Dynamo Dispatch (06/02/23)

Issue 224 | JOKR, Biffa, Symbio

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 💭

​​💡Welcome to February, folks! We’re kicking the month off with a fun historical fact: On February 6th, 1959, Jack Kilby, an electrical engineer working at Texas Instruments, patented the first microchip. Kilby changed the world, and in 2000 was awarded the Nobel Prize in Physics. Fast-forward to this week and our calendars are packed with meetings with energetic founding teams who, like Jack Kilby, are working hard to change the world.

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We Are Dynamo,

Clay, Santosh, Jon, and the rest of the Dynamo team

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Supply Chain 📦

🌟 US Transport Providers Lose Fewer Jobs Than Expected In January. Transportation jobs only declined by 288.6K in January compared with January last year where 295.9K jobs were lost in 2022. The Bureau of Labor Statistics reportedly expected a loss of 311.5K transportation jobs, but numbers fell 22.9K short allowing the overall total US unemployment rate to slip from 3.5% to 3.4% in January. Get the latest on transport jobs by reading Logistics And Freight Transport, A Sector In Constant Growth With More Than 10K Direct Jobs Gained In Greater Montreal Over The Last Decade.

NY-NJ Marine Terminals Offering Up More Data To Improve Truck Flow. Improvements begin with a more detailed appointment dashboard to enable truckers to view the terminal and equipment type of empties to avoid dry runs to terminals occurring with an empty return. This should create additional visibility into the APM Terminals operations, to combat the federal regulatory push to boost shipping efficiencies. To get the latest on shipping news, read ‘The Party Is Over’ For Container Shipping, Says Hapag-Lloyd CEO and Global Automated Container Terminal Market To Reach $12.5B By 2030.

E-Methanol Could Be The Solution To Shipping’s Pollution Problem. The newest solution to shipping could be E-Methanol which is liquid at ambient temperatures, meaning it can hold more energy in less space than natural gas or hydrogen while still being biodegradable. Perhaps more exciting is its ability to be a completely recyclable circular process by having ships capture emitted carbon from their own e-methanol operations, which can be converted into more e-methanol on the other end of the supply chain. For more information, consider reading E-Methanol And The Future Of Marine.

FMCSA Proposes New Requirements For Driverless Trucks. A new supplement will now help the FMCSA assess the benefits of future truck legislation using Level 4 and 5 automation, including a requirement for remote assistants, as well as new vehicle inspection and maintenance. The proposal for Level 4 and 5 AVs is due by March 20. To learn more about AV trucking, read Truckers Weigh In On Their Comfort, Their Safety, And Autonomous Trucks.

Watch Boston Dynamics’ Stretch Unload A DHL Trailer. Global robotics giant Boston Dynamics unveiled its newest automated warehouse package-processing capable robot Stretch in a video this week. The robot has been part of DHL Supply Chain’s $15M partnership deal to release the six-and-a-half-foot Stretch robots in warehouses everywhere. To learn more, consider checking out Logistics Round-Up: Amazon Axes Jobs; DHL Lauded As Employer And Boston Dynamics’ Latest Atlas Video Demos A Robot That Can Run, Jump And Now Grab And Throw.

Chinese eComm Giant JD.Com Pulls The Plug On Indonesia And Thailand Sites In Southeast Asia Logistics Pivot. JD Central in Thailand will cease operations on March 3rd and JD.ID of Indonesia will be finished by March 31.  Both sites will begin to refuse orders as early as February 15th. This is the first in JD.Com’s pivot towards building a “cross-border supply chain network with logistics and warehousing” and shifting its focus away from Southeast Asian expansion. For more, consider: Maersk Sets To Enhance Customer Experience With Brand-New Southeast Asia To Australia Network and Key South-East Asian Crops Exposed As EU Tightens Supply-Chain Due Diligence Rules.

Mobility 🚗

🌟 GM Invests $650M In Lithium Mining To Lock Down EV Raw Materials. On Tuesday GM stated that it will invest $650M into Lithium Americas for a mining project at Thacker Pass that will support the production of up to 1M EVs per year. GM has also agreed to buy 40K tonnes of lithium per year when it opens in 2026. This investment in raw materials is the biggest to date, resulting in over 1K jobs and a rise in GM shares by roughly 8%. For more raw material news, read Lithium Company Ioneer Scores $700M Conditional Loan From Energy Department For Nevada Plant and Car Buyers Frustrated With Inventory Shortages Should Head To A Ford Or GM Dealer.

Ford Follows Tesla In Cutting Electric Vehicle Prices. In an attempt to compete in this EV price war, Ford is making cuts to its EV vehicles by up to 9%, increasing the number of models that qualify for the EV tax credit. Ford has even decided to repay its customers who have bought the vehicles prior to the discount. This unprecedented price drop is leaving some investors worried about the bottom line. For more, read Tesla Bucks Industry Trend, China Sales Grow With Price Cuts. The Stock Rises and Ford Lost $2B In 2022 As Some Investments Soured. 

