Dynamo Dispatch (12/07/20)
Issue 131 | Stord, Voi, Gatik
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 💭
It was a BUSY week in supply chain venture capital. Within a matter of days we had Gatik announce their Series A led by Wittington Ventures and Stord announce their Series B led by Founders Fund. We have seen a sharp increase in interest from downstream investors in supply chain and expect this to continue as supply chain technology joins the ranks of fintech, martech, HR tech, et al in the investment pantheon. This week alone, we saw $500M+ in announced supply chain fundraises!
On the referral front, a big shout out to Menno Axt, Ankit Agarwal and Aaron Hoffman for the pass-alongs in the last couple weeks.
We Are Dynamo,
Santosh, Ted, Barry, Jon, and William
Note: please add “dynamo@substack.com” to your email client so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
The Role of Airlines in Vaccine Disbursements. Dubbed the most “complex logistical exercise ever,” the IATA estimates the equivalent of 8K loads in a 110T capacity Boeing 747 freighter will be needed to deliver some 14B vaccine doses for every human on earth. Distributions begin at a key time right as carriers grapple with the holiday shopping frenzy and resounding eComm volumes. Related, FedEx Taps McKesson for Vaccine Distribution, Maps Out Cold Chain Expansion and Cargo Becomes Secondary for Forwarders As Vaccine Shipments Takeoff.
LaserShip Doubles Down On Automation and Customer Support. LaserShip expands infrastructure and grows its automation investments to meet burgeoning eComm volumes. The company teamed up with Hytrol, a materials handling systems provider to increase branch throughput by 4K packages/hour/facility. It's likely we’ll see a slew of targeted investments in eComm automation as carriers face permanent increases in volumes. As domestic and international deliveries increase, Pitney Bowes Raises Tariffs and Introduces Same Day Delivery in Some Geographies.
XPO Divides Business in Two. XPO will now be split into two companies, one focused on trucking/brokerage and the other spearheading logistics operations. “By uncoupling our transportation and logistics segments, we intend to create two high-performing, pure-play companies to serve the best interests of all our stakeholders.” The tax-free transaction will enable XPO to strategically enhance its eComm logistics operations as the company continually evolves to meet growing demand. We had predicted this earlier this year In trucking, US Xpress and MIT Partner For Driver Efficiency Study.
🌟The Importance of Satellites in Ocean Trade. COVID has disrupted container shipping patterns, creating chaos on the high seas. With the constant evolution of satellite technology, having “eyes in the sky” has become mandatory for some of the world's largest maritime operators. Automatic Identification System (AIS) technology provides vessel data points like location, destination, speed, and draft to promote the accuracy of port scheduling and aids in the reduction of bottlenecks clogging seaports. Also in maritime, Searoutes Caters to Shipper and Forwarder Preferences.
📊Prologis: The State of Automation in Supply Chains. Discussing trends within supply chain automation, a Prologis report highlights that limited automation adoption in logistics facilities results from high costs, low flexibility, and elongated ROIs. The report finds core reasons for automation investments are to improve labor productivity and throughput, not to reduce square footage. While adoption is trending upward, we anticipate automation’s most relevant use case in eComm, where labor requirements, availability, and cost are more challenging vs traditional 3PL environments. Related, Where and How Microfulfillment Fits Into Supply Chains.
💥Plus One Robotics Partners With FANUC America for eComm Automation. Dynamo portfolio company,Plus One is partnering with the world’s largest industrial robotics company to develop automation solutions for eComm fulfillment. The combined solution is a perception system that identifies, singulates, and sorts an array of conveyable items, enabling shorter pick times with higher-order accuracy. Plus One also made headlines As One of The Most Promising Startups, and the Arrival of Crystal Parrott As VP of Engineering.
Complexities of Assembling the Autonomous Truck. Autonomous trucks are gaining steam as commercial deployment appears on the horizon. But a fully autonomous truck likely won’t happen without a joint venture as complex sensors, proprietary software, and component integrations are key to their internal moldings. In the near term, it’s believed that industry automation won’t eliminate the need for truck drivers given that autonomous trucks will be used in controlled, dedicated use cases. In the automotive supply chain, How Chip Shortages May Slow Auto Production.
