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 💭
Are you going to be at Manifest in two weeks? We’ll be there, and we can’t wait to spend a few days completely engrossed in all of the innovation within supply chain and logistics. While some of the macro current events will surely be front and center, we’re equally excited to dig deep into the details happening on the ground. Reach out if you want to meet up to grab a coffee or a drink!
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Supply Chain 📦
⭐ Ship Insurers Seeking Exclusions for US and UK Vessels from Red Sea Coverage. Ship insurers are increasingly avoiding covering US and UK merchant ships against war risks in the southern Red Sea due to heightened attacks by Houthi militants following airstrikes on Yemen by the US and UK. Underwriters are seeking exclusions for vessels with ties to the US, UK, and Israel, essentially denying insurance coverage. The insurance exclusions could pose challenges due to the broad interpretation of terms like "interest," which may include factors like charterers or previous port visits, creating potential complications for the shipping industry amid the fragile security situation in the southern Red Sea. Not the only impact, Red Sea Crisis Leaves Some Retailers More Exposed Than Others and California’s Long-Embattled Ports Are Winning Back Imports.
For Truckers Driving EVs, There’s No Going Back. A growing number of commercial medium-to-heavy-duty truck drivers are transitioning to electric trucks, praising their handling, acceleration, smoothness, and quiet operation. Many drivers appreciate the lightness and smoothness of electric trucks, describing them as easier on their bodies. However, some companies and trucking associations argue that the shift to electric is happening too fast, citing the upfront costs of the vehicles and charging infrastructure as significant hurdles. The number of electric trucks on the road is still small, but the praise from drivers should be seen as an indicator of where the trend will be headed. For more trucking innovation, Daimler Truck Fuels Big Rigs With Hydrogen and Nikola Advances Hydrogen Refueling Infrastructure Buildout.
FedEx Is Launching a New eComm Platform as It Competes with Amazon. FedEx is set to launch a new data-driven commerce platform called fdx, aimed at providing online merchants with end-to-end eComm solutions. The platform will integrate existing FedEx commerce tools, including access to ShopRunner members, and introduce features like custom post-purchase experiences and the use of shipment network data for order management. This move comes as FedEx fights for its leadership position within the logistics sector, as Amazon has been gaining ground on both FedEx and UPS with home package deliveries. In other tech news, Amazon Expanding $1B Supply Chain Fund Scope Into Transportation and Flexport Raises $260M from Shopify.
'It Hasn't Delivered': The Spectacular Failure of Self-Checkout Technology. Despite the initial promise of convenience and cost savings, self-checkout kiosks are facing challenges and backlash from both retailers and customers. Many stores are experiencing malfunctioning machines, leading to frustration among customers and the need for store employees to assist with errors or age checks. Retailers are also addressing issues related to theft and finding that self-checkout technology doesn't necessarily lead to the cost savings they had hoped for. As a result, some companies are re-evaluating their use of self-checkout and instead increasing the number of employees in stores. Another example of a tech unwind, Uber Shutting Down Alcohol Delivery Service Drizly.
US Rail CEOs Believe Conditions Are Better As Next Round of Labor Negotiations Approach. CEOs and officials at the Midwest Association of Rail Shippers Winter Meeting expressed optimism about progress in labor relations since the averted rail strike in 2022. The upcoming national contract negotiations, set to start in November, are expected to be approached with lessons learned from previous negotiations. The industry is aiming for more compressed timelines and positive negotiations, building on the improvements made since the 2022 strike was averted. The focus will likely include discussions on wages, healthcare, and emerging topics, with an emphasis on maintaining positive relationships with the workforce. In other infrastructure news, Prologis Sees Occupancy Dipping Through Q2 Before Sustained Rebound.
Mobility 🚗
⭐ All the Future of Transportation Tech that Stood Out at CES 2024. The CES 2024 event highlighted a diverse range of transportation innovations. Major automakers like GM, Ford, and Stellantis, along with companies like Honda, Kia, and VinFast, showcased the next generation of EVs, while startups exhibited eBikes, go-karts, and even electric boats. AI played a prominent role throughout the event, with many companies incorporating AI into transportation, from vehicle sensors to autonomous driving systems. Hydrogen-powered vehicles also made a resurgence at CES, with Hyundai, Nikola, Bosch, and others presenting their vision for hydrogen fuel cells. Additionally, advancements in in-cabin hardware and software were showcased, including eye-tracking technology and entertainment features, as companies aimed to enhance the in-car experience. Related, German Remote Driving Company Launches Services in Las Vegas and BYD To Invest $14 Billion Into Smart Car Technologies.
