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
Itâs been insightful digging into the research from OpenViewâs latest 2023 SaaS Benchmarks report. Unsurprisingly, SaaS growth rates has continued to decline across the board, including private companies dropping from a high of 60% CAGR in Q1 2022 to just 8% as of August 2023.
Thatâs not to say thereâs no hope, as 27% of private SaaS companies surveyed said theyâre growing faster than last year. Common characteristics of these outliers tend to be AI native, vertical SaaS, and AI monetized. Maybe more importantly, thereâs a greater emphasis on benchmarking against ARR per FTE as a North Star metric to reflect efficient company growth.
đ„Â Weâre excited to give Dispatch readers an early peek at Dynamo portfolio company Tangram Visionâs Kickstarter launch of the new HiFi 3D Sensor! HiFi levels up 3D sensing with unheard-of specs and capabilities. It blends high-resolution 1.6-megapixel 3D data with one of the most powerful AI chips ever used with a sensor. Be sure to follow the Kickstarter and check back on Tuesday for the official launch!
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Supply Chain đŠ
â Cyberattack Paralyzes Australia Ports in Threat to Supply Chains. As a result of the latest in a string of high-profile cyberattacks, one of the worldâs largest facilitators of global trade has been forced to halt operations at multiple ports. The closures of DP Worldâs Sydney, Melbourne, Brisbane, and Fremantle ports are straining already vulnerable supply chains. Earlier this year Japanâs largest maritime port was targeted, as were multiple Dutch ports a month before. The digitization upstream and downstream of supply chains alongside the materialization of new malware technologies has created an environment with the need for greater cybersecurity capabilities, evidenced by these increasing attacks. For more, Government Doesn't Know Details Behind Cyber Hack that Shut Down Port Operator DP World.
Shipping Industry Trims Its Sails for Sluggish Global Trade. The shipping industry is facing a challenging environment, particularly relative to the recent highs of the pandemic and the subsequent consumer goods spending boom. However, while the next couple of years are expected to be strained, some industry players believe that there are key differences separating todayâs environment from the the deep pain experienced following the 2008 crash. These include a smaller order book of new vessels, a higher average ship age leading to more scrapping, slower sailing as a result of new pollution rules, and stronger balance sheets. These factors are predicted to cut the length of the downturn short compared to the decade-long uphill battle following the Great Recession. Elsewhere, Cargo Airlines Throttle Back on Aircraft Leases, ATSG Says.
The Workers Who Make Your Clothes Want Higher Pay. Who Should Pony Up? The ultracheap labor that many brands have relied on within their supply chains is under pressure as workers protest for better wages. Garment workers specifically are some of the lowest paid in the world, with many earning as little as $3 per day. Tens of thousands are striking as a result and some protests have led to factories set ablaze and machines destroyed, causing 300 factories to halt operations. Major fashion brand such as H&M and Gap have voiced their support for better wages, but no one appears to be willing to pay for it. Factory owners assert that brands and retailers must pay more for the clothes they purchase to support wage increases, but these firms (even when voicing public support) balk at this suggestion in practice. The Westâs demand for fast fashion is in a feedback loop with low wages for Asian workers, as these countries seek to keep wages low to remain competitive and brands look to offer increasingly cheap goods.
Warehouse Renters Could See âSignificantâ Rate Increases in 2024, Prologis Says. The vacancy rate for logistics real estate remains low even as the pace of new builds accelerated this year. Due to an undersupply of available space, meaningful rent increases are expected to remain the norm. This aligns with the trend of continuously increasing rental costs, with US rent growth totaling 85% from 2019 to Q3 2023. Prologis notes that the US logistics real estate market is experiencing a âmini cycleâ that âreflects a balance between short-term cyclical uncertainty and long-term adaptation to the future of retailing and supply chain demands.â Completely unrelated, Delivering 1 Day Faster: J.B. Hunt and BNSF Launch Quantum to Expand Intermodal Marketplace and Kimberly-Clark Streamlines Order Fulfillment & Optimizes Transportation.
