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
We hope everyone is getting into the holiday spirit and planning on opportunities to decompress after a busy year! As a note, next weekâs Dispatch will be the last of the year.Â
Before we sign off, a shoutout to Harry, Josh, and Zoe for the recent founder intros!
We Are Dynamo,
Santosh, Jon, Barry, Ted, Katie, Clay, and LukasÂ
Note: please add âdynamo@substack.comâ to your email client, so you donât miss future issues due to aggressive spam filters.
Supply Chain đŚ
The US Can Be A Leader In Autonomous Trucks â Or Get Left Behind. What wouldâve happened if the US didnât embrace the Model T or the transcontinental railroad? Would our economy still be as large as it is today? According to Christopher Thornycroft, VP of carrier operations at Redwood Logistics, the US should be embracing the adoption of autonomous trucking otherwise global competitorsâ economies will leave us in the dust. And while many people believe autonomous trucks will replace drivers, similar to us, Thornycroft believes the opposite - autonomous trucks will actually expand the driver pool by making trucking more attractive. In related news, Trucks Catch Up In The Self-Driving Vehicle Race and Embark Trucks To Start Autonomous Truck Route In Texas.
Amazon Outage Wasnât Just Online: Delivery Vans And Warehouse Bots Werenât Moving Packages. If you didnât hear, Amazon Web Services experienced an outage last Tuesday which affected a range of streaming services from Disney Plus and Netflix all the way to games like League of Legends and PUBG. The crash also slowed down the AtoZ app which manages the day-to-day operations of Amazonâs employees and shut down entire warehouse facilities. The outage has revealed the flaws associated with trusting big tech companies to dominate important internet operations and has left many questioning the vulnerability of the service. More on Amazon, Italy Fines Amazon Record $1.3B For Abuse Of Market Dominance and Amazon Continues To Expand Its Footprint Locally And Statewide.
US House Passes Ocean Shipping Reform Legislation. Last Wednesday, the House voted in favor of the Ocean Shipping Reform Act (OSRA), which would force container lines to prioritize exports over empty containers. Carriers are declining or canceling export bookings with little notice which is causing massive delays in shipments and negating the reliability of American exports. If passed, the OSRA would become the first rewriting of US shipping law since 1998. In related news, National Guard Is âBackup Planâ For LA Port Congestion and Maritime Industry Will Struggle to Hit Zero-emissions Target, SMT Says.
Africa's Patchy Transport Network Gets A Tech Boost. Africa is home to 17% of the worldâs population (thatâs about 1.3B people), yet only accounts for 2% of global trade. Why? Cross-border trading is very difficult for local companies. Well, at the beginning of this year, the African Continental Free Trade Area (afCFTA) agreement went into effect after being delayed by the pandemic. The primary purpose of the deal is focused on encouraging free trade across 54 countries, yet it has also spurred a lot of investment in technology firms across the continent. Shoutout to Amitruck CEO Mark Mwangi for getting a feature in the article as well! For more, check out Trade Pact Could Boost Africaâs Income by $450B, Study Finds.
Future Of Work In Logistics. âFor the first time in history, digital natives are beginning to outnumber those who began their careers before the internet,â according to a report released by DHL. Outside of changing demographics, other factors that will affect the way supply chains operate in the future include technology advancement and, to no surprise, the global pandemic. If logistics organizations want to stay relevant, they should be considering new ways to attract and maintain new talent in the digital era. In unrelated news, China Forms New State-Owned China Logistics Group.
Apple's Nightmare Before Christmas: Supply Chain Crisis Delays Gift Deliveries. âApple is falling millions of units short of its production goals and missing out on billions of dollars of revenueâ due to pandemic lockdowns, logistic troubles, and the chip shortage. According to Nikkei Asia, the shortages that are blamed on the COVID actually have persisted before the pandemic due to the tensions between the US and China. In other news, Toronto Considers Banning Sidewalk Robots.
Plummeting Truck Orders Dampen Hopes For New Capacity. The future looks grim for Class 8 truck orders as carriers have to wait 14 months to get delivery after ordering new trucks. To no oneâs surprise, the delay is a result of the ongoing semiconductor shortage and is expected to ease in the first half of next year. Back in October, the backlog of orders reached nearly 281K units. Capacity is already tight within the market due to the holiday season and rates wonât be going down anytime soon as long as the production delays persist. In more trucking news, Amazon's Trucking Ambitions Bump Up Against Driver Shortage, Competition and Trucking Reports Busy Black Friday Weekend.
