Dynamo Dispatch (2023/10/16)
Issue 254 | Goodhood, Aifleet, Saronic
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 đ
Weâre incredibly excited to host Hub + Spoke this week in Chattanooga as we welcome founders building businesses in supply chain. Theyâll be introduced to the incredible corporates participating this year to dig deeper into the industry and facilitate customer introductions.
The Dynamo team is looking forward to meeting and learning more about everyone joining us over the next few days!
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We Are Dynamo,
Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain đŠ
â How Rising Conflict is Reshuffling Global Supply Chains. As the world grapples with rising conflict, economists are undertaking the tally of the financial cost. Fragmentation is increasingly a top of mind theme as supply chains shift closer to home (i.e. re- or nearshoring) due in large part to geopolitical conflict. While this trend intends to build resiliency through shorter supplier relationships, full fragmentation into cold-war style blocs that exclusively trade within one another could decrease global GDP by 7%. However, players have not yet reached this full separation, rather intermediaries such as Vietnam have become more prominent. As a result supply chains are not necessarily re-shoring but rather âreshufflingâ and becoming more multi-layered. The aim is improved national security and corporate resilience while a potential consequence is greater inflationary pressure. Also, UPS Flights to Israel Still suspended, DHL Operates and Zim Introduces War Fee on Sailings to and From Israel.
Final-Mile Push Drives Growth in Multistory Warehouses in Congested US Cities. As logistics businesses look to further accelerate final-mile delivery of goods in dense urban areas, real estate players believe itâs likely we will see an increased number of multistory warehouses. As consumers continue to demand shorter delivery windows, logistics providers need to construct warehousing capabilities closer to the end user. However, in congested areas, it is difficult to build the large, single-story facilities typical in this space. Multi-story warehouses are therefore becoming an increasingly pursued solution, although zoning restrictions and building codes remain as material challenges to their development. Related, P44 On-time Parcel Delivery Performance Numbers Defy History.
CHIPS Act Opens $500M in Funding for Small Semiconductor Supply Chain Projects. In an effort to develop a resilient semiconductor supply chain in the US, the Biden administration is providing $500M to âconstruct, expand or modernize facilities related to semiconductor materials and manufacturing equipment.â While prior pools of capital from the CHIPS Act have been deployed for larger projects, this funding is intended specifically for SMBs that produce components for chip manufacturing such as chemicals, gasses, and equipment, and whose total project costs fall below $300M. This is the latest example of the Western worldâs initiatives to develop and fortify domestic supply chains in an effort to reduce reliance on China.
Warehouses Are Calling In the Gig Workers. The labor practices of technology-forward companies such as Uber and Instacart are beginning to shape the practices of logistics operators, an industry with a reputation for rigid schedules and arduous workloads. These logistics businesses are now offering workers greater flexibility on topics such as scheduling and shift choice in order to better compete for labor in what is currently a tight market. With additional macro pressures such as declines in consumer spending itâs likely weâll continue to see these traditional businesses carry on in their efforts to evolve on these fronts in order to maintain their ability to compete. Completely unrelated, Volvo Unveils SuperTruck 2; Boasts of 134% Increased Freight Efficiency and Forwarders Facing Margin Pressure from Smaller Shipments, Shift of Air to Ocean.
California Adopts Landmark GHG Emissions and Climate Risk Reporting Laws, Eclipsing Anticipated Federal Requirements. California Governor Gavin Newsom has now signed two bills that will require both public and private companies to disclose climate-related data: the Climate Corporate Data Accountability Act and the Climate-Related Financial Risks Act. The former requires companies with revenues exceeding $1B that do business in California to disclose Scope 1 and Scope 2 emissions beginning in 2026. Where supply chain comes into focus is in the indirect upstream and downstream Scope 3 emissions which will be required to be reported beginning in 2027. Already companies are looking to technology solutions to fulfill this commitment, and we expect to see substantial growth of verticalized offerings. Speaking of California climate initiatives, How Fleets Can Prep for California's Clean Truck Check Program.
Mobility đ
â Fast-Charging Silicon Comes to EVs. Major automakers, including Mercedes, Porsche, Tesla, and Lucid Motors, are poised to introduce EVs powered by next-generation batteries featuring high-silicon anodes. These innovative anodes store more lithium than traditional graphite anodes, potentially offering greater energy density and longer driving ranges. The use of silicon anodes has been a long-anticipated advancement, and its arrival will be crucial for traditional automakers like General Motors, Ford, and Toyota to compete with Tesla and other industry leaders. Companies like StoreDot claim that their silicon-infused batteries can add 100 miles of charge to an EV in just five minutes, which could give automakers an edge in the market as developers scale up their production in what could be a heated race. In unrelated strike news, UAW Announces New Approach in its Historic Strike Against the Big Three Automakers and Supplier Layoffs Grow as UAW Strike Continues.
Chinese EV Suppliers Plan Side Doors Into US Market. Chinese battery companies are forging joint ventures and investments worth over $4.5B in South Korea and planning to build plants in Morocco to supply raw materials for EV batteries. These moves are seen as attempts to tap into the growing demand for EVs in the US while circumventing rules aimed at limiting China's involvement in the American EV supply chain. The $430B IRA incentivizes businesses to source materials domestically or from free-trade partners, which Chinese suppliers hope to benefit from through these overseas ventures. However, there's uncertainty about how the act defines a "foreign entity of concern," which could affect the eligibility of such joint ventures for incentives. Chinese companies are looking to expand their presence in the US and access the substantial money offered by the act, as intense competition and overcapacity challenges in China drive them to seek opportunities abroad. Within China, Chinaâs EV Sector is Hemorrhaging Cash But Government Subsidies Keep the Lights On.
