Dynamo Dispatch (10/12/20)
Issue 124 | Improving Transparency Around How We Operate at Dynamo Ventures
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 💭
Over the last month, we’ve authored a three-part series to provide founders with improved transparency about Dynamo Ventures and how we operate. Over the series of posts, we cover (1) what we invest in, (2) how we invest (our investment process), and (3) how we support founders and their startups post-investment. Your feedback would be welcomed (but please be gentle). Equally, please share this with brilliant founders in your network working on a supply chain or mobility startup.
We Are Dynamo,
Santosh, Ted, Barry, and Jon
Note: please add “dynamo@substack.com” to your email client so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
VCs Predict the Next Winners in AV. Dynamo portfolio company, Gatik is highlighted along with Aurora, TuSimple, and Aeva as AV startups that could emulate or surpass the success of Waymo. The slow adoption of self-driving taxis has allowed VCs to source investment opportunities with business models charting an expedited path to global commercialization. Related, Why Robots [and AVs] Should Grow Like Babies.
Hydrogen Round-Up: Hyundai’s Bet on Hydrogen Trucks, Toyota and Hino Partner for Fuel Cell Truck Development, Oil Giant Total Invests in Hyzon Motors. We’ve long believed that different applications in transportation require different energy sources. While hydrogen requires meaningful infrastructure investment, it could prove to be environmentally friendly and efficient over long distances with heavy payloads.
Last Mile is Spearheading EV Adoption. As eComm growth is expected to add 36% more delivery vehicles on the road, experts point to the imminent widespread adoption of EVs serving the last mile sector. Amazon, Ryder, and FedEx prove receptive to the lower running costs and environmental impacts of EVs within their operations after placing substantial orders with Rivian and Chanje Energy. Also, check out Amazon’s EV Developed With Rivian.
The Shift to an Asset Light Economy Amid the Pandemic. With businesses rethinking their business models, the shift to an asset light operation will enable sustained emphasis on re-crafted customer acquisition strategies, data management, and intangible investments. Pandemic related shifts in consumer habits have spurred the growth of digital platforms allowing businesses to execute lean operations and capitalize on macroeconomic trends.Related, Pandemic Reverberations on Small and Large Companies.
🌟H&M to Use ML to Scale Logistics Operations. To effectively and efficiently scale, the retailer will deploy reusable ML components across its design buying, assortment quantification, fashion forecasting and logistics operational areas. H&M is building a data platform called Yggdrasil to enable its teams to leverage datasets with end-to-end self service capabilities.Speaking of logistic operations, Cargo Airlines Prep Operations for COVID-19 Vaccine Distribution.
📊Lasership: How Retailers Can Stay Ahead of Consumer Expectations Post-pandemic. In an Infosys and Hanover Research Survey, data shows customer delivery satisfaction dropped 13% during the pandemic with a majority of respondents citing headaches from late deliveries or a lack of delivery options. For online retailers, faster delivery usually has a direct impact on sales as 18% of shoppers abandon carts during checkout due to slow delivery while 76% of consumers label fast shipping speeds key to a positive online shopping experience. The survey points to an opportunity for retailers to capitalize on evolving consumer behaviors by offering free shipping and returns to acquire new customers, building loyalty with expedited delivery options, and providing a diversified carrier mix. Also, how to Combat Key Holiday Delivery Challenges.
The “Toxic Combination” Plaguing Shippers. With volume pouring back into air freight and a consistent uptick in pricing, the combination of higher load factors and uncertainty over how the markets will unfold is a menacing combination for buyers of air freight capacity. For statistical context, September witnessed a record dynamic load factor of 70%, up 2% m/m and up 8% y/y. Also noteworthy in international shipping,MSC Declares Biofuels and Hydrogen As the Future of Ocean Decarbonization.
Mobility 🚗
Virgin Hyperloop To Test High-Speed Transportation System. Virgin Hyperloop announced plans to build a $500M certification center in West Virginia to advance its vision of modern high-speed transportation. If you forgot, the LA-based company is building levitating pods that carry passengers or cargo through tubes over long distances at ultra-fast speeds. Once functional, the pods could transport people (or cargo) between NYC and DC in just 30 minutes.
VWs Shift to Bidirectional Batteries. In the coming year, VW EVs will be equipped with bidirectional charging; meaning battery-powered cars can use electricity if there is an excess of it and release it when energy is scarce. While some experts label the concept overrated, others say it considerably increases the “ecological lead” of battery powered vehicles. Of the 26M EVs VW is expected to produce by 2030, Martin Roemheld, the automaker’s head of charging says, “my wish is that half of the vehicles that we will be delivering….will have the capability for bidirectional charging on board”.
Tesla to Use New Batteries, Tech at Berlin Factory. Elon Musk announced last week that Tesla will produce the popular Model Y with a new structural battery design and other new technology at its Berlin factory. Musk notes, the move could result in a "significant production risk" but the new cylindrical battery design is larger and more energy-dense than the current versions, decreasing overall vehicle weight by reducing the number of parts required. Speaking of Tesla and batteries, Former Tesla Exec Aims to Build World’s Largest Battery Recycler.
