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 💭
Throughout our focus on supply chain and mobility, climate change frequently comes up as a key factor from early startups to macro market trends. We believe that it’ll be an increasingly prevalent topic for those in supply chain and mobility to consider, and we’ll continue to highlight the top news that showcases that overlap. If you want to dive even deeper into all things climate change, we recommend following the Climate Money newsletter that our friends at Toba Capital put together.
✈️ Some of the Dynamo team will be in CDMX this week for the Logistics World Summit & Expo. We’d love to meet any founders there: give us a shout!
💥 We’re excited that Stord, a Dynamo portfolio company, just announced its acquisition of ProPack Logistics. Read more about the strategic reasoning in the Supply Chain section below.
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.
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Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain 📦
⭐ Taiwan Earthquake Raises Stakes for Solution to Chip Dominance. The recent earthquake in Taiwan, while tragic, highlighted the island's resilience and strategic importance in the global semiconductor industry. Despite being one of the strongest quakes in decades, Taiwan's robust defense mechanisms and well-prepared response teams minimized the impact on critical chip production facilities. However, the broader threat to Taiwan's chip industry comes from geopolitical tensions with China, prompting efforts in the US and elsewhere to diversify chip manufacturing beyond Taiwan. Taiwan's success in semiconductor production is not just economic but also strategic, making it a key player in global technology supply chains. Additionally, US Tech Giants Turn to Mexico to Make AI Hardware, Spurning China.
💥 Fulfillment Startup Stord Expands With Logistics Acquisition. Dynamo portfolio company Stord, a fulfillment services provider, is acquiring ProPack Logistics to boost revenue amidst slower eComm growth industry-wide. Stord's move aligns with its goal of profitability by expanding into specialized storage for health, beauty, and nutrition products, anticipating growth in these resilient market segments compared to others affected by shifting consumer behavior. This acquisition reflects a trend in the logistics sector where companies are seeking consolidation and new revenue streams due to reduced demand for warehousing space.
East Coast Ports Brace For Fallout From Baltimore Bridge Collapse. Ports along the Eastern seaboard, including New York and Virginia, are gearing up to handle redirected shipments following the collapse of the Francis Scott Key Bridge in Baltimore. The incident underscores the interconnectedness of supply chains and the importance of robust logistics planning. While immediate disruptions may occur, the overall impact on logistics and shipping is expected to be manageable with available capacity at nearby ports helping to mitigate potential supply chain disruptions and price increases. In other maritime disruption updates, Panama Canal Will Need Rest of Year to Recover From Drought.
Amazon Sellers Plagued by Surge in Scam Returns. Amazon merchants are grappling with return theft, a problem exacerbated by Amazon's customer-centric return policy. Fraudulent returns, including swapping high-value items for cheap substitutes, have become a significant challenge for sellers, leading to financial losses and operational headaches. While Amazon claims to invest in fraud detection, sellers argue that more needs to be done to protect their interests and reduce the impact of return fraud on their businesses. Balancing customer satisfaction with seller protection remains a complex issue for Amazon as it faces competition from emerging eComm players like TikTok and Temu. More upstream, UPS to Replace FedEx as US Post Service’s Primary Air Cargo Provider and Major US Ports Are Pushing Capacity Limits, Shipping Veteran Says.
Amazon Ditches 'Just Walk Out' Checkouts at Its Grocery Stores. Amazon is discontinuing its "Just Walk Out" checkout-less grocery stores due to operational challenges and cost inefficiencies. Notably, the system relied on more than 1K workers in India watching and labeling videos to ensure accurate checkouts. Instead, the company is shifting focus to Dash Carts and traditional self-checkout counters. This move reflects Amazon's ongoing efforts to optimize its grocery operations and compete more effectively in the market against major players like Walmart and Costco. Also in an effort to battle costs, FedEx and UPS Adding Delivery Fees In Parts of New York, Los Angeles, and San Francisco.
Mobility 🚗
⭐ OpenAI Backed Autonomous Driving Startup Ghost Autonomy Shuts Down. Ghost Autonomy, a startup specializing in autonomous driving software, has shut down operations worldwide. This comes from challenges in maintaining profitability and securing funding despite previously raising significant venture capital and partnering with OpenAI. Initially focused on developing kits for autonomous highway driving, the company shifted its strategy towards crash prevention technology and experimented with LLMs to enhance reasoning capabilities. Despite progress in product development, financial constraints prevented Ghost Autonomy from bringing its products to market, reflecting the slow progress towards Level 4 and Level 5 autonomous vehicles as predicted by a 2023 report from GlobalData. Also in autonomy news, Tesla Is Going All In on Robotaxis—Buckle Up and Apple Lays off 600 Workers in California After Shuttering Self-Driving Car Project.
Tesla Releases Q1 2024 Deliveries: Disastrous Results. Tesla's Q1 delivery and production numbers have been released, indicating a significant drop in deliveries compared to the previous quarter and lower than expected by analysts. The consensus expected around 431K deliveries, but Tesla confirmed 387K deliveries for the first quarter. Tesla reports factors like production challenges with the updated Model 3, disruptions due to the Red Sea conflict, an arson attack, high interest rates, and more have contributed to this decline. The stock dropped by 7% in pre-market trading, signaling concerns about demand for Tesla vehicles. For more on Tesla, Tesla Drastically Cuts Model Y Prices Because Inventory Is At Record Levels and Tesla Stock Seesaws as Musk Denies Report Cheap EV Will be Scrapped.
