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 💭
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Supply Chain 📦
⭐ Trump Plans ‘Energy Dominance’ Executive Orders After Inauguration. President-elect Trump is set to reverse Biden-era limits on offshore drilling, federal land drilling, and LNG export approvals while rolling back emissions and fuel-economy standards that he claims burden US automakers. Central to this agenda is revitalizing domestic manufacturing by extending the lifespan of gasoline-powered vehicles and rolling back California's EV mandates. These moves, coupled with plans to create a national energy council, aim to strengthen US energy independence and support industrial growth, though legal and legislative challenges are anticipated. Completely unrelated, Burlington Foresees a Smaller Future For US Retail.
US Probe Finds China Unfairly Dominates Shipbuilding, Paving Way for Penalties. A US investigation concluded that China uses subsidies, labor cost suppression, forced technology transfer, and IP theft to control over 50% of the $150B global shipbuilding market, reducing US shipbuilders' market share to below 1%. The findings, released as President-elect Trump prepares to take office, could lead to tariffs or port fees on Chinese-built vessels, aiming to revitalize U.S. shipbuilding. Industry leaders agree that rebuilding US capacity will require decades of investment and policy reform to counter China's dominance. Also over the sea, Freightos Warns of eComm Air to Ocean Shift and Shipping Cautious as Gaza Ceasefire Agreement Nears.
Mexico Plans Nearshoring Incentives to Curb China Imports. Mexico President Claudia Sheinbaum announced incentives including tax deductions and sector-specific plans to promote nearshoring and increase local content in Mexican-made goods. The initiative aims to strengthen trade ties within the US-Mexico-Canada Agreement (USMCA) and support regional competitiveness against China. The government will also focus on renewable energy expansion, streamlined permits for energy projects, and increased investment to drive growth, with specific goals such as raising the percentage of Mexico-made components in vehicles to 15% by 2030. Also, US Apparel Importers Scrambling After Mexico Imposes Tariffs.
Battles Over California’s Advanced Clean Trucks Rule Rage Far Beyond State Line. The ACT rule, effective January 2025, mandates that manufacturers increase sales of zero-emission vehicles (ZEVs), sparking nationwide discussions and legal battles as multiple states follow California’s lead. Critics argue the rushed timeline and high costs for ZEVs risk prolonging the use of older, less efficient diesel trucks, while uncertainty around regulations has tightened truck supplies. California claims its flexible credit system ensures smooth ZEV adoption without halting diesel vehicle availability, but stakeholders including trucking associations, urge manufacturers to oppose the rule and seek balanced solutions. Meanwhile, Amazon Makes ‘Largest Ever’ UK Order of Electric Trucks to Cut Carbon Emissions.
Report: US Imports High Percentage of Goods Made With Forced Labor. A report by the Rand Homeland Security Research Division estimates 28M people, including 3M children, are trapped in forced labor globally, with the US accounting for 23% of imports potentially linked to such practices. The study highlights China's use of forced labor, particularly in its Xinjiang region, despite U.S. enforcement efforts under. Recommendations include bolstering trade law enforcement, improving supply chain transparency, enhancing DHS resources, and mitigating associated compliance costs for US businesses. In other regulations, CBP Looks to Increase 'De Minimis' Data Requirements.
Mobility 🚗
⭐ FTC Bans GM from Sharing Driving Data to Settle Claims That the Automaker Sold Data Without Consent. GM will be prohibited for five years from sharing driver data with consumer reporting agencies, following a settlement with the FTC over claims it shared such data without consent. The FTC alleged that GM used misleading processes to enroll consumers in its OnStar services and Smart Driver feature, collecting and selling precise geolocation and driving behavior data to third parties, including credit agencies and insurers. GM has since discontinued its Smart Driver program, unenrolled customers, and terminated relationships with third-party data brokers LexisNexis and Verisk Analytics. Also in GM news, NHTSA Probes Engine Failure Risk in 870,000 GM Trucks.
