Dynamo Dispatch (11/14/22)
Issue 215 | Hwy Haul, Ordergroove, Hopper
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 💭
🇪🇺We’re writing this week’s weekly commentary from across the pond in the EU. And yes, we feel like night owls because our bodies still think we’re in Chattanooga, TN. Switching subjects for a moment…
🚢If you didn’t catch it this past week, one of our portfolio companies, Vector.AI, rebranded to Raft AI. Check out the reason behind the new name here (which we love).
📊The OpenView team released the 2022 SaaS Benchmarks Report where they spent time diving deep into the state of the market and the implications it has had on private SaaS businesses. The report also sheds light on best practices that businesses should consider as they move forward through economic volatility.
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We Are Dynamo,
Clay, Santosh, Jon, and the rest of the Dynamo team
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Supply Chain 📦
⭐ Global Supply Chains Face A Fresh Container Problem. The tables have officially turned - after facing a container shortage during the COVID-19 pandemic, global supply chains are now facing the issue of an overabundance. Traders and shippers say the decline in consumer spending is another sign of falling global demand and an impending economic slowdown.
This problem will likely continue to haunt ports since shipping lines will try to avoid moving empty containers back to Asia since there is no financial upside at play. In short: no cargo, no movement. Consequently, as the article states, ports have begun levying fees for empty containers sitting in terminals for more than seven days. At the end of the day, these fees will trickle back to the shipper and only add to inflationary pressure. For more, check out Empty Containers Will Overwhelm Ports In 2023.
Another bizarre thing about this situation is the fact that we didn’t encounter the typical “peak season” that normally takes place in the industry. As we covered a few weeks back, retailers used the “stock up” strategy to mitigate potential lost sales during this holiday season. However, inventories are sitting at a standstill as consumers are being more stringent with holiday spending (#inflation). For more, consider reading Tricky Peak Season For Retailers.
Rising Food Import Costs Hurt The Poorest The Most. Food import volumes by vulnerable countries are set to shrink by 10% and the global food import bill is set to climb to a record $1.94T in 2022, some $128.6B more than predicted in June, according to the United Nations’ Food and Agriculture Organization. For more on importers, consider looking into Five Ways Importers Can Ease Supply Chain Pressures.
Biden Administration Releases Plans For Supply Chain Climate-Resilience. Large suppliers doing upwards of $50M in annual contracts would be required to publicly disclose Scope 1, Scope 2, and relevant categories of Scope 3 emissions, disclose climate-related financial risks and set science-based emissions reduction targets. Federal contractors with more than $7.5M but less than $50M in annual contracts would be required to report Scope 1 and Scope 2 emissions. For more on how climate change impacts supply chains, look into Climate Change Is Coming For Fashion’s Supply Chains.
Governor Hochul Authorizes $3.7M for Climate Tech Manufacturing. NY Governor Kathy Hochul has announced new funding to the state’s M-Corps program, which will connect startups scaling goods that lower greenhouse gases or reduce energy consumption with local supply chain partners, manufacturers, and suppliers. To learn more about state-funded manufacturing modernization, check out Made In USA: The Opportunity For Modernization.
EU Accuses US Of WTO Violations With Green Energy Incentives. The EU has listed at least nine points in the US Inflation Reduction Act that could be in breach of international trade rules, including EV tax credits. In related news, at COP 27, Biden Underscored The Global Ripple Effects Of The IRA.
Macy’s Plans to Mobilize Underrepresented Businesses In Retail Supply Chain. Macy’s, the largest US department store, announced plans to invest $30M over the next five years into three financing channels meant to support businesses run by people from underrepresented groups in the retail industry. For more retail supply chain news, check out Supporting Retail Businesses Through An Overstocking Crisis.
Bosch & IBM Join Forces For Critical Materials. Europe’s biggest carmaker is partnering with IBM to find rare earth material alternatives for EVs. Bosch plans to use 20 of IBM’s quantum computers to help identify substitutes for the current metals used in fuel cells and electric motors. For more on rare earth supply chains, consider reading Silver Joining Copper In Upcoming Supply Crunch.
