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
ICYMI, we posted a three-part series on (1) what we invest in, (2) how we invest (our investment process), and (3) how we support founders and their startups post-investment.Â
Also, our applications for our Venture Fellow program are open. If you are a recent graduate, we invite you to apply- Fellows get to experience the world of VC and startups as a key member of our organization.
We Are Dynamo,
Santosh, Ted, Barry, and Jon
Note: please add âdynamo@substack.comâ to your email client so you donât miss future issues due to aggressive spam filters.
Supply Chain đŚ
Amazonâs Truckload Brokerage Off To A Sluggish Start. Following a year-long pilot in the Northeast US, Amazon rolled out its truckload brokerage services in May. Since then, the eComm giant has struggled to find capacity to build up a network of shippers given the state of the spot market. Due to surging spot rates, smaller carriers and owner-operators have been able to pick and choose high paying loads, with Amazonâs plan to offer above-average rates in contracts with owner-operators suffering as a result. Related, the Trucking Economy Outpaces the US Economy.
DSV Adds Trucking Route As Air, Ocean Alternative. Offering an alternative to tight capacity modes of air, ocean, or rail transport, DSV launches a new route connecting China and Europe intended to provide shipper relief. Coined as the âSilkway Expressâ, door-to-door transit times of 14-18 days make the option a competitive alternative to air, rail, and ocean freight. Elsewhere in international logistics, CMA CGM and MSC Finalize TradeLens Integration.Â
Physicists Successfully Transport Stored Light. Several of us at Dynamo look forward to teleportation and this news is a step in the right direction. The day we can zap atoms like we do bits/bytes is the day most transportation problems are solved.
China Dominates Other Nations in Terms of Industrial Robot Use. As of September 2020, there were 381K units of industrial robots globally with China, Japan, and the US controlling about 58.71%. Of that total number, China accounts for 140,500 units with Japan operating about 50K units. Over the last ten years, the number of industrial robot installations globally grew by a whopping 535%. In grocery, Microfulfillment Centers Transform the eComm Landscape.Â
Pitney Bowes: Parcel Shipping Index Charts Continued Growth. Last year saw global parcel volumes reach 103B, with over 3K parcels shipped every second in the worldâs 13 major markets. Pitney Bowes predicts parcel volume is most likely to more than double and reach 220-262B parcels by 2026, with a 14.8 percent CAGR for 2020-2024. Much of the growth is fueled by eCommerce as Surging Digital Sales Spell Growth for Shopifyâs Fulfillment Service.Â
Apple Begins Fulfilling Online Orders With Store Inventory. For the latest iPhone and other tech products, Apple will move to fulfill online orders in-store across 300Â the US and Canada locations. A recent September Accenture survey shows 77% of US shoppers want their purchases shipped directly to their homes. One day delivery may be available for Apple customers who live within 100 miles of a store and live closer to a store than a distribution center.Â
The Data Behind TuSimpleâs Funding. After a $215M capital injection from investors, self-driving truck startup TuSimple is now worth upwards of $1B. Post-series D investment, TuSimpleâs largest shareholder is Cayman Islandsâbased SUN Dream Inc, UPS holds 0.2%, and Navistar along with Traton each own less than 1% of the five-year-old company. Given a slew of commercial agreements with truck manufacturers and logistics firms, many believe TuSimple is on track to merge with a SPAC. Also in trucking, Traton Increases Bid for Remainder of Navistar.
Mobility đ
NHTSA Investigates Chevrolet Bolt EV Fires. The NHTSA received three separate reports of fires that started under the rear seat of the Chevrolet Bolt EV while the vehicle was parked. Reports indicate the fire damage was concentrated in the EV battery compartment area with penetration to the passenger seat compartment. Spanning a total of 78K vehicles, the recall includes 2017, 2018, 2019, and 2020 Chevrolet Bolt EVs. Related, Hyundai Places Blame on LG Chem for 77K Kona Recallas LG Chem Explores JV with OEMs.
Daimler, Swiss Re Launch Mobility Insurance Venture. Aiming to unlock new data generated by highly automated vehicles to help insurers to calculate risk, the duo forms a Berlin-based intermediary that they will jointly own. With product and services launching across France in 2021, the joint venture will be open for cooperation with car manufacturers or mobility service providers.Â
Europe Sees EV Sales Triple Amid New CO2 Rules. Tripling last year's totals, one in 10 cars sold across Europe this year will be an electric or plug-in hybrid. A European green policy group forecasts electric car market share will soar to 15% next year as automakers scramble to comply with newly introduced CO2 legislation. Under new rules, carmakers must reduce the average emissions from their vehicles to 95g of CO2 per km or payout hefty fines totaling billions of Euros. Speaking of EVs, Audi and FAWâs New Joint EV Venture.
