Dynamo Dispatch (2024/08/19)
Issue 298 | Celadyne, Guidewheel, Re:Build Manufacturing
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
đ„Â Big news for Dynamo portfolio company Celadyne, who announced a Collaborative Research Agreement with GM to develop durable fuel cells for heavy-duty applications such as long-haul trucking. Itâs a big step for how hydrogen solutions can drive decarbonization across the supply chain. Read more here.
đąÂ Weâre a couple weeks away from the application deadline for Hub + Spoke, the premier event for supply chain founders to meet with senior decision makers and influencers from 20 different companies. If you need to boost your sales pipeline, donât miss out on this opportunity and apply now!
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Supply Chain đŠ
â Delays Hit 40% of Bidenâs Major IRA Manufacturing Projects. About 40% of the largest US manufacturing investments announced under President Joe Bidenâs IRA and Chips and Science Act have been delayed or paused. These policies aimed to boost clean tech and semiconductor supply chains with over $400B in incentives, but $84B worth of projects have encountered delays due to factors like worsening market conditions, slowing demand, and political uncertainty in an election year. These setbacks cast doubt on the effectiveness of Bidenâs strategy to revitalize US manufacturing despite the recent focus and attention. Similarly, Deere Shrinks Staff to Navigate Farm Economy Downturn.
Boeing Is in Crisis, Airbus Is Struggling to Power Ahead. Airbus, the world's largest aircraft manufacturer, and its main competitor Boeing have both faced significant supply chain issues causing production delays, prompting Air to reduce its delivery targets for 2024. Despite strong demand and a record backlog of orders, Airbus has struggled to secure essential components like engines and landing gear on time, leading to a downward revision of its ambitious production goals. The company's internal efforts to address these challenges, including increased collaboration with suppliers, have yet to fully mitigate the impact, leaving Airbus uncertain about when it will overcome these disruptions. The ongoing difficulties highlight the broader challenges facing the aviation industry as it recovers from the pandemic. On the waters, Maersk to Study Nuclear Option for European Container Feedership.
Warehouse Robot Momentum Faces Cost, ROI Challenges. Businesses are increasingly adopting mobile robots for warehouse automation, but cost concerns are slowing the market's growth with a third of companies citing budget constraints as a major barrier. Despite this, the market for mobile robots is expected to grow significantly, with sales projected to reach 700K units by 2027, driven by the technology's ability to take on labor-intensive tasks and improve worker satisfaction. Larger companies are leading this adoption, though most are only partially automating their workflows. The high cost and long ROI period â averaging two to three years â are hindering wider adoption, especially for smaller businesses. In other news, 73% of Companies Made Supply Chain Network Changes in Past Two Years.
Vietnam Positioned as Magnet for Major Players in Chip Industry. Amid rising demand for semiconductor engineers fueled by the AI boom, many companies are turning to Vietnam for its skilled labor and competitive costs. Companies like Alchip Technologies, GUC, and Faraday Technology are expanding their R&D operations into Vietnam, drawn by its promising pool of engineering talent. South Korean and American firms, including BOS Semiconductors, Marvell, and Synopsys, are also increasing their presence in Vietnam, recognizing it as a strategic location for semiconductor development. Vietnam aims to train 50K engineers for the semiconductor industry by 2030, further solidifying its role in the global tech value chain. Elsewhere, Walmart Offering China Sellers Ocean and Customs Pathway to US Buyers and âMade in Indiaâ Export Push Lures Major Box Lines Into Adding Services.
Walmart Has Very Good News For Americans in Search of Deals. Amid rising prices, Americans are cutting back on nonessential purchases, affecting consumer discretionary sectors like dining out at Starbucks and McDonaldâs. While the CPI shows a 2.9% increase in prices over the last year, essential goods like food continue to climb, driving more consumers to budget-friendly retailers like Walmart. Unlike Starbucks and McDonald's, which are seeing cautious customers, Walmart reports strong sales growth as customers across all income levels seek value. Walmartâs efforts to roll back prices to pre-inflation levels have contributed to its financial success, with shares up significantly year to date.
