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 💭
We had the opportunity to hear from retail supply chain leaders at the RILA LINK conference last week. Across all of the discussions and insights, it was impossible to miss the recurring thread of preparing for the next imminent crisis. After turbulent years dealing with Covid-era supply constraints behind, the current Red Sea crisis, and ever-present geopolitical risk, leaders expect disruption to be the new normal. There’s now a focus on building in agility and adaptability for what will come tomorrow, instead of only solving for the specific pain points today.
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Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain 📦
⭐ US Queries Solar Supply Import Chains Amid China Crackdown. The Department of Homeland Security is intensifying scrutiny on US solar companies, expanding inquiries into supply chains to enforce a ban on products linked to Chinese forced labor. US Customs and Border Protection sent 19-page surveys to companies asking for documentation on items like organizational charts and locations of production facilities, sales offices, and R&D facilities. Small and medium solar companies are expected to face challenges in providing the extensive documentation required, benefitting larger manufacturers that are vertically integrated with easier access to the details. It’s also a sign that the US is prepared for increased enforcement of the ban from June 2022 on the import of goods from China’s Xinjiang region.
NY State Sues Brazilian Beef Giant Over Its Climate Claims. New York's attorney general is suing JBS USA, the American arm of the world’s largest meatpacker, alleging misleading consumers regarding its efforts to reduce greenhouse gas emissions. The lawsuit, a blow to JBS amid plans for a NYSE listing, accuses the company of falsely claiming its intention of achieving net-zero emissions by 2040 while not necessarily taking proper action to do so. This legal action underscores the increasing scrutiny of corporate sustainability pledges and the potential repercussions for business reputation. In other legal news, IKEA Asks Courts to Intervene as Convoy’s Unpaid Truckers Send Flurry of Invoices.
Warehouse Boom Fades, and the Hopes of a California Region Fade With It. The eComm surge propelled regions like California's Central Valley into logistics-driven boomtowns, notably transforming its landscape and job market. San Joaquin County had one of the highest unemployment rates in the nation 10 years ago but was transformed as transportation and warehousing employment more than tripled since, accounting for about 17% of the area’s workforce. However, with the recent cooling of demand, local leaders are navigating the challenge of sustaining growth. This has prompted the debate of whether to continue relying on the warehouse industry or diversify into less vulnerable sectors to ensure long-term economic resilience. Further adding to the debate, Fanuc Ships Its One-Millionth Robot Amid ‘All-Time High’ Demands and MIT AI Model Promises to Simplify Path Planning in Warehouses.
Intermodal Shift to Rail Could Cut LA Traffic By 5K Journeys a Day. Research suggests further rail development could alleviate logistical and environmental challenges at Los Angeles and Long Beach ports, potentially removing 3.1M TEU containers annually from roads via a proposed "rail shuttle" to an inland port. While facing short-term investment challenges, the long-term benefits of reducing congestion, unlocking capacity, and enhancing sustainability are deemed significant, according to the reports by Oliver Wyman and Leachman & Associates LLC. This underscores the growing trend in the US freight rail industry towards investing in similar intermodal developments, especially on the West Coast. However, Mass Furloughs Reported at BNSF Railway Operations in Four States.
Despite Costs, Retailers See Benefits of Same-Day Delivery. According to latest survey data, the implementation of same-day delivery has proven highly lucrative for retailers, with nearly one-third reporting revenue increases of over 10% after adoption. This fast delivery option not only enhances customer satisfaction and retention rates but also drives sales growth. While operational costs have risen for many, innovative pricing strategies, piloting with cost-effective partners, and optimizing service levels can help mitigate these challenges and unlock the full potential of same-day delivery as a revenue-generating channel. Relatedly, Walmart Trims Store-to-Home Delivery Costs By 20%.
Mobility 🚗
⭐ Biden Orders US Investigation of National Security Risks Posed by Chinese-Made ‘Smart Cars’. President Biden initiated steps to prevent internet-connected Chinese vehicles, including electric ones, from entering the American auto market due to concerns about national security risks posed by their operating systems sending sensitive information to Beijing. The Commerce Department has launched an investigation into security threats, potentially leading to new regulations or restrictions on Chinese vehicles, following conversations with industry stakeholders. This move reflects Biden's effort to counter China's dominance in the auto market, particularly in EVs, aligning with his industrial policy goals to support American automakers. The investigation focuses on technology embedded in Chinese electric vehicles, examining potential tracking capabilities and raising concerns about cyberrisks and espionage. For more, check out Joe Biden Says Chinese Smart Cars Could Pose US Security Threat.
Apple Cancels Move Into Electric Vehicles Ending A Decade Long Saga. Apple has decided to abandon its plans to enter the automotive industry, redirecting its resources towards other priorities, notably Generative AI. Short-term reasons for this shift include the challenges posed by competitors in the EV market and a faltering demand for high-end electric vehicles. Long-term implications involve Apple forfeiting the opportunity to create a new ecosystem akin to the iPhone's success, as owning the integration of customer experiences in vehicles becomes increasingly important with the rise of autonomous driving technology. The decision highlights the struggle between focusing on core business priorities and exploring new ventures, prompting discussions about the need for firms like Apple to balance innovation with maintaining their core strengths. Elsewhere, Toyota Wants Hydrogen to Succeed so Bad it’s Practically Paying People to Buy the Mirai.
California Gives Waymo the Green Light to Expand Robotaxi Operations. Waymo has received approval from California regulators to expand its self-driving robotaxi operations on highways in parts of Los Angeles and the Bay Area, allowing its cars to travel at up to 65mph in approved areas. Despite concerns about safety raised by recent crashes involving autonomous vehicles, the California Public Utilities Commission (CPUC) concluded that Waymo has demonstrated sufficient attention to technology and safety practices to minimize risks. CPUC's decision grants Waymo permission to commence its expansion immediately, rejecting requests for further hearings on disputed facts and deferring broader regulatory issues to future discussions. Elsewhere in autonomous vehicles, Exclusive: GM's Cruise Valuation Slashed by More Than Half, Adding to Woes.
