Dec 21 (Reuters) - Logistics startup Veho said on Tuesday it raised $125 million in an early-stage funding round led by venture capital firm General Catalyst at a $1 billion valuation. Funds raised through the round will be used to advance Veho"s technology, expand into new markets and for hiring, the startup said. Veho offers next-day delivery for its customers. Started as a school project when co-founder and chief executive officer Itamar Zur was at Harvard Business School, the startup claims its business has grown 40-fold in the past 15 months. Currently operating in 14 U.S. cities including Denver, Chicago, Houston and Atlanta, Veho plans to expand to every major U.S. market by the end of next year. Other investors who participated in the Series A round include Construct Capital led by Rachel Holt, Bling Capital, Industry Ventures, Fontinalis Partners and Origin Ventures.