Dynamo Dispatch (2024/07/22)
Issue 294 | Coldcart, Didero, Coast
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
The Dynamo team has spent the last year digging into how the recent wave of AI innovation can be applied in todayâs freight brokerage operations. Weâll begin sharing some of the insights that have been uncovered in a weekly series of LinkedIn posts. Check out our managing partner Santosh Sankarâs first primer and follow along for the next one!
đŁÂ Calling all supply chain startups, Hub + Spoke applications are open through September 2nd! Itâs a great opportunity for early stage startups (think those looking to raise a Seed or Series A) to build business development opportunities and sales pipeline with execs across the supply chain. More details on the program and the types of corporates you might expect to meet on our website.
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Supply Chain đŠ
â Airline Cargo Operations âSeverely Affectedâ By Microsoft, Crowdstrike Outage. The air cargo industry is facing delays and backlogs following Fridayâs Microsoft systems outage, which has impacted various airlines and airports globally. While some companies report that their own systems are unaffected, they acknowledge broader industry challenges and are working to mitigate the impact on shipments. Contingency measures are being implemented to handle urgent shipments and manage the backlog. Although normal operations are resuming at some affected locations, the industry will now have to contend with the vulnerabilities that this single outage has exposed. On a more positive note, EComm is Just What The Air Cargo Market Ordered.
US Floats Tougher Trade Rules to Rein In China Chip Industry. The Biden administration is considering imposing the foreign direct product rule (FDPR) on companies like Tokyo Electron Ltd. and ASML Holding NV to restrict their supply of advanced semiconductor technology to China. This measure, which controls foreign products using American tech, aims to press allies to tighten their own China restrictions. The potential move has caused concern among allies and American semiconductor companies, who argue current policies unfairly impact them. The administration's efforts highlight the challenges in forming a unified front against Chinaâs technological advancements. Relatedly, US Tariffs At 60% Would Halve Chinaâs Growth Rate and US Companies Boost Imports in Rush to Avoid Tariffs.
Taiwanese Firms Shifting Supply Chains to India Amid Tensions With China. India and Taiwan have developed a strong business relationship despite lacking formal diplomatic ties, with India seeking more investment from Taiwan to boost its manufacturing sector. Taiwan's firms are shifting supply chains from China to India amid rising global trade tensions, highlighted by initiatives such as the partnership between TSMC and India's Tata Group to build a semiconductor facility in Gujarat. Two-way trade between India and Taiwan reached $10.1B in the fiscal year ending March 2024 with more strategic programs to bring in Indian talent to Taiwan to train in the semiconductor industry. Elsewhere, Powerful Cartel in Full Control of Mexican Port As Shipping Drug Seizures Spike.
Cold Storage REIT Lineage Targets Up To $19B Valuation in US IPO. Cold storage real estate investment trust Lineage is aiming for a valuation of up to $19.16B in its US IPO to raise up to $3.85B. Founded in 2008, Lineage has grown to become the worldâs largest temperature-controlled warehouse operator with 482 facilities across North America, Europe, and Asia Pacific. The IPO proceeds will be used to pay down debt, and the company will list on the Nasdaq under the symbol "LINE". This listing will be closely watched not just because itâll be poised to be the largest IPO of the year, but also indicative of how the broader supply chain industry will fare in the public market. Across other logistics sectors, Americaâs Freight Recession Is Nearing Its End With Retail Orders and Rates Headed Higher and CMA CGM To Integrate Google AI Across Shipping and Logistics Operations.
Amazonâs Prime Day Is a âMajor Cause of Injuriesâ for Workers, Senate Probe Finds. A Senate probe led by Sen. Bernie Sanders found that Amazonâs Prime Day sales event has significantly increased injury rates among warehouse workers. The investigation revealed that during Prime Day 2019, Amazonâs rate of recordable injuries was more than double the industry average, with nearly 45 injuries per 100 workers. The report accused Amazon of prioritizing speed over safety, pressuring employees to work long hours, and underreporting serious injuries. Amazon disputed the findings, asserting that employee safety is a top priority and highlighting recent improvements in safety metrics since. Broadly speaking, US Industrial Sector Is Still Weighed Down By Excess Inventory.
