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
Daylight Savings returned once again this weekend, springing us forward into longer days and imminently warmer weather. While some of us grumble about the loss of an hour of sleep and reach for an extra cup of coffee, itâs worth checking out this piece from FreightWaves discussing the debate around DSTâs impact on truckers. The adjustment can have major impacts on safety for fleets on the road and is linked to higher rates of heart attacks and fatal accidents.
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Supply Chain đŠ
â Labor Unions and Domestic Manufacturing Groups Launch Coalition to Reform De Minimis Import Loophole. A bipartisan coalition comprising labor unions, manufacturers, and business associations aims to close the de minimis loophole that waives import tariffs for shipments with retail values of less than $800. The group seeks to address the loophole's impact on American businesses, consumers, and the fentanyl crisis. The focus will be to require Customs and Border Protection to begin collecting more data and trying to identify which of the 94% of all import transactions that now enter the US tax-free through the de minimis rules are exploiting the loophole. Within the country, Even With Incentives Asian Companies Find Itâs Hard to Build in the US.
Humanoid Robots at Amazon Provide Glimpse of an Automated Workplace. Amazon backed Agility Robotics has introduced Digit, a 5-foot-9-inch humanoid robot designed for warehouse tasks with a focus on practical applications rather than futuristic ambitions. The company aims to deploy thousands of robots annually, leveraging advancements in motor technology and AI for tasks such as picking up and moving objects within a warehouse. While Digit's capabilities are currently limited and its integration into workflows expected to be gradual, it represents a significant step forward in robotics for logistical operations. Additionally, Amazonâs $1B Industrial Innovation Fund Vows To Increase Deals Aimed At Automating Retail Network.
US Congressional Probe Finds Communications Gear in Chinese Cranes, Raising Spying Concerns. A congressional investigation reveals that Chinese-made cranes in US ports have undocumented communication equipment, raising concerns about potential surveillance or sabotage. With over 200 such cranes installed, the discovery prompts fears over national security vulnerabilities and economic disruptions. While the Chinese manufacturer, ZPMC, maintains compliance with regulations, experts stress the need for heightened security measures and investments in US-made port infrastructure to mitigate risks. Relatedly, Port of Rotterdam Tests Quantum Network to Defend Against Hacks and Boeing Agrees to $51M Settlement for US Export Violations.
Market Headwinds and Industry Inertia Put Visibility Cooperative On Hold. The Open Visibility Network, aimed at creating supply chain visibility standards, has been indefinitely paused due to funding and momentum issues despite initial traction with notable partners like project44 and FourKites. Started in 2021 by Tive's CEO, the initiative struggled to define concrete goals and faced challenges from a tough market in 2023, leading to its shelving. While some members remain optimistic about its potential, others cite asymmetrical value and market competition as hurdles to sustained participation and success. Instead, Shipper Says US Growth Impossible Without Maersk As An Integrator while DHL Drops Pursuit of DB Schenker Amid Questions Over Value Upside.
The Panama Canal Is a Lake And Also a Reservoir. The Panama Canal operates as a hydraulic marvel, primarily relying on a system of locks to elevate and lower vessels across the varying elevations of its route. Unlike other canals such as the Suez, which cut through flat terrains connecting the Mediterranean and Red Seas, Panama's locks compensate for the locationâs topographical challenges. These locks serve as giant water chambers that lift ships up to the level of Gatun Lake, where they traverse the majority of the canal's distance before being lowered back down at the other end. This innovative approach effectively bypasses the need for continuous excavation while harnessing and protecting the region's natural water resources. Unrelated, SEC Votes to Require Company Climate Disclosures With Scaled-Back Rule.
Mobility đ
â Exclusive: Gulf Oil Giants Saudi Aramco, Adnoc Set Sights on Lithium. Saudi Arabia and the United Arab Emirates are planning to extract lithium from brine found in their oilfields as part of their economic diversification efforts and to capitalize on the growing demand for EVs. Other oil giants like Exxon Mobil and Occidental Petroleum are also exploring technologies to extract lithium from brine. This move aligns with Saudi Arabia's ambition to become an EV hub, led by Crown Prince Mohammed bin Salman, to reduce dependency on oil revenue. Despite the economic downturn affecting lithium prices, major car manufacturers are seeking new lithium sources in anticipation of future demand for EVs. Saudi Arabia's vast oil wealth allows it to take financial risks in diversifying its economy, including investing in EV infrastructure and technologies for lithium extraction. Elsewhere in EV related initiatives, Brazil Vice President Says Toyota Will Invest $2.2B.