Hydrogen-Powered Plane Tech To Receive Japanese Aid. Japan is planning to provide support for the development of technology required to power electrified aircraft, with a total of „30.6B (about $205M) in aid. More than half of this funding, around „17.3B, will be directed towards the development of hydrogen fuel cell systems for aircraft, while the remaining will be allocated to applications like fuel-saving engine control technology. This move by Japan comes as Airbus aims to introduce the world's first hydrogen-powered commercial aircraft by 2035, while other aviation players are also working on innovative clean-burning hydrogen-powered planes to reduce carbon emissions from aviation. Across other hydrogen news, IKEA Introduces First Hydrogen Trucks Because Battery Vehicles Do Not Have the Range For Remote Areas and Biden Selects Seven Hydrogen Hubs Across 16 States for $7B in US Grants.
Miner Expanding in Europe Wants More Aid for EV Battery Materials. Australian miner Talga Group Ltd. is aiming to establish a European supply chain for EV batteries to reduce dependence on China. The company is constructing the region's first anode plant in Sweden and is planning a nearby graphite mine. While Europe may face challenges competing with Chinese producers on cost, the carbon footprint of batteries is a growing concern for automakers. Talga claims its products will be cleaner because theyâre made from local renewable energy. Talga certainly wonât be the only player attempting to boost domestic materials, as itâll be a goal of the EU's incoming Critical Raw Materials Act, which aims to reduce reliance on China. Elsewhere, Ford EV Partner with LG, the Biggest Battery Producer Outside China.
Production of Amtrak Airo Trains Boosting Business Nationwide. Amtrak's new Airo trains, manufactured in partnership with Siemens Mobility, are contributing to economic growth across the US by creating sustainable engineering and manufacturing jobs. These trains offer passengers spacious interiors, panoramic windows, onboard Wi-Fi, and more. The project supports nearly 100 suppliers in 31 states and aims to improve passenger accessibility while operating at speeds of up to 125 mph. With the first Airo train set to debut in 2026, this initiative is part of a larger transformation aimed at revolutionizing the Amtrak experience, supported by funding from the Infrastructure Investment and Jobs Act.
The Future of Supply Chain đïž
Check out our podcast series thatâs 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.
Fundraises and M&A đž
Phasio Raises $2.5M in Seed Funding. Phasio is a startup helping local manufacturers manage their customer relationships from generating quotes to collaborating on design requests. The seed round will be used to expand its go-to-market strategy. Airtree Ventures led the round, with participation from 500 Global, Entrepreneur First, and Gattaca Ventures.
Goodhood Raises $2.6M in Seed Funding. Goodhoods is a subscription-based tech company for the auto industry, connecting car owners to mechanics for at-home maintenance and repair. The capital will be used to develop the companyâs technology and operations, including the launch of a new Auto Club subscription service. It will also be used to fund expansion into new geographies within the US. Bullish led the round and was joined by New Age Ventures, Kubera Capital, and Impact Ventures, with participation from existing investors Okapi Capital and Mucker Capital.
Aifleet Raises $14M in Funding. Aifleet is a tech-driven trucking company leveraging AI in the FTL segment to build a scalable trucking fleet. The funding will be used to continue scaling its fleet and the tech solutions that enhance driver utilization. Ibex Investors led the round, with additional participating investors including Obvious Ventures, Gerdau Next, Compound, and others.
Formant Raises $21M in Funding. Formant offers a data and operations platform for robotics companies. The company will use the funds to invest in product and go-to-market, expand partnership efforts, build out the integration ecosystem, and bring its solutions to more traditional segments of the automation industry. BMW i Ventures led the round and was joined by new investors Intel Capital and GS Futures. Existing investors SignalFire, Hillsven, Pelion Ventures, Holman, Ericcson, Goodyear Ventures, PICUS Capital, and Thursday Ventures also participated.
Machina Labs Raises $32M in Series B Funding. Machina Labs is a robotic metalworking firm aiming to provide flexibility to manufacturing through a software-based approach. The capital will be used for increased R&D and go to market for the companyâs manufacturing solutions. Nvidiaâs NVentures and Innovation Endeavors co-led the round.
Saronic Raises $55M in Series A Funding. Saronic is developing autonomous ships, with the target application of. The company has raised its Series A in a round led by Caffeinated Capital with participation from 8VC, Andreessen Horowitz, Lightspeed Venture Partners, Point72 Ventures, Silent Ventures, Overmatch Ventures, Ensemble VC, Cubit Capital, and the U.S. Innovative Technology Fund.
Glydways Raises $56M in Series B Funding. Glydways is a robotaxi developer focused on dedicated roads surrounding airports and transit hubs. The company has raised its Series B to expand operations and extend its business reach. The round was led by New Science Ventures with participation from The ACS Group, Gates Frontier, and Khosla Ventures.
Didi Autonomous Driving Raises $149M in Funding. Didi Autonomous Driving is Didiâs AV subsidiary building out robotaxi operations in China. The capital will be used to invest in R&D, accelerate product rollout, and pursue open collaborations in the industry chain. GAC Capital and Guangzhou Development District Investment Group led the round.
Blue Yonder Acquires Doddle. Blue Yonder is a supply chain solutions and omni-channel commerce fulfillment provider. Doddle is a first and last-mile reverse logistics specialist. Blue Yonder hopes to add Doddleâs capabilities to its solutions suite to enhance growth potential and build more sustainable supply chains.
VinFast Auto Acquires VinES. VinFast is a Vietnamese EV automaker that recently IPOed in August. VinES is a battery maker backed by the same broader conglomerate Vingroup. The acquisition will help VinFast control the battery tech and supply chain to ensure optimization of operating expenses.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Fleet Operations Manager at Gatik AI in Canada.
Mobile Developer at Milk Moovement in Remote.
Customer Success Manager at Factored Quality in Remote.