Car Plants in Europe, North America Face Closures in 2025, Gartner Says in Report. A report from Gartner warns that several European and North American car factories may face closures or sales this year due to overcapacity, price competition, and the dominance of Chinese EV makers, who excel in software and electrification. Automakers are expected to cut production in high-cost regions by 2025, pressured by emissions targets, tariffs, and mounting competition, with Chinese brands potentially acquiring plants or opening facilities in lower-cost countries like Morocco or Turkey. While Europe struggles to meet 2030 and 2035 EV goals, Gartner predicts EV shipments to grow 17% in 2025, with over 50% of vehicle models marketed as EVs by 2030. To adapt, legacy carmakers might adopt software from EV startups, invest in R&D centers, or form partnerships with tech firms for self-funded EV ventures. Related, Suppliers Face ‘Treacherous Environment’ in 2025 Amid EV Uncertainty, Looming Tariffs.
Most Automakers Close 2024 on a High Note. The US auto industry achieved record-breaking sales in 2024, driven by strong demand for EVs despite global challenges. GM led with 2.7M vehicles sold, up 4% YoY, including 42K EVs in Q4, while Ford posted a 6% annual sales increase, boosted by its F-Series trucks and a 38% rise in EV and hybrid sales. Toyota Motor North America sold over 2.3M vehicles, with EVs accounting for 43% of sales, while Tesla delivered 1.8M vehicles, setting a Q4 record of nearly 500,000 deliveries. Other automakers, such as Mercedes-Benz, Volkswagen, and BMW, also reported growth, with notable gains in EV sales, while Stellantis faced challenges, seeing declines but optimistic about its expanding EV lineup for 2025.
Report Finds that Almost $200B Invested in US EV Manufacturing in the Last Two Years. A recent report has found that $200B has been invested in EV manufacturing in the last two years, about two-thirds of which were announced after the passage of the IRA in 2022. These investments encompass 229 manufacturing projects at 208 facilities, with 57 already operational, creating over 50K jobs and supporting the potential for 826K more in indirect employment. Notably, more than 80% of investments are concentrated in Republican-held Congressional districts, with Georgia, Michigan, North Carolina, Tennessee, and Nevada leading. By 2028, US facilities are projected to produce 4.7M EVs annually, nearly one-third of 2023 vehicle sales, and manufacture 1,083 GW hours of EV batteries, enough to support 12M vehicles per year. Related, Rivian, DOE Finalize Loan Agreement for Georgia Manufacturing Site and DOE Announces Intent to Fund New Round of Battery Materials Processing and Manufacturing Grants.
Exclusive: Chinese Buyers Interested in Unwanted German Volkswagen Factories, Source Says. Chinese automakers are exploring opportunities to acquire German factories, including VW’s sites, to establish a foothold in Germany's auto industry and circumvent EU tariffs on imported EVs. VW, facing sales declines and rising competition from Chinese companies, is open to selling its Dresden and Osnabrück factories slated for closure. Chinese companies view producing vehicles in Germany as a strategic move to win over demanding European consumers, though they are wary of resistance from German unions, which prioritize job guarantees and high production standards. While most Chinese EV makers have opted for lower-cost European countries, acquiring German plants could strengthen their presence in the region's second-largest EV market. Also, China Kicks off Subsidised Auto Trade-Ins.
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 💸
Lyteflo Raises $3M in Seed Funding. Lyteflo is an EV merchandising solution for car dealerships to move EV inventory & appraise batteries more efficiently. Diagram led the round and was joined by Whitecap Venture Partners and Amplify.Capital.
MetAI Raises $4M in Seed Funding. MetAI is building AI-driven digital twin and synthetic data generation technologies for semiconductor manufacturing facilities, smart warehouses, and automation systems. Nvidia led the round and was joined by Kenmec Mechanical Engineering, Solomon Technology, SparkLabs Taiwan, Addin Ventures, and Upstream Ventures.