Mobility đ
â GMâs Self-Driving Startup Cruise Scrutinized After Its Cars Crash, Jam Traffic. Cruise is facing scrutiny from US regulators and its board after two incidents raised concerns about its readiness to expand. One incident involved a collision with a Toyota Prius, resulting in minor injuries, and another saw a dozen Cruise vehicles blocking an intersection for over an hour due to technical issues. The incidents have drawn attention from the National Highway Traffic Safety Administration, the California Public Utilities Commission, and the San Francisco Municipal Transportation Agency. Despite these setbacks, Cruise plans to continue its expansion, though internal and external pressures may necessitate addressing operational flaws before broader commercialization. The Next Wave of Robotaxis is Driving Outside of S.F. Theyâre Unlike Anything Youâve Experienced and In Wuhan, Driverless Taxis Offer a Peek into the Future of Intracity Transport in China.
US to Issue Proposed Rules Limiting Chinese Vehicle Software in August. The US Commerce Department plans to propose rules on connected vehicles next month, limiting some software from China and other adversarial countries. The focus will be on key driver components managing software and data, which must be made in allied countries. This move follows a probe launched in February by the Biden administration into whether Chinese vehicle imports pose national security risks. Estevez emphasized the serious threat posed by modern connected cars, which collect extensive data on users, and highlighted the potential catastrophic risks if such software were disabled. Hundreds of US flights are Canceled for the 4th Straight day. Hereâs the Latest on the Global Tech Outage.
EV Charging Industry Reaches Crossroads as Competition Heats Up. The EV charging sector is at a pivotal point, with BloombergNEF projecting positive long-term EV sales due to decreasing battery costs, despite near-term challenges like Europe's EV trade issues with China. The demand for electricity to power EV charging stations is expected to increase 30-fold by 2044, requiring significant investment in public charging networks. Fast charging installations are outpacing vehicle sales in many regions, but intensifying competition and profitability challenges are impacting business viability. The US needs a substantial increase in fast charger installations to meet EV adoption goals, highlighting the importance of federal support, while technology developments like wireless charging could shift the market dynamics in the future. Elsewhere in EV charging, Starbucks, Mercedes Team Up in EV Charging Network Expansion.
Ford to Invest $3 Billion in Canada to Boost F-Series Pickup Production. Ford plans to invest approximately $3B to boost production of its F-series pickup trucks at its Oakville assembly complex in Ontario, starting in 2026. This investment will add a third North American assembly plant for these vehicles, aiming to meet strong demand by producing up to 100,000 units. The move is expected to bring 1,800 Canadian workers back to the Oakville site a year earlier than expected and add about 150 jobs at Fordâs Windsor engine complex. Additionally, this investment will pave the way for future production of next-generation super-duty trucks, including electrified versions, and should assist Ontario in securing its position in the EV manufacturing industry. Related, VinFast Pushes Back North Carolina Factory Timeline.
Volvo Car Sees Record Earnings Growth but Warns on Sales. Volvo Cars warned that potential EU tariffs on Chinese EVs would impact sales of its flagship EX30 model, currently produced in China. To mitigate this, the company plans to start producing the EX30 in Belgium by mid-2024, making Belgium the production hub for US deliveries as well. Despite the challenges, Volvo posted a record 28% increase in adjusted operating profit for Q2, with gross margins on fully electric cars reaching 20%. However, the company adjusted its annual retail sales growth forecast to 12-15%, citing concerns over inflation, interest rates, and geopolitical issues.
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
ReliON Raises $2.2M in Seed Funding. ReliON provides operational monitoring and maintenance for EV charging infrastructure. The funding will be used to further develop the platform. The round was led by Diagram Ventures with participation from MaRS Investment Accelerator Fund, AQC Capital, Anges Québec, and Cycle Momentum.
Wamo Raises $5M in Series A Funding. Wamo provides SMEs with services such as cross-border payments. The funding will fuel the companyâs expansion in the EU. Logo Ventures led the round.
