Dynamo Dispatch (20/02/23)
Issue 226 | WiseTech Global, Zeekr, Descartes
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 💭
🌍 Welcome to Monday, February 20th. Not only is it George Washington’s birthday, but also the anniversary of John Glenn’s 1962 flight aboard the Mercury’s Friendship 7 spacecraft. Glenn was the first American to orbit the earth, circling the globe three times in 4 hours, 55 minutes, and 23 seconds. Critical to the success of the mission was the work of Katherine Johnson and other female “computers” who used large mechanical desk calculators to complete elaborate calculations.
Looking ahead to the summer, the National Motor Freight Traffic Association (NMFTA) recently announced that it will once again sponsor CyberTruck Challenge. The five-day event takes place June 12th-16th and gives college students from the United States and Canada the opportunity to learn about cybersecurity challenges in LTL trucking, as well as related career opportunities in the industry. More info is available here.
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.
We Are Dynamo,
Clay, Santosh, Jon, and the rest of the Dynamo team
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Supply Chain 📦
🌟 North American Companies Notch Another Record Year For Robot Orders. Over 44K robots were ordered in 2022 for corporate purposes, up 11% y/y. These machines are valued at $2.38B which is an 18% increase y/y, especially in the US and Canada. For the latest, consider checking out Companies Are Slow To Adopt Robot-Operated ‘Dark’ Warehouses and The Automation Boom May Widen Inequality. Address It.
Nikola Constructs Hydrogen Fuel Network To Power Zero-Emissions Trucks. Deals with several hydrogen producers have allowed Nikola to have enough fuel for 7.5K heavy-duty trucks by 2026 across US and Canada. This supply network is crucial, as Nikola’s trucks will require hydrogen to keep them on the road, unlike chargeable EV trucks. Get the latest by checking out Washington State Chips In $250k For First Mode’s Zero-Emission Proving Grounds and Countdown Begins For Hydrogen-Powered Trucks?
Wabtec VP: US Needs To Invest In Hydrogen Rail Technologies. Even though railroads only represent 1.9% of emissions that are transportation-related, many rail experts think it’s important to consider other rail alternatives. Rail technology operators, such as Wabtec, aim for next-gen locomotives to hit markets, either hybrid, fully EV, or hydrogen, by 2028. For more, consider checking out Trains Are Becoming Less Safe. Why The Ohio Derailment Disaster Could Happen More Often.
There’s A New Inflation Warning For Consumers Coming From The Supply Chain. Distribution centers and warehouses charges are at an all-time high (up 1.4% from last month and 11% y/y) and consumers will feel continue to feel that cost as we head into the second and third quarters of the year. Temporary warehouse space in particular is at a premium. Further reading about the current state of our supply chain includes: The US, China Spy Balloon Tensions Are Drifting Into Politics Of The Supply Chain and The World’s Most Vulnerable Supply Chain Impacts All Supply Chains.
Japan Will Allow Self-Driving Delivery Robots To Roam Its Streets To Combat Labour Shortages. Because of its older population, with over 30% of its citizens over the age of 65, Japan is riddled with labor shortages. New companies, like Japanese robotics company ZMP, have begun trials of delivery robots at a maximum speed of 6 km/hr in order to meet Japan’s high road safety standards. Hear about more delivery robots by reading Food Delivery Robots Hit The Streets Of Dubai.
Top Container Lines Commit To Complete Shift To Electronic Bills Of Lading By 2030. Savings of nearly $6.5B in direct costs and enhancement of nearly $30-40B in annual global trade growth could be the result of moving away from physical methods. Currently, ocean carriers issue a massive $45M bills of lading a year, only 1.2% of which are electronic. For more, consider reading Retailers Hope To Bargain For Lower Ocean-Freight Rates and Major Ocean Carriers Commit To 100% Electronic Bills Of Lading By 2030.
Where EV Trucks Are Going To Hit The Road First. The first EV trucks from Schneider have already begun operations in the ports and intermodal facilities of Southern California. However, other manufacturers such as Amazon, Rivian, and Volvo are all developing EVs due to growing pressure from legislation due to environmental concerns. Get more on the future of EV trucking by reading Rivian’s Strong Brand Means EV Share Gains From Ford, GM and Biden Administration Awards $7m For EV Truck Charging, Hydrogen Fueling.