Mobility 🚗
🌟Gas and Diesel Cars Likely to Be Banned by 2030 in Japan. Moving in tandem with other places like California, the UK, and Quebec, Japan explores banning ICE cars and driving demand for hybrids or EVs. As the 2nd largest auto producer to China, the ban would be a crucial step towards an all-electric future for the country which produced 8.3M cars last year. Over the next 5 years, it’s likely a cohort of nations will make similar announcements amid a wave of electrification efforts.
The Promise of a Safe EV Plant Conversion. After adding another $7B to its EV plans, GM says the conversion to EV plants will be quick and straightforward. "The capacity we have today to assemble vehicles will translate to assemble electric vehicles in a fairly straightforward way and fairly quickly,” said Chief Sustainability Officer Dane Parker. GM anticipates having 30 EVs in the market by 2025 and predicts through its hydrogen fuel cell aspirations, it can one-day power fuel cells to charge EVs while in operation. Also in the realm of EVs, LG Chem to Do Away With Battery Modules while GM Scales Back Nikola Deal.
MIT Spinoff Creates Solid-State Lidar On a Chip System. As AVs inch closer toward commercial deployments, the need for a robust and dynamic lidar solution is more pressing than ever. New solid-state lidar technology demonstrated at MIT features a wide field of view, a simplified control approach, and can be produced at scale via the wafer-scale fabrication method. Kyber Photonics aims to fill that void over the next 2-3 years by creating a high performance, lidar-on-a chip unit comparable to the size of a wallet, and capable of scalable production. Also in the future of automotive, Amazon, Blackberry Collaborate on Responsive In-Vehicle System.
Scoop: Uber Seeks to Offload its Flying Taxi Business to Joby Aviation. Reports indicate Uber will offload its flying taxi business as efforts to reach profitability ramp up. If you recall, Uber recently sold its European freight division to Sennder and is actively looking to offload its self-driving unit. A sale to Joby Aviation makes sense as the California based company already has existing infrastructure and partnerships in place to quickly reach commercialization. Also, Uber Seeks to List Drivers As Essential for Vaccine while US Committee Rejects a Ban On Chinese Drone Tech.
Thanksgiving Road Travel Meets Pre- Pandemic Levels in the US. Vehicle-miles traveled (VMT) for Thanksgiving was 9% above pre-COVID levels. Spanning the last 10 months, VMT has reached pre-COVID volumes only twice, during July 4th Weekend and Labor Day. Looking ahead, VMT is expected to consistently climb despite rising case counts and looming shutdowns.
Europeans Scoop Up Old Cars to Bypass Public Transport. IHS Markit data shows an uptick in older vehicle registrations along with increased internet searches for aging cars as consumers avoid public transport and pricey new cars. In Spain, sales of cars 20 years or older jumped 25% while public transport rider volumes are down 44%.In the US, Public Transportation is in Crisis.
China Bike Exports Surge Amid the Pandemic. A surge in bike demand paired with global supply chain logjams has forced bike distributors to import supply at a record pace. During the first nine months of 2020, China has exported over 40M bikes, nearly 4X the EU’s annual bike production. China anticipates bike exports to remain elevated as part of a post-pandemic green recovery. Does Life Change After 30 Days With an eCargo Bike?.
Lion Electric to Go Public Via SPAC. The Canadian-based electric truck maker is set to raise $500M and list on the NYSE following a merger with Northern Genesis Acquisition Corp. The fresh capital will help fund Lion’s first US manufacturing facility.
Fundraises and M&A 💸
💥Stord Raises a $31M Series B Led by Founders Fund. Stord operates a cloud-based warehouse and distribution network for mid-sized and enterprise shippers. The fresh capital will help Stord build out its cloud-based supply chain software and continue sales growth.
💥ICYMI: Gatik Raises $25M Series Led by Wittington Ventures. Gatik offers a fully automated middle mile logistics service for some of the world’s largest retailers including Walmart and Loblaws. Series A capital will be used to further mature product and expand sales and operations across North America.
