Dynamo Dispatch (2023/08/21)

Issue 247 | Zeelo, Altos Radar, Mitra Chem

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 💭

Last week marked the 1 year point of the IRA signing, with major headlines and commentary coming out related to the costs, impact, and effectiveness. Critics points to the ballooning yet hard to pin down price tag of the spending measures and the major hurdles still present (for more, see the second article in the Mobility section of this newsletter). Regardless, it is hard to argue the transformative effect it has had on industries that we at Dynamo track closely. Without the regulation coming into law, we probably wouldn’t have seen such an interest in long term investments necessary to overhaul the historic baggage in supply chain and mobility.

Before jumping into the news of the week, the entire team at Dynamo wanted to give a big congratulations to our friends at Zeelo, who just secured a $14M Series A extension to accelerate the US expansion of their smart bus platform. We’re eager to see what the next stage in the journey holds!

🥰 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,

Madelyn, Derrek, and the rest of the Dynamo team

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Supply Chain 📦

⭐ ALAN Mobilizes in Response to Hawai'i Wildfires. The American Logistics Aid Network (ALAN) has begun mobilizing resources to aid in the response to the wildfires that have devastated the town of Lahaina on the island of Maui, Hawai’i. Members of the logistics community are encouraged to visit ALAN’s disaster microsite to view lists of requests and make offers of space, services, and equipment they are able to donate to support relief efforts. Related, Hawaiʻi fires: Carriers Prioritize Emergency Supplies for Maui.

Air Cargo Grapples with Plummeting Rates and Freighter Oversupply Fears. Falling rates, softening demand, and increased capacity is leading the global air cargo market towards a difficult period following the freight boom of the pandemic era. This coincides with contractions of “global goods trade, manufacturing PMIs, and inventory-to-sales ratios”, resulting in suffering financial metrics for entities in this space. These consequences are indicative of broader economic shifts as monetary policies tighten and consumers reduce spending on goods. Also, Parcel Market Dilemma: Excess Capacity with Stagnant Demand and Parcel Volume Growth Slowed In 2022; 5-Year Growth Forecast Downgraded.

Multinationals Turn to Generative AI to Manage Supply Chains. As major companies such as Unilever and Maersk grapple with increased geopolitical tensions and pressure to absolve connections to environmental and human rights abuses within their complex supply chains, AI is increasingly becoming a go-to solution. Generative AI offers new opportunities to further automate processes or provide solutions such as responding to requests to locate alternative suppliers or vulnerabilities in a user’s supply chain. Related, Why Can’t U.S. Ports Get Automated?, and completely unrelated, Instacart Plans for September IPO in Boost for US Listings.

Cash Reserves Running Out for Many Trucking Firms, Werner Says. Smaller trucking firms may exit the market more often due to pressure from higher fuel prices, higher costs of capital, and depressed volumes. This trend comes alongside a reduction in the number of new trucking firms coming online. Larger FTL and LTL firms are likely to step in and swallow the available market share in the near term. Elsewhere, As UPS Strike Concerns Grew, More Shippers Turned to Carrier Alternatives.

Shipping's Greener Fuel Quest Runs Into Climate Complications. Three and a half years ago, the sulfur-heavy fuel that the shipping industry relied on was banned, preventing acid rain and hundreds of thousands of premature deaths from dirty air. However, the CO2-heavy fuel with which it was replaced has potentially added 0.2C in warming to the North Atlantic region, leading to warmer ocean temperatures which can kill marine life, melt sea ice, and drive stronger hurricanes. These trade-offs and continued complexity highlight the challenges, costs, and opportunities for the shipping industry writ large — which pumps out close to a billion tons of emissions annually — as it grapples with its goals to reach net zero by (“or around”) 2050. Related, Brutal Summer Heat Tests Ability of Energy Exporters to Keep Their Citizens Cool.

