Dynamo Dispatch (2024/09/23)
Issue 302 | Two Boxes, Cayena, AtoB
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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Supply Chain đŠ
â Exploding Pagers Raise Global Supply Chain Security Concern. Recent explosions of booby-trapped pagers in Lebanon, believed to be part of an Israeli operation targeting Hezbollah, have highlighted the growing risks of weaponizing supply chains. It has raised concerns about global dependence on foreign technology. US officials and experts warn that these vulnerabilities could be exploited by other adversaries, including China, which has been accused of prepositioning cyberattacks on critical infrastructure. Even low-tech devices like pagers can be infiltrated, reinforcing the need for stricter security measures in global supply chains. As for semiconductors, Apple Mobile Processors Are Now Made in America By TSMC and Taiwan Chip Industry Suppliers Set Sail for Japanâs âSilicon Islandâ.
Southern California Supply Chain Fluid Despite Surging Import Volumes. The ports of Los Angeles and Long Beach are handling record import volumes smoothly this peak season, thanks to warehouses in Southern California maintaining steady freight flow. Unlike the COVID-19 period, when supply chain bottlenecks were common, warehouses are now fully staffed and equipped to manage surges. Near-dock storage yards are also playing a key role by providing temporary container storage, preventing backlogs at marine terminals. However, intermodal rail is experiencing delays with rail container dwell times rising due to strong inland point intermodal traffic, something to keep an eye on if volumes continue to increase. As for the other side of the US, Carriers Announce Disruption Surcharges for US East Coast Cargo as Strike Looms.
Amazon Offers Sellers âFully Managedâ Supply Chain Solution. Amazon has announced a "fully managed" option for sellers using its Supply Chain by Amazon solution, allowing sellers to automate logistics, warehousing, and distribution decisions. This new feature, launching in October for US sellers and globally by the end of the year, enables sellers to specify product quantity and pickup location. After that, Amazon will handle everything from transport to warehousing. This automation uses ML and predictive analytics, though sellers still maintain control over which processes they want automated. The service aims to simplify operations, particularly for SMBs, while offering cost savings on storage and transportation fees. Less advanced, More Than Half of Shippers In a Survey Blame Container Lines for Holding Back Digital Advances while Inspectors Says Loose Wire May Have Caused Power Outage That Led to Dali Crash in Baltimore.
US Customs Clamps Down On Vague Cargo Descriptions. US Customs and Border Protection is enforcing stricter rules on vague shipment descriptions submitted through the Air Cargo Advance Screening program. Starting October 7, carriers must provide precise cargo descriptions, rejecting vague terms like "gift" or "accessories". Non-compliance could result in cargo rejections, potentially delaying entire shipments. This follows recent US crackdowns on imports, including tightening rules on eComm shipments, with increased scrutiny of goods entering under the de minimis $800 exemption. Elsewhere, German Regulators Mulling New Rules for Shein and Temu.
Railroads Love âMonsterâ Trains, Texans Donât. Freight trains in the US are growing longer, some exceeding three miles, causing significant disruptions in communities like Pleasantville, Texas. These "monster trains" generate higher profits for rail companies by using fewer locomotives and crew, but they block roads for extended periods, delaying school buses, emergency vehicles, and pedestrians. Texas has the most blocked crossings in the US, and while federal regulators are investigating the effects of long trains, no federal limits exist on their length. Efforts to address the problem include state legislation and local initiatives like pedestrian overpasses and digital signs, but solutions are costly and slow to implement. Unrelated, Grocery Sales Through Delivery in the US grew 10% in August.
Mobility đ
â Mercedes, BMW Flash Warning Lights on China. China's weak consumer economy has significantly impacted the luxury car market, with Mercedes-Benz and BMW cutting their earnings forecasts due to cautious affluent consumers in China. Mercedes CEO Ola KĂ€llenius noted that difficulties in their largest market, China, are hampering their growth, contributing to a stock drop of 6%. German luxury carmakers, like their French fashion counterparts, are struggling with declining Chinese sales amid high interest rates and the transition to EVs. Additionally, local Chinese EV competitors like Li Auto and NIO are drawing wealthier consumers, further challenging German brands like Mercedes, BMW, and Porsche. Also, VW and China Partner SAIC Set to Close Car Plant as Sales Shrink.
US to Propose Barring Chinese Software, Hardware in Connected Vehicles, Sources Say. The US Commerce Department is expected to propose banning Chinese software and hardware in connected and autonomous vehicles on U.S. roads due to national security concerns. The Biden administration is worried about potential data collection and manipulation by Chinese companies, which could affect U.S. drivers and infrastructure. The proposed regulations, which would start in 2027 for software and 2029 for hardware, will be open to public comments before finalization. Also in the battle with China, Biden Administration Awards $3B to Boost Domestic EV Battery Production in Bid to Counter China.
EU New Car Sales Drop 18% in August, EV Figures Plummet 44% Y/Y. New car registrations in the EU fell by 18% in August, with Germany experiencing the largest drop at 27.8%, followed by France, Italy, and Spain. EV registrations dropped sharply by 43.9%, with market share decreasing to 14.4%, particularly impacted in Germany and France. Meanwhile, hybrid-electric vehicles saw growth of 6.6%, becoming the only segment with an increase, as their market share rose to 31.3%. Despite these shifts, traditional petrol and diesel car sales continue to decline, reflecting broader changes in the automotive market.