Boeing, Spirit AeroSystems Allegedly Failed Safety Manufacturing Standards: FAA Audit. A recent FAA audit revealed multiple instances of non-compliance with manufacturing quality control requirements by Boeing and Spirit AeroSystems following the January 5th blowout incident involving an Alaska Airlines 737-9 Max plane. This audit, conducted over six weeks, is part of the FAA's investigation into the incident and the roles of both companies. The audit results coincide with the Department of Justice's investigation into Boeing's safety management system, potentially leading to criminal charges if violations of the deferred-prosecution agreement from the 2018 and 2019 crashes are found. Boeing has expressed its commitment to developing a comprehensive action plan in response to the audit findings and expert review panel report, as it seeks to address safety and quality concerns in its manufacturing processes. Related, Feds Reportedly Open Criminal Investigation into Boeing 737 Max Midair Blowout.
Rivian R2 Revealed: a $45,000 Electric Off-Roader for the Masses. Rivian introduced its new EV, the R2 SUV, aiming for broader market appeal with a starting price of $45K and an estimated range of over 300 miles, set to go into production in the first half of 2026. The company is banking on the R2's affordability to compete with Tesla and other automakers, especially considering its previous higher-priced models. Despite recent financial challenges, including significant losses and layoffs, Rivian sees the R2 as pivotal for its future alongside plans for additional models like the R3 SUV and R3X performance variant. The R2 features innovations like a spacious front trunk, a simplified interior, and advanced autonomous capabilities, signaling Rivian's push towards mass-market adoption and sustainability. Also in Rivian news, EV Maker Rivian To Halt Construction of $5B Georgia Plant and elsewhere, BYD to Deploy Fleet of 8 Car Carriers to Underpin Global EV Expansion.
EV Charging Stations Are Now Busy Enough to Make Money in the US. The utilization of non-Tesla fast-charging stations in the US doubled from 9% to 18% in 2023, indicating a significant increase in EV adoption. Rising utilization suggests profitability for charging stations, with around 15% usage required for profitability. Despite challenges in infrastructure expansion, the US saw a 16% increase in fast-charging stations in the second half of the year, with federal funding aiming to establish more charging stations every 50 miles along major travel routes. As charging networks expand and become more profitable, EV adoption is likely to accelerate, creating a positive feedback loop for both infrastructure and EV sales. Also, Tesla is Working on NACS Extension Cable to Fix Supercharging Issues with Different Port Locations and Why Tesla and Consumer Habits Are Squeezing Out EV Charging Stocks.
Waymo Testing Fully Autonomous Vehicles in Austin. Waymo has initiated its testing phase for autonomous vehicles in Austin, covering 43 square miles of the city including downtown areas and other neighborhoods. Although rides are not yet available to the public, Waymo employees will be the first to test the cars. Amidst a wave of scrutiny, the company has emphasized its commitment to safety and engagement with policymakers and first responders, aiming to ensure compliance with safety standards during testing. Waymo's expansion in Austin represents a step towards delivering the benefits of fully autonomous driving to a wider audience, with discussions planned at SXSW about the implications for residents and the accessibility community. Also, Why Waymo Robotaxis Wonât be Taking Passengers to SFO, or on Bay Area Freeways, Anytime Soon.
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
Ubirider Raises $1.95M in Seed Funding. Ubirider is an end-to-end mobility-as-a-service platform for transport providers, riders, and cities. The funding will be used for international expansion, product development, and marketing team build. The round was led by Techtree Investments and Cedrus Capital and joined by existing investor Grupo Barraqueiro.
eComID Raises âŹ2.75M in Pre-Seed Funding. eComID aims to reduce online product returns by leveraging AI. The funding will enable the company to expand its platform and reach a broader range of brands. The round was led by CapitalT and joined by H&M Group Ventures and strategic angel investors.
