Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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.
Weekly Commentary đ
The Dynamo team is hitting the road (again!). Santosh and Clay will be in San Francisco the week of 4/25. Want to meet up? Shoot Clay an email at clay@dynamo.vc.Â
Otherwise, make the most of this week. đ
We Are Dynamo,
Clay, Santosh, Jon, and the rest of the Dynamo team
Note: please add âdynamo@substack.comâ to your email client, so you donât miss future issues due to aggressive spam filters.
Supply Chain đŚ
Logistics Giants Hedge Their Bets In Uncertain US Self-Driving Truck Race. Uncertainties on autonomous trucking come at a critical time following a record shortage of 80K drivers as demand for online shopping and rapid delivery times strain supply chains. Private investors have poured nearly $9B into AV trucking companies, with the global AV trucking market expected to balloon from $530M in 2023 to $167B in 2035. Moving forward, the focus will be on companies increasing operating margins with drivers accounting for more than 40% of per-mile costs, as well as increasing access to sufficient capital from the logistics partnersâ standpoint. For more news in the trucking industry, see US Xpress Pilots 24/7 Autonomous Freight With Kodiak Robotics and The Rise of the Entrepreneurial Carrier: What Shippers Need to Know.
Mexican Factories Gain in Supply-Chain Revamps. Mexican suppliers are gaining ground as more companies reset supply chains by bringing production closer to end-users. In 2021, American manufacturers solicited chemicals, produce, and construction materials from six times as many suppliers based in Mexico as they did in 2020. At the same time, the number of suppliers in China that received procurement bids declined by 9% in 2021. The effort is aimed at bolstering resilience and reliability following a series of shocks to supply networks brought on by COVID outbreaks, port bottlenecks, extreme weather, and geopolitical conflicts. However, global supply chain disruptions continue with most recently Ukraine Sunflower Oil Crisis Hitting Food From Chips to Cookies and Manure Supplies Running Short As Fertilizer Prices Soar.
đSharp Drop-In February Container Volumes Draws Mixed Analysis. An unusually strong Chinese New Year period in 2021 and a record amount of vessel capacity being cut from service led to mixed analystsâ conviction of falling demand. Global container volume fell 15% m/m to 12.4M TEU in February, representing a 5.6% y/y drop. Following an array of challenges facing supply chains, forwarders have expressed doubt that expected global container volume growth of 5-6% for 2022 was achievable, while analysts estimate congestion would remove 15% of available capacity this year. For more news in the container shipping industry, Shanghai Lockdown Causes Cargo Backlogs In Other Chinese Cities and Thousands of Russia-Linked Ship Containers Pile Up in Rotterdam.Â
US Drone Deliveries Start To Gain Some Momentum. Despite current FAA regulations still requiring a human to monitor each droneâs entire flight on top of resistance from neighborhoods relative to safety and noise, the industry has worked out many of the kinks that delayed the advent of drone delivery. With the FAA speeding up the issuance of permissions for larger programs, leading drone delivery companies such as Zipline, Amazon, Wing, and Elroy Air have partnered with large retailers and delivery networks to test a variety of vehicles and goods. Among the most recent developments, Amazon's Prime Air Drone Deliveries to Cost $63 Per Package in 2025 and Alphabetâs Wing to Launch Drone Delivery in Dallas-Fort Worth Area.Â
US Online Grocery Segments Struggle With Sales Down 6% in March. Although performance across the three eGrocery segments varies as the online grocery market continues to evolve, total US online grocery sales decreased by 6% y/y to $8.7B in March. The ship-to-home segment experienced the largest sales contraction, with a 30% y/y decrease to $1.4B while grocery pickup sales declined 11% to $3.8B. On the other hand, delivery reported strong sales growth for March, surging over 20% y/y to $3.5B. Despite developments on additional ways for people to shop online while newer services appeal to a broader range of trip missions and usage occasions, recent news signals challenges in the industry persist: 15-Minute Grocery Delivery Services Hit Reality and Instacart Rivals Are Catching Up.
