Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
Perhaps the most surprising news this week is that Jeff Bezos is stepping down as CEO of Amazon and will be replaced by Andy Jassy who runs AWS. This might seem like more relevant news for a retail or cloud newsletter to mention but Bezos was masterful in turning supply chain into his advantage as an online retailer. His ability to allocate capital to a function that was long considered a cost center cannot be overstated. He then proceeded to monetize that investment through efforts like FBA and Amazon Freight.
Thanks for highlighting the importance of supply chain, Jeff.
We Are Dynamo,
Santosh, Ted, Barry, Jon, Rachel, and Emily
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Supply Chain 📦
📊Annual Freight Insights 2020 Report by Convoy. Through the Convoy app, the company has been able to collect ratings for 1.5M facilities, carrier dwell times, incidental costs, and on-time pickup and delivery, among others. A key metric in the report focused on drop-and-pick loads, which outperformed live shipments, with a higher average facility rating and reducing dwell times by 50%. Speaking of trucking, Fewer Trucking Companies are Responding to Shipper Bids.
Pandemic Has Ushered Companies to Finally Embracing Automation. In the past, giant, well-capitalized firms were the only companies able to enjoy the benefits of robotic automation. With advancements in technology, along with the impacts of COVID, the global market for industrial robotics is forecasted to rise from $45B in 2020 to $73B in 2025. Also, Foreign and Domestic Companies Begin to Recognize Reshoring Benefits while Procurement and Finance Need to Join Forces to Create Value for their Companies.
Steam Logistics to Launch Truckload Brokerage in April. The Dynamo portfolio company plans to offer an end-to-end international/domestic offering starting April 1st. Several former Access America Transportation executives have joined to lead the effort that combines good old-fashioned customer service with a modern technology-enabled workflow. Also on the road, SmartHop Develops Self-Service Technology for Small Trucking Companies.
Containership Schedule Reliability Declined to a New Low. The latest schedule reliability data for December shows only 44.6% of vessels arrived on time. For the 5th consecutive month global schedule reliability has been the lowest across all months since Sea Intelligence introduced the benchmark in 2011. The decline in performance is attributed to widespread port congestion. On the open oceans, Container Losses Exceed Annual Average in 2 Months and looking ahead, IATA Predicts Another Difficult Year for Air Cargo.
🌟Global Logistics at Risk from Secondary Ports’ Lack of Digitization. According to software provider Innovez-One, about 80% of the world’s ports are not yet using digital technology for basic processes, opting to use whiteboards and spreadsheets to manage critical services instead. This lack of modern adoption makes the last mile journey at sea a weak link in the global logistics chain. Speaking of a lack of digitization, check out Vizion’s Ocean Freight Data Quality Study.
📊Managing Risk in Globalized Supply Chains. The report details ways in which the US Air Force can evolve its supply chain risk management practices. Currently, USAF policies and responsibilities for the matter are dispersed and put trust in vendors to manage their supply chain risks. It notes that DoD could benefit from an executive SCRM cousin to establish policy, set standards, and facilitate information-sharing from across the enterprise.
📊Logistics Property Rents Continue to Increase Amid the Pandemic. The Prologis Logistics Rent Index found that there was a global rent increase of 2.9% in 2020 and anticipates the upward trajectory to continue. Willingness to spend on expanding logistics networks has increased as users view eComm distribution and speed to market as a competitive advantage. Related, Amazon Plans to Establish a Fulfillment Center in Tennessee and is Launching an Incubator for Aspiring Truck Drivers.
Relaxed Regulations for Drone Delivery to Begin in March. The new rules mark the next step in the FAA’s incremental approach to integrating unmanned aircraft systems into the national airspace system. The number of small commercial drones could rise as much as 210% by 2024 compared to 2019. Also in the realm of drones, Israel to Test Delivery Drones this March
Mobility 🚗
BP and Uber Extend Pilot Across Atlantic to Deploy EV Chargers. The alliance will see a pilot network of EV charges deploy in Houston, TX, replicating an initiative launched last year in the UK. Under the program, the new charging sites will make charging more equitable and convenient for the public. Also, Tritium to Build Largest Universal EV Charging Hub in North America while Dynamo, portfolio company Zeelo Deploys the UK’s First Fully-Electric Commuter Bus.
Cycling Bill Reintroduced in Congress. Representatives reintroduced two pieces of legislation, The Bikeshare Transit Act and the Bicycle Commuter Act, designed to fund a nationwide bike share program, and expand commuter benefits for bicyclists. Getting bike share defined as a mode of transit could be crucial for funding purposes, as federal funding up to this point has only been used for docking stations. Related, Public Transit Agencies Brace for Vaccination Push.
Apple Car Rumored to Use Hyundai's E-GMP Battery Electric Platform. The E-GMP uses up to 2 motors, 5 link rear suspension, an integrated drive axle, battery cells that can provide range over 500km on a full charge, and can be charged up to 80% within 18 minutes through high-speed charging. Hyundai Mobis will be in charge of design and production for some Apple Car components, and Hyundai Group affiliate Kia will provide the US production line for Apple Cars. Also relevant is that Kia Motors Shares Popping After Report Claiming that Apple Will Invest $3.6B.
Daimler to Split Off Truck Business and Rename Itself Mercedes-Benz. The split allows the company to operate more efficiently in a fast-changing environment focused on zero-emission vehicles and software. It comes as the auto business and the truck business within Daimler are pursuing different technologies as they seek to reduce vehicle emissions. Also, Daimler, BMW May Sell Park Now to EasyPark.