EU Not To Phase Out Combustion Trucks Before 2040. The European Commission released a draft proposal on revised CO₂ emission standards for heavy-duty vehicles which will allow combustion heavy-duty vehicles to be registered in the EU after 2035. Many are stating that this timeline is unrealistic considering the lack of infrastructure for non-combustion trucks, but the EU is putting a focus on supporting manufacturers of wind turbines, solar cells, batteries, and electric cars to meet its emissions targets. For the industry’s reaction, read Industry Groups Warn On New EU Truck CO₂ Rules Risk To Supply Chains and Four EU Nations Call For Combustion Bus & Truck Phase Out.

US Treasury Makes More Tesla, Ford, GM EVs Eligible For Tax Credits. As this tax credit saga continues, after facing severe pushback from automakers and the public, the US treasury has raised the retail cap on eligible EV SUVs from $55K to $80K, making cars like the Tesla Model Y eligible for the credit. For a comprehensive list of qualifying vehicles, read Here's Every Electric Vehicle That Qualifies For The Current Us Federal Tax Credit and Treasury Modifies Vehicle Classifications In EV Tax Credit After Industry Pushback.  

Lyft Wants To Reshape Shared Micromobility With Dockable eScooter. The accessible nature of eScooters has been central to the micro-mobility vehicle craze but has also resulted in complications that have led cities like Paris to opt-out completely. Lyft will be the first to deploy Segway’s AI-powered scooter which has detection capabilities in urban settings to help guide drivers. For more on micro-mobility, read Segway Unveils New AI-Powered Scooter At Micromobility Europe and Explosive Growth Expected Across The Micromobility Sector.

Rivian To Lay Off 6% Of Workforce In EV Maker’s Second Round of Job Cuts. With issues cutting production costs, Rivian is laying off 6% of its workforce in an attempt to help reduce costs. Despite managing to ramp up its EV production to meet demand, the automaker has been selling each vehicle at a loss, making investors brace for Rivian’s earnings report. For more on Rivian, read Amazon Is Holding On To Rivian Stock. Ford Is Out and Rivian Orders Placed After 20% Price Hike Appear To Jump The Line, Angering Early Order-Holders.

Fundraises and M&A 💸

Toggle Raises $3M In Series A Funding. Out of New York, Toggle is a construction robotics startup producing machines capable of bending rebar, the skeletal reinforcement of heavy construction. Funds, which were raised by Japanese firm Tokyu Construction, will enable Toggle to ramp up robotic production internationally.

WARP Raises $5.7M In Latest Funding. The LA-native startup creates a tech-powered freight network for ground-level middle-mile transport with real-time optimization based on dynamic demand. Funding was led by Bonfire Ventures, Frontier Venture Capital, and MaC Venture Capital with additional funding from WARP’s previous investors. Funding will be used to scale WARP’s network to further automate traditional “supply chain hacks”.

Site 20/20 Raises $10M In Latest Funding. A Canadian tech company, Site 20/20 revolutionizes the construction industry by placing traffic control flaggers using an intelligent portable traffic system, already integrated into over 100 traffic control companies across North America. Funding came exclusively from Deep Field Asset Management in the form of growth equity investment. The funds will be used to advance its spearhead product, the Guardian SmartFlagger, as well as expand into international markets. 

PortPro Raises $12M In Series A Funding. Hailing from Jersey City, PortPro is a transportation management software provider for the $3B drayage carrier industry. The $12M round was funded by Avenue Growth Partners. These funds will subsequently be used for further product development.

Freightify Raises $12M In Series A Funding. Freightify is a Singaporean vertical SaaS platform for freight forwards to procure pricing data across multiple sources into one consolidated platform. The round was led by Sequoia Capital India with additional contributions by Alteria Capital, Trail Mix Ventures, Motion Ventures,  and Norid Eye Venture Capital. The new funds will be used for channel partnerships, marketing, new product development, and international sales team growth. 

Aedifion Raises $13M In Series A Funding. The Cologne-based startup has built an AI platform that monitors a building’s ventilation systems to predict its thermal capabilities. The Series A round was co-led by the World Fund and BeyondBuild while being joined by MomenI Ventures and the family office of the founders of SAP. This new funding will enable it to expand its footprint into more difficult economic environments. 

Optilogic Raises $13M In Latest Funding. The Michigan startup is a supply chain SaaS platform that enables users to incorporate risk, simulation, and optimization into a variety of different supply chain design models. The round led by MK Capital will enable optilogic to increase its executive leadership, global R&D,  and customer success teams.

Recycleye Raises $17M In Series A Funding. Hailing from the UK, Recycleye has designed the most efficient AI robotic picking solution for waste-picking and low-cost sorting of materials. The round was led by DCVC and other investors such as MMC Ventures, Creator Fund, Atypical, PRomus Ventures, Playfair Capital and Seaya Andromeda joined on. The funding will be used to further product development of uncommon inaccuracies in its sorting algorithm.

Phantom AI Raises $36.5M In Series C Funding. The Bay Area startup builds advanced driver assistance systems to incorporate computer vision, sensor capabilities, etc. to provide assistance to human drivers rather than fully powered AVs. Funding was led by Intervest and saw additional participation from KT Investment, Renaissance Asset Management, Samsung Ventures, and Shinhan BG. The funds will now be used to accelerate production development of its software with its manufacturing partners worldwide.

