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
As we wind down the year, we invite you to check out the final episodes of the year on the Future of Supply Chain podcast.
We Are Dynamo,
Santosh, Jon, Barry, Ted, Katie, Clay, and Lukas
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Supply Chain đŚ
The Industrial Real Estate Sector Continues To Break Records Going Into The Tail End Of 2021. The lack of available industrial space in light of strong demand has pushed rent up by 7.1%. Net absorption reached 135.1M ft² in Q3 and is expected to hit all-time highs by the end of 2021. Pre-leasing rates are at record highs as well due to the fact that future availability is unknown.Â
Asian Factory Output Showing Signs of Strength. Manufacturing activity in Asia improved thanks in part to a softening of border restrictions and lockdown policies. However, as the new Omicron variant gains headway, it creates a looming threat that could disrupt normalization if factories are forced to shut down. Malaysia, Vietnam, India, and the Philippines all saw increased PMIs but, even with supply inputs returning to normal, global supply chains remain unsurprisingly fragile. The rest of the world is also Showing Signs of Manufacturing Stability.
Amazon Builds Out Network to Speed Delivery, Handle Holiday Crunch. Amazon has added nearly 670K new employees to its workforce since the end of 2019. And while that accomplishment is grabbing the headlines, another feat is flying under the radar: Amazon has doubled the size of its fulfillment network that now includes 930 centers across the US. The eCommerce giant has also doubled its container capacity and has almost expanded its airline fleet to 85 planes. As Christmas inches closer, it looks like Amazon has the needed capacity to address the rise in holiday eCommerce spending. In other retail news, Black Friday Brought Shoppers Back to Stores and How Amazon Gets Gifts To Your Door Just Two Days After Purchase.
Sysco To Electrify 35% Of Its US Private Fleet By 2030. That figure represents nearly 2,500 tractor trailers. According to Syscoâs 2021 Corporate Social Responsibility Report, Scope 3 emissions makeup 98% of its total carbon footprint and is easily the âlargest opportunity for impactâ. Sysco also added load-fill optimization capabilities to a large portion of its distribution center lanes which brought the number of trucks used to stock its sites down by 82. The company is now focused on reducing emissions for both large and small suppliers. Otherwise, consider reading Environmental Group Targets Retailersâ âshadyâ Shipping Routes.
Ships in California Logjam Now Stuck Off Mexico, Taiwan, and Japan. Reports are circling that the number of idle container ships has decreased as port congestion has eased; however, in reality, the true number has not declined. At the beginning of November, a new queuing system was introduced to prohibit ships from loitering off the coast which essentially just relocated all anchored ships somewhere else. The total number of waiting vessels came in at 94 which is just 2 ships short of the all-time record. For more on maritime, be sure to read Navy Opens Up Military Deep-Water Pier To Merchant Ships To Ease California Cargo Crisis and âTrampâ Ships Coming To NY-NJ Port, Hoping For Berth Space.
Pop-up Container Yards Act As A Pressure Valve For Port Congestion. The pop-up container yard, developed by Walmart, allows the retailer to process an additional 500 containers a day. The operation has âdramatically improvedâ Walmartâs downstream flow of goods which keeps the shelves stocked for the holiday season. Georgia Port Authority and Norfolk Southern have also been experimenting with an ad hoc container facility to ease congestion at the Port of Savannah. Expect this trend to continue gaining traction until US supply chain disruptions subdue. In other news, Congested US Airports Push Trans-Pacific Air Cargo Rate To Record High.
Nuro, Waymo Bring Autonomous Deliveries To California. Nuro launched the autonomous service last Wednesday by partnering with 7-Elevenâs 7NOW mobile app. The startup already introduced autonomous deliveries in Houston and Phoenix working with both Dominoâs and Kroger respectively. Waymo, on the other hand, will launch its delivery service in Q1 of 2022. Waymo currently operates robotaxis in San Francisco and will partner with Albertsons to deliver groceries. To receive the latest scoop on autonomy, Will Autonomous Vehicles Transform The Supply Chain? and Ford Conducts Autonomous Parcel Delivery Trial At UK Port.
Mobility đ
Battery Price Declines Slow Down In Latest Pricing Survey. BloombergNEF reports that on a volume-weighted average basis across the battery industry, prices fell to $132 per kWh in 2021 which represents a 6% drop. Back in 2020, analysts projected a 9% drop but an increase in raw materials costs hampered that forecast. Bloomberg expects a three dollar increase in prices on a nominal basis with inflation playing a key role in the increase. Also, The Reasons Behind Lithium-Ion Batteriesâ Rapid Cost Decline.
A Toxic Lake In California Could Transform North America's EV Industry. The Salton Sea, which is polluted with agricultural runoff and jaw-dropping salt levels, has the potential to supply 600K tons of lithium each year according to the US Department of Energy. As a matter of fact, plans for large-scale lithium mining in âLithium Valleyâ could pave the way for domestic battery production in a time where foreign dependence on raw battery materials is being heavily evaluated. Currently, the only other large-scale lithium mine in the US is located about 450 miles north in Clayton Valley, NV. And, GM, Partner To Build Plant To Process EV Battery Materials.
