Omaha-based logistics and payment automation startup Upwell announced its $6.5 million seed fundraising round led by Vertical Venture Partners in February. The funding signifies the company’s progress in developing its product, acquiring customers and growing its roots in the city and state. 

Upwell seeks to remove barriers in accounts receivable processing within transportation and logistics companies. The startup has developed a platform that uses AI to reduce manual data entry errors and streamline collections for quicker payments. 

Co-founder and CEO Charley Dehoney has a long history within the logistics space, beginning in sales and moving up to running and investing in companies of his own. He served as vice president of ZEBOX America, a global incubator and accelerator for supply chain-related startups, from 2021 to 2023. 

Originally from California, Dehoney found himself drawn to Omaha. He first took over the now acquired Manning’s Truck Brokerage — now Fitzmark — in 2019. Dehoney started Upwell in 2023 to solve problems he’d witnessed first hand in his career, and from dominant players in the industry. 

“This is a logistics hub, and we’ve been able to really find some great partnerships in and around Nebraska,” said Dehoney. “I love raising my family here in Omaha. I want my children to stay here in Omaha and I want to build a big ecosystem in Omaha.”

Nebraska is a logistics hub

Ben Williamson, principal and general counsel at Invest Nebraska — an investor in Upwell — said Nebraska offers unique advantages for entrepreneurs interested in logistics. These include the state’s geographic location in the center of the country and the presence of prominent carriers like Werner Enterprises and Crete Carrier Corporation. 

“If ecosystems have a critical mass of corporate and industry infrastructure, you often see it trickle down into startups,” said Williamson. 

Williamson highlighted other logistics-related startups based in Nebraska besides Upwell, including BasicBlock, driverDOC, Moneiva and Fleet Defender. He and Alexi Wellman, an ecosystem builder and member of Werner’s board of directors, emphasized the opportunities created by corporations when they take the time to meet with such startups. Wellman collaborates with Nebraska Startup Academy on their joint Corporate Pitch Days initiative, getting founders and established companies in the same room.

Wellman said these conversations can lead to founders understanding the current technology being utilized as well as concerns of industry leaders. This allows startups to build in-demand solutions based on feedback and to find their first customers. For corporations, she continued, talking with startup founders can spark newfound excitement among teams at established companies who may feel less obligated to stay up-to-date with the latest trends and tech advancements. 

“It just helps build into their innovative culture without them having to think they have to build it themselves or go to the coast to find that innovation,” said Wellman. 

Werner Executive Vice President and Chief Information Officer Daragh Mahon said Werner has a history of innovation, taking on tech advancements throughout its timeline to reach its status today. However, the corporation still finds holes in its current tech stack that need solutions. Mahon said supporting startups is how you fill them. 

“I firmly believe that true innovation happens at the startup level,” said Mahon. “It benefits all the corporations here in Nebraska.”

“We can create that environment where people are innovating, where people are excited to be here. It brings companies in, it brings tax dollars in and it brings talent in and retains it.”

Mahon said Werner is exploring modern tech, like machine learning, and enjoys sitting down with startups and seeing if a product is a good fit. He continued that the corporation is currently a customer of Upwell and has participated in Nebraska Startup Academy’s Corporate Pitch Days. 

Establishing a home in the hub

While describing the collaborative environment he has experienced in Nebraska, Dehoney argued for the importance of startups networking and getting multiple stakeholders’ perspectives when acquiring feedback — not just listening to a single corporate leader.

“It’s not Werner’s job to make me successful,” said Dehoney. “It’s my job to solve a problem that Werner has that other people have. That’s how you can go out and build a company.” 

Dehoney said Upwell plans to use its latest funding to expand its workforce in Omaha, find a more permanent home in the city and continue to develop its product and work closely with customers.