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 đ
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Supply Chain đŚ
Mobile Machines Take Over The Supply Chain. Robots are no longer limited to operating in stationary and constrained environments such as assembly lines and warehouses. Innovations in computer vision, edge computing, and battery technology have enabled robots to move up and down the supply chain and better handle the randomness of the real world. According to intelligence firm ABI Research, mobile robot sales are set to overtake those of stationary industrial robots for the first time this year. For more robotics and AI news, check out Supply Chains Gear Up For Investments In AI and Japan Ranks As Top Country For Industrial Robot Manufacturing.
Ukraine Crisis, Rising Fuel Costs Drive Up Air Cargo Surcharges. Due to skyrocketing prices of jet fuel, air cargo carriers whose second-largest expense is fuel have no choice but to implement a higher surcharge for flights operating in Europe and Asia. Airspace restrictions across Russia and Ukraine have also contributed to the increased cost as it rendered flights between Asia and Europe infeasible. Multiple carriers such as UPS and FedEx Express have executed the price increase in the past two weeks. For more air cargo news, check out Air Cargo Growth In January Below Expectations and Singapore Airlines To Fly 777 Freighters Under DHLâs Wing.
How Walmart And Target Dominated Amid Disruption, Inflation. Many companies in the past year have struggled in the face of unprecedented supply chain turmoil and raised costs. However, for retail giants, Walmart and Target, it was nothing more than a mere speed bump. Thanks to their scale and ability to stock shelves, Walmart and Target maintained a healthy growth trajectory despite disruptions. For more news on retail, check out Walmart's Third-Party Fulfillment Business Grew 500% Last Year and Target Plans $5B Investment In Operations, Including New Distribution Centers.
Soaring Diesel Prices May Force Smaller Trucking Companies To Shut Down, Group Tells White House. The American Trucking Association (ATA) warned the White House this week of the dangers that smaller trucking companies could face with an extended rise in diesel. As of Friday, the average cost of diesel in the US increased to $5.132. In their report, the ATA mentioned that 97% of trucking companies that have 20 trucks or fewer are at risk of being severely hampered or shut down. In related news, Goldman Sachs Predicts What Will Happen To Europeâs Economy If Putin Shuts Off The Gas Taps.
Kodiak Robotics Is Moving Autonomous Freight For Ceva Logistics. Ceva and Kodiak have partnered to deliver freight using AVs between Dallas, Austin, and Oklahoma City. This is another landmark for AV adoption in the supply chain, making it more of a viable solution to the ongoing driver shortage. The biggest addition of this partnership to overall AV freight movement is the extension into the city of Oklahoma City, which recently passed a bill allowing vehicles to operate without humans on public roads. So far, Trucking Companies Gas Costs Skyrocket, Forcing Them To Make Tough Decisions.Â
đUkraineâs Farmers Stalled, Fueling Fears Of Global Food Shortages. The Russian invasion of Ukraine comes at an incredibly pivotal time for the global food supply chain, right when millions of crops emerge in the spring. Because of Ukraineâs large role as a food exporter, international food and feed prices could rise by up to 20%. For more on the food supply chain, consider Canned Pet Food Shortage Continues Amid Supply Chain Woes.
Mobility đ
Vice President Harris Announces Actions to Accelerate Clean Transit Buses, School Buses, and Trucks. The White House announced it will accelerate plans to convert the nationâs fleet of heavy-duty vehicles into zero-emission vehicles. Heavy-duty vehicles, such as buses and trucks make up nearly one-quarter of all US transportation greenhouse gas emissions. In addition to the announcement, the Environmental Protection Agency is also proposing a rule that would reduce NOx emissions from new trucks by up to 90% by 2031. For more trucking news, check out XPO Logistics Will Now Focus Just On Trucking and Truck Stop Giant To Spend $1B On Overhauling 400 Locations.
Tesla Order Rate Is Surging In The US As Gas Prices Are Turning People Toward Electric Cars. Just as experts forecasted, there has been an increase in demand for EVs as Tesla is seeing record high levels of demand. The EV market as a whole is constrained in its production capacity, leaving it lacking in its ability to respond to these rapid shifts in demand. It is also uncertain whether this boost in demand is temporary or if consumers become wary of consistent fluctuation in gas prices and make the investment into EVs. For Related News, Why All Those EV-Battery âBreakthroughsâ You Hear About Arenât Breaking Through and Biden's Sanctions Of Russian Energy Give Electric Vehicle Batteries A Pass.