The Disarray Inside Boeing’s 737 Factory Before the Door Plug Blowout. Factory logs reveal a series of missed procedures, confusion, and delays during the production of a Boeing 737 MAX jet, known as Line No. 8789, which later experienced a catastrophic incident in flight. The escalating pressure to complete the jet, compounded by production issues and management challenges, ultimately led to the door plug blowing off during an Alaska Airlines flight, prompting federal probes and leadership changes at Boeing. The investigation uncovered systemic flaws in Boeing's production processes, highlighting a prioritization of speed over safety and quality, as well as lapses in documentation and oversight. Elsewhere in aviation, Unprecedented GPS Jamming Attack Affects 1600 Aircraft Over Europe and completely unrelated, Few Stations and $200 to Fill Up: Life on California’s ‘Hydrogen Highway’.
Ford Delays New EVs Once More, Showing Why Legacy Automakers Need to Adopt a Startup Mentality. Ford has delayed the production of two EVs, a pickup and an SUV, until 2026 and 2027 respectively, opting instead to introduce hybrids across its US. lineup. CEO Jim Farley had hinted at these delays earlier, emphasizing the importance of hybrids for the company's future. Despite the delay, Ford has a history of successful innovation, such as with the Mustang Mach-E and the Taurus and Explorer in the past, indicating its ability to pivot and succeed. The company faces challenges in making EVs more affordable and addressing charging infrastructure, but initiatives like forming a skunkworks for low-cost EV development suggest a continuation of Ford's entrepreneurial spirit. Related, EV Startup Bankruptcies Complicate Future of Software-Dependent Vehicles and Detroit Went All in on Big, Expensive EVs Nobody Wants. Here's What the Data Shows They'd Rather Buy.
Fisker Reportedly Delivered Cars Without Collecting Payments. Fisker, facing financial troubles and rumors of bankruptcy, paused production of its only EV and struggled to track millions in customer payments. Poor accounting practices led to delivering vehicles without collecting payments, forcing the company to divert resources to track down checks and credit card receipts. With its stock price falling by 80%, Fisker faces a challenging road ahead, having cut staff and been delisted from the New York Stock Exchange. Further distress for Fisker: Fisker Customers Cancel Vehicle Reservations, as well as other players: EV Startup Canoo Spent More on its CEO's Private Jet than it Made Selling Cars.
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 💸
Alrik Raises €1M in Seed Funding. Alrik is an operations management platform for the construction industry, focused on enabling supervisors to streamline fleet activity monitoring. This seed round will fuel the company’s European expansion. Pi Labs led the round.
Cargofive Raises €2.5M in Seed Funding. Cargofive digitizes rate procurement, rate management, and quotation processes for freight forwarders. The round will fuel further product innovation as well as sales and marketing efforts to expand across Europe and the Americas. The funding comes from Indico Capital and EIT Urban Mobility.
Ailytics Raises $2.7M in Funding. Ailytics is a Singapore-based AI-powered analytics and scenario based software for heavy industries. The company intends to use the funds to expand operations and its development efforts. Tin Men Capital led the round, with participation from Aurum Investments, AngelCentral, and other strategic investors.
Völur Raises $2.9M in Funding. Völur provides AI-powered insights to optimize supply chains and predict market demands for the meat industry. The capital will be used to grow revenue and support expansion efforts. The funding comes from Serra Ventures and York IE as well as Völur's corporate partner, SARIA.
Delivery Collective Raises $3.8M in Seed Funding. Delivery Collective provides a merchant-first delivery infrastructure by connecting merchants and customers directly. The company intends to use the funds to expand operations and development efforts. Defy.vc and Bling Capital led the round, with participation from Pathbreaker Ventures, GTM Fund, and 640Oxford Ventures.
Firecell Raises €6.6M in Seed Funding. Firecell offers 5G connectivity solutions tailored to the specific needs of industrial companies. The capital will be used to develop a range of new products, expand in European markets, and grow the team. Ventech and Matterwave Ventures led the round, with participation from Bpifrance’s Digital Venture fund and Bouygues Telecom Initiative.
Archetype AI Raises $13M in Seed Funding. Archetype AI is a foundational model serving as the translation layer between humans and sensors for the physical world. Venrock led the round, with additional investors including Amazon Industrial Innovation Fund, and Hitachi Ventures.
OROS Labs Raises $22M in Series B Funding. OROS Labs is a thermal solutions company for applications from aerospace to apparel. The funding will bolster manufacturing capabilities, scale product offerings, and enhance R&D efforts. The round was led by Airbus Ventures, with participation from REI Co-op Path Ahead Ventures, Platinum Mile Ventures, Culper Ventures, Crumpton Ventures, Iron Gate Capital Advisors, Enlightenment Capital, CTK, and the Goldwin Play Earth Fund, and more.
Alysm Energy Raises $78M in Series C Funding. Alysm Energy is a developer of rechargeable batteries for stationary storage, marine, and mobility applications. The funding will be used to grow the team and expand capacity to meet customer demand. The round was co-led by Tata Limited and General Catalyst with participation from Thrive Capital and Thomvest.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Software Engineer at Stord in Atlanta, GA.
Senior/Staff Research Engineer, Perception at Gatik AI in Mountain View, CA.
VP of Finance & Operations at Milk Moovement in Nova Scotia, Canada (remote).