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
Preparations are in full swing as businesses anticipate potential shifts in supply chains under President-elect Donald Trump. While a cooling of ties with China seems likely, the degree to which US manufacturing can bridge the gap â alongside countries like Mexico and Vietnam â remains uncertain. Amongst the industries greatly impacted by these shifts is the US automotive sector. In parallel, automakers are adjusting to a more bearish electric vehicle outlook as the tax credits that once made EVs more affordable for consumers head to the chopping block. Meanwhile, in areas like AI, robotics, and other supply chain automation, some industry leaders view Trumpâs deregulation proposals as a catalyst for increased investment and adoption. As always, read on for more.
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Supply Chain đŠ
â Will Trumpâs Tariffs Spur US Manufacturing? Executives Are Split. Manufacturing executives are divided on the impact of President-elect Donald Trumpâs proposed tariffs on US production. Some believe the tariffs could revive domestic manufacturing, while others worry about higher costs and shifting production to countries like Vietnam or Mexico instead of returning to the US. Executives from companies like Stanley Black & Decker and Polaris cite challenges with US-based production and say relocating supply chains domestically is unlikely. However, some view the tariffs as a potential boost for US manufacturing, sparking optimism about renewed demand for domestic products. For more data points, Nvidia and Apple Suppliers Ready to Boost US Investments Under Trump.
ILA Breaks Off Negotiations Over Automation Issues for East Coast Ports. Negotiations between the International Longshoremenâs Association (ILA) and the United States Maritime Alliance (USMX) have broken down again, with the ILA opposing automation at ports, citing job security concerns. USMX insists modernization is crucial for efficiency and safety but claims it is not aimed at eliminating jobs. The automation issue remains unresolved despite previous agreements, including a 62% wage increase over six years. It leaves a strike highly likely after the contract expires on January 15, 2025 that could significantly disrupt US ports, but its impact might be tempered by the traditionally slower economic activity in January. Elsewhere, China-backed Megaport to Open in Peru as Belt and Road Hub, Canadian Government Intervenes to End Work Stoppages at Nationâs Ports, and 11 Companies Compete for Right to Operate Major New Port in Iraq.
Chinaâs Economy Picks Up, But Still Needs More Help. China's economy showed some improvement in October, with retail sales rising 4.8% YoY and steady fixed asset investment, supported by Beijingâs growth-friendly policies. However, industrial production slowed slightly, and the real estate sector continued its slump as property investment falling over 10% YTD. Economists warn that a potential new US-China trade war under President-elect Donald Trumpâs administration, including proposed 60% tariffs on Chinese imports, could strain Chinaâs exports and amplify the need for domestic fiscal stimulus. Without substantial measures, growth momentum could wane by the second half of 2025, especially under the pressure of weak consumption and persistent property sector challenges. Completely unrelated, Ecolectro Stuffs Hydrogen Production into Shipping Containers to Cut Costs.
FreightTech Could See Boost From Trumpâs Second Presidency. President-elect Donald Trump's technology policies could spur advancements in the freight and logistics industries, including AI, automation, robotics, and 3D printing. Experts predict his administration will encourage domestic innovation, potentially loosening regulations and promoting investment in freight technologies like AI-powered pricing, route optimization, and automated warehouses. Robotics and automation could see significant growth, enhancing US competitiveness in manufacturing and logistics while addressing labor shortages in specialized roles. As for right now, New Yorkâs Rules On Turbine Transportation Are Blowing Its Climate Goals Out of Reach.
Amazonâs Delivery Drivers Could Soon be Forced to Wear Smart Glasses. Amazon is reportedly developing smart glasses for its delivery drivers to streamline the "last 100 yards" of package deliveries. These glasses, building on the Echo Frames technology, would offer turn-by-turn navigation and take proof-of-delivery photos, aiming to improve efficiency and reduce costs. However, challenges remain, including battery life, comfort for extended wear, and gathering detailed location data. While the glasses could increase delivery productivity, implementation may face resistance from drivers and logistical hurdles, with development still years away from completion. Additionally, Amazon, IKEA Join Other Ocean Cargo Shippers to Boost Demand for New Green Fuels while Ulta Beauty Bets Big on Market Fulfillment Center Model.
