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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We Are Dynamo,
Santosh, Ted, Barry, and Jon
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Supply Chain đŚ
All Four of the Worldâs Largest Shipping Companies Have Fallen Prey to Hackers. The latest attack on CMA CGMâs operations marks an alarming statistic for the maritime industry. Cyberattacks targeting the industry become more numerous with shipping companies likely to pay ransoms given the profound nature of the business. Back in February of this year, there was a reported 400% spike in shipping cyber attacks, signaling the dire need for elevated security infrastructure within the industry. On Friday, IMO Reported a Breach as well.
BCOs to Experience Hefty Rate Hikes Amid Looming Container Contract Discussions. Shippers are anticipating materially higher rates from carriers as the blanking of sailings and idling of many ships tightened supply and greatly increased container spot rates. Analysts at Drewry note, âBecause spot rates tend to be indicators of contract rates, contract shippers and BCOs should start to budget for higher contract rates on most routes in 2021.âIn surface transportation, theFMCSA Loosens HoS Driving Caps.
Hyllion Debuts on NYSE. Via SPAC, the provider of electrified powertrain solutions for Class 8 commercial vehicles launches its public offering. More than $560M in funding will support the companyâs development and commercialization of its hybrid electric axle and Hypertruck Electric Range Extender (ERX). In the realm of electrification, Tesla Scores Order of 130 Semis From Walmart Canada.
đMicro-factories Turn to Automation for Production Resiliency. The pandemic has compelled many firms to modify and refine their traditional operations. Companies have shifted to building micro-factories centered around automation, leveraging Industry 4.0 technology, and the network effects of established local supply chains, all in the name of resiliency. Growing dependence upon automation remains an evolving pandemic theme, with over half of US businesses being open to investing in automation technology. Tangentially related, A Self Erasing Chip for Security and Anti-Counterfeit Technology.Â
Logistics Warehouse Design With Ken Beyer of Ingram Micro. Despite a drastic rise in eComm demand, there remains insufficient warehouse space to efficiently satisfy online fulfillment and distribution. On a recent FreightWaves webinar, Ken Beyer emphasizes new warehouses should be emulated after the âdata centerâ model where their information management needs are outsourced to companies with massive data centers and have their data reside in the cloud for easy, secure access; eliminating the need for large data rooms self-maintained by the company. Also, Planning for Peak Season Demand.
Toyotaâs Research Lays Out its Vision for Robots. Toyota Research Institute CEO, Gill Prat, expressed the company is consistently building technology for âamplifying, rather than replacing human beingsâ. In a seemingly perfect world, the robots are meant not for convenience but rather to encourage humans to live and work independently as we progressively age. Elsewhere in robotics, a Community Platform for Robotics Programming and Scaling Robot Fleets.
Mobility đ
Uber to Resume London Operations After a Year-Long Battle. After years of conflict with European regulators, Uber wins the appeal to resume operations in one of its biggest global markets with over 3.5M riders and 45K licensed drivers in London alone. A London court ruled Uber was now âfit and properâ to hold a license despite some continued breaches of the initial contract. The ride-hailing giant was granted an 18-month license, subject to a slew of new operating conditions. Back in the US, Is Uber ATG Worth Keeping Around?
Ford Goes All-in on EVs and the California Mandate. The American automaker has been working in tandem with the California Air Resources Board to devise a plan to categorically reduce greenhouse gas emissions; recently signing on as the sole automaker to commit to the requirements of the plan for light-duty vehicles. Ford also committed to an $11.5B investment in battery-powered products and a $700M improvement to its River Rouge complex solely focused on preparing it for electric truck production. Consider the backdrop of Cumulative Plug-In Vehicle Sales Reaching 1.6M Units in the US.Â
GM Considers Boosting its Stake in Nikola in a Reworked Deal. Originally, GM acquired an 11% stake in the electric truck startup but now seeks more after a valuation reduction. The automaker agreed to supply Nikola with hydrogen fuel-cell technology and manufacture its new battery-powered pickup truck, the Badger. A December 3rd deadline looms as the automakerâs diligence practices were called into question after a short-seller accused Nikola of overstating its technological capabilities.