Why the Auto Industry Should Take Foxconn Seriously. Technology manufacturer Foxconn wants to be the Android of EVs and aims to capture 10% of the electric car platform market by 2025. Based in Taiwan, plans to get there by granting access to developers and other car companies to its MIH Open Platform and leveraging an existing partnership with one of Taiwanâs notable car manufacturers. MIH Open consists of hardware and software that make up the inner workings of an EV and would be developed through an open source approach, significantly lowering Foxconnâs R&D costs. Related to Foxconn, The iPhone Added LiDAR Before Tesla.Â
What Mobility Data in Germany and Italy Tell Us Post-COVID. Across Germany and Italy, mobility data continues to improve in parallel with economic recoveries. In Germany, the country has experienced a combined 26.1% decline in inter/intra city mobility, which peaked at 84.9% in April. On the bright side, both total mobility and average trip distance are impressively up from yearly lows. Meanwhile, in Italy, things arenât as rosy with total mobility still down and incoming trips to city centers slow recovering. Positively, inter/intra city mobility has recovered from lows of 88.3%. Also, The State of Retail Scooters in Germany.
How Seville Became a City of Cyclists. By making cycling omnipresent in its urban landscape through bike connected lanes, Spainâs fourth-largest city taught residents to see cycling as a means of transportation. Seville credits the implementation of sustainable mobility policies and pedestrianization of important areas and restrictions on car traffic as key factors reshaping the cityâs outlook on cycling. With regards to micromobility, the EU Commission to Review Light EV Type Approval and Tools for a More Walkable City.Â
Uberâs Unwavering Autonomous Ambitions. After a fatal crash in Arizona and countless years and capital spent on level 5 autonomy R&D, Uber persists in its autonomous taxi vision. For Uber, humans driving its taxis donât allude to a rational future given the capital expenditure. A recent image of a parked fleet of vehicles sparked questions about the AV program, but Uber assured it is still testing vehicles on tracks and limited public roadways. In California, Cruise Wins Approval for Driverless Operations.
Fundraises, M&A, Talent đ¸
FloorFound Announces Pre-Seed from Schematic Ventures. Based in Austin, FloorFound is designed to manage furniture returns and resale for online merchants. Specific use of the capital was not outlined.Â
Torch Logistics Raises $850K Pre-Seed Led by Schematic Ventures. Located in Chicago, Torch is a digital freight marketplace and matching platform addressing the short-haul market.Â
Actano Raises a $12M Series A led by Emerald Technology Ventures. Based in Boston, Actano makes protective nano coating for vehicles and consumer electronics. Fresh funding will help the company expand into Germany, Korea, and Japan to have a presence where the worldâs largest auto manufacturers are located.
Agility Robotics Raises $20M Led by DCVC and Playground Global. Agility Robotics is an Albany, Ore.-based maker of walking and legged robots. Agility will use the funds to expand its business reach among logistics providers, e-commerce retailers, and others.
Arrival Secures $118M Investment from BlackRock. The UK based EV manufacturer enables vehicles to travel 300 miles on a single charge and claims to lower ownership cost by 50%. New capital will help fund Arrivalâs network of micro factories in Europe and the US, including a new facility in South Carolina.Â
Getaround Raises $140M Series E Led by PeopleFund. As a rental car startup, Getaround enables customers to instantly rent cars near them in more than 100 cities. Fresh capital will be used to help the business invest in car technology, bring on new partners, and reach global profitability.Â
Flash Express Raises $200M Series D Led by PTT Oil and Retail Business Public Company Limited. Flash Express is a two-year-old logistics company operating a door-to-door pickup and delivery service in Thailand. The new capital will help double down on a rapidly growing market spurred by demand due to the coronavirus pandemic.
Proterra Raises $200M Led by Cowen Sustainable Investment Advisors. As the developer of battery system technology for heavy-duty electric vehicles, Proterra is known as the Tesla of electric buses. New funding will support the companyâs ongoing research and development efforts into battery and electric drivetrain technologies and business development to increase the companyâs footprint in additional commercial vehicle segments.Â
Americold Acquires Agro Merchants Group for $1.74B. Based in the Netherlands, Agro Merchants Group is the fourth largest temperature-controlled warehouse company in the US. Once closed, Americold will gain over 2,900 customers, 229 facilities, and roughly 1.35B cubic feet of refrigerated space across four continents: North and South America, Australia and Europe.Â
E2Open to Go Public Through SPAC. E2Open is a software company building a more connected, intelligent supply chain. The merger with CC Neuberger Principal Holdings I is set to value the company at $2.57B and the transaction will close in Q4 of this year.
Rhiannon James Joins FreightWaves Board of Directors. As the former COO at the Journal of Commerce (JOC) Group, Rhiannon was responsible for the media and events business, as well as overseeing the North America data and analytics business line revenue. Currently, James is the Group President of Pharma, Healthcare, and Technology at Questex, which includes the FierceMarkets media business.
Company Building đ ď¸
Quarterly VC Funding for Female Founders Drops to Three-year Low. Weâre not sure how this is happening but if youâre a female founder building a startup thatâs in our focus area at Dynamo, send us an email at hello@dynamo.vc.Â
đIndex Ventures: Europe to US Expansion. A handbook for European startups expanding to the US. As European produces more industry-leading upstarts, weâve seen more founders setting their sights on winning the hearts, minds, and wallets of US customers.
Finding Career Fit Based on Stage of Company. âWhen choosing your next company, first determine which stage (pre-product fit, post-product fit, growth or scale) is the best match. Usually only 1 or 2 stages make sense for any given job search.â
Who's Hiring? đŠâđť
Systems Integration and Testing Engineer at Gatik in Palo Alto, CA.
Account Executive at nextmv in Philadelphia, PA (remote ok).
Senior Backend Engineer at Vector AI in London, UK.
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.