Auto Chip Shortage Shows New Sign Of Easing As Inventories Rise. The rise in inventory levels can be attributed to an increase in chip manufacturing output. NXP Semiconductors Chief Financial Officer Bill Betz believes that it will take âmultiple quarters before [they] are able to rebuild on-hand and channel inventories.â While there still is a lot of work to be done, this positive sign gives automakers something to cheer about as they deal with recurring production halts. In related news, Volvo Cars Seeks Sales Growth as Chip Crunch Hits Output and Chip Shortage Threatens Bidenâs EV Plans, Commerce Secretary Says.
Teslaâs Giga Casting Strategy To Be Adopted By Half A Dozen Other Automakers. The approach, dubbed âGiga Pressâ, simplifies the manufacturing process by using large casted parts that can greatly replace the number of parts currently being used in a vehicle. Automakers, mostly in China, are adjusting their strategies in order to reduce the complexity of the body line and save on capital costs. Not everyone is buying the hype, however. While the casting process does simplify manufacturing and assembly, industry officials have been critical of the cost to repair one of these parts in case of an accident. In more Tesla news, Tesla To Start Production In Germany In December: Automobilwoche and Tesla Is Integrating Car Sharing In Its App, Hinting At âtesla Networkâ.
Is Inflation Sticking Around? Bicycle Makers Offer Some Clues. A rise in the number of supply chain bottlenecks combined with roaring consumer demand is causing a surge in bicycle prices. Chief executive of Karbon Kinetics Richard Thorpe shared that, starting in 2022, the price ranges of the folding e-bikes will increase by 25% to cover the inflated costs associated with crucial bike components. To avoid future increases in part costs, some bike shops have already placed 75% to 80% of the projected bike orders for Christmas 2022. For more on the rising material costs, check out Made in the US, But With A Supply-Chain Reboot and Car Prices Could Go Up Again As Auto Industry Eyes Shortage Of Magnesium.
Your Electric Car Could Become A Virtual Power Plant. EV adoption is trending upwards which means that more EV owners will be charging at home. This ultimately opens the door for the utilization of emerging smart-charging technologies that can adjust energy output depending on peak charging times. Smart charging gives utilities the capability to decide the ideal charging time based on a 24-hour forecast of demand which can save EV owners about $600 per year. In other news, Mayors Scramble For Face Time With Buttigieg With Billions Of Infrastructure Dollars At Stake.Â
Toyota Turns To Chinese Tech To Reach Its Electric Holy Grail. The Japanese automaker has partnered up with local Chinese auto manufacturer BYD to launch an all-electric small sedan. Toyota chose BYD because of its ability to produce less bulky batteries all the while saving on engineering costs. This comes as a surprise to many because the automakers implement different engineering strategies, with Toyota taking a more rigid approach while BYDâs engineering processes are deemed âloosey-gooseyâ. The EV will be introduced in China first before moving into other markets. In other Toyota news, Toyota Commits To 100% Zero-Emission Sales In Europe By 2035, Because It Essentially Has To.
Fundraises and M&A đ¸
Searoutes Raises âŹ1.3M Led By WSB Beteiligungs. Searoutes is a cloud-based route planning and weather solution API for freight. The company intends to use the funds to accelerate the deployment of the solution to shippers and freight forwarders as well as other related technology platforms.
Streetlogic Raises $2.1M Led By LDV Capital. Streetlogic is a smart camera system that alerts its user riding a e-bike of hazards to maintain safety. Additional investors include Trucks Venture Capital and various angel investors. The funds will be used primarily to scale the team, according to the company.
Scuter Raises âŹ3M Led By LVenture Group. Smart eScooter and platform for the ultimate urban sharing service. A part of the round is a zero-interest debt financing plus a grant by the governmentâs agency INVITALIA. The company intends to use the funds to expand its development efforts.
DeepStream Raises ÂŁ5.2M Led By Beringea. DeepStream is a cloud-based procurement platform that allows buyers and suppliers to communicate seamlessly. Additional investors include Seed X Liechtenstein, London-based Conviction VC, and Portfolio Ventures. The company intend sto use the funds to double its workforce and further develop its AI applications. Â
NuBrakes Raises $9M Led By Canvas Ventures. NuBrakes provides convenient, affordable mobile brake repairs right where the vehicle is parked. Additionally Contrary Capital, Bling Capital, and Automotive Ventures also participated in the round. The funds will be used primarily to hire more than 100 new people and invest in the team.Â
Procurated Raises $10M Led By Greycroftl. Procurated is the platform enabling public sector organizations to incorporate peer reviews in their supplier selection process. Additional investors include Tribeca Venture Partners, TDF Ventures, and Limerick Hill. The company intends to use the funds to continue to expand operations and its business reach.
