Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
💥 Have you seen any interesting startups recently? Introduce us.
❤️ We would love your support. Please forward to friends and share on social media.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.
Weekly Commentary 💭
Happy New Year! This week we welcomed our newest Venture Fellows- Say Hello to Rachel and Emily when you get a chance!
The new year is off to a busy start. If you or someone you know is building a technology startup in supply chain or mobility, we’re all ears. Shout out to Joyce for the pass along!
We Are Dynamo,
Santosh, Ted, Barry, Jon, Rachel, and Emily
Note: please add “dynamo@substack.com” to your email client so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
📊 The State of Supply Chain Visibility Report. The report finds that 92% of total respondents said they could not 100% trust the data coming in from tracking products within their supply chain. Furthermore, 99% of respondents in the pharmaceutical industry claimed to be using some sort of manual process to achieve supply chain visibility. Finally, 87% of respondents in the pharmaceutical industry said they do not have 100% visibility into the condition of products in their supply chain during the last mile of delivery.
Shipping Rates To Remain Elevated. COVID has changed consumer patterns, as huge amounts of goods are being moved at large volumes. Shipping rates will remain elevated as people spend a much higher portion of their wages on goods relating to their homes, including electronics, furniture, and home improvement equipment. This has posed the issue that Shippers and Forwarders Claim Carriers Breach Contracts.
The FAA has Released Final Rules for Drones. The new FAA rules will become effective 60 days after posting to “the register”. As part of the rules, remote identification- a digital license plate for a drone will be required. With this, small drones will now be allowed to fly over people and at night in fair weather conditions. Also, New Members Appointed To FAA Drone Advisory Committee.
🌟 UPS Expects to Break Weekly Returns Record. UPS expects to induct 1.75M returns into its system every day this week, which would represent the highest weekly total of returns in the carrier's history. The carrier's single-day record is 1.9M returns that were set about a year ago. As returns surge, brick and mortar stores can be converted into fulfillment centers to keep up with online shopping demand- as suggested in Predictions for the Retail Supply Chain in 2021.
A Resilience to the Cloud Should Come to an End. As COVID hit, organizations were blindsided by the lack of visibility they had across their extended supply chain. The answer to this information latency is the cloud, as it provides the technology and environment that improves information sharing affordably, securely, and timely. Related, For Many CIOs, 2020’s Digital Acceleration Was Only the Beginning.
Amazon Adds 11 More Cargo Jets to its Growing Air Fleet. Amazon has announced that it is expanding the capacity of its airfreight, purchasing 11 Boeing jets from Delta Air Lines and WestJet Airlines. Its expansion will help meet continued demand by its customers for the fast shipping of online orders by enabling the company to transport items across longer distances in shorter time frames. Down on the ground, the Cost of Truck Repairs Reaches Records in 2020 while Battery-Electric Locomotives are Being Tested by BNSF and Wabtec.
Is Now the Time for Robotic Lift Trucks? As COVID continues, e-commerce fulfillment centers and manufacturing plants need to move a high volume of pallets to keep stores stocked up. Due to unemployment rising from the following year, it remains challenging to secure enough skilled lift truck operators to keep goods flowing to consumers. Sales of driverless robotic trucks benefit under these conditions. ICYMI, Prologis on Using Automation to Solve Supply Chain Challenges.
Mobility 🚗
Lithium-Ion Battery Recycling Finally Takes Off in North America and Europe. In 2019, 180K metric tons of lithium batteries were available for recycling, yet only a little over half were recycled. Looking at the landscape, about 100 companies recycle lithium-ion batteries or plan to do so soon, worldwide. Given that the majority of batteries are produced in China and South Korea, a large amount of the recycling industry is based there, but due to production increases, there are now several dozen recycling startups emerging in North America and Europe.