Robots Are Looking Better to Detroit as Labor Costs Rise. Automakers are increasingly turning to robotics to offset rising labor costs and stay competitive, with companies like Ford and GM exploring opportunities in automation to cover the cost of new labor contracts. This shift is partly driven by competition from companies like Tesla, which have been more aggressive in deploying factory technology. While automation has been a trend in the auto industry for decades, the recent surge in labor costs is expected to accelerate the adoption of advanced technologies. However, there are differing opinions on the extent of automation's impact, with concerns about potential job displacement and the need for skilled personnel to operate and maintain robots. Completely unrelated, FTC Stays CARS Rule on Dealerships Pending U.S. Appeals Court Review.
Northvolt’s $5B Debt Deal Should Be a Wake-Up Call for the US Battery Industry. European battery startup Northvolt’s $5B in debt from the European Union and a group of banks, including JPMorgan Chase, is set to accelerate the production of batteries outside China and take advantage of clean energy subsidies. Northvolt’s aim is to ramp production to 60 GW hours, “enough for over 1M Volkswagen ID.3s, Europe’s best-selling, non-Tesla EV.” The funding will also be used to enhance a recycling facility for converting scrap metal and old batteries into reusable materials. This investment highlights the global push to develop domestic battery supply chains to reduce reliance on China, and is expected to push Northvolt to the top ranks of battery producers should the company deliver on its goals. Also, LG Chem Foresees 25% Growth in Battery Market; Blue Water Develops Game-Changing Technology.
EPA Sends Vehicle Emissions Reduction Plan to White House for Review. The EPA has submitted a proposal to the White House for review, aiming to implement significant emissions cuts for new cars and trucks until 2032 which could lead to a substantial increase in EV sales. The proposal includes a requirement for a 56% reduction in projected fleet average emissions by the 2026 model year. As per the initial EPA proposal, automakers are expected to produce 60% EVs by 2030 and 67% by 2032 to meet these requirements. The EPA's proposal is part of a set of three major vehicle rules under consideration by the EPA, Transportation, and Energy departments, which could have a significant impact on the American automotive industry. Automakers are concerned that these rules could result in substantial fines with warnings of potential negative consequences for gas-powered vehicle production, and the agencies report they are working to achieve climate goals in a way that works for the auto industry.
Hybrid Cars Make a Comeback Amidst EV Sales Slowdown. Hybrid cars are making a comeback in the US due to consumer concerns about EV pricing and charging availability, offering a middle ground between fuel savings without the need for extensive charging infrastructure. The EV market will continue in its push to appear to the broader, more cost-sensitive population, assisted in part by subsidies (although these too have been cut back in 2024). Automakers such as Ford and GM are adjusting their strategies and local governments are working on expanding EV charging infrastructure, all in response to the complex landscape of the automotive industry's transition to electrification. Elsewhere, Thailand Scales Down EV Subsidy as Sales Gain Momentum.
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.
Fundraises and M&A 💸
Spot Technologies Raises $2M in Funding. Spot Technologies is developing cloud technology that uses artificial intelligence to convert cameras in retail and logistics sites into intelligent behavior analysis and security systems. The capital will be invested in the company’s development of its next product iteration. The funding comes from Femsa Ventures, Bridge Latam, Daedalus, Kuiper, and Casque.
HutanBio Raises £2.3M in Funding. HutanBio is a biotech company providing a sustainable biofuel that can be used in ships. The capital will be used to expand its engineering and business development teams. The round was led by Clean Growth Fund.
Land Moto Raises $3M in Venture Funding. Land Moto is an electric motorcycle company. The round will enable the company to scale production and development of its cloud-connected battery system. A special-purpose venture vehicle called Nunc Coepi Ventures led the round.
Alt Mobility Raises $6M in Venture Funding. Alt Mobility is an EV asset management platform that provides mobility as a service for intra-city logistics. The funding will be used to hire an engineering team to scale the platform. The company has raised both debt and equity financing from Shell Ventures, Eurazeo, EV2 Ventures, Twynam, UC Inclusive, Piper Serica, Pitchright, and LetsVenture.
Temo Raises €6M in Series A Funding. Temo is an electric propulsion company producing electric motors for inboard and outboard boats. The capital will be used to continue expanding across Europe and enter the American market. Investors in the round include At One Ventures and Ecotechnologies 2 fund from the French government.