Voyager Portal Raises $10M Led By Phaze Ventures. Voyager Portal is a provider of a SaaS multi-party collaboration and workflow management solution for the maritime value chain. Other new investors include ScOp Venture Capital, Waybury Capital, and Flexport. All existing investors followed in on this round.Â
Autotalks Raises $10M Led By Foxconn Interconnect Technology (FIT). Autotalks is a smart car company that specializes in vehicle-to-vehicle communications in autonomous driving. The two companies will partner to accelerate V2X penetration across automotive and micro-mobility segments, leveraging Autotalksâ automotive V2X technology, and its recently launched ZooZ micromobility platform. The joint micro-mobility activity will start this year, and the automotive activity will start early next year.
Carla Raises âŹ10M Led By VNV Global. Carla creates the most convenient, transparent, and simple online platform for purchasing or leasing an electric car. Additional investors include Inbox Capital, Luminar Ventures, Max Ventures, Voi Technologiesâ co-founder Fredrik Hjelm, and the founders of Swedish fintech company Anyfin. The company intends to use the funds to bolster the recruitment of key competencies across development and marketing, building infrastructure, and support its growth journey, including its international expansion.
Stratio Raises $12M Led By Forestay. Stratio is a leading predictive fleet maintenance platform. Additionally existing investor Crane Venture Partners also participated in the round.
Pepper Raises $16M Led By Index Ventures. Pepper is the company building the digital operating system for the food supply chain. Additional investors include Greylock, Imaginary Ventures, BoxGroup, Moving Capital, and Brett Schulman. The funds will be used primarily for platform enhancements according to the company.
Everstox Raises âŹ20M Led By Acton Capital. Logistics-as-a-Service and technology platform for flexible warehousing & fulfillment services across Europe. Additional participants in the round include existing investors Capnamic Ventures, GFC, and Flash. The company intends to use the funds to grow its team to 150 employees and expand its platform further across Europe.Â
FJ Dynamics Raises $70M From Undisclosed Investor. FJ Dynamics is a global robotic company that provides digital and autonomous solutions for agriculture, construction, and other sectors. FJ Dynamics declined to name its sole investor in its latest Series B round and only said it is a major internet firm in China.
Autoflight Raises $100M Led By Team Global. Autoflight is a next generation eVTOL company aiming to unlock the skies for mass air transpiration. The company intends to use the funds for international expansion as well as scaling cargo eVTOL production for customers.
CloudTrucks Raises $115M Led By Tiger Global. CloudTrucks offers a virtual trucking carrier application designed to reduce operating costs for truck drivers. Additional investors include Menlo Ventures, as well as investment from Flexport and angel investors Michael Ovitz and Opendoor CEO Eric Wu.
Via Raises $130M Led By Janus Henderson Group Plc. Via is a re-engineering public transit company that develops and provides on-demand public mobility solutions for commuters. Additional investors include funds and accounts managed by BlackRock Inc., ION Crossover Partners Ltd, Koch Disruptive Technologies, and existing investor Exor NV.Â
Motorway Raises $190M Led By Index Ventures. Motorway is an online used-car marketplace for professional car dealers that sells their cars using their smartphones. Additional investors include ICONIQ Growth, and existing investors Latitude, Unbound, and BMW i Ventures.
Deliverr Raises $250M Led By Tiger Global. Deliverr is a startup company that provides shipping services for e-commerce businesses. Existing investors including Coatue, 8VC, Activant, Brookfield Technology Partners, and GLP also participated in the round.Â
IONITY Raises $700M Led By BlackRockâs Global Renewable Power platform. IONITY makes long-distance travel with electric vehicles an enjoyable experience. Reuters reported last month that BlackRockâs Global Renewable Power platform, the only non-OEM IONITY shareholder, sunk the lionâs share into the investment at âŹ500 millions.
SPAC Radar đĄ
Volocopter is Withdrawing from Planned US IPO. German electric air taxi developer Volocopter has cancelled its planned SPAC IPO in the US, according to a media report. This apparently emerges from investor letters that investors are said to have received a few days ago. With the cancellation of the deal, the approximately 750 small investors could all but go away empty-handed. The reason for the cancellation of the plan is the market environment and the results of other IPOs of competitors.
Company Building đ ď¸
2021 Financial & Operating Benchmarks for SaaS. OpenView released their benchmark data set for SaaS businesses last week. Itâs interesting to note the usage-based pricing trend in an industry where customers dislike chunky SaaS fees and prefer a âI win/you winâ alignment.
A Founder's Guide to Community. Worth noting the discussion around a âcommunity leadâ and their duties as founders seek to scale themselves.
a16z Podcast: Ryan Petersen of Flexport. An audio essay on on container ships, supply chains, standardization, and a software layer over the physical world.
Who's Hiring? đŠâđť
Technical Onboarding Manager at Milk Moovement in St. Johnâs, Halifax (remote ok).
Frontend Engineer at Factored Quality in Brooklyn, NY (remote ok).
Site Reliability Engineer at Coros in Mountain View, CA (remote ok).
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.