Dynamo Dispatch. A 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
Know of any smart, curious, and driven individuals? We're seeking our next Venture Fellows who will join us starting July 2022 for a paid, six-month period. Fellows are key members of our team and get exposure to all aspects of running a venture firm: sourcing, diligence, post-investment support, and investor relations. Click here to view more details on the role. The application closes in ten short days on May 25th.
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Supply Chain đŚ
The World Is Strained by Pricey Food And Now Weather Threatens Wheat Crops. In addition to the war in Ukraine, extreme weather events have threatened the global food supply chain. Countries like India will likely have to step up their wheat production to compensate. Expect viable substitutes to wheat to increase in demand as well. Outside of the wheat crisis, US egg prices are also surging due to the deadly bird flu thatâs killed around 10% of the countryâs hens. For related news, check out Wheat Crops Almost Everywhere Are Coming Under Threat and EU, US Join Forces to Ensure Food Security, Access to Fertilizer.
đPort Labor Talks Pose New Complication for Supply Chain. Contract negotiations for over 22K dockworkers at 29 west coast ports could take months to sort out. Around 40% of US seaborne imports flow through the 29 ports affected by the talks. The meetings are scheduled to start just as shipping rates appeared to potentially have started to stabilize. Similar disruptions in the past have led to delays and blockage in the nationâs supply chain. For more on ports, consider reading Shipping Delays Are Back As China's Lockdowns Ripple Around The World.
Amazonâs Surprising New Delivery Partners: Rural Mom-And-Pop Shops. The eComm giant has started a program that offers participating small businesses a per-package fee to deliver orders. Delivery times can linger in rural areas due to longer distances between stops, which is likely the primary reason behind this innovative strategy. It looks as if this is a win-win for both parties - Amazon can deliver more efficiently and small businesses can tap into an additional revenue stream. For more news, check out If The US Postal Service Fails, Rural America Will Suffer The Most and USPS Sets Slower Delivery Standard For Small Packages.
The Baby Formula Crisis. In February, a Michigan factory responsible for producing Similac formula shut down amidst a possible bacteria outbreak. The factory, which remains closed today, has spurred a shortage of baby formula that is sweeping the nation and has dramatically increased formula prices. In addition to the shortages, the crisis has highlighted four additional problems within the US economy concerning supply chains, big businesses, bureaucracies, and gerontocracy. Check out the article for a deeper dive into those four problems. For more on stockouts, consider reading Tootsie Roll Could Pause Production Lines Due To Delayed Supplier Deliveries and Under Armour Is Canceling Orders Due To Supply Chain Issues.
SAP Partners With Apple On Digital Supply Chain Apps. The goal of the partnership is to transform the way people work on iPhones and iPads through a new suite of apps that streamline operations and empower workers with intuitive tools. The two new mobile apps, SAP Warehouse Operator and SAP Direct Distribution, were co-designed with Apple and built by SAP to take advantage of the latest iOS innovations. The applications are now available in the Apple app store. In related news, check out SAP Delivers Innovation to Address Customerâs Most Pressing Needs and SAP Going The Extra Mile On Sustainability.
Werner Limits Used Truck, Trailer Sales With OEM Pipeline Clogged. Due to industry-wide equipment procurement challenges, Werner has intentionally reduced the number of fleets it sells to manage its customerâs freight commitments. This has caused the age of Wernerâs fleet to increase y/y, from 2 years to 2.3 years. In addition to the age increase, Werner has reduced its net capital expenditures guidance for 2022 by $25M citing that the investments depend on the state of procuring equipment and the timing of producing new fleets. For more on trucking, check out Truckers Concerned Over Possibility Of Diesel Fuel Shortage That Could Impact Supply Chain and Trucker Shortage Causing Supply Chain Disruption.
Diversified Sourcing Helps Leviâs Avoid Disruption From China Lockdowns. The city-wide lockdowns in Shanghai have caused massive disruptions to the supply chains of multiple enterprises in multiple industries. However, unlike many brands, Levi had a plan. The company has been divesting manufacturing away from China and building partnerships with other vendors elsewhere on the global map. This has been a strategy implemented by its leadership even before the pandemic when it reduced its manufacturing in China from 16% in 2017 to about 1-2% in 2019. For more on China, consider reading A Semiconductor CEO Explains How Shanghaiâs 7-Week Lockdown Is Crippling His Supply Chain And Fueling Inflation.