Mobility 🚗
🌟 Tesla Recalls 362,000 US Vehicles Over Full Self-Driving Software. Tesla’s fully self-driving technology was in use during 273 crashes from July 1st, 2021, to May 15th, 2022. After several tests and analyses, the National Highway Traffic Safety Administration has determined that the system that allows self-driving in city streets causes “an unreasonable risk to motor vehicle safety based on insufficient adherence to traffic safety laws.” The automaker intends to notify owners of the recalled vehicles by mail no later than April 15th. For more info on the recall, Tesla Recalls 362,758 Vehicles, Says Full Self-Driving Beta Software May Cause Crashes.
Tesla Agrees To Double Supercharger Network, Open To All EVs Under Biden’s $7.5B Charging Plan. Following new requirements as a part of Biden’s 500k $7.5B EV charging initiative, Tesla has committed to making at least 7.5K superchargers available to all EVs by the end of 2024. GM plans to build a coast-to-coast network of 2K fast chargers along US highways. Another requirement is that final assembly and manufacturing processes for any iron or steel charger enclosures must occur in the US, and by July 2024, at least 55% of the cost of all components will need to be manufactured domestically as well. To learn more about Biden’s plan, read Tesla Drivers Worry About Wait Times As Elon Musk Opens Up Supercharger Network and The Biden Administration Aims To Make Ev Charging As Easy As Filling Up.
Ford Halts Production of Electric Pickup Over Battery Issue. As Ford tries to cut costs following its $2B loss in 2022, a battery issue has cropped up in the production of its electric pickup, the F-150 Lightning. Faults in high-voltage automotive batteries are relatively common in EV production and can cause overheating and intense fires. On Monday, Ford announced a plan to build a $3.5B battery plant in Michigan utilizing technology licensed from a Chinese company. Read more here: Ford Will Build a US Battery Factory With Technology From China and Ford Warned F-150 Lightning Owners About Separate Ev Battery Issue Before This Month’s Fire.
Amazon’s Self-Driving Car Shuttles People On Public Roads For The First Time. The self-driving startup owned by Amazon, Zoox, carried staff between its two main buildings in Foster City, California. This shuttle marks the first time a vehicle designed without human controls has carried passengers on a public road. General Motors’ Cruise is also in the race to deploy these robotaxis, having received permission to test its own shuttle on California’s public roads.
Stellantis’ Ram Is Workshopping A Mid-Sized EV Pickup Truck. After announcing last year that it aims for 100% of its sales in Europe and 50% of its sales in the US to be EVs, Stellantis has released the production version of its mid-sized EV pickup. After lagging behind other automakers, Stellantis plans to invest $2.8B to boost EV production in Canada and make Chrysler an all-electric brand. The RAM 1500 REV model will be in dealerships by late 2024 with an official 2025 model release.
Genesis Unveils 2023 Electrified Gv70 Prices, The Brand’s First EV Assembled In The US. Their first-ever model assembled in the US will have a starting price of just under $66K, making the SUV competitive with Rivian’s $73K MSRP and BMW’s iX at $85K. The GV70 will be manufactured in the company’s Montgomery, Alabama manufacturing plant, representing a milestone for the future of American-made EVs. Read US-Made 2023 Genesis Electrified GV70 Priced From $65,850 and
Fundraises and M&A 💸
🌟 WiseTech Global acquires Blume Global. Based out of California, Blume is a leader in intermodal logistics solutions in North America, managing intermodal containers and chassis on behalf of 6 of the 7 Class 1 US railroads. The deal was estimated at nearly $414M.
Ottometric Raises $4.9M In Seed Funding. The Massachusetts-based company has become a leader in advanced driver assistance systems development and validation processes. Funding was led by Rally Ventures and was supported by Automotive Ventures, Goodyear Ventures, and Proeza Ventures. The new funding will continue to grow both the organization and its customer base.
EthonAI Raises $6.8M In Seed Funding. Based out of Zurich, EthonAI is an AI platform to help manufacturers boost performance by detecting, monitoring, and preventing losses at scale. Funds were secured in a round co-led by LA Famiglia and Earlybird Venture Capital. The funding will go towards further product development.
CaPow Raises $7.5M In Seed Funding. CaPow is an Israeli startup that provides reliable, non-pollutive energy for automation and warehousing purposes. The round was led by IL Ventures, with additional investment from Mobilitech, Doral Energy-Tech Ventures, and Mobilion VC. These new funds will go towards product development and meeting their increasing market demand.
