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
Weâre incredibly energized and excited about both the startups innovation and macro trends for supply chain in Mexico after spending a few days in CDMX last week. One of the biggest takeaways from our time at the Logistics World Summit is hearing straight from the on-the-ground operators about the investment in manufacturing infrastructure happening right now. While we may not see the quantitative impact of the nearshoring/reshoring trend for at least a couple of years, thereâs no doubt that the region is poised to take advantage of the momentum in the near future.
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Supply Chain đŠ
â China Shock 2.0 Sparks Global Backlash Against Flood of Cheap Goods. China's strategy of flooding global markets with cheap goods is facing significant pushback from major economies like the US and the EU, along with emerging economies such as Brazil, India, and Mexico. This backlash includes threats of trade barriers and investigations into suspected dumping of Chinese products at below-market prices. The escalating tensions highlight broader shifts in global trade dynamics, with countries increasingly looking to protect their domestic industries from Chinese competition and maintain economic balance amidst rising concerns about overcapacity and unfair trade practices. In another reversal of trends, New Parcel Surcharges May Hasten Predicted End of Free Shipping.
India Sourcing Boom Drives US Import Container Growth. India's emergence as a manufacturing powerhouse and sourcing alternative to China is gaining momentum, with significant investments from major players like Tesla and Walmart. Despite historic challenges like bureaucratic hurdles and infrastructure disparities, India's share of imports at US ports is gradually increasing. Container lines are also expanding services and investments in Indian ports, suggesting a growing confidence in India's manufacturing capabilities, although efficiency improvements are still needed to compete effectively. Also on the global stage, Canada Warns Trump 10% Tariff Risks Sparking Global Retaliation.
Retailers and CPG Companies are Committing Small Budgets for AI. This recent study highlights a growing interest in AI among retailers and CPG companies, with 57% planning to invest in predictive and generative AI in the next 3-5 years. The report also emphasizes the need for improved demand forecasting accuracy, with 55% of respondents identifying rapidly shifting consumer demand volatility as a major threat. However, AI and ML rank fifth in technology spend priorities overall, indicating a potential underestimation of AI's potential and near term underinvestment in the hot topic. Relatedly, Nearly 80% of Industrial Companies Lack Capacity to Use AI and Employers Worry Training Wonât Keep Pace With Tech Advancement.
UPS Sees Big Opportunity In Mexicoâs Nearshoring Wave. UPS sees significant potential in leveraging Mexico's role in global supply chains, especially in handling goods from Asia bound for the US. This strategic opportunity allows UPS to offer end-to-end solutions, capitalizing on the fragmented nature of the market. Itâs another sign that the Mexico-US cross border trade flows continue to grow in volume and importance. However, US-Mexico Trade Being Hindered By Border Security Changes.
Amazon Grows To Over 750K Robots As World's Second-Largest Private Employer Replaces Over 100K Humans. Amazon's significant deployment of over 750K robots alongside its 1.5M employees reflects a major shift towards automation in the company's operations. While the integration of robots raises concerns about job displacement, Amazon emphasizes the creation of new skilled job categories, signaling a broader trend toward human-robot collaboration and the evolution of work roles in the digital age. This move underscores Amazon's commitment to innovation in its supply chain, aiming to enhance efficiency, safety, and delivery speed for customers. For more robotics, Walmart Will Deploy Robotic Forklifts in its Distribution Centers and Whatâs the Difference Between Contactless and Wireless Charging for Robots.
Mobility đ
â GMâs Cruise Robotaxis are Back in Phoenix â But People are Driving Them. GMâs Cruise is restarting robotaxis in Phoenix after a five-month hiatus, operating in "manual mode" without autonomous driving capabilities. This move marks a shift from Cruise's previous rapid expansion strategy, focusing now on gathering road data and improving safety protocols following a past incident involving a pedestrian. The company is working on reforming incident response procedures and hasn't announced a timeline for resuming fully autonomous operations. This cautious approach by Cruise reflects broader challenges in the autonomous driving industry, highlighting the importance of safety measures and regulatory compliance in shaping its future development. Elsewhere, Tesla Just Halved the Cost of its Autonomous Driving Tech in a Bid to Improve It.