Mobility 🚗

⭐ Rival Battery Technologies Race to Dominate Electric Car Market. With the global demand for lithium-ion batteries skyrocketing (revenues projected to grow to $700B a year by 2035), especially from the use in EVs and energy storage, two main branches of lithium-ion technology have stood out. NMC (lithium, nickel, manganese, and cobalt) cathodes, of which Chinese companies supply 75% of global production, are used in the majority of EVs sold in the West preferred for the longer range it provides. LFP (lithium, iron, phosphate) batteries, of which Chinese companies produce 99% of world output, have surged in popularity in the Chinese EV market due to the higher safety levels and lower costs. While other countries are trying to catch up on the LFP front, how the competition plays out between the two technologies will have global implications on political and economic power. In other battery news, Startup Next Energy Touts Advancements in Lithium Iron Phosphate Battery Technology and The Five Most Important Battery Trends.

The Four Biggest Hurdles in America’s EV Transition. Although $59B of new EV investments have been announced in the US in the last year since the IRA was enacted, there still remain major hurdles to seeing tangible results. Bloomberg calls out four: the UAW negotiations arguing partner EV plants employees should be included in contracts, political risks from Republicans who might try to defund the IRA, the slowing of EV demand, and private investor buy-in to fund projects downstream of vehicle and battery plants (e.g. processing plants to create usable nickel and lithium powder) within the US. For an alternate take on the effects of the IRA, Tracking the EV Battery Factory Construction Boom Across North America.

Race to Control EV Supply Chains Leads to Africa. To circumvent the dominance China has on the production and processing of critical minerals such as cobalt and lithium, Western companies and investors have begun building processing plants in Africa. They plan to mine and refine these minerals in African countries and then export directly to Europe and the US. This trend showcases the lengths major corporations are willing to go to be less dependent on Chinese providers; there are plenty of risks associated with doing business in many African countries. As more examples of companies looking outside of China, Ford Aims to Secure Battery Material Supply with New Canada Facility and Indonesia Says Tesla Plans to Invest in Battery Material Facility.

China’s Abandoned, Obsolete Electric Cars Are Piling Up in Cities. In at least half of dozen of cities across China are fields where hundreds of unwanted EVs lie abandoned in graveyard fashion, where some even have plants sprouting through the cars. It’s a result of a flood of capital fueling the production and sales of low-end, low-range EVs that have since become obsolete in both ride-share fleets and personal usage. Although China has since built itself as a leader in EV production and adoption, the recently captured scenes serve as a reminder that growth at all costs in the EV industry can have serious ramifications, a fact that car manufacturers should keep in mind as the demand for EVs in the US begin to slow. Relatedly, Why the World Needs to Put More Thought Into Retiring Cars and Dirty Downside of Return to Office Could Make Climate Crisis Worse.

New EV Company Stock Skyrockets After Going Public, But Now Dropping. After Vietnamese automaker VinFast completed its SPAC merger, its stock price jumped more than 270% in the first couple of days of trading, valuing the company at a $85B valuation that’s higher than BMW, Ford, and GM. The stock has since dropped towards a value that’s more representative of its slowing sales growth and reported quality issues. One unique aspect worth calling out is its unique business model that was successful in the Vietnamese market but is proving confusing in the US — buyers pay one price for the vehicle and then lease the battery for a monthly fee. It’s an interesting experiment as batteries become both a major cost and a differentiator for automakers expanding their EV lines. From other automakers, Nikola Recalls Electric Trucks Due to Battery Pack Fire Risks, GM’s Cruise Told By Regulators to Reduce Robotaxi Fleet By 50% in SF Following Crash, Ford Hires Apple Exec To Oversee Customer Experience Pivot, and Volvo Go All-in on EVs.

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The Future of Supply Chain 🎙️

Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.

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Fundraises and M&A 💸

💥 Zeelo Raises $14M in Series A Funding. Zeelo is a ‘smart buses’ platform that provides bus operators, employers, and schools with private bus and shuttle transport programs. The company has obtained $14M in Series A extension funding led by European Growth equity investor FlatzHoffman and the CVC arm of Motor Oil Hellas, IREON Ventures. The funding will be used to accelerate sales and US operations on the East and West coasts as well as the development of its tech platform.

Robomart Raises $2M in Seed Funding. Robomart is a store-hailing platform that deploys automated stores on wheels that can be hailed to a customer’s home. The company rolled out its first pilot last year and expects and announced a new model this week which will be available for retail partners starting in 2025. Robomart’s Seed round was led by W Ventures with participation from Wasabi Ventures, SOSV, HAX, and Hustle Fund, among others.