đ„Â Scania to Launch Pay-Per-Use Electric Truck Joint Venture. Demand for electric trucks has waned in Europe, weighed down by the lack of charging infrastructure as well as the hefty cost of battery-powered vehicles. In response, Scania and Dynamo portfolio company Sennder are launching a joint venture called Juna which will provide carriers with rentable electric trucks for specific jobs. This will allow these firms to employ the vehicles without having to fork over robust upfront sums, thereby making the vehicles more accessible, particularly for long-tail carriers with smaller balance sheets. Elsewhere in electric surface transportation, Rivian and Amazon Are No Longer Exclusive.
Mobility đ
â The Green Fuel That Even Red America Loves. Hydrogen is gaining bipartisan support in the US as a clean energy candidate, with backing from some Republican-controlled regions such as the Gulf Coast of Texas and Louisiana. Itâs viewed as a bridge between renewables and fossil fuels, offering the flexibility to be produced using either green or traditional sources. While some environmentalists express concerns about this flexibility, it contributes to hydrogen's broad appeal for cars, power generation, and steel manufacturing. Unlike other green energy transitions such as EVs in which adoption is primarily in Democratic regions, hydrogen is on a path to widespread adoption across the US. For more evidence of the momentum in hydrogen, Nuclear Is Out, Hydrogen Is In: Where Countries Put Energy R&D Money and Ballard Takes Follow-on Orders For Fuel Cell Units For Locomotives and Buses.
Overstaffed FedEx Tells Unhappy Pilots They Can Join American Airlines. FedEx Express is encouraging its excess pilots to consider opportunities with American Airlines subsidiary PSA Airlines, citing overstaffing in its flight operations. With air cargo demand still down, passenger airlines like American are actively hiring pilots. FedEx's VP of flight operations and training mentioned the initiative as a solution to address overstaffing, offering a $250K signing bonus and guaranteed flow to American Airlines. This move comes amid FedEx's efforts to reduce flights, match staffing to demand, and cut operating costs. On the topic of planes, Airbus Sticks to Delivery Target, Ramps Up A350 Production Despite Supply Chain Challenges.
Toyota Has Put EVs First and Should Be Less Shy About Saying So. Toyota showcased a range of battery-electric vehicles at the Japan Mobility Show, signaling a commitment to a "BEV-first mindset." CEO Koji Sato clarified that this approach aligns with Toyota's multi-pathway strategy to achieve carbon neutrality. Despite the emphasis on a variety of electric models, Toyota's sales forecast for BEVs remains modest at around 123K units out of an expected 11.4M total vehicle sales. Toyota seems focused on addressing this shortfall, establishing a BEV Factory organization to break from traditional manufacturing, sales, and service approaches and instead focus on accelerating its EV strategy. Risk wise, Shipowners Urged To Protect Vessels Against Electric Car Fires and Firefights are Still Learning How To Tackle EV Fires, Hereâs What You Need To Know To Stay Safe.
Biden Hails Historic $16.4B Investment In Northeast Rail. President Biden announced a $16.4B investment in rail projects along Amtrak's Northeast Corridor to replace aging infrastructure and address crumbling tunnels, bridges, and tracks. The funds will benefit 25 passenger rail projects upgrading tracks, station power systems, and signals. The Northeast Corridor is crucial to the US economy, supporting 800K trips per day and representing 20% of the country's economy. Biden emphasized the need for upgrades based on his personal experience commuting on Amtrak and highlighted the economic consequences of outdated infrastructure. As another focus area, Biden Wants UAW Style Labor Deal For All US Auto Workers.
Cruise is Recalling 950 Driverless Cars After One of Its Vehicles Ran Over a Pedestrian. In the latest development of Cruiseâs unfortunate saga, GM's self-driving car subsidiary is recalling 950 AVs following an October incident in which a robotaxi hit a pedestrian. Cruise had first responded to the situation by grounding its fleet nationwide, and now has recalled all vehicles because of an over-the-air software update to the collision detection subsystem. The move comes after a hit-and-run incident in San Francisco where the robotaxi attempted to pull over, dragging the injured pedestrian. As a result, layoffs are now reportedly expected. Itâs a worrying sign for the AV industry and the progress that has been made in this space recently. In other car innovation news, Auto Chip Makers Try to Avoid a Pileup and Appeals Court Rules Carmakers Can Store Data Permanently and Share It.