A Look Into the Global Battery Supply Chain. The global demand for lithium-ion batteries is rising due to the increasing interest in EVs and other electronic devices. The US is investing heavily in its battery sector but faces challenges in raw material supply. Canada leads in the lithium-ion supply chain, surpassing China, while China remains dominant in global battery production and transportation. Norway, a leader in EV adoption in Europe, is also focusing on battery recycling and production. Overall, the industry is grappling with meeting growing demand, requiring creative strategies like localized supply chains and increased recycling efforts. Related, China Already Makes as Many Batteries as the Entire World Wants.
Tesla to Lay Off More Than 10% of Staff Globally as Sales Fall. Tesla plans to lay off over 10% of its workforce globally as it faces declining sales and increased competition in the EV market. The company, with about 140,473 employees globally as of December 2023, is restructuring to reduce costs and increase productivity. The layoffs come as Tesla's stock has fallen 31% this year, with challenges like slowing EV demand and competition from other automakers impacting its growth trajectory. Analysts suggest these layoffs reflect a maturing phase for Tesla and efforts to trim costs amid slowing sales and market challenges. Unrelated, Volkswagen to Spend $2.69B on Expansion of Chinese Hub.
Electric Cars Pass the Tipping Point to Mass Adoption in 31 Countries. Despite recent negative headlines, particularly of recent EV startupâs challenges, rapid global adoption of EVs presses on. 31 countries have reached a tipping point where 5% of new car sales are electric, signaling mass adoption. Factors such as falling prices, better infrastructure, and consumer acceptance are driving this transition, with some countries experiencing faster growth than others. Challenges such as supply chain disruptions and market preferences for larger vehicles in certain regions are also influencing the pace of adoption. From Guided Energy, a member of the Dynamo portfolio: Maximise Residual Value: Use Data to Unlock EV Profitability.
Boeing Delivered 24 737 MAX Jets in March as Its Factories Slowed. Boeing delivered 24 737 MAX jets in March, marking its slowest start to the year since the pandemic, with 67 737s delivered in the first quarter compared to 112 a year ago. This decrease is attributed to production slowdowns after quality issues and heightened regulatory scrutiny following an Alaska Airlines incident. Boeing aims to increase production later in the year, with a backlog of 5,668 planes and ongoing deliveries to China after a four-year freeze post-2018 and 2019 MAX jet crashes. Related, The Texas Attorney General is Investigating a Supplier of Boeing 737 Parts.
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
Clyde Hydrogen Raises ÂŁ1M in Pre-Seed Funding. Clyde Hydrogen is a Scottish startup focused on decoupled electrolyzer technology. The capital will be used to expand the R&D team. Zinc led the round, along with the University of Glasgow and angel investors.
Kamereo Raises $2.1M in Pre-Series B Funding. Kamareo is a B2B food-sourcing platform for the food supply chain. The round will fuel the companyâs reach within Vietnam as well as its expansion into Cambodia. Reazon Holdings and Thoru Yamamoto (the CEO of Foodison) co-led the round and were joined by Quest Ventures.
Bumper Raises ÂŁ2M in Series B Extension Funding. Bumper leverages AI to facilitate real-time financing decisions for its automotive payment platform. The funding will be used for product development and expanding its dealer network. Suzuki Global Ventures and Marubeni Ventures provided the capital.
Kilo Raises $5M in Pre-Series A Funding. Kilo is a Vietnamese B2B eComm platform for MSMEs, seeking to digitize the local retail value chain. The funding will be used to build the team, enhance the platform, and add features such as financing and logistics for the MSMEs. Altos Ventures and January Capital co-led the round with participation from existing investors Goodwater Capital, Ascend Vietnam Ventures, Decisive Capital Management, and Ratio Ventures.
