Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
💥 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.
Weekly Commentary 💭
If you haven’t caught up on the Future of Supply Chain podcast, we recommend you do! We are in the midst of a “European Tour” that kicked off with David Nothacker of sennder and just last week, we had Oliver Neumann and Moritz Clausen from Cargo.One. We’ll wrap the tour up ahead of Christmas so get caught up!
We Are Dynamo,
Santosh, Jon, Barry, Ted, Katie, Clay, Skyler, and Lukas
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
Cargo Blockage In California Ports Ease With Fines Looming. After months of vessels waiting for a dock to offload containers the situation is finally seeing slight improvements. One of the bottlenecks creating this issue has been overflowing containers at port terminals that prevent other ships from unloading. Starting November 15, ocean carriers will be charged for each container that sits at the terminal over the deadline. Moreover, the fee is set to increase every day in a way that could easily escalate to millions of dollars per day for large carriers. Related, White House Unveils Port Funding to Ease Supply Chain Congestion.
Gatik Makes Driverless Deliveries For Walmart In Arkansas. Gatik, one of our portfolio companies, specializes in delivering groceries and goods from distribution centers to retail locations using autonomous vehicles. Last Monday, the startup pulled the safety operator from behind the wheel making the vehicle completely driverless, marking an industry milestone. While this is an accomplishment to surely celebrate, co-founder and CEO Gautam Narang says the focus has now turned to scale operations at a much faster pace. Elsewhere, DoorDash Aims Take On With ‘Nationwide Shipping’ Launch.
Gloomy Picture For Paint Highlights Depth of Supply Chain Crisis. Paint is one of the most utilized industrial products around the world and is used in nearly every sector of the economy. Producing paint requires a complex supply chain that involves many petrochemicals that have been impacted due to disruptions and as a result, increased input prices. Industry leaders such as Sherwin-Williams, Akzo Nobel, and PPG have turned to price increases to combat these raised procurement costs. Akzo Nobel has raised prices by 15% in 2021 and highlights how the costs of goods that utilize commodities such as paint will continue to increase. Other news about global supply chains, What Nutella Teaches Multinationals About Global Supply Chains and Resins Are Drying Out The Paint Supply.
China’s Monopoly On Shipping Containers & Role In Global Supply Chains. China, which holds seven of the world's top ten container ports, relies on exports to contribute to nearly 40% of the country’s GDP in 2020. In terms of volume, terminals in China have an annual throughput of 129.4M TEUs with the Port of Shanghai being the largest in the world. Additionally, China is the world's second-largest importer, just behind the US, and produces more than 96% of the world's dry cargo containers according to Drewry, a British maritime consulting company. China also owns a significant market share of the ship-making business that containers are transported across the sea on, delivering 45.6% of total new ship deliveries. Elsewhere, Shipping Containers Are Being Stacked At Sites Around Suffolk.
Supply Chain Issues Expose Loopholes in Measuring ESG Risk. In the past 20 years, ESG investing has grown into an impressive $35T industry. However, supply chain and sustainability industry officials have noted that rating agencies, like Bloomberg or Sustainalytics, are leaving out the performance of global supply chains. In order to completely measure ESG risks, the end-to-end supply chain operations for a company has to be factored in. Otherwise, there’s a big piece of the puzzle missing. For more on how environmental changes impact supply chains, Sustainability Is Imperative For Strategic Supply Chains and Truckers Prepare for Winters La Nina.
California DMV Nearly Doubles Capacity For Commercial Driving Tests. With port lines getting longer there is a growing need for surface drivers in order to clear port terminals. The California DMV announced on Tuesday that they will be adding commercial driving testing on Saturdays at three new locations in hopes of providing a test within 30 days to anyone who meets the requirements. On another side of the argument the Harbor Trucking Association that represents drayage carriers shared that the true bottleneck at the ports is the restrictive rules around returning containers and swapping for loaded ones. Either way the added capacity will help relieve backlogs of inland cargo. In surface transportation news, Two Talking Points That Dominate Class I Rail In Q3.
Clorox Turns To Contract Suppliers, Manufacturers To Bolster Inventory. Over the past year, Clorox has seen its inventory on-hand steadily drain thanks in part to COVID. However, similarly to other CPG companies including Procter & Gamble, Clorox is adding new suppliers to rebuild all the lost inventory. By diversifying their supply base and increasing expenditure on warehousing, Clorox can keep more supply on hand and meet consumer demand, according to CEO Linda Rendle. In other news, Online Merchants Squeezed by Surging Freight Costs, Slower Demand while Logistics Startup ShipBob Plans 20 Fulfillment Centers in Europe.
Mobility 🚗
Global Carmakers Now Target $515B For EVs, Batteries. OEMs across the globe are planning to spend >$500B on EVs and batteries through 2030, according to a Reuters analysis. Less than three years ago, Reuters estimated EV expenditure to hit right around the $300B mark. Industry officials are now concerned that consumer demand could fall short of the aggressive investment strategies without an increase in incentives and charging infrastructure. For more on EV investments, consider reading Amazon and GS Futures Invest $5M in Resilient Power to Accelerate EV Infrastructure and Toyota Investing $240M In New, Dedicated Hybrid Transaxle Line In West Virginia Plant.