Mobility đ
Exclusive: Tesla Halts Most Output At Shanghai Plant, April Sales Dive. The company's sales in China had slumped by 98% from a month earlier. The plant suspended work last Monday after it faced supply chain issues and the COVID lockdowns. Overall passenger car sales in China dropped around 35% in April compared to the same period last year. In contrast though, overall EV sales in the region have boosted by 50% from a combination of government incentives and market shifts. In other news, consider reading BMW Shipping New Cars Temporarily Without Apple CarPlay and Tesla Abandons Plans To Enter The Indian Market For Now.Â
VW Wants To Resurrect Scout As A Rivian-Like Off-Road EV Brand. The company will resurrect the Jeep-like off-road vehicle from the â70s and intends on introducing the brand to market by 2026. The historic Scout brand will also be spun off into its own company with significant investment from VW. Lookout Rivian, thereâs a traditional OEM hot on your tail. In other news, EU Parliament Committee Votes To Ban Combustion Engines From 2035.Â
đMary Barraâs âLong Gameâ: Winning The EV Race. Simply put, GMâs goal is to create more affordable EVs than the competition. The heart of the strategy is GMs battery pack design and its ability to be combined in different sizes which can be used in all of the automakerâs EVs. This will theoretically help GM achieve economies of scale to drive down costs. GMâs goal is to produce more than 1M EVs in North America annually by 2026. In related news, check out Musk Talks Tesla Demand, EV Startups And Scooters In Expansive Interview and Batteries Have Become VC And PEâs Most Electric Investment Opportunity.
How Solid-State EV Batteries May Lick the Fast-Charging Degradation Problem. Players in the battery space are saying commercialization of solid-state batteries could be finally approaching. The theoretical advantage of these batteries is that lithium-ion batteries degrade after repeated fast charging. Donât get your hopes up though. While solid-state batteries are a step in the right direction, itâs unlikely that they completely solve battery degradation according to industry experts. In related news, check out Honda Still Needs Help Making An EV; GM Is There for It and Predicting How Much Range EV Batteries Lose over Time.
Uber CEO Tells Staff Company Will Cut Down On Costs, Treat Hiring As A âPrivilegeâ. Uber will focus on becoming leaner as they re-evaluate various aspects of its business model and core strategies. This is reportedly a result of Uber sensing a shift in macroeconomic sentiment about the economy and ride-sharing market. This is a divergence from its industry competitor Lyft, which decided to ramp up spending to attract drivers given the shortage. In other news, consider reading Female And Non-Binary Uber Drivers Will Now Be Able To Refuse Male Passengers In Australia.
Hyundaiâs Robotaxi Coming to America in 2023. The service will start in Las Vegas before expanding elsewhere. Hyundai first revealed the cab in 2021 as an AV with level 4 capabilities. The taxis will be fitted with around 30 sensors with a combination of radar, lidar, and cameras. Itâs safe to say that robotaxis are gaining more attention as a result of the current driver shortage. In other news, Waymo, Cruise, Chinese Firms Expand Robotaxi Service Areas; Itâs On and Self-Driving Cars Could Be Potential Crime Witnesses.Â
Carvana To Cut 2.5K Staff As It Struggles With Overcapacity. The used car retailer has likely been pushed into this position due to its $506M net deficit in Q1 of this year. The layoffs, explained in a filing with the US Securities and Exchange Commission, were apparently a part of the companyâs âpreviously announced plans to better align staffing and expense levels with sales volumes.â. This tough loss marks yet another casualty who over-invested for sales volume that didnât come to fruition. For other interesting news, check out Integrating Micromobility and Public Transit for Better Service and A Passenger With No Flying Experience Landed A Plane At A Florida Airport After The Pilot Became Incapacitated.Â
Fundraises and M&A đ¸
đĽ Stord Raises $120M Led By Franklin Templeton. Stord is the leading cloud supply chain platform enabling companies to compete and grow with world-class logistics. Additional investors include Dynamo Ventures, Sozo Ventures, Strike Capital, 137 Ventures, Kleiner Perkins, Founders Fund, BOND, Susa Ventures, Lux Capital, and Salesforce Ventures. The funds will be used to expand its capabilities across logistics and technology, while further building out its industry-leading team.Â
Southie Autonomy Raises $2.5M Led By BootstrapLabs. Southie Autonomy has developed an easy-to-use robot arm solution for automating packaging assembly, palletization, and kitting. In addition to the equity round, the startup has also raised $5M in venture leasing to support Southieâs disruptive robot-as-a-service business model. The funds will be used to grow its team, help accelerate customer acquisition, and build out the network of distribution partners.
Zozio Raises âŹ4M Led By Capricorn Partners. Zozio is an AI-driven logistics platform. Customers include the likes of L'OrĂŠal, Saint-Gobain, Renault, and Daher. The funds will be used to grow its team and expand internationally.
Cogniteam Raises $5.6M Led By Seabarn Management. Cogniteam is a low-code AI robotics platform. Its platform boosts collaborative robotic development capabilities, helping companies bring new robotic programs to market in a fraction of the time. The funds will be used to boost product development and expand sales and support teams.
Pico MES Raises $6.75M Led By Congruent Ventures And Union Labs. Pico MES is a manufacturing execution system software company focused on small and midsize manufacturers. The company currently has 22 employees and is expected to increase by another 30-50% by the yearâs end. The funds will be used to scale its sales and marketing teams and expand its feature set.
