are continuing to identify additional ways to use the information collected by the devices.
“There isn’t a lot of prior art in maritime AI,” Sobin said. He added that having its own source of maritime data has allowed the company to develop new applications for customers.
Quartermaster also works with people across the maritime industry, beyond vessel owners and operators, to identify potential uses for the technology. Sobin said mariners have presented the company with additional ideas after seeing what the system can collect.
More Than 650 Vessels Now Use SmartMast
More than 650 vessels across 25 countries are now equipped with SmartMast, while Quartermaster has shipped more than 800 systems to customers. Sobin said the difference reflects upcoming deployments across entire fleets.
The company has doubled its manufacturing capacity to keep up with demand. Quartermaster is also adjusting the SmartMast design so the hardware can be produced more quickly.
Insight Partners managing director Nick Sinai said Quartermaster is building a distributed network for collecting ocean data where reliable, real-time information has historically been difficult to obtain. He cited the company’s execution and demand for maritime awareness among commercial fleets as reasons for the investment.
Sobin said recent events strengthened Quartermaster’s confidence in its original approach and increased the urgency to expand. The latest financing follows its $43 million Series A, which the company closed in May.
Featured image credits: Magnific.com
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