Governors From Nine Auto States Press Congress To Pass Aid For Chipmakers. The group, led by Michigan governor Gretchen Whitmer, sent a letter to Congress requesting a sum of $52B to be pumped into the semiconductor supply chain in order to ease the supply crunch. More than 575K auto-related jobs have been impacted by the shortage and nearly 4M units worth of production have been lost in 2021 alone. The US dominates the chip design market but over the last three decades has declined in manufacturing capacity, decreasing to 12% from 37% back in 1990. For more on the chip crunch, UK Economic Growth Slows As Supply Problems Hit The Recovery and Daimler Truck Ceo Says He’s More Concerned About Chips Than COVID.
Wright Electric Announces Wright Spirit 100-Seat Electric Aircraft. The Wright Spirit is one of two aircraft projects that Wright Electric has been developing since 2016. The plane, equipped with four “megawatt-class” motors, is envisioned for one-hour flights. Wright expects that the aircraft will begin flight testing in 2023 before the plane is produced in 2026. Here’s the kicker: no one really knows about the energy source behind the aircraft. Perhaps Wright is still in the process of figuring that part out? In other electric mobility news, Buying an eBike? Consider a Lightweight One You Can Actually Carry.
Countries, Cities, Carmakers Commit To End Fossil-Fuel Vehicles By 2040. The group, a list that includes Ford, GM, Uber, India, Poland, and the cities of Seoul and Sao Paulo, signed the pact in an effort to reduce carbon emissions and global warming. What’s more interesting are the big names missing from the pledge including the US, Germany, Toyota, VW, Volvo, and Jaguar Land Rover. There are rumors circulating around the industry that many automakers are hesitant of the pledge because of the lack of government accountability. After all, why would automakers make the expensive switch to cleaner technology without governments committing to grid charging infrastructure development? For more on the pledge, consider reading Volvo Signs On to COP26 Pledge, Seeing Risk EVs Will Doom Rivals and General Motors, Ford Pledge At COP26 To Sell Only Zero-Emissions Cars By 2040.
Uber Sued By Justice Department For Overcharging Disabled People. This is the classic case of “he said, she said.” On one hand, 3 disabled people have filed separate charges against Uber for discriminating against disabled passengers who need more than two minutes to get into a car. Uber, on the other hand, claims they’ve been refunding these fees since they were never intended for the disabled population in the first place. One thing is for sure: the Department of Justice is not playing around with the ride-hailing service. According to Kristen Clarke, Assistant Attorney General for the DoJ’s civil rights division, the lawsuit against Uber is aimed to send a very powerful message. For more on Uber, CEO Flies Into London As Driver Shortages Hit App.
Mythbusters: The Rise of EVs Will Significantly Reduce the Need For Labor. While the labor outlook could (and will) look different in the years ahead, it’s important to note that different manufacturing functions require different jobs. The biggest job cut will take place within the manufacturing of engines and transmissions. However, as GM’s EV push heats up, assembly workers may not be as threatened. Bloomberg predicts that the biggest threat to auto workers in the future will actually revolve around pay cuts. For more on the EV job outlook, check out VW Accelerates Electric Push With More Models, More Production and Apple Supplier Foxconn Buys Ohio EV Factory for $230M.
Lookout: The Electric Car Era Is A Threat To Uber And Lyft. The business models of both Uber and Lyft rely on contract drivers who operate vehicles of their choice. Many gig workers cannot afford a brand new EV, not to mention that they’d require charging which would ultimately cut into time that could be used to make money. Both ride-hailing apps have claimed in the past that they’re committed to helping drivers transition to EVs in the future. However, there are also a handful of companies, including Revel and Alto, who have purchased an EV fleet with full-time drivers in an attempt to take market share. And while these companies may be small in stature, they still point to the possibility of a shifting landscape in the future. In similar taxi news, Volocopter Performs South Korea's First Crewed Air Taxi Flight.
Fundraises and M&A 💸
Axiom Cloud Raises $2.5M Led By Momenta Ventures. Axiom Cloud is a company that develops software solutions to solve commercial refrigeration’s energy and maintenance problems. Additional investors include Leadout Capital, Vela Partners and Lorimer Ventures. The company intends to use the funds to grow the team and to develop new controller integrations, which will allow Axiom to provide its “apps for refrigeration” to a broad set of customers.
Point One Navigation Raises $10M Led By Up.Partners. Point One Navigation is building a centimeter-accurate localization service for the future of transportation. Additional investors include BOLT, IA Ventures, and Ludlow Ventures. The company intends to use the funds to expand operations and its business reach.