Mylerz Raises $9.6M Led By Lorax Capital Partners. Mylerz is a Cairo-based eComm fulfillment startup. The startup currently has 21 fulfillment centers and plans to open a 25K sq. meter hub to keep up with the growing demand for storage, order processing, and last-mile deliveries. To date, Mylerz operates a fleet of over 350 eco-friendly vehicles and has delivered 2M packages.
Oriient Raises $11M Series A. Orient builds scalable indoor GPS. It currently powers the platform that Instacart shoppers use to gather their orders in hundreds of stores in North America. The company also recently partnered with Google Cloud, making its SDK available on Google Cloudâs Marketplace. Investors include OurCrowd, Regal Four (a Beren family venture entity), F2 Venture Capital, NGN Partners, and Future Energy Ventures.
Bliq Raises $13.5M Led By NEA. Bliq empowers gig workers in the transport industry to manage their workflow across multiple platform jobs. The company is currently serving around 13K drivers across multiple geographies. The funds will be used to double down on its product to make Bliq the super app and work tool of choice for independent platform workers across the globe.
Hyphen Raises $24M Led By Tiger Global. Hyphen builds automated makelines for commercial kitchens. The company claims its machines can make 350 meals every hour with 99.9% order accuracy. The funds will be used to expand into new US markets and invest in R&D.
Bookaway Raises $35M Led By Red Dot Capital Partners. Bookaway is a travel platform for people to view and book their ground transportation. Additional investors include Menorah, Tenere Capital, Aleph, Corner Ventures, and EntrĂŠe Capital. It currently has approximately 7K transportation providers listed on its platform.
Byrd Raises $56M Led By Cambridge Capital. Byrd is a pan-European eComm fulfillment platform. Additional investors include Speedinvest, Mouro Capital, and Elevator Ventures. The funds will be used to expand product offerings.
Mashgin Raises $62.5M Led By NEA. Mashgin builds AI-powered self-checkout systems for retailers. The profitable company has raised $75M to date and earned roughly $14M in revenue in 2021. This round notches up the companyâs valuation to $1.5B. The funds will be used to grow its team and its business in Europe.
Mothership Raises $76M. Mothership is a short-haul freight-technology company dedicated to making same-day delivery. Investors include Benchmark, WestCap, Bow Capital, and former Con-way Freight CEO Douglas Stotlar. The funds will be used to expand its platform nationwide.
Ather Energy Raises $128M Led By NIIF And Hero MotoCorp. Ather Energy is an India-based eScooter maker. The company is projecting a roughly 100% increase in demand over the next five months. The funds will be used to expand its manufacturing facilities, invest in R&D and its charging infrastructure, and grow its retail network.
Xpediator Acquires Nidd Transport For $6M. UK 3PL and eComm logistics company Xpediator acquire Nidd Transport, a Yorkshire-based freight forwarder. The acquisition enables Xpediator to expand its European logistics footprint. Nidd posted revenues of ÂŁ11M last year with a net profit of ÂŁ400K.
House of Lithium Acquires Reby For $100M. House of Lithium, a Canadian private equity firm has acquired Reby, a European micromobility startup. Reby had raised a total of $17.9M from EXOR, 14W Ventures, Neo Fund, Fuel Capital, Hard Yaka, and Day One Ventures. Rebyâs founder, Pep GoĚmez, with the rest of the management team, will continue managing Reby.
Swiggy Acquires Dineout For $200M. Indian food delivery giant, Swiggy acquires Dineout, a dining out and restaurant tech platform in an all-equity deal. Dineout has built a network of over 50K restaurant partners in the country. With the acquisition, Swiggy will be able to enter the dining-out business, a category its chief rival, Zomato, has had a play in for several years.
SPAC RadarđĄ
Getaround In $1.2B Deal with InterPrivate II Acquisition Corp. Getaround is a digital car-sharing marketplace. If the deal is approved, Getaround will be listed on the New York Stock Exchange under the ticker symbol GETR and Getaround Founder and CEO Sam Zaid will lead the combined company. Getaround will use the sale proceeds on continued product innovation and expansion.
Business Building đ ď¸
Operating During A Downtown. Craft Ventures held an all-hands with their portfolio this week to discuss the softening macro environment and how startups should manage through. We point you to the Q&A as well as the slides on fundraising benchmarks and managing things within your control.
Improving SDR Productivity. âThe simplest hack Iâve seen again and again is â have them write it out. I just saw Tien Tzuo suggest the same thing, and Iâve seen this work again and againâ
State of the Cloud 2022. Bessemer released their annual cloud report this past week. While much of this might seem general, Iâd point supply chain SaaS founders to the points on indirect monetization that weâve encouraged with several of our more recent investments as well as the concept of âThe Centaur.â
Who's Hiring? đŠâđť
Head of Marketing at Vector AI in London, UK.
Front End Engineer at Forwardize in Berlin, Germany (remote ok).
People Ops Manager at Milk Moovement in St. Johnâs, Halifax (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.