Mobility 🚗
⭐Amazon Now Has 1K+ Rivian Electric Vans Making Deliveries In US. These EVs will be placed in over a dozen US cities including Chicago, Seattle, Nashville, San Diego, and Dallas. Amazon drivers share positive feedback as the vans come with 360-degree cameras, automatic emergency braking, and ventilated seats.
For context, Amazon delivered 1.5B packages during the 2020 holiday season (2021 figures were tough to find). While we’re not sure if 2022 will top that figure since 2020 was such an odd year, it does paint a picture of the colossal amount of delivery activity that takes place at the end of each year. Amazon has made 5M deliveries with a small fleet of zero-emission vehicles to date. It’s safe to say that, as long as Rivian and other EV OEMs can meet order expectations, the future of last-mile delivery is looking pretty bright. Learn more about Amazon by reading Facing Economic Headwinds, Amazon Consolidates Robotic Projects and Amazon's Redesigned Prime Air Delivery Drone Can Fly Farther Than Its Predecessor.
Almost All EVs Would Qualify For The US EV Tax Credit With New Congress Bill. Reports state that the IRA and similar climate initiatives have created over 600K jobs and $40B in planned battery investment just since the start of 2021. To understand how these bills have impacted EVs, read Hyundai Unveils ‘Radical New Approach’ Behind ‘Game-Changing’ Ioniq5 In Documentary.
Why An Old Train Could Point To A Clean Energy Future. The Green Goat Locomotive in British Columbia, Canada will now be converted into running on a mix of hydrogen and battery power. Learn more about hydrogen advances by reading Building The Hydrogen Highway and Africa Pursues Green Hydrogen For Fossil-Free Economic Growth.
Renault, Google Expand Pact To Make Cars 'Like Mobile Phones’. Making cars with intelligent capabilities could result in numerous advantages, claims Renault CEO Luca de Meo, including allowing drivers to locate their cars in parking garages. Read more about Renault and their innovation by checking out Autos Giant Renault Is Betting The Market For Gasoline Cars Will Continue To Grow and Can Software Really Define A Vehicle? Renault And Google Are Betting On It.
BMW Kicks Off Production Of The iX1 In Germany. With the introduction of the iX1 as well as several investments in their manufacturing plants, BMW believes that 1 in every 3 cars they produced will be an EV by 2024. Understand more about the future of BMW by reading BMW’s Electric Vehicle Lineup Will Include Lower-Priced Models – CEO and Bmw Dishes On Its Nkl Platform Tech Specs.
PowerGo & Spirii To Install Charging Stations In Denmark. 178 AC charging points will spread across Denmark in the municipalities of Vejle (84) Gladsaxe (54) and Vejle (40) accordingly. PowerGo and Spirii aim to install over 15K charging points throughout Europe in the next two years, with at least 8K being high-power chargers. To learn more about Europe’s push to EVs, read MG Combines UK, European Units As Sales Expansion Continues.
Bosch & IBM Join Forces For Critical Materials. Europe’s biggest carmaker is partnering with IBM to find rare earth material alternatives for EVs. Bosch plans to use 20 of IBM’s quantum computers to help identify substitutes for the current metals used in fuel cells and electric motors. For more on rare earth supply chains, Consider This Piece On How Silver Is Joining Copper In A Supply Chain Crunch.
Fundraises and M&A 💸
Carteav Raises $6.5M In Seed Funding. Carteav develops autonomous low-speed vehicles for transporting people and goods. Zohar Zisapel and Mobilion Ventures were two of the lead investors for the round. The capital will go towards accelerating product development.
Hwy Haul Raises $10M In Series A Extension Funding. Hailing from Santa Clara, CA, Hwy Haul is a next-generation digital freight platform for fresh produce. Eileses Capital led the round with participating from True Blue Partners, BluePointe Ventures, and FDC Partners. The additional capital, which brings total funding to $20.6M since 2018, will go towards growing the enterprise customer base and digital product development.
Infinitum Electric Raises $30M In Additional Growth Capital. Infinitum has developed a first-of-its-kind, sustainable air core motor. Riverstone Holdings Latin America, Alliance Resource Partners, Caterpillar Venture Capital, and Cottonwood Technology Fund participated in the equity round. The new funding will go towards infrastructure expansion and automation implementation to meet the growing demand for its motors.