Amazon Plans Keep Being Axed by French Campaigners. The approval for Amazon to construct distribution facilities in the country seems increasingly slim as multiple logistics hubs in France have been either blocked by tribunals or abandoned due to local opposition on ecological, economic, or political grounds. The most recent setback came last Thursday when the court of Besancon revoked permission granted to constructor Vailog for a site near the city of Belfort. That said, analysts believe setbacks would yield negligible financial repercussions and are unlikely to damage Amazonâs broader expansion in France. News on warehouses has taken up global headlines in the past few weeks, with most recently JLL Predicting A Looming Supply Crisis for US Warehouse Space and Amazonâs Warehouse Unionization Movement.
Maersk Launches Air Cargo. The companyâs new main air freight offering will serve the logistics needs of its clients for greater flexibility and agility with integrated logistics from Denmarkâs second-largest airport as its air freight hub. In addition to Maerskâs ocean, inland, warehousing, and customs services, this new solution aims to be fully operational by 2H2022 to make supply chain journeys more resilient and intuitive. Maerskâs ambition is to have approximately 33% of its annual air tonnage carried within its controlled freight network through a combination of owned and leased aircraft, with the remaining capacity provided by strategic commercial carriers and charter flight operators. For more news on air cargo, Air Cargo Slumps In March As War, China Lockdowns Take Toll and The 'King Of All Fruits' Under Threat From Air Cargo Capacity Crunch.
Mobility đ
The US Just Announced That Cars Will Have To Be A Lot More Fuel Efficient By 2026. The Department of Transportation announced that automakers will have to raise the corporate average fuel economy of their fleets to 49mpg up from 37mpg. âIf youâre filling up four times a month, that would become three times a month by model year 2026, saving the typical American household hundreds of dollars.â US Secretary of Transportation Pete Buttigieg said on Friday at a press conference. In other news, consider reading Automaker Suppliers Linked To Controversial Labor Programs In Chinese Aluminum Industry, Report Says and Biden Administration, Auto Leaders Want 'Seamless' EV Charging Station Use.
GM And Honda To Produce 'Attainable Evs' In Bid To Surpass Tesla Sales. The price tag for the EVs is planned to be below $30K. The vehicles will be built using GMâs battery technology. This is an interesting proposition to tackle Teslaâs immense presence in the EV market. This type of collaboration is good for the overall industry as it can lead to easier adoption of new innovations. In other news, Canadaâs Auto Makers Say 2022 Budget Not Enough For EV Target Sales.Â
Fordâs First-Quarter Sales Fell 17% As The Automaker Battled The Chip Shortage. This dip included a 26% drop last month. In March, a record-high number of orders came from previously placed retail orders. Weâre starting to see metrics quantifying the storm we knew would hit automakers as a result of these supply shocks. In related news, check out With Few New Cars On Lots, US Auto Sales Likely Fell Sharply and Ukraine War Cost German Automakers 150K Vehicles In March.
Like Tesla, Toyota Develops Self-Driving Tech With Low-Cost Cameras. Toyota implemented a creative way to solve the AV training problem through cameras. The alternative is training the system through higher-cost sensors. If the tech is developed it could be an interesting way to cut costs on AVs. In related news, check out The Pentagon's Long Road to an Army of Autonomous Vehicles and Barra Shares Her Struggle To Define Gm's Purpose, Says Self-Driving Car Goes On Sale Soon.
Porsche Hits The Gas On Synthetic Fuel With $75M Investment. This is a compliment to its plans to electrify a substantial majority of its fleet by 2030 and is an interesting hedge against the battery supply chain stress. It also gives consumers a carbon-efficient alternative to transitioning to EVs. They should be beginning construction on eFuel plants in the US next year. For related information, consider reading Volvo's New CEO Says Carmaker Must Smarten Up On Software and Hydrogen Fuels Might Have Just Got A Huge Leg-Up.