ShipCalm Raises $2M in Funding. ShipCalm is an eComm fulfillment and 3PL provider focused on SMBs. The capital will be used to expand into new territories and increase hiring in tech, sales and marketing, and operations. The round was led by Montage Capital.

Birdstop Raises $2.3M in Seed Funding. Birdstop is a remote sensing company that has raised a round to expand its constellation of Beyond Visual Line of Sight (BVLOS) drones across critical infrastructure in the US, grow its AI capabilities, and delivery more data-driven value. The round was led by Lerer Hippea with participation from Anorak Ventures, Correlation Ventures, Data Tech Fund, Graph Ventures, Techstars, Timberline Holdings, and strategic investors in energy and telecommunications.

SAEKI Raises $2.3M in Seed Funding. SAEKI builds fully automated plants with industrial robots using 3D tech to build a wide range of products. The financing will be used to continue to build out its first production hub. The funding round was led by Wingman Ventures, with participation from Vento Ventures, Getty Capital, and angel investors.

AssetCool Raises £2.25M in Series A Funding. AssetCool is the developer of a coating to increase performance and reduce energy losses, costs, and emissions associated with power lines. The company’s new funding will fuel the commercial rollout of its proprietary coating and further develop the techniques for retrofitting power stations. Taking the lead position of the round is Northern Gritstone with participation from existing shareholder Northern Powerhouse Investment Fund.

Altos Radar Raises $3.5M in Pre-Seed Funding. Altos Radar is the developer of 4D millimeter wave radar, a competitor to LIDAR, an essential technology used in autonomous vehicles. The funding was raised from ZhenFund, Monad Ventures, and Yifan Li.

ElectroTempo Raises $4M in Seed Funding. ElectroTempo is a planning and intelligence software provider for EV charging networks. The capital will be used to expand its geographic coverage across the US and its product offering to serve industrial site hosts for truck electrification. The round was led by Buoyant Ventures, with participation from Schematic Ventures, and Zebox Ventures.

Olis Robotics Raises $4.1M in Funding. Olis Robotics develops remote monitoring, control, and error recovery technology for industrial robots. The startup plans to add support for additional robot brands, representing more than half of all industrial robots. The round was led by PSL Ventures, with additional participation from Tectonic Ventures, Ubiquity Ventures, and other angel investors.

Mercanis Raises $10M in Seed Funding. Mercanis is a startup building sourcing and supplier management tools. The fund will be used to further product development, including embedding AI within the current suite and expanding GTM strategies. The round was raised from Signals VC, DI Technology, and Speedinvest, with additional participation from angels.

Mixlab Raises $10M Series A Funding. Mixlab, which helps veterinarians offers next-day delivery for veterinary pharmacy products, has raised $10M in Series A extension funding. The capital will be used to help the company meet the growing demand within the global pet care industry. The round was led by Vanterra Ventures and joined by Lakehouse Ventures.

Sapphire Technologies Raises $10M in Series B Funding. Sapphire Technologies is a developer and manufacturer of energy recovery systems for hydrogen and natural gas applications. The new funds will be used to accelerate the development of its clean energy solution. The round was led by Energy Capital Ventures, with additional participation from Marathon Petroleum, Chevron Technology Ventures, Equinor Ventures, and Cooper and Company.

Caelux Raises $12M in Series A3 Funding. Caelux, a company that uses perovskite tech for solar energy, has raised A3 funding to support its factory ramp, research and development, and product launch to bring its solution to market. The round was led by Temasek with participation from Reliance New Energy Limited, Khosla Ventures, Mitsui Fudosan, and Fine Structure Ventures.

Advanced Ionics Raises $12.5M in Series A Funding. Advanced Ionics is a startup developing technology that uses vapor from heavy industry to sharply reduce the production costs of zero-carbon green hydrogen. The funding will allow it to accelerate the deployment of its small-scale electrolyzer. BP Ventures led the round, was additional participation from Clean Energy Ventures, Mitsubishi Heavy Industries, and GVP Climate.

Ceibo Raises $30M in Series B Funding. Ceibo is a Chilean advanced copper extraction technology company focused on creating a more sustainable future for mining. The capital will be used to accelerate its primary and secondary sulfides leaching process. The round was led by Emergy Impact Partners, with additional participation from BHP Ventures, CoTec Holding, Audley Capital, Orion Industrial Ventures, Unearth Capital, and Opalton (Pincus Green), in addition to the existing investors Khosla Ventures and Aurus Ventures.