VivaCity Raises $8.5M In Latest Funding. The UK-based company develops artificial intelligence sensors for the mobility sector for congestion and accident data. The round was led by EnBW New Ventures, and joined by Gresham House Ventures and Foresight Group. Funds will go towards establishing an American presence.
OpenEyes Raises $18M In Series A Funding. The company, based out of New York, is a provider of insurance for the commercial automotive fleet industry. Funding was raised by Insight Partners and Pitango First, and joined by MoreVC. New funds will go towards expanding its team as it reaches US expansion.
ChargerHelp Raises $17.5M In Series A Funding. Coming out of LA, ChargerHelp is a holistic provider of EV charging solutions for both maintenance and workforce development. Funds were raised by Blue Bear Capital, along with Insiders Energy Impact Partners, Exelon, and Aligned Climate Capital. New funds will go towards expanding its product line and workforce development programs.
Apkudo Raises $37.5M In Series C Funding. The Balitmore-based company is a provider for managing connected devices with supply chain automation. The round was led by Closed Loop Partners and Piper Sandler Merchant Banking, with participation from Point Field Partners, Harbert Growth, MissionOG, Grotech Ventures, and Lavrock Ventures. Funds will go towards building an international presence.
Dronamics Raises $40M In Series A Funding. Hailing from Bulgaria, Dronamics has created a cargo drone airline through which they enable faster, sustainable delivery. Funding was raised from Strategic Development Fund, Speedinvest, Eleven Capital, and Founders Factory. Funds will go towards expediating its go-to-market strategy.
Via Raises $110M In Latest Funding. The NYC on-demand transit and shuttle service company works towards providing every city with end-to-end digital infrastructure. Funding was led by 83North and saw co-investment from Pitango, Janus Henderson, Exor NV, CF Private Equity, Riverpark Ventures, and ION Crossover Partners. Funds will go towards further expansion.
Zeekr Raises $750M In Latest Funding. The Chinese EV brand currently sells two purely electric car models, as a subsidiary of Geely’s Automobile Holdings. The new round included investment from Amnon Shashua, Yuexiu Industrial Fund, and CATL. The funds will be used to support global expansion and R&D.
Descartes Acquires GroundCloud For $138M. The American-based company provides a variety of solutions for last-mile logistics for SMBs. The deal was estimated at a surprising $138M, and approximately $184M CAD.
Mill Rock Packaging Partners Acquires Keystone Paper & Box Company. Out of Canada, Keystone is an industry leader in high-end paperboard products for a variety of applications. The terms of this deal were not disclosed.
3 Rivers Capital Acquires Magnum Systems. Coming from Kansas, Magnum Systems is an engineered components and systems designer and manufacturer. The financial terms of this deal were not yet disclosed.
United Utility Services Acquires BHI Power Delivery. The Washington-based company provides a variety of comprehensive utility transmission and distribution services provider. The deal’s financial terms were not yet disclosed.
CORE Industrial Partners Acquires GEM Manufacturing. GEM is a Waterbury, Connecticut-based deep-drawn metal components and mechanical assembly provider company. The financial terms were not disclosed.
Business Building 🛠️
🎧 Mastering Onboarding. Lauryn Isford, former Head of Growth at Airtable shares her thoughts on onboarding users, which we discuss frequently with our founders as they launch their v1.0. Further, the discussion on key product and growth metrics is useful for those teams trying to establish theirs.
How to Apologize. A great walkthrough on how to apologize and mend relationships. Make the time to go through it, save it, and revisit when you need to use it!
The 83b Election. We’ve had founders mess this up. Talk to your tax advisor to ensure you’re being smart around taxes as you build your company (and it increases in value).
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!
Quality Assurance Automation Engineer at Numadic in Panaji, Goa, India (Hybrid).
Customer Success Manager (SaaS) at Raft in Chicago, IL.
Traveling Superintendent at PaintJet in Dallas, TX.
Random Statistic Of The Week 📈
🛫 Air India announced the largest order in commercial aviation history: 470 jetliners
The purchase signals the airline’s intent to take on domestic and regional rivals (look out Emirates and Qatar Airways) by investing $34B in the fuel-efficient jets from Boeing and Airbus SE. According to Bloomberg, “the order also comes as airlines globally upgrade and refresh their fleets to cash in on the rapid rebound in travel after Covid.”