Renaissant Raises $5M in Series A Funding. Renaissant is a data analytics and workflow platform for its customersâ logistics operations. The capital will be used to fund further development of its logistics platform. TitletownTech led the round, with participation from Interlock Partners, Venture53, NFI Ventures, and Perot Jain.
Itselectric Raises $6.5M in Seed Funding. Itselectric provides curbside EV charging solutions by partnering with property owners to utilize excess electrical capacity âbehind-the-meterâ. The funding will be used to support developments across seven cities in the US in 2024. Failup Ventures and Uber Technologies led the round, with participation from Halogen Ventures, The Partnership Fund for NYC, Pulse Fund, Newlab, and others.
Coldcart Raises $6.5M in Seed Funding. Coldcart is an orchestration and optimization platform for frozen and refrigerated parcel logistics. The funding will be used to grow its installed base of perishable shippers and logistics providers. Collide Capital led the round, with participation from Great North Ventures, Behind Genius Ventures, Feld Ventures, Alumni Ventures, and Service Provider Capital.
Didero Raises $7M in Seed Funding. Didero is building an end-to-end suite for procurement teams to manage suppliers across a range of existing point solution markets. The capital will go towards the continued development of the product to take advantage of AI to help target mid-market companies. First Round Capital led the round, with participation from Construct Capital, AI Grant, Box Group, Company Ventures, and Conviction.
Doinstruct Raises âŹ7.6M in Funding. Doinstruct is a Germany-based provider of a mobile-first onboarding and training platform for frontline workers. The funding will be used to expand operations and its development efforts. Creandum led the round, with participation from HTGF and D11Z.
ACEL Power Raises $10M in Series A Funding. ACEL Power designs and manufactures electric outboard propulsion systems for the marine landscape. The funding will be used to enhance its R&D, scale operations, and advance sales opportunities. The round was led by Tau Capital.
Lyten Raises $16M in Funding. Lyten is a supermaterial applications company thatâs making lithium-sulfur battery technology. The capital will be used to support the development of locally sourced, locally manufactured batteries in Europe for the EV, mobility, space, and defense industries. Luxembourg Future Fund 2 led the round.
Alvys Raises $20.5M in Series A Funding. Alvys is a next-generation operating platform for logistics and supply chain management. The capital will be used to accelerate its development efforts and to recruit top talent to solve complex issues within the industry. Titanium Ventures led the round, with participation from Picus Capital, RTP, and Bonfire.
BluSmart Raises $24M in Venture Funding. BluSmart is an India-based ride-hailing startup that runs its own fleet of EVs and charging stations. The funding will be used for expanding operations and building EV charging infrastructure and assets. ResponsAbility Investments led the round.
Coast Raises $40M in Series B Funding. Coast is a provider of fleet expense management. Funding will be used to accelerate its product and partnership development. ICONIQ Growth led the round and was joined by Accel, Insight Partners, Vesey Ventures, Avid Ventures, and Thomvest.
Peak Energy Raises $55M in Series A Funding. Peak Energy is building sodium-ion battery systems for shorter-range EVs and stationary battery energy storage systems. The capital will be used to begin the pilot production starting in 2025. Xora Innovation led the round, with participation from Eclipse, TDK Ventures, and others.
Nearfield Instruments Raises âŹ135M in Series C Funding. Nearfield Instruments is a metrology and inspection platform for the semiconductor manufacturing industry. The capital will be used to expand operations and its development efforts. Walden Catalyst and Temasek led the round, with participation from Innovation Industries, Invest-NL, and ING.
Tekion Raises $200M in Venture Funding. Tekion provides software and other technology for manufacturers, retailers, and other automotive industry players. The capital will be used to expand its product offerings for car dealerships and improve its customer support experience. Dragoneer Investment Group led the round, with participation from Index Ventures, BMW i Ventures, and Advent International.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Technical Program Manager, Hardware at Gatik AI in Mountain View, CA.
Senior Manager of Parcel Operations at Stord in Atlanta, GA (remote).
Robot Deployment Manager at PaintJet in Hendersonville, Tennessee (remote).