Dynamo Dispatch (2024/10/21)
Issue 305 | BackOps, Autone, Ghost
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 💭
With two weeks until the US election, there’s been increased discussions on how the results will influence the global supply chain. We at Dynamo have been keeping a close eye on the potential impacts on not just imports and tariffs, but also if US funding might continue to flow to electrification. No matter what happens, we’ll continue to bring you the latest.
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Supply Chain 📦
⭐ A Second Trump Presidency Stands to Radically Remake World Trade. US customs duties have increased over time, primarily driven by trade policies initiated during President Trump's first term and continued under the Biden administration. These tariffs, especially on Chinese imports, were initially used as a negotiation tool but later became a broader strategy to reduce dependence on foreign markets. The rising duties aim to protect domestic industries, address trade imbalances, and counteract what is seen as unfair trade practices by China, such as subsidies and state support for national champions. The increasing tariffs have resulted in higher prices for consumers and businesses and raised concerns about potential long-term trade wars and global retaliation. As for where, Trump’s Proposed Tariffs Would Fall Hardest on States in the Midwest and South.
ASML Shows Chasm in Chip Land: AI Winners Versus Everyone Else. The semiconductor industry is increasingly divided between companies benefiting from the AI boom and those facing challenges in non-AI markets. Chipmakers linked to AI, such as Nvidia, are thriving due to heavy investments by Big Tech in AI infrastructure, while companies producing chip equipment, like ASML and Lam Research, are struggling with reduced demand in sectors like automotive and personal computing. AI-related sales are projected to soar, but non-AI semiconductor makers are grappling with inventory issues, sluggish demand, and geopolitical tensions. This divide may persist until 2025, with AI remaining a major growth driver for the industry. Unrelated, DHL Declares ‘Tesla Semi is Ready for Prime Time’.
Oxfam Files Formal UN Complaint Against Amazon, Walmart’s ‘Systematic Human Rights Violations’. Oxfam has filed a formal complaint with the UN accusing Amazon and Walmart of systematic human rights violations. The complaint, co-signed by two anonymized employees, highlights issues such as workplace surveillance, unsafe working conditions, wage disparities, and discrimination against women and people of color. Oxfam claims both companies prioritize profits over employee well-being, leading to mental and physical distress. They have called on the UN to push for reforms, including improving safety measures, addressing wage inequalities, and reducing oppressive surveillance practices. Globally, Germany is Hardening Its Supply Chains Against Chinese Control and HP is Shifting Some of Its Supply Chain Management From Taiwan to Singapore to Minimize Geopolitical Risks.
Shanghai, Hong Kong Ports Lag Global Peers on Maritime Services, Says Former Hong Kong Chief Executive. Former Hong Kong chief executive Leung Chun-ying has urged Shanghai and Hong Kong to expand their shipping-related services such as marine insurance, maritime arbitration, and shipbroking to enhance their roles as global shipping hubs. While Shanghai is the busiest container port globally, its dominance is based on handling volume alone. Leung noted that both cities lag behind international competitors like London, which leads in marine insurance and shipbroking. He emphasized the importance of upgrading services like shipping finance, maritime law, and vessel financing to compete on a global scale. Elsewhere, Longshore Wage Deal at East, Gulf Ports to Add at Least $5B in Labor Costs and Container Liner Industry Frustration as India Demands Millions In Taxes.
UK Counterterror Police Probe Whether Russia Planted Parcel Bomb. UK counterterrorism police are investigating a package that caught fire at a DHL depot in Birmingham in July, as fears grow that Russian agents are conducting "mayhem" on British streets. The incendiary device caused no significant damage, but a similar incident occurred in Germany when a parcel ignited at a DHL facility. Germany's intelligence chief warned that such incidents could have caused a crash had they occurred mid-flight. While Russian involvement in the UK incident hasn't been confirmed, investigators are working with European law enforcement to determine if the cases are connected to broader Russian sabotage efforts. This follows warnings from Western security officials about an increase in Russian "special operations" across Europe including acts of sabotage and arson. In other news, Four in Custody After Thieves Raid Freight Train in Chicago.
Mobility 🚗
⭐ Boeing Reaches Tentative Deal to End Five-Week Strike Amid Ongoing Financial Struggles. Boeing and its workers have reached a tentative agreement to end a five-week strike, offering a 35% wage increase over four years and improved 401(k) contributions, though pensions remain unchanged. The strike has cost Boeing $1B a month, halting jet production, and adding to the company's financial woes, which include $33B in losses tied to two fatal 737 MAX crashes. While the union recognized improvements in the deal, they have not endorsed it, and a vote by the 33,000 union members is scheduled for Wednesday to determine the outcome. Also UPS, Tesla, Southwest Airlines Fall Premarket; Kenvue, Boeing Rise, Boeing to Sell at Least $10 Billion in Shares to Plug Cash Drain, and Boeing Sells Surveillance Equipment to Thales.
US EV Sales Hit Another Record In Q3 2024: '10% Share Within Reach'. EV sales in the US hit a new record with 346,309 units sold, a 5% increase from the previous quarter. Tesla rebounded with strong sales of the Cybertruck and refreshed Model 3, helping it remain the dominant EV brand, while GM also surged, becoming the second-largest EV seller behind Tesla. Attractive lease deals, discounts, and tax incentives played a significant role in driving sales growth, particularly as the average EV price remains high. Improved infrastructure and more affordable EV models are expected to support continued growth in the coming months. Elsewhere in EVs, GM Pours $1B Into North American Lithium Ventures, CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making, and Indonesia to Export EV battery Material to US Next Month, Minister Says.