Mobility đ
â The Withering Dream of a Cheap American Electric Car. The prospect of a $25K EV for US consumers faces significant challenges due to economic realities and shifting industry priorities. Elon Musk and other auto executives, like Lucid Motors' Peter Rawlinson, have highlighted the difficulty of producing cheap EVs, citing low profit margins and high costs of manufacturing and battery technology. The pandemic accelerated price increases, with automakers prioritizing higher-margin vehicles, leading to a dramatic drop in affordable car options; only 9% of new cars sold in the U.S. are now under $25K compared to 40% a decade ago. Meanwhile, Chinese automakers are poised to fill the gap with inexpensive EVs, potentially disrupting the market as US automakers struggle to balance affordability and profitability in an increasingly competitive landscape. Also in electrification, Polestarâs US Customers Gain Tesla Supercharger Access.
Exclusive: Trump's Transition Team Aims to Kill Biden EV Tax Credit. President-elect Donald Trumpâs transition team is reportedly planning to eliminate the $7,500 EV tax credit, a move that could significantly hinder the US transition to EVs. While Tesla supports ending the credit, as it could harm competitors more than itself, other automakers like GM and Ford are heavily reliant on the subsidy to make EVs financially viable and attractive to consumers. Critics, including industry experts and labor unions, warn that removing the credit would weaken the US auto industry, ceding ground to highly subsidized Chinese EV manufacturers. This policy shift aligns with Trumpâs broader focus on boosting oil production and rolling back Bidenâs clean energy initiatives, but it may exacerbate challenges for American automakers trying to compete globally in the EV market. Elsewhere, China, EU Reach âTechnical Consensusâ Over EV tariffs, Report Says.
AV Confidence Gains Traction, but Still Room for Improvement: JD Power. Consumer confidence in autonomous vehicle technology has slightly improved, but skepticism remains high. A significant majority of respondents (83%) want more safety data, while 86% desire the ability to manually control AVs, reflecting lingering concerns about trust and safety. Data privacy is also a major issue, with 64% worried about data security and 40% indicating that a brandâs privacy policy could influence their purchasing decisions. Legal challenges, like GMâs alleged misuse of driver data, underscore consumer fears, highlighting the need for transparency, independent oversight, and better communication of safety findings to build trust in AV technology. Also, Chinese Autonomous-Driving Company Pony AI Steers Toward US Initial Public Offering.
Volkswagen and Rivian Officially Launch Joint Venture Agreement. Volkswagen has increased its investment in Rivian to $5.8B, forming a 50% joint venture focused on developing next-generation EV architectures and software technology. The partnership, named Rivian and VW will combine Rivianâs software expertise with Volkswagenâs manufacturing capabilities. This collaboration provides Rivian with a vital cash infusion to advance projects like the $45K R2 SUV and grants Volkswagen access to Rivianâs electronic architecture for its own vehicles. Completely unrelated, Ford Will Pay Up to $165M Fine for Rearview Camera Recall Failures.
NYC Congestion Pricing Plan up For Vote Today at MTA Board Meeting. New York Cityâs congestion pricing plan, set for early January 2025, proposes lowering tolls to enter Manhattan below 60th Street from $15 to $9, aiming to balance congestion reduction with affordability. The plan, which requires an MTA vote and federal approval, is expected to generate $15B for critical MTA projects like signal modernization and subway expansion. While advocates support the initiative for easing traffic and improving air quality, critics, including some elected officials, argue it imposes a regressive tax on commuters. Public comments on the proposal are invited during MTA meetings, highlighting the contentious nature of the debate. Also, Amtrak Wins $300 Million to Fix Its Unreliable NJ-to-NYC Service.
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
Airbound Raises $1.7M in Seed Funding. Airbound is a drone delivery startup focused on building next-gen lightweight drones, focused initially on medical deliveries. Lightspeed led the round, with participation from gradCapital and angels.