Contingent Raises €1.9M in Seed Funding Led by Connect Ventures. The supplier risk and resilience platform reduces the burden of detecting, mapping and monitoring third-party risk and maintaining operational resilience compliance for its customers. Funding will accelerate product development and expand the number of supply chain risk parameters used during the assessment process.
FLEXE Raises a $70M Series C Led by T Rowe Price. Flexe is an on-demand warehousing and tech platform helping brands create dynamic eComm fulfillment networks. New funding will enable FLEXE to continue growing its employee base, extending technology capabilities, and expanding partnerships with warehousing providers in the FLEXE Operator Network.
HungryPanda Raises a $70M Series C Led by Kinnevik. HungryPanda is a specialist food delivery platform providing authentic Chinese food and groceries to Chinese compatriots and students abroad. Funding will help further its global expansion in delivering food from Chinese restaurants and Asian grocery stores.
Flock Freight Raises $113.5M in Series C Capital Led by SoftBank. Flock Freight built a software platform that helps pool shipments into a single shared truckload to make freight movements more efficient. The capital will be used to ramp hiring across sales and operations.
Voi Raises $160M Led by The Raine Group. Based in Stockholm, Voi is a micromobility startup known for its eScooter rentals. Fresh funding will be used to invest in technology platform development and fuel growth in current Voi markets.
Cars24 Raises $200M in Series E Funding Led by DST Global. Based in India, Cars24 is a marketplace for second-hand vehicles. The series E capital will help Cars24 invest in product to improve the online experience for sellers and buyers.
ShipMonk Raises $290M Led by Summit Partners. The Florida based company integrates its technology with shopping cart and marketplace platforms like Shopify to import orders across sales channels. Funding will be used to continue investment in R&D, hiring, and the development of fulfillment capabilities and international expansion.
S&P Global and IHS Markit Announce $44B Merger. The suppliers of crucial supply chain data are merging in an all stock deal, with the resulting company being titled as S&P Global. The combined company will leverage its strengths to serve “high-growth adjacencies”.
JB Hunt Acquires Mass Movement. Mass Movement is a Massachusetts based commercial fitness delivery and installation company. The acquisition enables J.B. Hunt to expand its “expertise in the final-mile delivery of big and bulky products.”
Penske Logistics Acquires Black Horse Carriers.Penske bolsters its transportation division with the acquisition of Black Horse, a trucking company that serves the food, grocery, retail, bakery, CPG, manufacturing, and automotive industries. The acquisition will improve synergies for both companies through a leveling up of service quality and technology.
FedEx Acquires ShopRunner. Shoprunner is an eComm platform directly connecting brands and merchants with online shoppers. The acquisition will help FedEx expand its eComm portfolio and create increased value for brands, merchants, and consumers.
Helbiz to Acquire Skip. NY-based micromobility company Helbiz will acquire direct competitor Skip. By acquiring Skip, Helbiz will further expand its operations domestically and internationally.
DoorDash Seeks IPO at $32B Valuation. The food delivery behemoth is looking to raise up to $2.8B in its IPO and will list on the NYSE under DASH, nearly doubling its valuation from what it was just six months ago.
Luminar Goes Public Via SPAC.Luminar is a producer of sensor technology for self-driving cars to help sense distances to nearby targets. The startup received $590M in cash as a result of the SPAC.
Company Building 🛠️
Adding Top Down Sales. A great guide to ramping top-down sales for companies that have achieved success with product-led growth - “a bottom up GTM is not enough to unlock the full potential of a market; while a product-led innovation strategy certainly gives startups an advantage in winning initial users, it doesn’t fully unleash the market because enterprise-wide adoption often hits a wall without the approval of centralized, cross-functional decision-makers like executive leadership or procurement.”
Billionaires Build. A two lesson piece from Paul Graham on doing well in a YC interview and as a “billionaire scout” discusses the traits that increase the probability of someone becoming a billionaire. Hint, the latter is not about exploiting people.
Cliff Vesting. Some practical advice on handling cliff vesting for new employee grants and existing retention awards.
Who's Hiring? 👩💻
Senior Software Engineer, Backend & API at Vizion in Atlanta, GA (remote ok).
Head of Mapping and Localization at Gatik in Palo Alto, CA.
3PL Account Executive at Stord in Atlanta, GA (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.