Pete Buttigieg Prioritises Climate Change Centric Infrastructure Plan. President-Elect Biden tapped Buttigieg to manage transportation policy in his cabinet last month, and since then, the former mayor has shown interest in producing substantial transportation packing in the coming months. Potential topics in the package would include reducing congestion along corridors, facilitating access to public transportation systems, and expanding programs linked to electric and autonomous vehicles including programs that would modernize last-mile delivery segments. The urgency for this package is associated with the pandemic's impact on transportation modes. Speaking of infrastructure, Micromobility Booms without the Necessary Infrastructure.
The Pandemic Sank Auto Sales but Vaccines Could Bring Buyers Back. Automakers estimated auto sales faced a 15% decline in 2020, but are hoping for a rebound in 2021 as the COVID vaccine begins to roll out. Related, Understanding The Impact Of COVID-19 On Urban Mobility Trends and the Pandemic Likely Improved Your Commute to Work.
🌟 Global EV Round-Up: China Lowers Private EV Subsidies by 20 while Electric Cars Rise to Record 54% Market Share in Norway. As EV rises in popularity, the Chinese government sought to eliminate the government subsidies and tax breaks for the vehicles, but ultimately decided to extend them by two years with an immediate 20% reduction. In Norway, the growing popularity of EV has officially surpassed the sale of cars powered by petrol, diesel, and hybrid engines. Meanwhile, in the US, there are Reports that Rivian is Close to Securing Funds at a $25B Valuation.
PSA and Fiat Chrysler Automobiles to Merge This Year. PSA Group’s Carlos Tavares will take charge of FCA later this year, merging the two automakers to create Stellantis. Currently, PSA and FCA are having a rough time in China, as both are grappling with overcapacity. Elsewhere, GM and Motorq Streamline Fleet Vehicle Logistics while VW Hires Energy-Sector Executive to Lead EV Charging Unit.
Hyundai Walks Back Confirmation It’s in Talks Over Apple Car. Hyundai backed away from a statement confirming it is in talks with Apple on developing self-driving cars, saying instead that it received requests for potential cooperation from several companies. The initial statement resulted in an $8B surge in the Korean automaker’s market value on Friday. Related, Foxconn Inks EV Manufacturing Deal while Waymo Attempts to Build Driverless Car Remains Slow.
NHTSA Issued a Rule for US Manufacturers of Vehicles. These rules help US manufacturers streamline the process of testing or demonstrating autonomous vehicles by allowing them to be exempt from federal safety standards. Related, Ford To Test Self-Driving Cars In Israel roughly 2 years after opening regional R&D effort.
Fundraises and M&A 💸
Yesler Raises $3.3M Led by Tech Square Ventures. Yesler is a B2B marketplace for lumber and building materials, where they streamline purchasing operations by replacing spreadsheets, hand-written notes, and phone calls. Their software aims to eliminate extra transactions and material movements between lumber suppliers and lumber buyers. The new capital will be used to scale its marketing and software engineering teams in the greater Seattle area.
SilviaTerra Raises $4.4M Seed Led by Union Square Ventures and Version One Venture. SilviaTerra collects high-resolution satellite images and combines them with pre-existing field data to create detailed forest maps allowing them to estimate details such as tree species, height, and density. Conservationists, foresters, governments, and landowners can use these maps to assess forest health and identify risks faster and more accurately. The funds will be used to continue focusing on offsetting the carbon footprint of consumers.
Kyte Raises $9M Seed Led by DN Capital and Amplo VC. Kyte built a fleet-logistics platform that lets consumers rent vehicles through their app or website. The vehicles are delivered by gig economy workers right to the renters’ home. Kyte also handles the pickup and refuels the vehicle for no extra charge. The funds are already being put to work to help drive Kyte’s expansion into markets, starting with Washington, D.C.
Oxbotica Raises $47M in Series B Led by BP Ventures. Oxbotica builds autonomous vehicle software with a focus on flexible technology that can power the navigation, perception, user interfaces, fleet management, and other features needed to run self-driving vehicles in multiple environments, regardless of the hardware being used. The money will be used to help accelerate product and sales.
