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
In the last couple of weeks, Boeingâs manufacturing and quality issues have resurfaced in national news as the latest wave of incidents goes viral across social media. The widespread negative publicity might begin causing an irreparable lack of confidence in Boeing if actions are not taken to get in front of the crisis. Itâs a reminder of the importance of prioritizing safety as the industry continues adopting new innovative solutions, especially with the nearshoring/reshoring of manufacturing in the US. For more on Boeing, head down to the Mobility section below.
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Supply Chain đŠ
â Shipbuilding: The New Battleground in the US-China Trade War. Over the past few decades, factors like reduced government subsidies, outsourcing of raw materials, and a shift towards just-in-time production have contributed to the shrinking of the US shipbuilding industry. This decline has not only affected the capacity and competitiveness of US shipyards but has also led to concerns about national security, as the country relies heavily on overseas-produced ships for military and commercial purposes. With China leading the world in the global shipbuilding industry, the situation underscores the need for a comprehensive industrial strategy to address these challenges and ensure economic resilience and security. In other international news, UK Agrees to Closer Texas Trade Ties As US Talks Stall and Philippines Retailers Frustrated As Customs Backups Delay Imports.
Refund Fraud Schemes Promoted On TikTok Are Costing Amazon and Other Retailers Billions of Dollars. Refund fraud has become a pervasive issue by exploiting lenient refund policies, robbing retailers of billions of dollars. These fraud rings, operating on mainstream platforms like Telegram and TikTok, offer services to trick retailers into issuing refunds without returning products physically. Retailers, including Amazon, are battling this trend with specialized teams and technologies, but the challenge persists as fraudsters continually adapt their tactics, highlighting the need for tighter return policies and enhanced fraud detection measures across the retail industry. For other retailer initiatives, Walmart Launches AI-Powered Logistics Product and Target Deepens Bets on Supply Chain, Inventory Management.
Biden Administration Lays Out Plan For Zero-Emission Freight Corridors. The Biden administration's National Zero-Emission Freight Corridor Strategy aims to establish a network of charging and refueling infrastructure for zero-emission commercial trucks. This initiative, developed in collaboration with various departments and agencies, targets high-traffic corridors and existing freight hubs to amplify private sector momentum and improve air quality impacted by diesel emissions. The phased approach prioritizes infrastructure development based on freight volumes and strategic connections, aligning with industry trends and technological advancements in electric trucking. Elsewhere, Maersk Has Hired Advisors For Possible DB Schenker Bid.
Delivery Drones Are Gaining a Clearer Commercial Flight Path. Companies like Walmart and DoorDash anticipate 2024 to be a significant year for scaling residential drone delivery after years of smaller-scale pilots within the US. Drone delivery has expanded rapidly to more than 1M commercial drone deliveries completed last year around the world, but North America only accounted for 157K of those deliveries. While the US has faced challenges in drone delivery due to regulations and economic factors, recent regulatory changes have improved the landscape and the potential for wide-scale rollouts. In other innovation, Cargill Looks To Roll Out Sails on Cargo Ships To Burn Less Fuel and A Cargo Shipâs WindWing Sails Saved It Up To 12 Tons of Fuel Per Day.
Investors Push Zara Owner To Publish Full Supply Chain. Investors are urging Zara's parent company Inditex to disclose its full list of suppliers, aligning with regulatory and investor demands for greater transparency in supply chainsâ labor conditions and environmental impact. While some industry peers already publish detailed supplier lists, Inditex's reluctance to do so has sparked calls for improved disclosure. This push for transparency reflects a broader trend in the industry, where investors are increasingly focused on ESG factors and supply chain resilience. Unrelated, Uber Freight Eyes Tenfold Boost in European Market by 2028.
Mobility đ
â Boeing is in Big Trouble. Boeingâs woes have dominated headlines as of late with a plethora of safety concerns and flight emergencies. Boeing faced another setback recently when a 787 Dreamliner experienced a sudden plunge mid-flight, injuring passengers. This incident added to Boeing's string of challenges, including a previous incident with an Alaska Airlines 737 Max and safety concerns with de-icing equipment on 737 Max and 787 Dreamliner models. Additionally, the Federal Aviation Administration (FAA) flagged manufacturing and quality issues at Boeing, leading to a decline in Boeing's stock and raising concerns about restoring confidence among airlines, regulators, and passengers. For more, Boeing Tells Airlines to Check 787 Cockpit Seats After Mishap on Latam Flight, Boeing, Alaska Airlines PointFingers at Each Other in Lawsuit Over Door Plug Blowout, and Airlines Try to Leverage Boeing Woes Despite Lack of Alternatives.
Carmakers Are Still Sorting Out Europeâs EV Charging Issues. Automakers introducing new EVs in Europe are facing challenges related to charging infrastructure, with concerns about grid readiness and interoperability of charging systems. Ford and Renault executives highlight the need for faster permitting processes and standardized charging systems to make EVs practical across Europe. While some automakers like Tesla have invested heavily in charging networks, others like Ford, BMW, and Hyundai are collaborating through ventures like Ionity GmbH to expand charging infrastructure, but challenges remain in ensuring widespread and reliable charging access, especially in semi-urban and rural areas. Elsewhere in EV charging, How The Ford Supercharger/NACS Deal Went Down.
Automakers Are Sharing Consumersâ Driving Behavior With Insurance Companies. Drivers are finding that data brokers are providing detailed driving data, including speed, braking, and acceleration, collected from connected vehicles such as Chevrolet Bolts without their full awareness. This practice, involving partnerships between automakers and data brokers, raises privacy concerns and potentially impacts insurance rates without drivers' explicit consent. Such covert data collection, affecting millions of drivers, highlights the growing intersection of technology, privacy, and consumer rights within the automotive and insurance industries. Completely unrelated, US Agrees to Record $2.26B Loan for Nevada Lithium Plant.