CEO of Vertu Motors on the Future of Auto Sales. As private car ownership remains an appealing consumer option, Robert Forrester of Vertu Motors claims dealerships arenât going anywhere, but only tech-savvy ones will stay afloat. By 2030, Forrester predicts online car dealerships will remain prominent, but in-person purchases will exist as the preferred purchasing method given our social human nature. All this said as Strong Demand + Lean Inventories Stress Car Dealerships.
đVW, China Partner to Invest $17B in Electrified Vehicles. The collaboration will see VW invest across three local joint ventures, enabling the production of 15 different full-electric or plug-in hybrid models in China by 2025. VW will begin production this month at two Chinese factories and source batteries from CATL, Guoxuan, and A123. Also, VW is Considering the Fate of Lamborghini, Bugatti, and Ducati while Toyota details High Expectations for EV Sales.
Why Your City Doesnât Map its Worst Accidents. Seven of the twenty largest US cities fail to provide an easily accessible High Injury Network map that details regions of a road system where pedestrians and cyclists are most often injured or killed. High Injury Networks arenât mandated by any state or federal law, oftentimes leading to an oversight on fixing a cityâs most dangerous intersections and the lack of transparency surrounding accident data fails to keep city officials accountable. On the positive side, IIHS Reported a Drop in Crash Rates for 70-year Old Drivers.Â
Fundraises, M&A, Talent đ¸
Malomo Raises a $2.8M Seed Round Led by Base 10 and Harlem Capital. Based in Indianapolis, Malomo helps small businesses turn their order-tracking services into branded customer experiences. Fresh funds will help Malomo expand its services providing a new marketing channel for Shopify retailers seeking more ways to reach new customers.Â
Annotell Raises a âŹ5.8M Series A Led by ErnstrĂśm & Co and Stena Sessan. The Swedish startup has developed an annotation and analytics platform used to ensure the performance of perception systems part of autonomous vehicles. Capital will be used to further develop its analytics and annotation platform.
Einride Lands $10M Led by Norrsken VC. Based in Stockholm, Einride is manufacturing intelligent logistics solutions, including electric autonomous trucks. New funds will be invested in Einride Pods, a driverless vehicle that operates either autonomously or by a remote operation center.Â
Neuron Mobility Raises a $12M Series A+ Led by Square Peg and GSR Ventures. Neuron, a Singapore based startup is the fastest-growing micromobility operator and technology developer in Asia Pacific- operating shared eScooter rental services. With the new funding, Neuron will accelerate its expansion plans in Australia and New Zealand.Â
Dedrone Raises $12.1M Led by TempoCap. Based in California, Dedrone built a counter-drone platform that detects and classifies drone-based threats with the help of radio sensors as well as special camera and radar systems. The new capital will accelerate the development of its platform providing early warning, classification of, and mitigation against drone threats.
Bykea Raises $13M Led by Prosus Ventures. The four-year-old startup which leads the two-wheeler Pakistani ride-hailing market also operates a logistics and financial services business. Funds will be used to help further expand its financial services offerings.
NYSHEX Raises $13.5M Led by NewRoad Capital Partners. The startup provides a two-way enforceable contract solution, initially in the trans-Pacific trade. Fresh funds will help bring on more retail shippers and support expansion efforts into Europe.
Huboo Raises a ÂŁ14M Series A Led by Stride.VC.The UK based startup that offers an end-to-end fulfillment service for online retailers of all sizes. Huboo will leverage the capital to support three strategic priorities: software development, UK expansion, and establishing an on-the-ground European presence as Brexit takes shape.