Boston Metal Raises $50M Led by FMR and Piva Capital. Boston Metal uses a process called molten oxide electrolysis to make steel alloys and eventually emissions-free steel. The company will look to have a semi-industrial cell line operating by the end of 2022, and by 2024 or 2025 hopes to have its first demonstration plant up and running. Ultimately the goal is to serve as a technology developer licensing its technology and selling components to steel manufacturers or engineering companies that will ultimately make the steel.
AMP Robotics Raises $55M in Series B Led by XN. AMP Robotics is creating robotic systems that sort recyclable material. The startup says it will use the funds to scale its business operations and develop AI product applications that integrate into materials recovery facilities to increase recycling rates for its customers.
Flexiv Raises $100M in Series B Led by Meituan. Flexiv focuses on building adaptive robots for the manufacturing industry. With the new capital, the startup plans to implement its AI-driven, general-purpose robots in other areas such as services, agriculture, logistics, and medical care.
Fluence Raises $125M Investment from Qatar Wealth Fund. Fluence, a joint venture of Siemens AG and AES Corp, is a global battery storage systems company. The funding will give the Qatar Investment Authority a 12% stake in Fluence.
BayoTech Raises $157M Led by Newlight Partners. BayoTech is an on-site hydrogen production company that reduces or eliminates transportation and storage costs, which results in less energy wasted and a lower carbon footprint than traditional hydrogen production technology and electrolyzer-based systems. The company intends to use the funds to accelerate its strategic growth through product development, project development, and infrastructure expansion.
Aeva Raises $200M from Sylebra Capital. Aeva, founded by two former Apple engineers, is creating a lidar sensor that helps self-driving cars assess the depth and speed of objects in the road ahead. This allows the team to deliver on their current customer commitments and address inbound customer interest.
Udaan Raises $280M in Series D Led by Octahedron Capital and Moonstone Capital. Udaan is a B2B platform connecting small retailers with wholesalers and traders in India. Much of the B2B market in India is unorganized, meaning merchants have to travel to other cities to stock up their inventory. With this funding, Udaan will expand the selection of products and categories, its financing capabilities for small businesses, and its supply chain network.
Teledyne Acquires FLIR for $8B in a Merger. Teledyne and FLIR make cameras, sensor systems, and unmanned systems, among other products. The transaction is subject to regulatory approval and is expected to close in mid-2021. If approved, it would be Teledyne’s biggest acquisition ever.
Lineage Logistics Acquires Cryo-Trans, Valued at $500M. The warehouse owner and cold storage specialist Lineage Logistics acquired Cryo-Trans, owner of refrigerated and insulated railcars, to utilize an additional part of the food and beverage supply chain. Lineage credits the move into rail as part of its effort to be a one-stop-shop for customers and eliminate waste within the food supply chain.
Company Building 🛠️
What Is Going To Happen In 2021. Fred Wilson’s annual predictions are somewhat of a tradition for VCs. One of the most interesting predictions is the coming “mass socialization” and it’s healing power after a turbulent 2020.
Who Owns the Product Roadmap? How to Use Insight and Influence to Guide Product Direction. A thorough exploration of the different product management arrangements found in businesses today. Some great perspectives on influencing products and the product management process towards the end.
Ed Sim on Talent. We agree and as a reminder- “Hiring momentum begets product momentum that begets sales momentum” at pre-seed and seed stage startups.
Who's Hiring? 👩💻
Product Designer at nextmv in Philadelphia, PA (remote ok).
Customer Solutions Associate at Backbone AI in New York, NY.
ML Engineer at Vector AI in London, UK.
Check out other jobs at Dynamo portfolio companies.
💥 Have you seen any interesting startups recently? Introduce us.
❤️ We would love your support. Please forward to friends and share on social media.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.