Convoy CEO Dan Lewis said he’s “heads down” working on a deal “that will include some of the Convoy team and our tech/services,” according to a new post from Lewis on LinkedIn.
The apparent deal could mean that some of the company’s workforce would remain employed, following Convoy’s surprising shutdown last week.
The Seattle startup laid off 533 employees as part of a closure, according to a new update on Tuesday from Washington’s Employment Security Department.
In a video call with employees last week, Convoy President Mark Okerstrom said the company was still “exploring strategic options” with potential acquirers.
Convoy told employees last week that it spent the past four months exhausting various strategic options amid an ongoing freight recession and dampened investor appetite, particularly for late-stage unprofitable startups.
But it could not find a deal, forcing the 8-year-old company to shut down operations and lay off a majority of its workforce in one of the biggest Seattle startup implosions ever.
Convoy, which built technology to match truckers and shippers, raised $260 million in equity and venture debt at a $3.8 billion valuation just 18 months ago. The company at one point employed around 1,500 people.
The company’s $260 million raise last year included $100 million from venture debt investor Hercules Capital. Convoy also secured an additional $150 million line of credit from J.P. Morgan at the time.
The Information reported that Convoy won’t be returning any money to equity investors, and that Hercules Capital is trying to sell off Convoy’s assets.
In his LinkedIn post, Lewis hinted that he would share more about “what happened and what we learned.”
Ryan Gavin, Convoy chief revenue officer, struck a similar tone in his own post Wednesday.
“There will be a time to talk more about the Convoy story, but for now, it’s enough to say that if given the chance, I would do it all again,” Gavin wrote. “A huge reason for that is the people and the amazing team they helped create.”
Convoy co-founder Grant Goodale, who stepped down earlier this year, responded: “Thanks for everything, Ryan. Well said.”