JOKR Raises $50M In Series C Funding. Out of Luxembourg, Jokr is the first carbon-negative grocery delivery app across many different regions. The new round was led by G Squared, while Tiger Global Management, HV Capital, and GGV Capital also participated. Funding will allow JOKR to secure the Brazilian region, while it continues to find other geographies to strategically place operations in.

Portside Raises $50M In Series B Funding. Coming from San Francisco, Portside is a product for aircraft operators to share financial data, maintenance data, schedules, and other key aircraft information with insurance companies and banks on their web-based platform. The Series B round was led by Insight Partners with additional investment from I2BF Global Ventures. This funding will enable Portside to further expand its product portfolio and customer base.

Enko Raises $80M In Series C Funding. Based out of Mystic, Connecticut, Enko has a variety of products dedicated to crop protection and pest-resistance food chemistry challenges. The round was invested in by Akroyd, Endeavor8, Eight Roads Ventures, and Nufarm. Funds will be used for general product development.

Boston Metal Raises $120M In Series C Funding. The MIT-spinout, Boston Metal, produces decarbonized steel to avoid the heavy CO2 emissions produced by the construction steel industry. Funding was led by ArcelorMittal and joined by Microsoft’s Climate Innovation Fund and SiteGround Capital. The funds will be used to ramp up green steel production in its pilot facility in Woburn, Massachusetts.

Our Next Energy Raises $300M In Series B Funding. Michigan-born, ONE ( better known as Our Next Energy) uses sustainable, raw materials to provide a low-cost and highly-available alternative for EV battery chemistries and technologies. The round was led by Fifth Wall and Franklin Templeton with participation from Sente Ventures, Riverstone Holdings, Coatue, Temasek, BMW i Ventures, Volta Energy Technologies, Breakthrough Energy Ventures, and Assembly Ventures. Funding will be used to support its 1.6B gigafactory and move at-scale manufacturing into the US.

Lithium Americas Raises $650M In Latest Funding. The Canadian company is a lithium mining corporation, working to provide the raw materials used for EV batteries.  Funding was provided in the method of a partnership agreement between Lithium Americas and General Motors to develop a mine in Nevada. 

Symbio Acquires Intrado Life & Safety For $2.4B. Out of Longmont, Colorado, Intrado provides public emergency telecommunications for cloud-calling contact center applications. Australian company Symbio snatched up the industry giant for $2.4B.

Energy Capital Partners Acquires Biffa For $2.6B. Out of High Wycombe, UK, Biffa provides waste services to over 100K UK enterprise customers and 2M households. The deal was approximated at $2.6B.

The Riverside Company Acquires EnAppSys. A UK-based analytics and electricity data for grid operators and energy producers, EnAppSys is a leader in the European energy market. The financial terms of the deal were not disclosed at this time.

MiddleGround Capital Acquires Megatech. Megatech is a digital manufacturing platform dedicated to CNC production of specific, customized engineering parts out of Quebec City. The financial terms of this deal were not disclosed yet.

Highlander Partners Acquires Black Sage Technologies. A provider of unmanned aircraft systems, Black Sage is a Boise-based industry-leading military security solution designer. The terms of this deal were not yet disclosed.

Addtronics Acquires Missouri Tooling & Automation. Out of Lebanon, Missouri Tooling & Automation provides custom robotic automation solutions for medical, consumer products, electronics, and general industrial applications. The financial terms were yet to be determined.

Business Building 🛠️

Why Pairing Junior Executives With External Mentors Can Accelerate Your Hiring And Their Professional Development. An interesting approach for founders to consider where they pair promising hires with more experienced advisors who can help their development and therefore the growth of your startup. While one needs to be thoughtful about advisor equity, there’s something here if used thoughtfully.

Usage-Based Pricing Is Rising, But Not Replacing Other Models. Data from OpenView Ventures suggests Usage-Based Pricing (UBP) is on the rise with 61% of startups using the model (vs 45% in 2021, 34% in 2020) but it is complementing existing models. We’re seeing this trend in supply chain software where usage informs the subscription price and better aligns the startup to the customer’s underlying business. 

The Importance Of High Agency. “High Agency is about finding a way to get what you want, without waiting for conditions to be perfect or otherwise blaming the circumstances. High Agency People either push through in the face of adverse conditions or manage to reverse the adverse conditions to achieve goals”

Who's Hiring? 👩‍💻

Be sure to check out our Careers page on our website for more job opportunities that have opened up at some of our portfolio companies!

Senior Product Manager, Connect at STORD in Atlanta, GA (remote ok). 

Account Executive at VIZION in San Francisco, CA (remote ok).

Full-Stack Clojure Developer at Red Sky in Berlin, Germany).

Random Statistic Of The Week 📈

🛫We had a great time at Manifest this past week, and given all the flights to get us to and from Vegas we can’t help but marvel that this past week marked the end of an era as the last Boeing 747 was delivered to Atlas Air.  1,574 of these jumbo jets were built over the last fifty years, and if you’re feeling nostalgic, WSJ has a great visual slide show here.