Mobility đ
US Government To End Gas-Powered Vehicle Purchases By 2035 Under Biden Order. The plan calls for total federal government operations to reduce emissions by 65% before 2030. In 2020 alone, the government spent $4.2B on vehicle costs which included $730M spent on gas. Numerous industry players, including GM, VW, and even Googleâs CEO, all praised the effort thanks in part to the governmentâs sheer size as "the single largest landowner, energy consumer, and employer in the nation". In related news, Toyota Gets Ready to Sell Only Zero-Emission Cars in Europe and VW Bets $2.85B Loan On CO2 Emissions, Electric Car Sales.
Toyota To Build $1.3B EV Battery Plant In North Carolina. The facility will create 1,750 jobs and is expected to have enough capacity to produce lithium-ion batteries for 200K vehicles starting in 2025. While the exact location of the plant remains a mystery, Toyota did share that it would be completely powered by renewable energy as the automaker aims to reach complete carbon neutrality by 2050. This investment signals the automakerâs intent to bring EV battery production closer to home to reduce costs and lower the risk of future supply chain disruptions. For more on batteries, Supply Chain Woes Force Murata to Ship Lithium Batteries by Air and GM Keeps Building Up Its EV Supply Chain.
Stellantis Launches $23B Software Push. Beginning in 2024, Stellantis will offer three tech platforms powered by AI: STLA Brain, STLA SmartCockpit, and STLA AutoDrive. The automaker is also aiming to have 34M connected vehicles deployed by 2030 which is 22M more connected vehicles than they have deployed to date. Traditionally, automakers have made more money by selling prospective buyers additional features and higher-priced trim levels. According to Mamatha Chamarthi, head of Stellantisâ software business, the âfuture is about offering customers software-based services.â On a strategic note, Intel Plans to List Mobileye.
Chip-Delivery Wait Times Grow Again, Signaling Shortages Will Drag-On. It wouldnât be a mobility section without any mention of the ongoing chip shortage plaguing the industry. In November, the lead time of a semiconductor, which is the difference between a new order and its delivery, increased by 4 days to about 22 weeks compared to October. Industry analysts, such as Susquehannaâs Chris Rolland, believe that the pressures will remain into 2022 and fear that customers are purchasing more than they need right now which could lead to oversupply. In related news, Deloitte: Why The Chip Shortage Is Lasting So Long.
Volvo Had Some R&D Data Stolen In Security Breach. One of the automakerâs repositories was illegally accessed by an unnamed party. Thankfully the theft was focused on R&D data and not customer data. Back in the fall, digital risk protection company CybelAngel released a report concluding that the automotive industry was at high risk of cyber attacks due to âemployee internal threats and external security weaknesses across the automotive supply chain.â Maybe they were on to something? Also, Volvo and Northvolt Commit to $3.3B Research Lab.
Mercedes Beats Tesla to Hands-Free Driving on the Autobahn. If youâre anything like us, the first thought that came to mind was an AV flying down the highway. In reality though, while this feat is exciting, vehicles with the automakerâs Drive Pilot package canât go faster than 37 mph. But hey, the news is still cool, right? Drive Pilot allows the driver to focus on âsecondary activitiesâ which essentially means you can answer emails or play CandyCrush while sitting in the driverâs seat. For more onAVs, check out Stellantis Will Roll Out Level 3 Self-Driving In 2024 and Harvard Think-Tank Releases Latest Research On The Safety Of Autonomous Vehicles.
Rivian To Announce Plan For Georgia EV Factory. The project could become one of the biggest economic development deals for the Peach State in a decade and could offer thousands of new jobs. Georgia is already home to a Kia Motors assembly plant and an SK Innovation battery facility. The automaker is also considering Texas and Arizona as potential homes for its new factory. However, Georgia presents an attractive offer because of its shipping ports and a labor force thatâs made up of only 5% union members which is one of the lowest rates in the US.Â
Fundraises and M&A đ¸
Velostics Raises $2.5M Led By Flyover Capital. Velostics automates inbound logistics for industrial facilities such as warehouses, plants, and terminals. Additional investors include Small Ventures USA, Cultivation Capital, Starboard Star, Congress Avenue Ventures, and BioUrja Ventures. The company intends to use the funds to acquire talent across revenue-driving functions.
Dispatch Goods Raises $3.7M Led By Congruent Ventures. Dispatch Goods excludes disposable food ware from food delivery by coordinating into food delivery apps. Additional investors include Bread and Butter Ventures, Precursor Ventures, Incite Ventures, MCJ, and Berkeley SkyDeck.
Onward Delivery Raises $4.7M Led By Range Ventures. A digital freight marketplace that connects retailers who struggle to ship heavy goods with underutilized trucks already on the road. Additional investors include Springtime Ventures and angel investors including and other industry angels.