Mobility đ
â German Investment in China Soars Despite Berlinâs Diversification Drive. German direct investment in China has surged in 2024, reaching âŹ7.3B in the first half of the year, driven largely by major German carmakers despite government warnings about the geopolitical risks associated with the Chinese market. This increase contrasts with the German government's strategy to "de-risk" from China, which calls for diversifying supply chains and export markets to reduce vulnerability to external shocks. The investment is part of a "In China, for China" strategy, where companies like Volkswagen and BMW are localizing production to address supply chain risks. However, experts warn that this deepening involvement in China could harm the German domestic economy and labor market, as more production shifts to China.
Chinaâs Electric Vehicles Lose Ground in EU After New Tariffs Take Effect. In July, European Union tariffs significantly slowed the influx of Chinese-made EVs, with registrations of new EVs from Chinese automakers like BYD and SAIC's MG dropping by 45% compared to June. The decline was partly due to Chinese manufacturers rushing to deliver vehicles before the tariffs took effect on July 5, which imposed duties as high as 48% to protect EU automakers from low-cost competition. Despite the setback, Chinese brands still hold 8.5% of the EU's EV market share, and companies like BYD continue to expand aggressively in Europe, signaling their commitment to the market despite the higher duties. The tariffs are expected to become permanent in November unless a deal is reached between Brussels and Beijing. Related, Have Provisional Tariffs Driven Down EV Forecasts in Europe? and Polestar Starts EV Production in US, Avoiding EU and US Tariffs.
Texas Sues General Motors Over Alleged Privacy Violations. Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, accusing the company of illegally collecting and selling the private driving data of over 1.5M Texans without their consent. The lawsuit claims that GM used technology in vehicles from 2015 or newer to gather and sell detailed driving data, including creating "Driving Scores" for insurance companies. Additionally, GM is accused of deceiving customers by forcing them to enroll in services like OnStar Smart Driver under the threat of deactivating safety features, without fully disclosing the extent of data collection. Paxton asserts that GM's practices violated Texans' privacy and vows to hold the company accountable. Completely unrelated, Chinaâs Autonomous Vehicle Startup WeRide Seeks US IPO at $5B Valuation and Waymo to Double Down on Winter Testing its Robotaxis.
Mercedes, BMW Reveal Battery Makers Amid Fire Fears in Korea. Following an EV explosion in South Korea, Mercedes-Benz and BMW disclosed the names of their EV battery suppliers for the first time, joining Hyundai and Kia in revealing this information amidst a nationwide safety investigation. The incident, which involved a Mercedes-Benz sedan catching fire, has sparked government advisories urging all EV manufacturers to voluntarily disclose battery suppliers and offer free inspections to owners. While Mercedes-Benz has not specified which supplier made the battery in the affected car, reports suggest it was China's Farasis Energy, a smaller battery maker. The South Korean government plans to introduce comprehensive safety measures for EVs in September, as concerns about EV safety continue to grow. Related, South Korea Wants Carmakers to Disclose Battery Suppliers, and elsewhere in EVs, Growing US EV Charging Network to Improve with Faster Systems, Updated Software, Goodyear Invests in Electric Vehicle Tyre Production in Canada.
Toyota Bets Big on Hybrid-Only Models as EV Demand Slows. Toyota, historically slow in developing EVs, is accelerating its shift towards hybrid-only models, aiming to convert most of its Toyota and Lexus lineup to hybrids. This strategy aligns with Toyota's "multi-pathway" approach, which includes hybrids, hydrogen fuel-cell vehicles, and green fuels, as the automaker remains skeptical that EVs will dominate the market. The shift is also a response to tightening US emissions regulations, allowing Toyota to reduce costs and buy time to develop more advanced EVs or other zero-emission technologies. Toyota's hybrid sales have surged, accounting for 37% of its sales by mid-2024, positioning the company to potentially have a hybrid-only lineup in the near future. Also in Toyota news, NHTSA Closes Preliminary Investigation into 1.8M Toyota SUVs.
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
Fair Raises $1.44M in Pre-Seed Funding. Fair is a vehicle breakdown protection startup offering comprehensive coverage, reputable repairs, and flexible service. The funding will be used to for further tech development and expand market presence. Blue Collective, Antler, and Redbud led the round.