US Agency Launches Investigation into Tesla’s Self-Driving Technology. Tesla's "Full Self-Driving" mode is under investigation by US authorities following multiple crashes, including a fatal incident involving a pedestrian. The probe was launched after reports were received of accidents in low-visibility conditions, affecting over 2.4M vehicles. If the investigation finds significant safety risks, it could lead to a recall. While Elon Musk has continued to promote Tesla's autonomous driving technology, skepticism remains as Tesla's FSD has faced numerous setbacks, and competitors like Waymo have already launched driverless vehicles. For more on autonomy, How San Francisco Learned to Love Self-Driving Cars and Pony.ai, One of China’s Leading Autonomous Driving Developers, Files for US IPO.
Stellantis Expands Mexico Factory to Build More Ram Pickups Outside the US. Stellantis is expanding its factory in northern Mexico to potentially produce Ram 1500 pickup trucks, a move that could strain its relationship with the UAW union. While the company has committed to continuing production at its Michigan plant and investing $235M there for electric truck production, the shift to Mexico may increase tensions. Stellantis faces pressure from rising US labor costs following a landmark UAW agreement, pushing the company to consider moving more production to Mexico. This decision also comes amid political criticism, particularly from Donald Trump, who has threatened penalties on automakers producing vehicles outside the US.
Soaring Insurance Costs Hit as US Buyers Get a Break on Car Prices. American car buyers are facing rising auto insurance costs, even as car prices have eased following the pandemic. Insurance rates for some models now account for over a quarter of the total cost of vehicle ownership, driven by factors such as increased repair costs, storm damage, and more complex vehicle technology. While new car prices have slightly declined and automakers are offering more incentives, auto insurance costs surged 22.2% in the past year, the largest increase since the 1970s. This rise in insurance expenses is affecting consumers' buying decisions, with some declining or returning cars due to unaffordable insurance premiums. Completely unrelated, Bike Manufacturers Are Making Bikes Less Repairable.
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 💸
BackOps Raises $2M in Pre-Seed Funding. BackOps is an AI-driven platform automating supply chain logistics and acting as the central nervous system for operations. The funding will be used for continued development on the platform. Gradient Ventures led the round, with participation from 10VC.
Perceptyne Raises $3M in Seed Funding. Perceptyne has developed an AI-powered, full-stack robotics platform designed for tasks requiring human-like dexterity, such as product assembly and packaging. The funding will be used to accelerate product development, customer acquisition, and growth. Investors in the round include Endiya Partners and Yali Capital.
Aerleum Raises $6M in Seed Funding. Aerleum is DAC company planning to turn CO2 directly into fuel for cargo ships and eventually airplanes. The funding will be used to build a pilot of its DAC device. 360 Capital and HTGF led the round, with participation from Bpifrance, Marble, and Norrsken.
Fin Raises $7M in Seed Funding. Fin is an electric last-mile delivery provider. The round will fuel operational expansion. The round was led by MaC Venture Capital with participation from Side Door Ventures, Pearls Capital and Simplex Ventures.
Lidwave Raises $10M in Seed Funding. Lidwave has developed 4D LiDAR on-chip technology. Jumpspeed Ventures and Next Gear Ventures co-led the round along with participation from a Swedish truck manufacturer, Sapir Venture Partners, OurCrowd, Teramips Technologies, Beyond-Electronics, and Howard Morgan.
Beacon AI Raises $15M in Series A Funding. Beacon AI is an aviation intelligence startup aiming to enhance flight deck efficiency. The round will enable the company to expand its team and accelerate the rollout of its products. The round was led by Costanoa Ventures and joined by Scout Ventures, OpenAI's Sam Altman, and JetBlue Ventures.
Inshur Raises $19M in Funding. Inshur provides auto insurance, focusing on the on-demand market. Viola Growth led the round and was joined by MS&AD Ventures.
Omnea Raises $25M in Funding. Omnea is an all-in-one procurement platform that automates the full supplier lifecycle. Accel led the round, with participation from existing investors First Round Capital and Point Nine.
Autone Raises $27M in Series A Funding. Autone is an AI-powered platform for inventory management. The round will enable expansion of go-to-market efforts within the US and engineering team expansion. General Catalyst led the round, with participation from existing investors Speedinvest, YCombinator, Seedcamp, 2100VC, Motier, Financière Saint James.
Ghost Raises $40M in Series C Funding. Ghost is a B2B marketplace for brands and retailers to buy and sell surplus and wholesale inventory. The funding will be used to fuel operational expansion and development efforts. The round was led by L Catterton, with participation from USV, Cathay Innovation, Equal Ventures, and Eniac.
Jüsto Raises $70M in Funding. Jüsto is an online grocer in Latin America. The funding will be used for operational efficiency gains and execution of the growth strategy in its primary market of Mexico. The round was led by General Atlantic and includes a $20M debt facility from HSBC Mexico.
Path Robotics Raises $100M in Funding. Path Robotics is an AI-enabled robotic steel welding company. The funding will be used to expand operations and its development efforts. Matter Venture Partners and Drive Capital led the round, with participation from Yamaha Ventures, Taiwania Capital, MediaTek, Catapult Ventures, Gaingels, Addition, Tiger Global, and Basis Set.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Technical Field Manager at PaintJet in Texas (Remote).
Customer Success Manager at Solvento in Mexico City, MX.
Senior Commercial Analyst/Manager at Gatik AI in Mountain View, CA.