A familiar scenario unfolds in communities across the United States: a tree is felled, and rather than being processed into timber, it is completely shredded.
There are several reasons behind this decision, none of which have resonated well with Ben Christensen. Growing up in New Mexico among the region’s majestic pines, Christensen developed a profound appreciation for trees. His family has deep roots in the timber industry, with his father working as a carpenter and woodworker.
According to Christensen, the primary reason for wood waste is a lack of coordination. “Tree care services are incentivized to move quickly to their next appointment,” he explained to TechCrunch. “If it involves a detour to drop logs at a location that would repurpose them, it’s often not feasible.”
Together with Marisa Repka and Theo Hooker, Christensen identified a market opportunity in this wasted wood and established Cambium. This startup aims to repurpose wood that would typically be destined for chipping or incineration, primarily using software to streamline and connect the various elements of the supply chain.
Cambium’s unique value proposition is its ability to assist companies in either purchasing or selling more wood, depending on their role in the transaction. The startup offers enhanced service and stable, long-term contracts.
A key aspect of Cambium’s approach is the development of its proprietary products. The company has crafted methods to ensure consistency from traditionally unreliable wood sources. It collaborates with suppliers and mills to create these products, which it then sells to businesses like Room and Board and Steelcase.
In addition to providing furniture-grade lumber, Cambium also manufactures cross-laminated timber, an engineered wood shaped into panels, partnering with manufacturers such as Mercer Mass Timber, SmartLam, Sterling Structural, and Vaagen Timbers.
Utilizing reclaimed wood presents not just a lucrative business model but also a sustainable environmental solution. “Every time wood is transported 10 miles instead of 1,000, there’s a significant reduction in carbon emissions. Moreover, preserving a tree in its natural habitat contributes positively to carbon sequestration,” Christensen noted.
While a few large timber firms dominate the market, the landscape is otherwise quite fragmented. “Usually, it requires eight to ten companies to deliver material to a final customer,” explained Christensen, who serves as Cambium’s CEO.
Each step in this process involves a transaction, which is where Cambium’s software plays a critical role. The startup currently partners with about 350 different entities, encompassing tree care providers, trucking firms, and sawmills. Christensen pointed out that most have yet to digitize their operations and are generally uninterested in doing so without a compelling incentive.
Cambium emphasizes business potential over software solutions. “If you contact my uncle to pitch wood software, you’ll find that conversation doesn’t last long,” Christensen remarked. “But if you approach him saying, ‘I want to purchase 40,000 board-feet of four-quarter white oak from you every 60 days,’ he’ll be eager to engage.”
By gaining visibility into transactions at each stage of the value chain, Cambium is collecting extensive data on the timber industry’s operations. This data will assist in developing an AI tool that enables traditional businesses, like Christensen’s uncle’s, to transition to digital record-keeping.
To advance its platform and build robust models, Cambium has secured $18.5 million in funding, led by VoLo Earth Ventures, the company exclusively shared with TechCrunch. Other investors include 81 Collection, Alumni Ventures, Dangerous Ventures, Groundswell, MaC Venture Capital, NEA, Rise of the Rest, Soma Capital, Tunitas Ventures, Ulu Ventures, Understorey, and Woven Earth.
At present, Cambium attracts companies to its platform by providing access to customers. Christensen envisions the next iteration changing the way these businesses manage their records without altering their operational methods significantly. The objective, he stated, is to leverage the emerging AI to extract details from voice calls and automatically input them into the appropriate database fields.
“It’s crucial to grasp how individuals in this sector prefer to receive information. When you’re driving a truck, a laptop isn’t practical. You want to receive texts or voice calls,” Christensen explained. “These are the enhancements we’re implementing to simplify the process.”
Compiled by Techarena.au.
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