UP&Charge Raises âŹ1.5M in Seed Funding. UP&Charge is a French startup developing induction charging stations for EVs. The funding will be used to carry out the first installations of charging stations at its customersâ premises in October. Paris Business Angels led the round.
PLAIO Raises âŹ4.3M in Series A Funding. PLAIOâs AI-driven platform enables pharmaceutical companies to optimize their supply chains through including demand forecasting, manufacturing planning, and procurement. The funding will be used to enhance the companyâs âAI Coplannerâ product as well as to build & strengthen its partnerships. Icelandic Technical Development Fund provided the capital.
Clearly Raises $4.3M in Seed Funding. Clearly is an AI-driven climate intelligence platform aimed at transport fleet operators, focused on driving behaviors as the lever for reducing emissions. The round will be used to bolster the product. The round was led by Pace Ventures and Nine Realms, with participation from existing investors Mobilion, Next Gear, and M1720.
Amulet Raises $6M in Series A Funding. Amulet equips individuals and businesses with portable sensors to detect allergens, toxins, and contaminants in food. The funding will be used to scale the team, expand its product portfolio, and execute a full product launch. HealthX Ventures led the round, with participation from Incite Ventures, AllerFund, Mendota Venture Capital, and Great Oaks Venture Capital.
Kognic Raises âŹ8.8M in Funding. Kognic specializes in data annotation for AI focusing on data from cameras, LiDARs, and radars. The capital will be used on continued tech development and global market expansion. Metaplanet, Neudi Kapital, and Stena Sessan led the round.
Gaussion Raises âŹ10.9M in Series A Funding. Gaussion enables rapid EV charging & extended battery life by using an external magnetic field during charge and discharge cycles. The round will enable the companyâs market entry. The round was led by Autotech Ventures and joined by existing investors BGF and UCL Technology Fund.
Intramotev Raises $14.4M in Series A Funding. Intramotiv is building battery-electric railcar retrofits. The round will enable gross across the US as well as internationally. The round was led by Flybridge Capital Partners and Alpaca VC, and joined by Cathcart Rail.
BinSentry Raises $15M in Series B Funding. BinSentry focuses on increasing efficiencies and sustainability in the $500B global animal feed supply chain. The funding will be used to continue to accelerate growth and product portfolio expansion. Spring Mountain Capital led the round.
Vayana Raises $20.5M in Series D Funding. Vayana provides trade finance to Indian suppliers and small enterprises in automotives, fast-moving consumer goods, and manufacturing. The funding will be used to introduce new products. Sumitomo Mitsui Banking Corporation Asia Rising Fund led the round, with participation from existing investors.
Guidewheel Raises $31M in Series B Funding. Guidewheel offers an AI-powered FactoryOps platform for the factory floor. The funding will be used to fuel global expansion. The round was led by Decarbonization Partners, a partnership between BlackRock and Temasek, with participation from Ecolab, Rethink Impact, and GSBackers and existing investors Greycroft and Breakthrough Energy Ventures.
Zepto Raises $340M in Series G Funding. Zepto is an Indian instant delivery startup. In part, this funding will be used to expand the companyâs network of dark stores to 700+ by March 2025. General Catalyst and Mars Growth Capital co-led the round.
Re:Build Manufacturing Raises $120M in Funding. Re:Build Manufacturing currently holds 13 US industrial and engineering businesses to serve as a one-stop-shop for clientsâ manufacturing needs and help new companies make products on American soil. General Catalyst led the round.
Element Acquires Autofleet for $110M. Element is the largest publicly traded pure-play automotive fleet manager. Autofleet is a digital platform with optimized mobility solutions tailored for the fleet industry. Autofleetâs expertise will enable Element to fast-track the modernization of its digital capabilities.
Hadrian Acquires Datum Source. Hadrian is a largely autonomous factory that mass-produces parts for major space and defense companies. Datum Source helps hardware companies find manufacturing partners. Datum Source gives Hadrian the ability to match defense tech startups they werenât able to serve due to their rapid iteration needs with other manufacturers.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Senior Software Engineer, Full Stack at Vizion in Palo Alto, CA (remote).
Senior Technical Recruiter, Hardware at Gatik AI in Mountain View, CA.
Ground Operations Support at Manna in Dublin, Ireland.