ScriptDrop Raises a $15M Series A Led by Ohio Innovation Fund. Columbus based startup ScriptDrop operates the largest prescription delivery platform in the US. ScriptDrop plans to deploy the funds towards engineering and operations.
GetCharged Acquired by GoIP for $17.5M. As a privately held privately-held transportation company, GetCharged, Inc is focused on building the largest global network of charging and parking stations for micromobility devices, electric scooters, and e-bikes. GoIP will strategically deploy capital to help expand the footprint of GetCharged, Inc.
PayCargo Secures a $35M Series A Led by Insight Partners. Based in Florida, PayCargo developed a suite of cloud-based payment and financing services for the cargo industry. With the fresh funds, PayCargo plans to expand its business in the wake of COVID-19.Â
ShipBob Brings in $68M Led by SoftBank Vision Fund. The Chicago-based company is an eComm technology and fulfillment services provider dedicated to bringing rapid shipping to eComm shippers. New capital will help ShipBob drive growth, expand its software platform, and scale its global fulfillment network.
Exotec Secures $90M Led by 83North. Founded by Romain Moulin in 2015, Exotec is a leading robotics solution enabling retailers and e-merchants to quadruple their warehouse productivity. This round of funding will progress the companyâs international development and enable the acceleration of robot production.
Cazoo Secures $311M Led by General Catalyst, D1 Capital Partners, and Others. Cazoo presents an app-based way to browse and buy used cars. Plans for the funds include growing the team, refining the brand and infrastructure, and developing the business proposition.Â
Uber Freight Raises a $500M Series A Funding Round from Greenbriar Equity Group. Launched in 2017, Uber Freight has built one of the worldâs largest digitally-enabled carrier networks and reshaped logistics management for thousands of shippers. Funding will help scale its logistics platform and accelerate product innovation.
Via Acquires Logistics Delivery Startup Fleetonomy. Ride-hailing startup Via seeks to expand its logistics and delivery services by acquiring Fleetonomy, an AI-based platform to plan, launch, operate, and scale profitable smart mobility services.Â
Total Acquires Blue Point London. Blue Point is Londonâs largest EV charging network which includes more than 1,600 on-street charge points. The acquisition will facilitate Totalâs collaboration with partners and local authorities and support the strong growth in demand for on-street charge points and the evolving needs of new mobility solutions.
Tesla Acquires German ATW Automation. The German company is a supplier assembling battery modules and packs for the auto industry. Details of the transaction were not disclosed.
CMA CGM Hires Former IBM France CEO. Nicolas Sekkaki joins the CMA CGM team to spearhead the acceleration of the container carrierâs digital and technological aspirations. Sekkaki previously served as Chairman and CEO of IBM France for the last 5 years and also worked at SAP as a Managing Director.Â
Company Building đ ď¸
Predicting Forward Multiples for Software Businesses. As a recovering financial analyst, I spent many days, nights, and weekends determining how the market is valuing a business. It was interesting to see this analysis around SaaS revenue multiples reflecting the importance of revenue growth and sales efficiency. While on the surface margins are left out (or have a low R2) it manifests in sales efficiency (Gross Profit in Y2 - Gross Profit in Y1) / Sales & Marketing Expense in Y1.
Culture Fit > Competence. âWhile you always want to shoot for high competence, high cultural fit people when you are hiring early in your companyâs life, itâs always better to choose cultural fit over competence when you have to make a choice.â
Priorities. Everyone needs to balance priorities across their life but also within key areas of their life (family, health, startup, urgent matters, etc). This framework from Wilson makes a lot of sense- âFamily, friends, fitness, firm, fires.â
Who's Hiring? đŠâđť
Content Marketer at nextmv in Philadelphia, PA (remote ok).
Software Engineer at Gatik in Toronto, ON.
Business Operations Specialist at SVT Robotics in Norfolk, VA (remote ok).
Check out other jobs at Dynamo portfolio companies.
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.