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
Davinci Micro Fulfillment Raises $3M in Seed Funding. Davinci Micro Fulfillment is a micro fulfillment as a service company backed by technology and physical locations. Davinci plans to use the capital to increase overall operational excellence within the organization and to enhance current technology capabilities, including adding an automation test site. Las Olas Venture Capital, Venture 53 Fund and Accelerator, and Silicon Road Ventures co-led the round.
Flitter Raises âŹ3.5M in Seed Funding. Flitter is a Paris-based insurtech startup providing pay-by-mile car insurance. The new capital will help make key hires and double the team size. The round was led by the Helvetia Venture Fund, and saw additional participation from Frenchfounders fund and other angels.
Ghost Autonomy Raises $5M in Funding. Ghost Academy builds autonomous driving software for automaker partners. The funding will be used to explore the applications of multimodal LLMs in self-driving. The capital comes from OpenAI Startup Fund.
ReturnGO Raises $5M in Funding. ReturnGO provides a post-purchase operating system that aims to reduce the reverse logistics costs for online retailers while making the process more sustainable. The funding comes as an agreement with Amazon Multi-Channel Fulfillment to provide its return and exchange process for the 300K merchants on Amazonâs eComm 3PL platform.
Risk Ledger Raises ÂŁ6.25M in Series A Funding. Risk Ledger assists organizations in managing their exposure to cyber security risk in their supply chains. The funding will be used to enable the companyâs target of profitability in two years. The round was led by Mercia Ventures, with participation from Seedcamp, Firstminute Capital, Episode 1, Village Global, and Lifeline Ventures.
Ridepanda Raises $7.5M in Funding. Ridepanda is a micromobility platform which has shifted its model from D2C to an enterprise solution for customers like Amazon to offer eBikes and eScooters to their employees. The capital will enable the company to grow its engineering, sales, and marketing teams, as well as fuel expansion to new cities. The round was led by Blackhorn Ventures and Yamaha Motor Ventures, with participation from existing investors Proeza Ventures, Porsche Ventures, Oyster Ventures, Somersault Ventures, General Catalyst, and new investor, Urban Us Capital.
Sift Raises $7.5M in Series A Funding. Sift offers an end-to-end telemetry stack that enables transparency in machine performance with the aim to help hardware companies get to market quicker, save money, and reduce errors. The capital will be used to scale its product. The round was led by Riot Ventures and Fika Ventures with participation from First Resonance, Datum, and Duro.
Fillogic Raises $13M in Series A Funding. Fillogic is a tech platform for channel-free logistics by partnering with the largest shopping mall owners to offer a cost-effective and eco-friendly middle-mile logistics network. This capital will fast-track Fillogic's product development and nationwide expansion of its highly efficient, sustainable logistics technology ecosystem. Revelry Venture Partners led the round with additional participation from existing investors.
ShippyPro Raises $15M in Series B Funding. ShippyPro is an Italy-based provider of a shipping platform for commerce. The funds will be used to expand globally and accelerate innovation to become the shipping infrastructure for brands. Five Elms Capital led the investment.
Princeton NuEnergy Raises $16M in Series A Funding. Princeton NuEnergy is a clean-tech startup specializing in recycling, repurposing, and commercializing lithium-ion battery materials. The latest capital will be used for new recycling facility construction and equipment procurement to further increase processing capacity and support company operations. The round was led by Wistron Corporation and includes additional participation from Honda, GS Futures, Shell Ventures, and others.
Finkargo Raises $20M in Series A Funding. Finkargo is an international trade platform empowering SMBs with global sourcing, trade services, and embedded financing. The investment will enable the company to capitalize on the nearshoring trends connecting Mexican and Colombian SMBs to global value chains. QED Investors led the round with participation from Nazca as well as existing investors Quona, Flybridge, Maya, and ONEVC.
Niron Magnetics Raises $33M in Venture Funding. Niron Magnetics is developing proprietary Iron Nitrade-based magnets that function without the need for rare earth or other critical materials typically used in EVs. The funding will be used to fuel the companyâs path to scale, increasing pilot production to support growing customer prototyping programs followed by small-scale product runs. Leading automakers GM and Stellantis provided the capital alongside existing investors Shakopee Mdewakanton Sioux Community (SMSC) and the University of Minnesota (UMN).