Daash Intelligence Raises $5.5m in Seed-2 Funding. Daash Intelligence is an AI-powered predictive commerce insights platform for retailers. The company will use the new funding to scale its engineering and GTM teams and accelerate product development. Bullpen Capital led the round, with participation from GTF Ventures and existing investors Silicon Road Ventures and Red Bike Capital.
Metafuels Raises $9M in Funding. Metafuels’ technology converts green methanol into aviation fuel. The funding will enable the company to complete its demonstration program and focus on industrialization. The round was led by Celsius Industries, with RockCreek, Fortescue Ventures, and Verve Ventures as well as existing investors Energy Impact Partners and Contrarian Ventures joining.
Sarla Aviation Raises $10M in Series A Funding. Sarla Aviation is an India-based eVTOL aircraft designed to serve as flying taxis for urban transportation. The funding will be used to build an R&D center, scale the team, and create new prototypes. Accel led the round.
Moment Energy Raises $15M in Series A Funding. Moment Energy repurposes EV batteries into battery energy storage systems. The funding will be used to build a second-life gigafactory in the US to accelerate production of its systems. Amazon Climate Pledge Fund and Voyager Ventures co-led the round.
Reeco Raises $15M in Series A Funding. Reeco offers a hotel procurement solution with a procure-to-pay approach. The round was led by Aleph Ventures and joined by Net Capital Ventures and Joule Ventures.
Pipe17 Raises $15.5M in Series A Funding. Pipe17 is a software company offering an AI-powered Order Operations platform that synchronizes order, pricing, and inventory data for omnichannel selling and fulfillment. The funding will be used to scale its AI-driven composable order operations infrastructure.
Reshop Raises $17M in Funding. Reshop is a returns refund platform that enables instant refunds for shoppers, redeemable through a virtual Reshop card. The funding will be used to accelerate GTM efforts and scale operations.
Labviva Raises $25M in Series B Funding. Labviva provides an AI-driven procurement platform connecting life sciences researchers with suppliers for reagents, chemicals, and instrumentation. The funding will accelerate product development, enhance marketing and customer support, and support international expansion. The round was led by 53 Stations, with participation from Biospring Partners, B Capital Group, and Glasswing Ventures.
Shippeo Raises $30M in Funding. Shippeo offers real-time multimodal transportation visibility. The funding will fuel North American & APAC expansion, as well as enhance its platform. The round was ed by Woven Capital, Toyota’s growth fund, with participation from existing investors Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good, and Yamaha Motor Ventures.
Amogy Raises $56M in Funding. Amogy offers ammonia-to-power solution for hard-to-abate sectors such as maritime. The funding will be used to accelerate commercialization in key markets as well as strengthen R&D efforts and manufacturing capabilities. The round was co-led by Aramco Ventures and SV Investment, with participation from Samsung Heavy Industries, BHP Ventures, Hanwha Investment & Securities, AFW Partners, Quantum Ventures Korea, Kibo Invest, and Seoul IP, along with existing investors Temasek, MOL Switch, Yanmar Ventures, AP Ventures, and Marunouchi Innovation Partners.
Netradyne Raises $90M in Series D Funding. Netradyne provides AI-enabled dashcams and safety solutions to improve driver behavior and reduce accidents for commercial fleets. The new funding will be used for global expansion, product enhancements, and investments in generative AI to improve driving safety and compliance. Point72 led the round, with participation from Qualcomm Ventures and Pavilion Capital.
Harbinger Raises $100M in Series B Funding. Harbinger has developed a modular all-electric chassis for medium-duty trucks. The company will use the funds to accelerate its growth by deploying higher volume production capacity as well as expand its sales, parts, and service operations for nationwide deployment. The round was co-led by Capricorn Investment Group and Leitmotif, with participation from existing investors Tiger Global and Maniv Mobility.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Junior Technical Onboarding Manager at Milk Moovement in Toronto, Canada.
Sr. Product Manager at Solvento in Mexico City, Mexico (Remote).
Purchasing and Inventory Specialist at Gatik in Fort Worth, TX.