đBuckle Up, Autonomous Vehicles Finally Get Federal Safety Standards. The US Department of Transportation's National Highway Traffic and Safety Administration issued an update to the safety requirements for AVs. One of the immediate impacts of this rule is the allowance for more fluidity in the design of AVs, meaning they wonât have to have traditional manual controls for a human driver. This is an important milestone for the future of AV tech as the government becomes more proactive in its regulatory framework. For the related information, check out New Survey Shows UK Public Not Ready For Autonomous Vehicles and Californian Transit Agencies Partner To Make Carpooling More Convenient.
Ford To Ship And Sell Incomplete Vehicles With Missing Chips. Ford will start selling vehicles without chips primarily used for non-safety features. This is an interesting bandaid for the semiconductor shortage that will only worsen due to the war in Ukraine. Other automakers that have recently undertaken this strategy as well include GM, Tesla, and BMW. In related news, check out Some New Bmws Won't Have Touchscreens Thanks To Chip Shortage.Â
COVID Transportation News: United Airlines, TSA, and Global Travel. First off, United Airlines workers who have vaccine exemptions can return to their jobs, potentially signaling a broader aviation regulatory shift that could alleviate some of the labor shortage issues. On the other hand, the TSA has extended its mask mandate on public transit and airplanes through April 18. The article also contains recent statistics on case numbers and hospitalization rates in various locations. While overall case numbers in the US are trending down, the average number of new deaths remains high at more than 1.3K a day. For related information, consider reading Puerto Rico Relaxes Covid-19 Travel Restrictions and COVID in Europe: An updated list of travel restrictions for every European country.
PG&E, Ford To Explore Electric Pickup Truck As Backup Generator For Home. GM and Ford have both started to collaborate with PG&E to explore utilizing EVs as backup power for homes. While the technology is still a long while away, the merger of energy and mobility is an interesting unexplored lane that big players have shown an interest in. The technology would probably be the most interesting in areas with more energy insecurities. In other news, Uber Partners With Three London Boroughs To Improve Access To EV Charging.
Ukraine Conflict Forecast To Cause Plunge In European Production. European auto production is in danger of being cut by 100K units due to the Russian invasion of Ukraine. This bottleneck comes at the same time as a gas shortage is causing a rapid increase in demand for EVs adding another overall short-medium term price hike for car transportation. Look for domino effects in the demand for alternative modes of transportation as a result. In related news, Public Transit Could Get A Boost From High Gas Prices and E-Bike Sales Spike As Consumers Look To Avoid High Gas Prices.
Micro-mobility Charging Infrastructure Market Share, Size, Trends, Industry Analysis Report. The report focuses on a couple of key trends that could lead to an increase in micromobility charging usage including greater concern over emission reduction, spikes in urban population, and EV usage. Currently, only around 55% of the world's population lives in urban areas; This number is expected to rise to 68% by 2050. This trend of urbanization is one of the big factors pushing for micromobility as a mobility solution as populations become denser. For other news, check out Inside the New Plan to Make Paris â100% Cyclableâ and Rivian Sinks as Supply-Chain Woes Hamper Production Plans.
Fundraises and M&A đ¸
Calico Raises $2.1M Led By Serena Ventures. Calico is an AI-powered supply chain management platform. ââBrands using Calico have successfully reduced expensive production errors and accelerated time to market by 25%. The funds will be used to scale its platform.
Packaly Raises âŹ2.4M Led By Fairtree Elevant Ventures. Packaly is a last-mile delivery service that helps retailers deliver packages to their customers within an hour. The funds will be used to scale its service across Europe.
Autosled Raises $5M Led By Lyndon Rive. Autosled is an automotive digital logistics marketplace. The announcement comes on the heels of the news that former Tesla executive, Leon Keshishian, has joined the company as CEO. In addition to that, Autosled has also added former Salesforce executive, John Stewart, to its board of directors.Â
Swobbee Raises $6.5M Led By EIT InnoEnergy. Swobbee is a Berlin-based startup thatâs working on commercializing battery swapping for micromobility vehicles. Their lead investor InnoEnergy is a group focused on accelerating the use of sustainable energies in Europe supported by the EU. The startup will rely on both the funds and InnoEnergyâs network in the European green tech space to build out its battery-swapping station network across Germany and into two new European countries.
AELER Raises $7.5M Pre-Series A. AELER has developed a âsmart shipping container that can reduce both operational costs and CO2 emissions in comparison with traditional steel containers thanks to its use of composite materials and embedded IoT technologies. Investors include Decisive, MACV, Tiger8, Virtual Networks, and AA Sons. The funding will be used to roll out its product.
ââAwanTunai Raises $8.5M Led By The World Bankâs International Finance Corporation. AwanTunai is a fintech lender that focuses on providing loans to grocery suppliers and traders. The company said it had helped over 8K merchants purchase inventories from more than 160 suppliers.
Serve Robotics Raises $10M From Nvidia. Serve is a sidewalk robot delivery company. The investment from Nvidia is part of a long-term collaboration that will see the two companies work together towards advancing robotic technology. The funds will be used for geographic expansion.