Farm-ng Raises $10M in Series A Funding. Farm-ng has developed a modular electric robot with onboard AI capabilities that is adaptable to different crops, terrains, and tasks. Some of the funding will be used to ramp up production in the company’s Watsonville manufacturing plant. Acre Venture Partners led the round.
WaveBL Raises $11M in Series B Extension. WaveBL is a blockchain-based electronic bills of lading provider. The latest capital will be used to bolster its market expansion plans.
Carmoola Raises £15.5M in Venture Funding. Carmoola is a car financing company that simplifies the complex used car market through its app. The funding will accelerate the company’s path to profitability and its expansion in the UK’s used car finance industry. The investment comes from QED Investors, VentureFriends, InMotion Ventures, AlleyCorp, and u.ventures.
SeeTree Raises $17.5M in Series C Funding. SeeTree develops an AI-based tree operating system to help growers track the health and productivity of their trees. The latest capital will be used to expand the platform to new crop types while expanding business development efforts. The round was co-led by HSBC Asset Management and European Bank for Reconstruction and Development, along with other participation from OurCrowd, SmartAgro, and others.
ZymoChem Raises $21M Series A. ZymoChem is creating a carbon-efficient bio-manufacturing platform rethinking how everyday products are produced. The capital will allow it to launch its first high-performance material and advance its first partnered product to commercial scale. Breakout Ventures led the round with additional participation from lululemon athletica and Toyota Ventures.
Weavix Raises $23.6M in Venture Funding. Weavix makes radios and software aimed at helping companies manage and communicate with their frontline workforces. The capital will be used to scale out operations and expand headcount. The round was led by Insight Partners.
TrusTrace Raises $24M in Series B Funding. TrusTrace is a supply chain traceability platform serving the fashion industry, offering real-time insights spanning raw materials to finished goods. The round was led by Circularity Capital with contributions from existing investors Industrifonden and Fairpoint Capital.
Trojan Energy Raises £26M in Venture Funding. Trojan Energy is an EV-charging company whose chargers sit flush with the pavement. The company has also developed its proprietary “DEICER” system to enable a seamless user experience. The funding will be used to deploy several thousand more charging points across the UK and comes from BGF.
Lightship Raises $34M in Series B Funding. Lightship is an all-electric RV company. The funding will be used to accelerate production of the company’s electric camper trailers. The round was co-led by Obvious Ventures and Prelude Ventures and joined by Allegis Capital. Global RV manufacturer THOR Industries and its investment partner TechNexus Venture Collaborative also participated, along with existing investors Congruent Ventures, HyperGuap, and Alumni Ventures.
International Battery Company Raises $35M in Pre-Series A Funding. International Battery Company is developing lithium-ion battery cells for electric vehicles, targeting the small mobility sector comprising two- and three-wheelers, light commercial vehicles, and farm and industry equipment. The round was led by RTP Global with participation from Beenext, Veda VC, and other strategic Korean and US Investors.
Ineratec Raises $129M in Series B Funding. Ineratec provides CO2-neutral fuels, gas-to-liquid, power-to-gas, and power-to-liquid application products. The funding will enable the company to start mass production of its “industrial-scale Power-to-X plants worldwide and advance the production of eFuels made from recycled CO2 and renewable energy.” The round was led by Piva Capital and joined by Planet A Ventures, MPC, High-Tech Gründerfonds, FO Holding, Safran Corporate Ventures, Honda, ENGIE New Ventures, HG Ventures, TDK, Copec WIND Ventures, RockCreek, Emerald, and Samsung Ventures.
Electra Raises €304M in Series B Funding. Electra is an EV-charging startup building a network of fast-charging stations across France and neighboring European countries. The funding will enable the company to expand its network of stations across the continent. The round was led by PGGM’s infrastructure investment fund and joined by Bpifrance as well as existing investors Eurazeo Infrastructure, Serena and Rive Private Investment, and 574 Invest.
Flexport Raises $260M in Funding. Flexport is a supply chain management and logistics giant. The funding was provided by Shopify.
TPG Acquires Sayari Labs for $228M. TPG is a private-equity firm making this acquisition through TPG Growth, its middle-market and growth-equity platform. Sayari Labs work with clients including the US Labor Department and Customs and Border Protection to expose risks in supply chains and corporate networks. The investment will help Sayari launch an AI product to extract deeper insights from its supply chain data.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Senior Principal/Principal Software Engineer at sennder in Berlin, Germany (Remote).
Senior/Staff Perception Software Engineer at Gatik AI in Mountain View, CA.
Flight Dispatcher at Manna in Northlake, TX.