🌟VW Plans to Challenge Google with Its Own Software. The carmaker plans to develop most of the software necessary for autonomous cars in-house but is not rejecting collaboration in some areas (both those areas are not evident). Both VW and Daimler are working on their own operating systems for autonomous cars to make sure they have a chance to compete with large tech firms in the area of EV data. On the topic of EVs, it may come as a surprise that Tesla's Net Profit Does Not Come from Selling Cars.
China's CATL Reportedly Promises Solid-State Battery with High Energy Density. CATL reportedly is promising solid-state batteries with a battery density of 200Wh/kg, even 230Wh/kg in the near-term, and as much as 350Wh/kg and 400Wh/kg in the long term. The company hopes that the battery technology will make EVs cost-competitive with traditional ICE vehicles. Also in China, Renault Will Use EV from Chinese JV Partner for Ride-Hailing.
📊The State of the Air Taxi Ecosystem. The report looks at the potential for passenger-carrying eVTOL aircraft through multiple lenses. Interestingly, VC investment in the sector spiked in 2020 with $1.1B in disclosed investments for 13 deals at an average of $85.8M per transaction.
Ford Raises Planned Investment in EV and AV Leadership to $29B. Ford will now invest at least $22B in electrification through 2025, nearly twice what the company had previously committed to EVs. The company will continue to develop connected EVs and services in the areas of pickups, commercial vans, and SUVs. Also, Ford and Google Announce Infotainment Partnership.
Fundraises and M&A 💸
hlpy raises $1M in Seed Funding. The Italy-based roadside assistance company intends to use the funds to continue to expand its business reach in Italy and internationally.
Twinco Capital Raises €3M Led by Mundi Ventures. Twinco Capital is a Madrid and Amsterdam-based startup making it easier to access supply chain finance. They plan on using the funding to ramp sales and customer efforts.
Expedock Raises $4M in Seed Funding Led by Ali Partovi. Expedock's Nuance technology for supply chain companies allows its AI to understand documents without having seen any with the same formats. The funds will be used to expand its team as it seeks to accommodate a growing number of international clients.
Pandion Raises $4.9M in Seed Funding Led by Playground Global and Schematic. Pandion is creating next-generation delivery management software and using ML to avoid shipping delays and optimize delivery networks. The cash will be used to grow the team and expand ongoing customer pilots.
Monkey Raises $6M in Series A Led by Quona Capital and Kinea Ventures. Monkey pairs up SMEs with large enterprises. Through its network, buyers can find the best receivables in the market, suppliers get the best sales conditions, and sponsors strengthen their businesses and production chains. They plan to use its fresh capital to double its team of 40 in 2021, and to grow operations across Latin America.
Tau Raises €6.75M in Series A. Italy-based e-mobility and advanced materials startup will use the funds to speed up new product development, widen the product range of high-performance wires, and scale up industrial production to deliver to global producers of electric cars, buses, trucks, aircraft, and ship vessels from early 2022 onwards.
WorkStep Raises $10.5M led by FirstMark Capital. The San Francisco-based company enables large supply chain employers to source, screen, engage, and retain their frontline workforce. The capital will be used for its job board marketplace, hiring, and retention platforms.
Wallbox Raises $40M Led by Cathay Innovation and Wind Ventures. The smart charging solution startup will use the money to meet the surge in demand for electric car charges.
Slync.io raises $60M in Series B. Slync.io, a shipping and logistics process automation company, will leverage the investment to continue serving its customers, grow its physical presence in Europe and Asia, and expand its core teams.
Pony.ai raises $100M in Series C . Self-driving car startup, Pony.ai, is one of the few companies to have secured an autonomous vehicle testing license in Beijing and robo-taxi operations permit from the California Public Utilities Commission. The new cash will go towards advance its autonomous vehicle tech.
Rad Power Bikes Raises $150M. Rad, a producer of e-bikes that top out at 20 MPH without added pedal-assistance, claims 200K riders across more than 30 countries. The funding will be used to help expand its global footprint, which includes three showrooms and 11 service stations.
Uber to Acquire Drizly for $1.1B. Uber will acquire the alcohol delivery service in stock and cash - the deal is expected to close within the first half of 2021. Drizly’s marketplace will be integrated with the UberEats app.
Titanium Transportation Group Acquires International Truckload Services Group For $47M. The deal compliments Titanium’s industrial cross-border trucking business and strengthens its terminal network in Ontario. The acquisition makes Titanium among the largest of its kind in Canada.
Company Building 🛠️
A Common and Critical Mistake When Forecasting Next Year's Bookings. Having been reviewing sales forecasts across the portfolio, this is timely. “For sales driven companies, the new bookings number falls out of the number of account executives staffed on the team multiplied by their quota multiplied by the expected quota attainment (typically 60-75%).” Both in and outside our portfolio, we see a lack of rigor around quota attainment as a company scales - important given the multiplier effect it has on sales forecasts.
How Did Jeff Bezos Scale Amazon Without Destroying its Entrepreneurial Culture?. Given the news from Amazon this week, this piece breaks down how Bezos institutionalized the culture he set forth to institute at Amazon. Worthwhile read for all founders and leaders.
Enterprise SaaS Comps. As a former public markets analyst, I love comp sheets. Meritech has put together a great real-time comp sheet for public SaaS businesses. Definitely a handy reference!
Who's Hiring? 👩💻
BI Analyst at Zeelo in London, UK (remote ok).
Associate Web Developer at Plus One Robotics in San Antonio, TX.
SDR at Lead Logistics in New York, NY (remote ok).
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.