🌟The Accuracy of AV Software. Although AV startups and tech companies work tirelessly to safely bring AVs to market, key questions remain around the ability of AVs to accurately synthesize spontaneous weather conditions/events and then determine the action devising a safe response. Companies like Waymo, Mobileye, Cruise, and others have made attempts to depict the maturity of their software but a gray area remains as consumers and the media formulate viewpoints based on high-level metrics like miles driven and disengagement numbers.
Related, Active Model-Building for Self-Supervised Visual Reinforcement Learning andWaymo Re-launches Driverless Taxi Service.
A New MaaS Platform from Lime To Expand Micromobility Access. Launching in three domestic markets as well as Berlin, Lime’s new platform will serve as a one-stop shop for consumers seeking a shared electric vehicle. Long term, the platform is designed for light electric vehicle rides under five miles. Lime CEO Wayne Ting stated, "Our whole goal is that ... you can find the mode that's right for you, that is the right price, and you'll be sure that every mode on the Lime platform is sustainable, is green and is affordable".In London, TfL Moves to Ban Ride Hailing Company Ola Over Safety Concerns.
The Cost Savings Related to EV Ownership. Studies show lower maintenance costs and the lower price of electricity compared to gasoline works to offset higher purchase prices of a new BEV compared to an ICE. Analysis from Consumer Reports finds, for the first 50K miles, maintenance and repair costs for a BEV hover around $0.012 per mile; for a PHEV it's $0.021, and $0.028 for an ICE.If you’re in market, look at the Two New EVs from Mercedes-Benz.
2019 Fatality Data Shows Decline in Traffic Deaths. For a third consecutive year, traffic fatalities declined after peaking at 37,806 in 2016. While the US saw an overall decline, Florida and 13 other states experienced an increase in traffic fatalities, with Wyoming posting a disturbing 32.4% increase.
Fundraises, M&A, Talent 💸
Intelage Raises $3.5M Seed Round Led by Blumberg Capital. Located in Seattle, Intelage is a global trade management and logistics platform. Funds will be used for technology development, as well as building out the company’s sales team and senior management.
HUVRdata Adds $5M to its Series A Funding Round Led by Cottonwood Venture Partners. The Austin-based industrial asset management platform helps customers digitize the inspection process for large equipment like oil refinery tanks. The new funds will help expand the team and advance the development of technology.
Point Pickup Raises A $30M Series A Led by BBH Capital Partners. As a tech enabled, enterprise same-day delivery solutions company, Point Pickup is utilized as a specialized and scalable solution for many of the country’s largest retailers. Fresh capital will be used to enhance the company’s tech platform and specialized client services to meet surging and diversifying demand.
Envisics Raises $50M Series B Led by Hyundai Mobis, General Motors Ventures, and Others. The company brings together technologies like computer vision, machine learning, big data analytics and navigation to build hardware that integrates into vehicles to project holographic dashboards of information to drivers. Specific use of the funds was not detailed.
Instacart Raises $200M Led by D1 Capital and Valiant Peregrine Fund. Operating across the US and Canada, Instacart is among the market leaders in the grocery pickup and delivery space. Funding will help introduce new features and tools to improve the customer experience, and further support Instacart’s enterprise and ads businesses.
GoPuff Closes $380M Led by Accel and D1 Capital Partners. The Philadelphia based startup is an on demand digital delivery service operating in over 500 US cities through 200 fulfillment centers. New funds will further accelerate the company’s geographic expansion, product category offerings and investment in talent.
Seegrid Acquires Box Robotics. Seegrid, the leader in self-driving industrial vehicles for material handling acquired mobile robotics startup bringing high-definition maps, three-dimensional LiDAR, and deep learning to the warehouse and manufacturing automation space. The acquisition will help accelerate next-generation perception and more human-like, situational awareness technology to Seegrid’s vision guided vehicles, making manufacturing, distribution, and e-commerce fulfillment facilities more productive.
Envase Acquires SecurSpace For Drayage Storage. Envase, a cloud TMS provider for intermodal trucking acquires SecurSpace, an online marketplace that connects companies looking for parking and storage options to those with dedicated or excess capacity. Details of the transaction were not disclosed.
Peco Pallet Exchanges Hands Between PE. Peco Pallet is a provider of pallet rentals and services to the foodservice, grocery, and consumer products industries. Deal terms were not disclosed.
Company Building 🛠️
The Four States of an Engineering Team. A gist of Will Larson’s book, An Elegant Puzzle: Systems of Engineering Management. The four states are: falling behind, treading water, repaying debt, and innovating. A worthwhile book for all CTOs to read.
📊State of AI 2020. We enjoyed this over our rainy weekend down in CHA. The recap considers research, talent, industry, politics, and predictions for the year ahead. Slide 19 is especially interesting as we lean into neuromorphic techniques to onboard models faster and improve them at a more affordable clip.
What It Feels Like When You Find Product/Market Fit. “Every company did have a clear moment of PMF, and many did experience a sudden hard-to-miss pull from the market, BUT many companies did not. For many companies, PMF became clear over time through a series of compounding wins or milestones.”
Who's Hiring? 👩💻
BDR at Stord in Atlanta, GA.
Senior Fullstack Engineer at Vizion in Atlanta, GA (remote ok).
Software Engineer at ChAI in London, UK (remote ok).
Check out other jobs at Dynamo portfolio companies.
💥 Have you seen any interesting startups recently? Introduce us.
❤️ We would love your support. Please forward to friends and share on social media.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.