Ford EVs Gain Access to Tesla Superchargers Starting Today. Ford EVs now have access to the Tesla Supercharger network after Ford switched to the J3400 which is set to become the de facto standard in the next few years. While the transition will take time as car makers start building J3400 ports into their vehicles, Ford is offering free adapters for Mustang Mach-E and F-150 Lightning owners until June 30th, with a cost of $230 after that date. Ford's EVs already use the ISO 15118 "plug and charge" protocol, simplifying the charging process, and Ford customers can access Tesla chargers through the FordPass app. This strategic move by Ford marks a significant step towards enhancing the public charging infrastructure and reinforces the company's commitment to expanding its EV offerings. Also, Ford Stops 2024 F-150 Lightning Shipments as Hundreds of Pickups Pile Up.
Autonomous Electric Vehicles Will Guzzle Power Instead of Gas. Elon Musk's recent update on Tesla's Dojo supercomputer for self-driving software highlights the significant power demands of training AI algorithms. As data centers and in-vehicle computers are increasingly utilized for AI training in autonomous vehicles (AVs), concerns arise about the strain on power resources amid efforts to decarbonize the automotive industry. While the electricity consumed by data centers is projected to increase, the power demands within AVs, particularly for highly automated features, pose a more significant challenge, impacting vehicle range and overall energy consumption. Chipmakers are working to improve energy efficiency in in-vehicle hardware, but managing power demand associated with AV computing remains a critical issue for the future. Also in EV tech, A Startup's Technology Takes Aim at Lithium-Ion Batteries’ Fire Problem and Seattle to Add Electric Buses that Use Wireless Charging.
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 💸
Pimberly Raises $5M in Venture Funding. Pimberly is a product information management platform providing manufacturers, distributors, brands, and retailers tools to boost eComm sales. The funding will be used to improve the platform and expand into the US market. NPIF Mercia Equity Finance led the round.
Elevated Signals Raises $5.8M in Series A Funding. Elevated Signals develops manufacturing software initially for cannabis greenhouses, manufacturers, and processors. The capital will be used to expand the industries it serves, including food, energy, and health. Yaletown Partners led the round, with participation from Third Kind Venture Capital, WGD Capital, Colin Harris, Raiven Capital, and Pareto Holdings.
Parspec Raises $11.5M in Seed Funding. Parspec is an AI-powered construction product procurement platform. The round was led by Innovation Endeavors and joined by Building Ventures, Heartland Ventures, and Hometeam Ventures.
Altilium Raises $12M in Series A Funding. Altilium offers the automotive supply chain high-volume, low-carbon domestic sources of cathode and anode materials from recycling waste streams. The funding will be used to expand operations and development efforts for the UK-based startup. SQM Lithium Ventures led the round.
Range Energy Raises $23.5M in Funding. Range Energy manufactures dry van trailers with batteries and an electric motor to turn diesel trucks into hybrids. The capital will be used to commercialize its equipment and take advantage of government incentives for decarbonizing transportation. Trousdale Ventures led the round, along with participation from UP.Partners, R7 Partners, and Yamaha Motors Ventures.
RobCo Raises $42.5M in Series B Funding. RobCo develops flexible robotic hardware kits for applications at SMEs including machine loading and unloading, dispensing, palletizing, and welding. The funding will support its development and growth. Lightspeed Venture Partners led the round, along with participation from Sequoia Capital, Kindred Capital, and Promus Ventures.
Intenseye Raises $64M in Series B Funding. Intenseye leverages AI and computer vision to provide increased visibility into indicators such as unsafe conditions that lead to workplace injury. The funding will be used to expand the platform’s capabilities, one of which will be GenAI models to further “ethical AI” practices through anonymization features. The round was led by Lightspeed Venture Partners.
GeoPura Raises $70M in Funding. GeoPura produces clean industrial hydrogen fuel cells to displace traditional diesel generators. The investment will be used to accelerate the adoption of green hydrogen in the UK with expanded production and increased deployment. The round included UK Infrastructure Bank, Barclays Sustainable Impact Capital, GM Ventures, and others.
Unseenlabs Raises $92M in Series C Funding. Unseenlabs provides a surveillance constellation for tracking maritime vessels in near real-time. The funding will be used to double the constellation to 25 nanosatellites as well as grow the company’s global sales presence and improve the radio-frequency geolocation network’s capabilities. Supernova and ISALT led the round with participation from UNEXO.
Shadowfax Raises $100M in Series E Funding. Shadowfax is a logistics provider for hyper-local and on-demand delivery businesses in India. The round was led by TPG NewQuest alongside participation from existing investors Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures, and Trifecta Capital.
Powerdot Raises €100M in Funding. Powerdot is a Lisbon-based EV charging point operator with additional presence in France, Spain, Poland, and Belgium. The capital will be used to further accelerate R&D projects, expand its charging infrastructure, and continue to establish strategic partnerships throughout Europe. Antin Infrastructure Partners and Arie Group led the round.
CMA CGM Acquires Bollore Logistics for €4.8B. CMA CGM is the global giant providing end-to-end transport and logistics service. Bollore Logistics is a leading French transport and logistics company that transported 710K TEUs of ocean freight and 390K of air freight in 2022. This is CMA CGM’s largest acquisition to date, and the combined size of the two entities make it the fifth largest in the world.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Customer Success Manager at Factored Quality in New York, NY (Remote).
Sales Development Representative at Guided Energy in Paris, France.
Sales Engineer at Verusen in US (Remote).