Caterpillar will no longer have a stake in fast-growing Chicago startup Uptake as it's ending its investment in the three-year-old predictive analytics company.
Caterpillar said it is refocusing its "areas of cooperation with Uptake," as first reported by the Chicago Tribune.
Uptake has raised around $150 million from well-known investors like Revolution and NEA, and got funding from Caterpillar early on as it invested in Uptake's $45 million fundraise in October 2015. That round valued Uptake at over $1 billion. Uptake has since gone on to reach a $2 billion valuation, making it the fastest startup ever to hit that mark.
Co-Founder and CEO Brad Keywell said the “scale and scope of our expansion warranted the realignment of our relationship with Caterpillar.”
Spokespeople from Uptake and Caterpillar declined to comment beyond a joint statement (below). But the companies told Crain's that the deal is beneficial for both businesses. Caterpillar is regaining control of a software product that lets customers minor machinery, and Uptake will be able to pursue customers in industries that compete with Caterpillar, according to Crain's.
The two companies sent over the following joint statement to Chicago Inno:
To adapt to the evolving digital environment, Caterpillar Inc. is refocusing its areas of cooperation with Uptake, provider of an analytics and insight platform, based in Chicago, Illinois. Caterpillar will continue to focus on delivering digital solutions to its dealers and customers. To align with the updated business arrangement and to enable Uptake to pursue additional opportunities, Uptake will redeem Caterpillar’s minority investment in Uptake.
“The digital environment continues to rapidly evolve and we are likewise adapting to deliver to our customers transformational technology to maximize value obtained through data-driven, real-time fleet management” said Robert Charter, Caterpillar group president with responsibility for driving Caterpillar's digital vision.
“Uptake has grown significantly across industries, and the scale and scope of our expansion warranted the realignment of our relationship with Caterpillar,” said Brad Keywell, Co-Founder and CEO of Uptake.