Pod Foods Raises $13M Led By Industrious Ventures. Pod Foods is a startup that is changing the way food reaches grocery store shelves. Additional investors participating in the round include Unshackled Ventures, Barrel Ventures, Relish Works, X Factor Ventures, XRC Labs, K2 Global, and Graphene Ventures, as well as previous investors M12 and Moment Ventures.Â
Serve Robotics Raises $13M Led By Uber. Serve Robotics connects people with what they need locally via robots that are designed to serve people. Additional investors include DX Ventures, 7-Ventures, and Wavemaker Labs.
Carma Raises $20M Led By Tiger Global. Carma is a fully digital used car dealership, offering a large range of quality pre-owned vehicles at fixed prices, delivered to the home. No additional investors were disclosed as participants in the round.
Nuvocargo Raises $20.5M Led By Tiger Global Management. Nuvocargo is the all-in-one digital platform for cross-border trade between USA and Mexico. The round valued the New York-based startup at $180 million, more than double the $70 million it was valued at when it raised $12 million in April. The company says it still had most of that cash in the bank when Tiger approached it.
Damon Motors Raises $30M Led By House of Lithium. Damon is making motorcycles safer and smarter to unleash the full potential of personal mobility for the worldâs commuters. The company intends to use the funds to further drive production and manufacturing efforts as they prepare to open a Vancouver, Canada factory and begin delivery of HyperSport motorcycles in 2022.
Blickfeld Raises $31M Led By New Future Capital (NFC). Blickfeld offers LiDAR sensors and detection software for autonomous mobility and IoT applications. Additional investors include Bayern Kapital, Continental, Fluxunit â ams OSRAM Ventures, High-Tech GrĂźnderfonds, Tengelmann Ventures, and UVC Partners. The company intends to use the funds for expansion into new markets and further development of sensors and software.
Pickupp Raises $37M Led By Jardine Matheson. Pickupp is a technology-enabled logistics platform that offers efficient and low-cost delivery solutions. Additional investors include Reefknot Investments, Cathay Venture Inc., PChome Online Inc., DRIVE Catalyst (the corporate venture arm of Far Eastern Group), and Swire Properties. According to the startup, the funding will be used to deepen its presence in Asia and strengthen its regional logistics network infrastructure, so that it will be better positioned to propel continued growth in quick commerce and e-commerce.
TrueNorth Raises $50M Co-Led By Groom and Altman. TrueNorth offers software that helps truckers manage insurance, fuel, and maintenance. Additional investors include Flexport Fund, Tribe Capital, Original Capital, K5 Global, 137 Ventures, and Fifth Down Capital.
TradeDepot Raises $110M Led By International Finance Corporation (IFC). TradeDepot is a B2B e-commerce and embedded finance platform that offers a broad range of consumer goods to SME retailers. Additional investors include Novastar, Sahel Capital, CDC Group, Endeavor Catalyst, and existing investors Partech and MSA Capital.
Robotic Research Raises $228M Led By SoftBank Vision Fund. Robotic Research develops autonomy and robotic technology to improve the safety, security, and effectiveness of transportation. Enlightenment Capital, Crescent Cove Advisors, Henry Crown, and LiDAR maker Luminar also participated in the round.Â
Flink Raises $750M Led By DoorDash. Flink is an online startup that offers grocery deliveries in ten minutes. Others in the round included previous backer Mubadala Capital (which backed Flink in a $240 million round made as recently as June) and other unnamed new and past investors.
SPAC Radar đĄ
SEC Investigates Electric-Car Maker Lucid Over SPAC Deal. Lucid Motors, an electric-car group taken public in one of the largest SPAC deals in history, is being probed by US regulators over disclosures and forecasts it made when it listed, casting a cloud over one of Wall Streetâs hottest investment trends. Shares of Lucid tumbled more than 10% on Monday when the news was announced.
Company Building đ ď¸
How to Get Actionable Feedback. A great primer for leaders as to how to solicit feedback but manage their immediate reactions, emotions, and overall mindset when approaching this with key staff.
The Great Formation. While increasingly large numbers of people are going to work for themselves (and thatâs great!), it does raise the question for founders and leaders as to what a great experience must look like for recruitment and retention purposes. It takes a team to build a business which means not everyone can be a founder or executive.
Atomico: State of European Tech. âWith a deeper and more experienced talent pool, the strongest ever pipeline of startups, better and bolder ideas, and world class investors, weâve created a strong flywheel in Europe. And the result is outcomes that exceed expectations in both the private and public markets.â
Who's Hiring? đŠâđť
SDR at Amitruck in Nairobi, Kenya.
Marketing Ops & Email Manager at Nextmv in Philadelphia, PA (remote ok).
Product Designer at Stord in Atlanta, GA (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.