FloraTrace, Inc. Company Profile

Background

FloraTrace, Inc. is a U.S.-based company founded in 2020, specializing in risk transfer and risk management solutions with a focus on human rights due diligence in supply chains. The company leverages advanced origin verification technologies, including isotopic testing and forensic science, to authenticate the geographic origin of materials. This approach aims to eradicate forced labor and promote ethical sourcing practices across various industries, such as transportation, commodities, food and beverages, organics, textiles, fashion, and solar components.

Key Strategic Focus

FloraTrace's strategic objectives center on enhancing supply chain transparency and compliance with evolving regulations like the U.S. Uyghur Forced Labor Prevention Act (UFLPA). The company offers a suite of services that combine scientific origin verification with risk management tools, enabling businesses to:

Verify Product Origins: Utilize isotopic testing to confirm the geographic source of materials, ensuring compliance with trade laws and sustainable sourcing metrics.

Mitigate Supply Chain Risks: Provide risk transfer solutions, including specialized insurance products, to protect against financial losses due to supply chain disruptions.

Enhance Ethical Practices: Assist clients in implementing human rights due diligence processes to eliminate forced labor from their supply chains.

Financials and Funding

In March 2023, FloraTrace secured seed funding from the San Diego Angel Conference, reflecting investor confidence in its innovative approach to supply chain risk management. The company is incorporated in Utah and operates from its headquarters in Salt Lake City. As of the latest available data, FloraTrace employs approximately three individuals and generates estimated annual revenues of $87,416.

Technological Platform and Innovation

FloraTrace distinguishes itself through proprietary technologies and scientific methodologies, including:

Isotopic Testing: Employs advanced isotopic analysis to determine the geographic origin of materials, providing scientific evidence to support ethical sourcing claims.

Forensic Science Applications: Utilizes forensic techniques to trace and verify supply chain components, ensuring transparency and compliance with regulatory standards.

Leadership Team

Terje Gloerstad, Chief Executive Officer: With over 30 years of management and technical expertise, Gloerstad has held various roles, including corporate board member, CEO, and CTO. He is a founder and co-founder of four Insurtech companies and has demonstrated success in analyzing business viability, designing products for new growth niches, and developing creative strategies to achieve goals.

Kimberley J. Gunther, Chief Revenue Officer and President of Rezylient Insurance Agency: A thought leader with 30 years in the insurance industry, Gunther has experience in startups and turnarounds in Insurtech companies. She has held roles as President, CMO, CRO, and in Business Development, advancing analytics and risk solutions with global insurance leaders. As co-founder of FloraTrace and Rezylient Insurance Agency, she provides leadership in support of risk management tools and risk transfer solutions for ESG and human rights due diligence in supply chains.

Robert Fishman, Chief Insurance Advisor: With over 20 years of experience in the C-suite, including CEO and Board positions for private and public companies, Fishman has led acquisitions, turnarounds, transformations, and startups. He has a deep understanding of distribution and pricing and has been deeply involved in improving operations.

Competitor Profile

Market Insights and Dynamics

The demand for supply chain transparency and ethical sourcing has intensified due to increasing global risks such as forced labor, environmental concerns, and regulatory requirements. Companies are seeking innovative solutions to verify product origins and ensure compliance with trade laws and sustainable sourcing metrics.

Competitor Analysis

KYG Trade, Inc.: Offers a decentralized trade attestation platform and marketplace, providing AI-powered global trade and ESG compliance solutions. KYG Trade's platform simplifies the gathering of product attributes necessary for compliance requirements.

Innovative Risk Labs (IRL): A Lloyd's of London Broker dedicated to innovation in the insurance market, IRL collaborates with companies like FloraTrace to develop cutting-edge insurance products addressing supply chain risks.

Strategic Collaborations and Partnerships

FloraTrace has established significant partnerships to enhance its service offerings:

Innovative Risk Labs (IRL): Collaborated to launch the Rezylient Trade Disruption Insurance product, providing U.S. importers with financial protection against supply chain disruptions and integrating isotopic testing for risk management.

KYG Trade, Inc.: Partnered to integrate FloraTrace's origin verification services into KYG Trade's SaaS platform, facilitating secure and efficient management of supply chain attestations and compliance data.

Tokio Marine Kiln (TMK): Teamed up to develop a trade disruption product aimed at improving ethical practices in global supply chains, offering financial protection and risk management tools to ensure compliance with new regulations.

Operational Insights

FloraTrace's strategic partnerships and technological innovations position the company as a leader in supply chain risk management. By combining scientific origin verification with risk transfer solutions, FloraTrace offers a comprehensive approach to addressing the complexities of modern supply chains. The company's focus on ethical sourcing and compliance aligns with the growing demand for transparency and sustainability in global trade.

Strategic Opportunities and Future Directions

Looking ahead, FloraTrace aims to expand its technological capabilities and service offerings to address emerging challenges in supply chain management. The company plans to:

Enhance Technological Platforms: Invest in advanced technologies to improve the accuracy and efficiency of origin verification processes.

Broaden Market Reach: Extend services to new industries and geographic regions, catering to a diverse client base seeking ethical sourcing solutions.

Strengthen Strategic Partnerships: Forge new alliances to develop innovative products and services that address evolving regulatory and market demands.