Glimpse Raises $4M in Seed Funding. Glimpse is a battery quality and monitoring startup using CT scanning to see inside finished battery cells to identify, categorize, and track defects over time. The startup intends to use the funds to expand operations and its business reach. The round was made up of capital from Ibex Mobility, Flybridge Capital Partners, and other angels.
Cogna Raises ÂŁ3.8M in Funding. Cogna is a traditional industry focused AI-driven SaaS platform simplifying data integration and allowing domain experts to create customized SW tools. The capital will be used to grow the team and the platform. Hoxton Ventures lead the round, with participation from Notion Capital and Octopus First Cheque Fund.
BRKZ Raises $8M in Series A Funding. BRKZ is a MENA-focused B2B marketplace aiming to streamline procurement for construction materials. BRKZ intends to use the funding to expand in Saudi Arabia and the MENA region as well as venture into equipment rentals and manpower sourcing. The round was led by Beco Capital and 9900 Capital with participation from Aramcoâs Waâed Ventures, Knollwood Investment Advisory, RZM Investment, and MISY Ventures.
Buildnow Raises $9.4M in Seed Funding. Buildnow is a MENA focused BNPL platform that supplies construction materials on credit terms to buyers while paying cash upfront to the SME suppliers. The capital, including $2.9M as debt, will be used to begin building the entire construction SME supply chain. Raed Ventures and Khwarizmi Ventures led the round.
Rios Intelligent Machines Raises $13M in Series B Funding. Rios Intelligent Machines is an AI-powered robotics company focused on the manufacturing industry. The round will enable the company to âaccelerate its growth in three key industry segments: wood products, beverage distribution, and packaged food productsâ. Yamaha Motor Corporation and IAG Capital Partners led the round.
Neural Propulsion Systems Raises $17.5M in Series B Funding. Neural Propulsion Systems offers software-defined radar technology for autonomous vehicles. The funding will be used to further develop and apply its Atomic Sensing Platform to automotive radar technology. The round was led by Cota Capital with participation from GM Ventures and RTX Ventures.
Multiverse Raises âŹ25M in Funding. Multiverse applies quantum computing to LLMs to solve complex problems in industries such as finance, manufacturing, energy, cybersecurity, and defense. The funding will be used to build out its existing business while forging new efforts to work more closely with AI companies building LLMs. Columbus Venture Partners led the round, with the European Innovation Council Fund, Redstone QAI Quantum Fund, Indi Partners, and Quantonation Ventures also participating.
CARiD Raises $35M in Funding. CARiD builds an eComm platform specializing in car parts and accessories. The funds will be used to expand its platform and offerings. Fifth Star, an operator of consumer and consumer-adjacent tech businesses, acquired a majority stake in this transaction.
Carputty Raises $80M in Financing. Carputty is a fintech company focused providing customers a more flexible and transparent way to own and finance their vehicles. The capital, of which $75M is a warehouse financing facility, will be used to scale operations and enhance product offerings. TTV Capital led the $5M in equity, along with contributions from Fontinalis Partners, Kickstart Fund, Kinetic Ventures, and Grand Ventures.
Sunfire Raises âŹ215M in Series E Funding. Sunfire is a German hydrogen electrolyzer manufacturer for industrials. The âŹ215M in equity funding along with âŹ100M in loans will be used to accelerate the growth and industrialization of its green hydrogen tech. New investors in this round include LGT Private Banking, GIC, Ahren Innovation Capital, and Carbon Equity while existing shareholders also participated.
BlueGrace Logistics Acquires Evos Smart Tools. BlueGrace Logistics is one of the largest 3PLs in the US. Evos Smart Tools is an optimization platform helping shippers boost resources and lower costs. The deal is expected to benefit BlueGrace Logisticsâ customers by streamlining their operations.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Customer Experience Team Lead at Milk Moovement in Nova Scotia, Canada (Remote).
Staff Harness Engineer at Gatik in Mountain View, CA.
Senior Account Executive, Logistics at Stord in Atlanta, GA (Remote).