AV Developer Nuro Plans to License its Tech to Automotive OEMs. Nuro plans to license its autonomous driving platform, "Nuro Driver," to automotive OEMs and mobility providers, broadening its business model to speed up the adoption of self-driving technology. The Nuro Driver, tested on public roads for over 1M miles without at-fault accidents, will help companies fast-track their autonomous vehicle development while cutting costs. Powered by Nvidia's AI-driven processor, the platform supports Level 4 autonomyâoperating without human interventionâand is designed for various vehicle types, from personal cars to commercial fleets. Nuro aims to be a key player in the future of widespread autonomous mobility, enhancing both goods and personal transportation. Also in autonomy, Waymo To Launch In Atlanta And Austin With Uber For Hails and Depots.
GM Begins Sales of Adapters to Tap Into Teslaâs Charging Network. Starting this month, GM electric EV owners can access Tesla's 17,800 Superchargers by purchasing a $225 adapter, following a deal between GM and Tesla last year. Beginning with 2026 models, GM will include Teslaâs North American Charging Standard (NACS) ports in its EVs. This move coincides with GM's push to boost EV sales, particularly with more affordable models like the Chevrolet Equinox and Blazer. GM also plans to add 400 fast chargers through its partnership with EVgo to expand its charging network. Also on GM, GM Recalling More than 449,000 SUVs, Pickups Due to Issue with Low Brake Fluid Warning Light.
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
AltiusHub Raises $2.2M in Seed Funding. AltiusHub is a supply chain visibility software provider for manufacturers to secure their supply chain from counterfeit. The funding will be used to expand the company's engineering team and hire senior talent with industry expertise. Endiya Partners led the round.
Pickommerce Raises $3.4M in Seed Funding. Pickommerce is building a piece-picking robotic solution for warehouses. The funding will be used to advance the development and production of its robot. IL Ventures led the round, with participation from InNegev, Fusion VC, and others.
Hgen Raises $5M in Seed Funding. Hgen makes clean hydrogen to decarbonize heavy industry. The funding will be used to accelerate the commercial deployment of its tech at customer sites. Seven Seven Fix led the round, with participation from Founders Fund and Fontinalis Partners.
Two Boxes Raises $5.3M in Seed Funding. Two Boxes helps brands and 3PLs to streamline returns and capture data from the process. The funding will be used to grow its engineering and GTM teams and expand beyond North America. Peterson Ventures led the round, with participation from Assembly Ventures, Vinyl, Range Ventures, and Matchstick Ventures.
Safire Group Raises $8M in Pre-Series A Funding. Safire Groupâs technology prevents lithium-ion battery explosions and fires through an instantaneous liquid-to-solid transformation upon mechanical impact. Safire Group will use the funding to deliver its tech across government and automotive industries. The round was led by Canaan Partners, with participation from Correlation Ventures, Higher Life Ventures, Ajinomoto, Automotive Ventures, Outpost Ventures, Potomac Angel Capital, and MaC Venture Capital.
Tidal Metal Raises $8.5M in Seed Funding. Tidal Metals extracts primary magnesium metal from seawater to produce decarbonized magnesium for industries such as steel and transportation. The funding will be used for a pilot plant project which can produce 200 tons per year before scaling to a larger facility of 10,000 tons per year. The round was led by DCVC and joined by Bidra Innovation Ventures and First Spark Ventures.
Cybord Raises $8.7M in Series A Funding. Cybord is a visual AI solution ensuring electronic component quality, authenticity, and traceability. The funding will be used to accelerate the companyâs growth and further global distribution. Capri Ventures led the round, with participation from Ocean Azul Partners, IL Ventures, and NextLeap Ventures.
Zeno Raises $9.5M in Seed Funding. Zeno makes electric motorcycles and swappable batteries for customers in emerging markets. The round will be used for launch and expansion. Lowercarbon Capital and Toyota Ventures co-led the round and were joined by 4DX Ventures, Active Impact, Advantedge, MCJ, and RedBlue.
Toolpath Raises $10M in Seed Funding. Toolpath aims to optimize the machining business with AI. The round will enable the company to accelerate its technology and analyze new business opportunities. Leaders Fund led the round.
Phlair Raises âŹ14.5M in Seed Funding. Phlair has developed a hydrolyzer-based direct air capture technology to remove CO2 from the air and use it in applications such as sustainable aviation fuel. The round was led by Extantia Capital with participation from Planet A and Verve Ventures.
Feronivum Raises $23.2M in Series A Funding. Feronivum provides inventory financing to wine and spirits producers, distributors, and merchants. The round was led by Notion Capital, with Shapers VC and Semapa Next participating.
DeepDrive Raises âŹ30M in Series B Funding. DeepDrive is developing an EV motor that it claims uses fewer materials, occupies less space, and costs less to produce than traditional EV motors. The funding will enable DeepDrive to convert the high-volume projects in its pipeline. The round was led by Leitmotif.
Cayena Raises $55M in Series B Funding. Cayena streamlines transactions between suppliers and buyers in the wholesale food industry. The round will enable the company to expand from 100 locations to 500 more cities. Bicycle Capital led the round and was joined by Picus Capital, FEMSA Ventures, Globo Ventures and Canary.
Air Company Raises $69M in Funding. Air Company converts CO2 into jet fuel. The funding will be used to expand production capacity. The round was led by Avfuel, along with Lowercarbon Capital, IQT, Alaska Airlines, and more.
AtoB Raises $130M in Series C Funding. AtoB is a transportation industry payments solution provider. The funding will be used for product development and team expansion. General Catalyst and Bloomberg Beta led the round, with participation from Mastercard.
Flink Raises $150M in Venture Funding. Flink is a quick commerce startup out of Berlin. The funding will be used to double down on business in Germany and the Netherlands. Investors include BOND, Mubadala, Northzone, and REWE.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Founding Software Engineer at Importal in Austin, TX.
Product Designer at Factored Quality in New York, NY.
Operations Manager at Zeelo in Newark, NJ / Yonkers, NY.