Germany Needs Sixfold Jump in EV Sales to Meet Emissions Goal. According to a recent study, Germany needs a significant increase in EV sales to meet emissions targets, with new EV sales needing to quadruple in three years and rise sixfold by 2030 However, BEE predicts that Germany will likely have only 10M EVs on the road by 2030, falling short of its goal by about a third. The transport sector's slow progress in reducing pollution is a major concern, prompting calls for incentives for public transport, eFuels, biofuels, and a general speed limit on highways. Despite acknowledging challenges, Germany's economy minister remains optimistic about technological advancements and societal acceptance of EVs.
Assembly Bans Sale Of eBikes With Old Lithium Batteries. The New York State Assembly approved legislation that prohibits the sale or resale of eBikes or eScooters with non-certified lithium-ion batteries, citing safety concerns over battery fires. Assemblyman Andrew Goodell criticized the bill, highlighting the financial burden on existing owners who would need to replace their batteries which can cost over $1,000 each. Another bill establishes a program to provide new lithium batteries at reduced or no cost, funded by a surcharge on electric bills, drawing criticism for a lack of cost estimates. The Assembly also passed additional bills related to eBike safety including requirements for battery charging cord tags and training for lithium-ion battery emergency response. These legislative measures signal a significant shift in micromobility regulation, potentially impacting the industry's growth and consumer accessibility as it navigates heightened safety standards and cost considerations. Elsewhere, City of Tampa Giving Away Thousands of Dollars in Vouchers for Residents to Purchase eBikes, and eBikes Overtake Regular Bikes in Sales in Germany.
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
Acto Raises âŹ3.7M in Seed Funding. Acto is a B2B decision intelligence platform that empowers sales teams in wholesale, logistics, and B2B consumables. 468 Capital and Cusp Capital led the round along with other investors including adesso ventures and another.vc.
Telo Trucks Raises $5.4M in Seed Funding. Telo Trucks is an EV startup building a smaller, pint-sized pickup truck. The funding will be used to develop deeper relationships with potential fleet customers and develop two fully functional vehicles. Neo and Spero Ventures were the investors in the round.
PayShepherd Raises $7M in Seed Funding. PayShepherd is a vendor relationship management platform for heavy industry firms. The funding will be used for continued execution of the companyâs mission. Inovia Capital led the round.
Necture Raises âŹ7M in Series A Funding. Necture offers a predictive SaaS-based platform for EV fleet management by making vehicle-specific recommendations for operational tasks such as charging. The Series A funding will be used to expand Nectureâs offering into corporate fleets and grow its presence in both Europe and the Americas. The round was led by Smart Energy Innovations Fund and Verbund X Ventures along with existing investors Speedinvest and smartworks innovation GmbH.
Glacier Raises $7.7M in Funding. Glacier builds AI-powered robots aimed at improving sorting and recycling rates. The funds will be used to support its growth and capabilities aimed at enabling more materials to be recycled. NEA and Amazonâs Climate Pledge Fund led the round, along with additional investors including AlleyCorp, Overture Climate VC, and VSC Ventures.
Packfleet Raises £8M in Series A Funding. Packfleet is a tech-enabled, carbon-neutral courier. The funding will be used to fuel growth in the London delivery market as well as support development of its proprietary routing software. The round was led by General Catalyst and Voyager Ventures and joined by Creandum, Entree Capital, and Founder Collective.
Lohum Raises $14.5M in Series B Funding. Lohum is a battery tech startup focused on clean energy transition metals. The capital will be used for marketing and other general corporate expenditures. Singularity Growth led the round, with other investors including Vyoman India and Baring Private Equity.
Axion Ray Raises $17.5M in Series A Funding. Axion Ray is an AI startup that enhances technical issue detection for manufacturers. The funding will be used to expand its AI capabilities and scale up GTM efforts into new industries. Bessemer Venture Partners led the round, with other participation from RTX Ventures, Amplo Venture Capital, and Inspired Capital Partners.
Lily AI Raises $20M in Series B Funding. Lily AI is an eComm product discovery platform powered by AI image recognition and natural language processing. Conductive Ventures led the round with participation from Counterpart Ventures, Cendana Capital, and Transform Capital as well as existing investors Canaan, Sorenson Capital, and NEA.
VOI Raises $25M in Funding. VOI is a Sweden-based micromobility operator. The company intends to use the funds to scale its eScooter and eBike fleets. Investors in the round include VNV Global, Raine Group, Nineyards Equity, and others.
Physical Intelligence Raises $70M in Funding. Physical Intelligence develops software to mimic a human brain that can be applied across many different types of robotics. Investors in the round include Thrive Capital, OpenAI, Sequoia Capital, Greenoaks Capital Partner, Lux Capital, and Khosla Ventures.
InDrive Raises $150M in Funding. InDrive is a startup that allows users to bid for cab prices. The financing extension will be used to expand its service offerings and into new markets. General Catalyst led the round.
Applied Intuition Raises $250M in Series E Funding. Applied Intuition is an autonomous vehicle software company that seeks to bring AI to the automotive, defense, construction, and agriculture sectors. The funding will be used to fuel the companyâs âmost ambitious projectsâ. The round was led by Lux Capital, investor Elad Gil, and Porsche Investments Management, along with participation from Andreessen Horowitz and others.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Stage Operations Analyst at Sennder in Milan, Italy.
Product Designer at Raft in London, UK.
Traveling Superintendent at PaintJet in US.