Naqla Raises $10.5M Pre-Series A. Naqla is an Egyptian trucking logistics company. Naqla has seen rapid growth into more than 35 active zones, overseeing the movement and delivery of over 4.6M tons of cargo. The funds will be used to scale its platform.
Autobrains Raises Additional $19M. Autobrains builds automotive visual intelligence solutions for the next generation of mobility. The additional $19M rounds out Autbrainsâ Series C at $120M. The funds will be used to advance its technology.
CoProcure Raises $22M Led By Forerunner Ventures. CoProcure is an online marketplace for vendors and buyers of government technology and other goods and services. Additional investors include Leadout Capital, Neo, and angel investors Marco Zappacosta, founder of Thumbtack; Dan Lewis, founder of Convoy; and Katrina Lake, founder of Stitch Fix. The funds will be used to grow its team.
Convelio Raises $35M Co-led By Forestay and Mundi Ventures. Convelio automates shipping processes for luxury goods. Convelio claims that it was responsible for 14K shipments last year with a cumulative value of $265M. The companyâs ARR increased 2.5 times while its workforce grew to 200 people.
Captain Fresh Raises $50M Co-led By Prosus Ventures and Tiger Global. Captain Fresh is a seafood farm-to-retail supply chain platform. Captain Fresh today helps farmers and fishermen sell close to a hundred tons of fresh fish and over three dozen other seafood species each day. The funds will be used for geographic expansion and potential acquisitions.
Mori Raises $50M Led By Prelude Ventures. Mori is a food technology company focused on extending shelf life to reduce waste and create more sustainable supply chains. Moriâs proprietary process uses just salt, water, and heat to extract natural silk protein that protects food and slows spoilage. The funds will be used to expand development in additional product categories and expand to new geographies.
Hermeus Raises $100M Led By Sam Altman. Hermes is an Atlanta-based hypersonic plane startup. Additional investors include Founders Fund, In-Q-Tel, Khosla Ventures, Canaan Partners, Bling Capital, and Revolutionâs Rise of the Rest. The funds will be used to finish the development of its first aircraft.
Forto Raises $250M Led By Disruptive. Forto is a logistics tech startup offering services that include booking, document administration, and tracking to manufacturers and eComm brands. Additional investors include Softbank Vision Fund II, G Squared, Northzone, Unbound, and A.P. Moeller Holding. The funds will be used to accelerate geographic expansion.
Cubbo Acquires DedaLog. Cubbo, an eComm fulfillment platform that operates in Mexico and Colombia acquires Sao Paulo-based competitor Dedalog. The acquisition of Dedalog enables Cubbo to accelerate its launch in Brazil. The deal was a mix of cash and equity.
GEP To Acquire COSTDRIVERS. GEP agrees to acquire a supply markets forecasting platform, COSTDRIVERS. The acquisition of COSTDRIVERS enables GEPâs customers to access big data analytics and machine learning enhanced insights. The deal is expected to close in Q1 pending regulatory approvals.
Ninjacart Acquires Tecxprt. Fresh produce supply chain company, Ninjacart has acquired Tecxprt, a software communication platform. The acquisition of Tecxprt enables Ninjacart to facilitate real-time communication across farmers, resellers, retailers, and consumers. The terms of the deal were not disclosed.
Zoox Acquires Strio.AI. Amazon-owned robotaxi firm Zoox acquires strawberry-picking startup, Strio.AI. The acquisition is more of an acqui-hire with Strioâs CEO Ruijie He joining Zoox as Director of Perception. The terms of the deal were not disclosed.
SPAC Radar đĄ
Satixfy In $813M Deal With Endurance Acquisition Corp. SatixFy is a provider of satellite communications equipment. The deal is expected to raise gross proceeds of $230M, comprising the $201M from Enduranceâs trust account and a PIPE of $29M.
Lanzatech In $2.2B Deal With AMCI Acquisition Corp II. LanzaTech is a carbon recycling technology company. The deal is expected to raise gross proceeds of $275M, comprising the $150M AMCI raised in its IPO last year and a PIPE of $125M from investors including ArcelorMittal and BASF.
Who's Hiring? đŠâđť
Engineer, Infrastructure, and DevOps at Gatik AI in Mountain View, CA.
Senior Software Developer at Token Transit in San Fransisco, CA (remote ok).
Operations Lead - US at Manna in Dublin, Ireland (remote ok).
đĽ Have you seen any interesting startups recently? Introduce us.
â¤ď¸ We would love your support. Please forward to friends and share on social media.
đď¸ If you were forwarded this and found it interesting, please sign up.
đ Check out Dynamo's podcast series, The Future of Supply Chain.