Trove Raises $30M in Series E Funding. Trove is a resale tech provider for retailers including Canada Goose, Lululemon, and REI. The latest funding will be used to support the startup’s expansion across new brands and verticals. Wellington Management and ArcTern Ventures co-led the round, with additional participation from Mitsui Fudosan’s CVC Fund, G2 Venture Partners, Prelude Ventures, and other current Trove investors.

Aether Raises $49M in Series A Funding. Aether uses robotics, machine learning, and synthetic biology to develop technology to extract lithium in a faster, cheaper, and more sustainable way, enabling customers to manufacture complex products such as EV batteries at a reduced cost. The company has thus far developed a prototype of a nano-sized machine built from proteins that can extract lithium from brines even in solutions where the metal is limited and in a process that makes it possible to go directly to battery-grade lithium. The round was led by Natural Capital and Unless.

dcbel Raises $50M+ in Series B Funding. dcbel is a smart home energy company that allows homeowners to control the renewable energy flow from solar panels, stationary batteries, and EVs. The capital will be used to accelerate growth. The round had participation from Volvo Cars, Coatue, Real Ventures, Idealist Capital, and Investissement Québec.

Helm.ai Raises $55M in Series C Funding. Helm.ai is an autonomous driving and robotics automation AI software startup. The latest capital will be used for R&D, product development, and to accelerate commercial engagements. The round was led by Freeman Group, with additional investments from ACVC Partners, Amplo, Honda Motor, Goodyear Ventures, and Sungwoo Hitech.

Mitra Chem Raises $60M in Series B Funding. Mitra Chem is a battery tech startup working to develop lower-cost batteries for EVs based on LFP technology. The new capital will help Mitra Chem ramp up operations and bring its solution to market sooner. GM led the round, with additional participation from Social Capital, Zeon Ventures, WovenEarth Ventures, The Keffi Group, Scribble Ventures, GS Futures, Fontinalis Partners, Earthshot Ventures, Bricks Capital Management, Boutique Venture Partners, and Bonds Investment Group.

Rondo Energy Raises $60M in Series B Funding. Rondo Energy is a provider of zero-carbon heat and power for the global energy storage market. It will use the latest funding to grow international operations and build projects around the world. The round included Breakthrough Energy Ventures, Energy Impact Partners, SCG, and TITAN, Microsoft’s Climate Innovation Fund, Rio Tinto, SABIC, Aramco Ventures, SDCL Energy Efficiency Income Trust (SEEIT), and John Doerr.

Inrix Raises $70M in Funding. Inrix is a provider of transportation analytics and connected car services. The financing will be used to accelerate growth initiatives and refinance debts. Morgan Stanley Investment Management was the sole participant in the financing.

TechMet Raises $200M in Funding. TechMet is a critical minerals investment company that builds projects across the value chain from mining and processing to recycling and battery component manufacturing. The funding will be used across its existing portfolio of production, refining, and recycling projects. The round included the US International Development Finance Corporation as a key existing shareholder.

Archer Raises $215M in Post-IPO Equity Funding. Archer, an aerospace company that has developed an electrical vertical takeoff and landing (EVTOL) aircraft tailored for urban air mobility systems has raised $215M from Stellantis, Boeing, United Airlines, Ark Invest, and others.

Envision Cold Raises $500M in Funding. Envision Cold is a cold chain platform that acquires and operates cold storage facilities. The investment will allow it to continue to acquire and develop additional cold storage assets across North America. The participants in the financing round were not disclosed.

ElectraMeccanica To Merge with Tevva. ElectraMeccanica makes tiny three-wheeled EVs but has had to discontinue production after a recall early this year. Tevva is a producer of medium and heavy-duty commercial electric trucks. This merger will allow ElectraMeccanica to pivot into the fast-growing market and gives Tevva an opportunity to enter the US market.

Who's Hiring? 👩‍💻

Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!

Full-Stack Clojure Developer at Red Sky in Berlin, DE.

Senior Solutions Architect at Amitruck in US (Remote).

Implementation Manager (SaaS) at Raft in Melbourne, AUS.