Trax Raises $50M in Venture Debt Funding. Trax is a provider of image recognition solutions to transform brick-and-mortar retail. The funding will be used to accelerate its Signal-Based Merchandising solution to drive higher ROI for brands and retailers on their investment in retail execution. The venture debt investment comes from Deutsche Bank Private Credit & Infrastructure.
Xpressbees Raises $80M in Funding. Xpressbees is an Indian logistics firm that provides eComm clients with supply chain solutions for delivering their products throughout the country. The funding comes from the Ontario Teacher's late-stage venture growth fund.
Wonder Group Raises $100M in Funding. Wonder Group is a food delivery startup that has recently opened up brick-and-mortar shops and acquired Blue Apron as moves to expand beyond normal restaurant delivery. The funding will be used to expand its new vision and sell its white-labeled tech and meal ingredients. The capital comes as a strategic investment from Nestle.
May Mobility Raises $105M in Series D Funding. May Mobility builds AV systems for fleets focusing on mid-size cities to replace underperforming buses with minivans. The capital will in part be used to expand its operations in cities across the US. NTT led the round, with additional participation from Toyota Ventures, BMW i Ventures, Trucks VC, and State Farm Ventures.
Enable Raises $120M in Series D Funding. Enable offers cloud-based software to manufacturers, distributors, and retailers to manage the rebate program in their supply chain. The raise, which has pushed Enableâs valuation above $1B, will fuel R&D to integrate AI into the companyâs products through applications such as generating contracts or extracting pricing insights from data to drive additional sales for customers. The round was led by existing investor Lightspeed Venture Partners and joined by Norwest Venture Partners, Menlo Ventures, Insight Partners, and Sierra Ventures.
Getir Acquires FreshDirect. Getir is an ultrafast grocery delivery service, offering delivery within 10-15 minutes. FreshDirect is a NY-based online grocer offering high quality and fresh food. The acquisition will allow Getir to continue its strategic growth in the US while offering FreshDirect the platform and operational footprint to offer faster delivery services.
Ford Acquires Auto Motive Power. Leading automaker Ford is rolling up the tech, talent, and facility of Auto Motive Power. Auto Motive Power is an energy startup that throughout its journey powered applications from autonomous rideshare vehicles, drones, and hyperloop-style transport. The acquisition will enable Ford to advance its EV plans by bolstering its charging, battery management, and power conversion tech.
WiseTech Global Acquires Sistemas Casa. WiseTech Global is the developer of a logistics execution software CargoWise. Sistemas Casa is a provider of customs and international trade software solutions in Mexico. The acquisition furthers WiseTech Globalâs strategic aim to provide a single global customs system for customs clearance and cross-border compliance especially as Mexico grows in importance with near-shoring of manufacturing.
ConMet Acquires TruckLabs. ConMet is a global provider of parts and components for commercial trucks and trailers. TruckLabs is a technology company focused on reducing carbon emissions and improving operational efficiencies for fleets, including TruckWings, a truck-mounted aerodynamic device that automatically deploys to close the gap between the back of the cab and the front of the trailer. The acquisition is another addition to ConMetâs portfolio of solutions focused on designing, engineering, and manufacturing revolutionary technologies for heavy-duty commercial vehicles.
FreightWise Acquires Kuebix. FreightWise is a logistics technology company that helps businesses streamline freight processes and reduce costs by combining carrier volume and relationships. FreightWiseâs services span parcel, less-than-truckload, truckload, and international freight modes. The firm has acquired Kuebix, a transportation management system software provider. The acquisition will enable FreightWise to serve a wider spectrum of customers with diverse service models, enhanced by Kuebixâs market presence and growing large shipper customer base.
Ecopro Materials Raises $319M in IPO. Ecopro Materials supplies materials for EV batteries. The IPO is smaller than initially expected as the company cut the shares sold and price amid a slowdown of global EV demand and poor sales outlook for EV-battery stocks.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Senior Analyst, Commercial at Gatik AI in Mountain View, CA.
Director of Parcel at Stord in Atlanta, GA (remote).
Procurement & Inventory Management Specialist at Manna in Dublin, Ireland.