Beekeeper Raises $50M In Series C Funding. Beekeeper is a workplace app that connects the non-desk workforce to operational systems and communication channels from Switzerland. EGSB, Kreos Capital, Energize, Thayer, SwissCanto, Keen Ventures, Alpana, and Verve Capital contributed capital in the round. The funds will go towards fueling product development and overall growth.
Agriconomie Raises $60M In Series B Funding. Agriconomie is an “eComm platform that sells a range of agricultural supplies directly to farmers. It also assists farmers in the transition to regenerative and sustainable agriculture practices.” Treïs Group, Temasek, and Aliment Capital co-led the round with participation from Eurazeo. The fresh capital will go towards expanding into new geographies.
Kyte Raises $60M In Series B Funding. Kyte is an app that offers on-demand car rentals. InterAlpen Partners led the round by participating from new investors such as Valor Equity Partners, Anthemis, Citi Ventures, and Hearst Ventures. The new capital will go towards both fleet and market expansion.
Hopper Raises $96M In Follow-On Investment From Capital One. Hopper is a travel app that uses predictive analytics to make travel recommendations for flights, hotels, and rental cars among other things (and is one of Clay’s favorite traveling apps). A part of the funding will go towards expanding its partnership with Capital One to create new products for Capital One’s customers. There are also rumors in the pipeline that Hopper plans to eventually go public in the near future.
Ordergroove Raises $100M In Funding. Ordergroove is a subscription-based eComm platform for retailers and D2C brands. Primus Capital led the round. The fresh funds will go towards accelerating the number of eComm subscriptions through the implementation of more value-add services.
Aventon eBike Backed By Sequoia Capital China at $590M Post-Valuation. Aventon is a multi-channel eBike brand selling through national retailers like Best Buy, independent bike retailers, and through its D2C portal. There isn’t a whole lot of information surrounding this investment but the company’s valuation has almost tripled from its previous funding round.
Ouster and Velodyne To Merge. This merger signals major market consolidation since Ouster and Velodyne are two of the largest LiDAR providers in the ecosystem. Ouster CEO Angus Pacala will serve as the new company’s CEO while Dr. Ted Tewksbury, Velodyne’s CEO, will serve as Executive Chairman of the Board. Earlier this fall, Ouster underwent a cost-reduction initiative but also accelerated with market growth efforts.
Fast Radius Files For Bankruptcy Nine Months After SPAC. Fast Radius is an on-demand manufacturer of metal and plastic parts. The board cited that ‘recent headwinds in the capital markets have hindered the company’s capacity to ‘put in place the capital structure needed.’ In the meantime, the company will continue to operate its business as a debtor-in-possession and has requested that it be allowed to use cash on hand and operation cash flows to support its continued operation throughout the process.
Business Building 🛠️
Openview: SaaS Benchmark Survey 2022. The commentary around PLG saturation is interesting but we’ve yet to see a company in the sector use it with success. On the topic of Net Dollar Retention (NDR), we’re seeing tenured leaders in our portcos leaning into this with much success.
Retooling Your Hiring Process and Get Creative. We particularly like #3 and #5 which helps a candidate demonstrate their expertise in a more practical manner.
Setting Up A Sales Team. David Sacks share the math to structure quotas, compensation, and territories for a new sales team.
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!
Director Of Enterprise Sales at SKUPOS in Denver, CO (remote ok).
Senior Support Engineer (API) at VIZION in Atlanta, GA (remote ok).
Supply Chain Manager at Manna in Dublin, Ireland (hybrid).
Random Statistic Of The Week 📈
According to Avery Dennison’s new report, The Missing Billions: The Real Cost Of Supply Chain Waste, “85% of businesses are actively tracking supply chain waste, but instead of being environmentally driven, the primary motives of these investments are logistics, management, and inventory handling.” On average, only about 4% of budgets are actually dedicated toward sustainability initiatives.
We highly recommend checking out the report to see what businesses today are prioritizing to lower waste and optimize operations.