đThe US Government Has Just 1% Of The EV Chargers It Needs. The Government Accountability Office announced on Tuesday that the US government only has about 1K of the 100K charging stations it will need to handle its EV use by 2030. This is a contrast to the lack of purchasing currently from the US government of electric vehicles, less than 1% of its current fleet. Be on the lookout for heavy demand for EV charging station suppliers and operators over the next few years. In other news, No More Radar For Tesla EVs Headed For Europe, Middle East.Â
Nissan Plans To Launch Its First EV With A Solid-State Battery By 2028. Solid-state batteries are theoretically more efficient in most ways than the lithium-ion batteries that most EVs use now. Currently, theyâre very costly to make but automakers seem to be confident in their medium to long-term prospects as battery sources for EVs. Nissan is planning on establishing a pilot production line at its plant in Yokohama by 2024. For related information check out, Not Just Tesla: Hertz Expands EV Plan and These Charts Show How Much It Costs To Charge An EV Vs. Refueling A Gas Vehicle.
Fundraises and M&A đ¸
TraceX Technologies Raises $1M Led By Nabventures Fund. TraceX Technologies is a blockchain-powered agritech platform for supply chain traceability and transparency. The funds will be used to scale operations in India and international markets, enhance its product, explore additional use cases, and grow its team.
Lawazem Raises $1.3M Led By Merak Capital. Lawazem is a B2B marketplace for all operational procurement. Operational procurement refers to the collection of products and services needed to sustain a companyâs day-to-day business operations. The funds will be used to expand its team, marketing initiatives, and technology capabilities.
Lucky Raises $3M Led By Unusual Ventures. Lucky is an omnichannel fulfillment platform for modern brands and retail partners. ââLuckyâs first product is a plug-and-play API, also available on the Shopify App store, that integrates in minutes with major retailers. The funds will be used to grow its team on the engineering, product, and sales sides.
Atomic Industries Raises $3.2M Led By Point72 Ventures. Atomic Industries is end-to-end automation of tool and die-making startup. The company is attempting to replace human intuition and the ineffable experience of an expert toolmaker with software that uses physics and algorithms. Additional investors include Toyota Ventures and 8VC.Â
Again Raises ÂŁ2.55M Led By Eka Ventures. Again is building a decentralized network of automated, micro-cleaning facilities called CleanCell that will allow brands to reuse packaging using automation and robotics. Again claims its CleanCells use 76% less water and 90% less energy whilst being able to clean thousands of packaging each month. Maersk Growth also participated in this round.
Agrizy Raises $4M Led By Ankur Capital. Agrizy is developing a tech platform to bridge the processed agri supply chain. The funds will be used to grow its team, build out the product, and accelerate business growth in targeted value chains.
Peeba Raises $4.2M Led By Headline Asia. Peeba is a B2B wholesale online platform that connects independent retailers across Asia with unique brands around the world. The startup has onboarded 25K retail users, which is 10x growth in the last year, and 1.5K unique brands (3x growth y/y), with more than 100K products listed on the platform. The funds will be used to double its headcount and expand local offices to improve local language support across 11 Asian countries.
Swytch Raises ÂŁ3.8M. Swytch converts any bikes into eBikes. The company has become profitable in 2021 and has now sold over 40K units. The funds will be used to launch its new product, a pocket-sized eBike battery. The funding was secured with the help of a UK-based investment service, Wealth Club.
Cafler Raises âŹ4.8M Led By Seaya Ventures. Cafler offers on-demand service for everything related to the car. The company has more than 2K service points throughout Europe and has performed more than 10K services since its launch. The funds will be used to strengthen Caflerâs presence throughout Spain and to promote the opening of new European cities such as Milan and Berlin. Â
Livegistics Raises $6M Co-led By Refinery Ventures And BlackOps Ventures. Livegistics is a software company that provides construction and heavy hauling industries with cloud-based logistical tracking technologies. Last year, the company won a $1M grant through a pitch competition backed by musician Pharrell Williams. Additional investors include Detroit Venture Partners, Tappan Hill Ventures, and Reinventure Capital.