Continuum Raises $4.1M in Seed Funding. Continuum is a reverse logistics software startup dedicated to B2B distribution and manufacturing. The funding will be used to expand its supply chain network and enable streamlined workflows. Cowboy Ventures led the round, with participation from M25, Clocktower Ventures, and Cambrian.
Ecolectro Raises $10.5M in Series A Funding. Ecolectro builds electrolyzers to produce hydrogen power. The funding will be used to build its first commercial scale electrolyzer. Toyota Ventures led the round, with participation from Cornell University, New Climate Ventures, Starshot Capital, and Techstars.
Tozero Raises $11.7M in Seed Funding. Tozero recovers valuable raw materials from recycled lithium-ion batteries. The funding will be used to build its first industrial deployment plant. NordicNinja led the round, with participation from In-Q-Tel, Honda, and JGC Group.
BrightPick Raises $12M in Venture Funding. BrightPick offers AI robots for warehouses to automate every step of fulfillment. The funding will be used to support the deployment of robots and AI in the US. Investors in the round include EBRD Venture Capital, the founders of Avast, the founder of ESET, and others.
ePlane Raises $14M in Series B Funding. ePlane is and Indian startup building eVTOLs focused on intra-city commute and cargo-focused aircraft. The funding will help secure global regulatory certifications and boost its commercialization efforts. Speciale Invest and Antares Ventures co-led the round, with participation from Micelio Mobility, Naval Ravikant, Java Capital, and others.
Vecna Robotics Raises $14.5M in Venture Funding. Vecna Robotics provides flexible material handling automation solutions in manufacturing and warehousing. The funding will be used to accelerate technology and product enhancements. The round consisted of existing investors.
Fleek Raises $14.8M in Series A Funding. Fleek is an online marketplace that connects secondhand clothing wholesalers with those that sell it at retail. The funding will be used to continue expanding its platform. HV Capital led the round, with participation from Andreessen Horowitz and YC.
Cogna Raises $15M in Series A Funding. Cogna is an AI-first ERP to deliver a custom, precision-built experience. The funding will be used to build the GenAI engine to write itself. Notion Capital led the round, with participation from Hoxton Ventures and Chalfen Ventures.
Orderful Raises $15M in Venture Funding. Orderful is an EDI integration platform for the logistics and supply chain sectors. The funding will support continued product development and growth. NewRoad Capital Partners led the round, with participation from 9Yards, Flume Ventures, and NFI ventures, joined by existing backers Andreessen Horowitz and GLP Capital Partners.
Wheelocity Raises $15M in Series A Funding. Wheelocity is an Indian provider of fresh produce supply chain solutions targeting semi-urban and rural markets. The funding will be used to expand to 20K towns and villages over the next 12 months. Lightspeed led the round, with participation from Alteria Capital and Anicut Capital.
Bounce Raises $19M in Series B Funding. Bounce is luggage storage startup. The funding will be used for market expansion and adding more verticals in its traveler convenience network. Sapphire Sport led the round, with participation from Andreessen Horowitz, General Catalyst, 20VC Growth, FJ Labs, Shilling, and Tahyer Ventures.
Prokeep Raises $25M in Series A Funding. Prokeep is a customer communications and engagement platform for distributors. The funding will be used to accelerate its growth and expand its demand generation capabilities designed for distributors. Dahlia Equity Partners led the round, with participation from Ironspring Ventures, S3 Ventures, Benson Capital Partners, and others.
OpenAirlines Raises âŹ45M in Funding. OpenAirlines provides digital tools that help airlines lower emissions and costs across flight operations. The funding will help fuel expansion into new markets in North America and Asia. Eiffel Investment Group led the round, with participation from Mirova.
Wonder Acquires Grubhub for $650M. Wonder operates delivery-focused restaurants in New York and Philadelphia. GrubHub is a food and grocery delivery platform. Wonder now aims to create a super app for food delivery through this acquisition.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Data & Machine Learning Engineer at Improvin in Stockholm, Sweden.
Senior Manager Assets at Gatik in Mountain View, CA.
Commercial Marketing Manager at Manna in Dublin, Ireland.