Rabbit Raises $11M in Pre-Seed Funding. The Egypt-based startup delivers groceries and other items from neighborhood markets to customers’ homes in 20 minutes or less. The raise, which makes history as the largest pre-seed round in Africa and the Middle East, saw Global Founders Capital, Raed Ventures, Foundation Venture, MSA Capital, and Goodwater Capital participate. The funds will be used to rapidly expand the team since consumer demand is beginning to really heat up.
TreeDots Raises $11M Series A. The Singapore-based company claims to be the first food surplus marketplace in Asia. The capital raised will be used to expand operations in Malaysia and to continue optimizing its logistics and supply chain business, TreeLogs. The round was led by Amasia and East Ventures with Active Fund and Seeds Capital among others who also participated.
Trademo Raises $12.5M Led By Saama Capital. Trademo is a SaaS company offering global supply chain management solutions. Additional investors include a number of high profile angels, such as Amit Singhal (former SVP Google), Sridhar Ramaswamy (Founder/CEO Neeva and former SVP Google). The company intends to use the funds to invest in products and grow the team.
Ample Raises $30M, Inches Closer to Unicorn Status. Ample, who specializes in battery swapping for electric vehicles, raised $130M back in August. Back in August, Pitchbook valued the startup at $890M. This additional capital raised will be used to expand operations over in Europe. The round was led by the Blackstone Group with Banco also participating.
Hive Raises €29M Led By Tiger Global. Hive stores and ships products for small and medium-sized online merchants next day. Additional investors include Earlybird, Picus, and Amplifier, Activant. The new funds will be used for product development as Hive continues to build out its supply chain services.
Kodiak Robotics Raises $125M Led By SIP Global Partners. Kodiak Robotics develops autonomous technology for long-haul trucking. Additional investors include Lightspeed Venture Partners, Battery Ventures, CRV, Muirwoods Ventures, Harpoon Ventures, StepStone Group, Gopher Asset Management, Walleye Capital, Aliya Capital Partners. Kodiak said it will use the new funding to double its headcount over the next year by adding at least 85 new people to the team. The funding will also help expand autonomous service capabilities from coast-to-coast, and add a minimum of 15 new trucks, for a total of at least 25 autonomous vehicles.
Applied Intuition Raises $175 M Co-Led By Elad Gil, Addition, and Coatue Management. Applied Intuition provides software infrastructure to safely develop, test, and deploy autonomous vehicles at scale. Additional participating investors include Semil Shah, Andreessen Horowitz, General Catalyst, and Lux Capital. The company intends to use the funds to expand the adoption of its software tools for autonomous system development and accelerate product development to support additional use cases across industries.
Upstream Security Raises Undisclosed Amount Led By BMW iVentures. Upstream Security is a centralized security and analytics platform for connected vehicles and smart mobility services. The terms of the deal were not disclosed, it appears that BMW i Ventures is the sole investor in this Series C round.
SafeRide Health Raises Undisclosed Amount Led By Sands Capital. SafeRide is a platform that allows care providers to book non-emergency medical transport (NEMT) for their patients. Additional investors include Seminal Capital, Hill City Capital, Fry’s Path Capital, and Primetime Partners, as well as existing investors Fresenius Medical Ventures, Bonfire Ventures, and Meridian Street Capital. The company intends to use the funds to expand operations and its business reach.
SPAC Radar 📡
Embark Trucks Goes Public in $5B Deal. Embark develops self-driving truck technology designed for freight and logistic services. Embark started trading Thursday on the Nasdaq under the ticker EMBK. The shares fell as much as 7.3% in the first minute of trading.
Plus and Blank Check Firm Hennessy Capital Investment Corp. Terminate Their SPAC Merger. Plus develops self-driving trucks to enable large-scale commercialization of autonomous transport. The companies said this was a mutual decision made because of “recent developments in the regulatory environment outside of the United States.” A Plus spokesperson told The Robot Report “outside of the United States” is a reference to China, which has recently begun cracking down on technology companies.
Rivian Debuts in IPO Valued at Nearly $80B. After floating on Wednesday (11/10), the stock soared to $78/share and helped the company raise $12B in net new cash. Rivian has just started delivery of its first vehicles with the highly sought-after SUV expected to roll off lines early 2022.
Company Building 🛠️
How Gratitude Can Unlock Your Leadership Potential. Research shows that gratitude can deliver a wide range of benefits including but not limited to stronger immune systems, lower blood pressure, positivity/enthusiasm, and stronger alertness. Developing and incorporating a gratitude practice isn’t hard and often can be attached to existing habits.
Meetings That Don't Suck. “Borrowing an hour of somebody’s time is the same as borrowing a neighbor’s ladder. Ask politely, keep it only as long as you need it, return it quickly and say ‘thank you’.”
Mean People Fail. From PG’s archives, the title says everything and a worthwhile reminder from time-to-time.
Who's Hiring? 👩💻
ML Engineer at Milk Moovement in St. John’s, Halifax (remote ok).
Software Engineer at Coros in Mountain View, CA (remote ok).
Country Manager at Amitruck in Nairobi, Kenya.
💥 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.