Carrar Raises $5.3M in Series A Funding. Carrar provides battery modules and thermal management systems for EVs which extend battery life, enable ultrafast charging, and prevent battery fires. The round will assist the company in its efforts to deliver its commercial automotive-grade modules to its customers. New investors include Salida B.V., OurCrowd, and NextGear.
Cyvl.ai Raises $6M in Funding. Cyvl.ai is developing an infrastructure platform to enable civil engineers and governments to manage physical infrastructure transportation assets. In part, the capital will be used to expand the team from 11 to 20 employees. Companyon Ventures led the round, along with participation from Argon Ventures, AeroX Ventures, and Alumni Ventures.
Mode Raises $8.75M in Series B Funding. Mode is building a GenAI assistant for factories and construction sites using IoT technology. The capital will be used to accelerate development of the product. Investors in the round include SBI Investment, True Ventures, JR East Startup, and Daiichi Jitsugyo Co.
Champ Title Raises $18M in Series C Funding. Champ Title is a startup speeding up the automobile title transfer and lien process. Point72 Ventures led the round, along with existing investors.
ikas Raises $20M in Series A Funding. ikas is a Turkish eComm platform. The capital will be used to deepen its presence in Europe and other critical markets. The round was co-led by the International Finance Corporation and Re-Pie Asset Management.
Basemark Raises $23.9M in Series B Funding. Basemark is an augmented reality software firm that assists OEMs with building AR applications for their vehicles. The funding will enable Basemark to strengthen its presence in Europe and the US as well as fuel its growth into Japan, China, and South Korea. ETF Partners led the round, with participation from Finnish Industry Investment (Tesi), Constructor Capital, and more.
Yoshi Mobility Raises $26M Series C Funding. Yoshi Mobility has three primary business lines: preventative maintenance, virtual vehicle inspections, and EV charging. The round will fuel the companyâs growth in each of these segments. General Motors Ventures led the round, joined by strategic investor Bridgestone Americas.
Varda Space Raises $90M in Series B Funding. Varda Space is working on manufacturing pharmaceutical products in space. The capital will be used to scale from the initial demonstration mission to regular set of missions carrying customer payloads. Caffeinated Capital led the round, along with participation from Lux Capital, General Catalyst, Founders Fund, and Khosla Ventures.
Collaborative Robotics Raises $100M In Series B Funding. Collaborative Robotics, also known as Cobot, is a yet to be unveiled robotics system that is neither humanoid nor a mobile manipulator mounted to the back of an autonomous mobile robot. The capital will be used for further development of its robots in the field. General Catalyst led the round, along with participation from Bison Ventures, Industry Ventures, and Lux Capital.
Windrose Technology Raises $110M in Series B Funding. Windrose Technology is an electric heavy-duty truck developer. The capital will be used in its expansion and operational goals of global testing and deployment. Investors include HSBC, HITE Hedge Asset Management, and Goodman Group.
Platform Science Raises $125M in Growth Funding. Platform Science empowers enterprise fleets with a platform making it easy to develop, deploy, and manage mobile devices on applications on commercial vehicles.. The capital will be used to accelerate innovation in the commercial transportation sector. Investors in the round include CR England, Cummins, and Paccar.
HysetCo Raises âŹ200M in Funding. HysetCo rents hydrogen-powered electric vehicles to taxi drivers, currently focused on the Parisian market. The funding will enable the companyâs growth beyond Paris and comes from Hy24, a specialist in hydrogen infrastructure, Raise Impact, and Eiffel Investment Group.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
International Account Manager at Steam Logistics in Chattanooga, TN.
Internship at Improvinâ in Stockholm, Sweden.
Full-Stack Clojure Developer at RedSky in Berlin, Germany.