PackFleet Raises ÂŁ8M Led By Creandum. PackFleet offers delivery services for eComm businesses. It wants to be the Deliveroo or Uber of parcel delivery. Additional investors include General Catalyst, EntrĂŠe Capital, and Founder Collective. The funds will be used to grow its team, expand delivery areas, and scale operations.
Warehousing1 Raises âŹ10M Series A. Warehousing1 is a Berlin-based startup offering digitally managed fulfillment solutions. Investors include Schenker Ventures, Aster Capital, Wille Finance, HV Capital, and Base10 Partners. The funds will be used to heavily invest in its technology and expand across Europe.
Venus Aerospace Raises $20M Led By Prime Movers Lab. Venus Aerospace is a Houston, TX-based startup building hypersonic aircraft. Additional investors include Draper Associates, Boost, Saturn 5, Seraph Group, Cantos, The Helm, and Tamarack Global. The funds will be used to test its flight and engine.
SmartHop Raises $30M Led By Sozo Ventures. SmartHop uses AI to help interstate truckers make their routes more efficient and lucrative by removing administrative headaches. Additional investors include Union Square Ventures, RyderVentures, Greycroft, Equal Ventures, Las Olas VC, and The Fund. The funds will be used to focus more on its fintech product such as its fuel card and insurance offerings.
X Shore Raises $50M Oversubscribed Round. X Shore builds all-electric boats. Having successfully completed a pilot production phase last autumn, X Shoreâs newest production house rolled its first all-electric watercraft off the assembly line at the end of last month. The funds will be used to accelerate R&D, production capabilities, and build out sales channels.
Build Robotics Raises $64M Led By Tiger Global. Build Robotics develops self-driving construction equipment. Additional investors include NEA, Founders Fund, Fifth Wall, and Building Ventures. The company has started deploying its autonomous excavators and is starting to expand its efforts to other equipment like dozers and loaders.
GLT Express Acquires Gallop Express. KSA-based logistics company, GLT Express has acquired Egyptian logistics company Gallop Express. This acquisition enables GLT to expand its operation into more countries in the MENA region. The terms of the deal were not disclosed.
project44 Acquires Synfioo. The supply chain visibility platform has acquired Synfioo, a visibility and ETA platform for rail freight in Europe. This acquisition enables project44 to provide comprehensive visibility of all cargo rail movements across European countries to its customers. The terms of the deal were not disclosed.
Rebel Food Acquires Smoor. Ghost kitchen company Rebel Foods has acquired the luxury chocolate brand Smoor. This acquisition enables Rebel Foods to serve more food categories from its network of ghost kitchens. The terms of the deal were not disclosed.
Business Building đ ď¸
HBR Interviews Jerry Seinfeld. We can often take inspiration from others who are doing things unrelated to our day-to-day grind. Enjoy this interview with Seinfeld from 2017 where he discusses his creative energy (that as entrepreneurs we channel for problem-solving).
Making Better Decisions. As an investor, this certainly resonates but is equally important for startup leaders- âTo make great decisions, you need accountability, repeatability, and examinability. I always describe it like this: We need to create an evidentiary record, a way to Google our decision-making.â
Splitting Founder Equity. YC shares its thoughts on splitting founder equity. Spoiler: keep it simple and split it equally. Read to see why.
Who's Hiring? đŠâđť
Partner Success Manager at SVT Robotics in Boston, MA (remote ok).
QA Analyst at Milk Moovement in St. Johnâs, Halifax (remote ok)
Perception Algorithm Engineer at Tangram Vision in Boulder, CO (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.