Dynamo Dispatch (2025/02/17)
Issue 319 | Freight Hero, Gaia Dynamics, Archer Aviation
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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🎙 Check out Dynamo's podcast series, The Future of Supply Chain.
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Weekly Commentary 💭
💥 We’re so excited for Freight Hero, a Dynamo portfolio company, as it exited stealth last week. The announcement marks the next step of the journey to free brokers from the burdensome back office tasks that plague their day to day. For more details, check out this article.
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.
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Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain 📦
⭐ Trump Reciprocal-Tariff Vow Further Breaks From Global Trading Norms. President Trump is set to introduce reciprocal tariffs on nations that impose levies on U.S. exports, using executive action rather than waiting for congressional approval. The policy, championed by trade advisor Peter Navarro, aims to match or exceed foreign tariffs and non-tariff barriers, potentially impacting major trading partners like China, the EU, and India. While Trump’s plan moves away from across-the-board tariffs, it represents a significant shift from global trade norms and could weaken WTO principles, raising concerns about increased trade tensions and economic retaliation from affected countries. Related, India, US Agree to Resolve Trade and Tariff Rows After Trump-Modi Talks.
EU Commission Promises 'Firm, Immediate' Reaction to US Reciprocal Tariffs. The EU condemned President Trump’s announcement of reciprocal tariffs, calling it an unjustified move that undermines the global rules-based trading system and vowing to respond “firmly and immediately.” The EU, which maintains some of the world’s lowest tariffs, sees no justification for the new US tariffs on steel and aluminum set to take effect on March 12 and is preparing potential retaliatory measures. Having previously responded to Trump’s 2018 tariffs with countermeasures, the EU is now considering activating its "anti-coercion" trade defense tools, which could restrict US access to public procurement, trade in services, and IP rights. For more, EC Slams US 'Reciprocal Tariffs' Plan and Says the Trading Bloc Will Retaliate and South Korea to Seek Talks with US After Trump Announces Steel Tariffs.
US Box Imports Soar Ahead of New Tariffs. US container imports hit a record high in January, reaching 2.5M TEU, with shipments from China rising 10.6% over December to nearly 1M TEU. The surge comes amid trade policy uncertainty, including new U.S. tariffs on Chinese goods and postponed tariffs on imports from Mexico and Canada. While supply chain disruptions remain a concern due to ongoing geopolitical tensions, Descartes reported that port transit delays have not significantly worsened despite the increased import volumes. Elsewhere, Trucking Capacity Oversupply Persists, CH Robinson Says.
US Pharma Companies Weigh a Shift to North America — and Possibly the US — for Drug Production. The US pharmaceutical industry is reconsidering its reliance on offshore production due to rising geopolitical tensions, pandemic-driven supply chain disruptions, and increasing overseas costs, but fully reshoring remains a complex challenge. Larger pharma companies still favor offshore manufacturing, especially for generic drugs, due to cost and established infrastructure in China and India. Moving production closer to home would require changes in tax policies, labor costs, and FDA regulations, and even then, many key raw materials would still need to be sourced globally. Also in re-shoring, Shein Reportedly Nudges Suppliers to Move Sourcing to Vietnam and Near-shoring Drives Mexican Warehouse Space to Historic Lows.
US Truckers Under Pressure: Stress, Speeding and Safety Concerns. Nearly 70% of truck drivers experience work-related stress that negatively affects their driving, with over a third considering leaving the job in the past year. Many drivers admit to speeding to meet deadlines, and more than half believe road safety has declined due to distracted driving, poor driving behavior, and increased congestion. As a result, trucking turnover rates are averaging 94% and replacement costs per driver are reaching up to $20,000 Completely unrelated, Abuses Lurk Deep in Fashion Supply Chain.
Mobility 🚗
⭐ Nissan CEO Says It Will Be ‘Difficult To Survive’ After Honda Merger Collapses. Nissan and Honda have scrapped their proposed merger due to structural disagreements, with Honda reportedly pushing for Nissan to become a subsidiary. While both companies will maintain a strategic partnership on EVs and technology, Nissan now faces mounting challenges in securing a long-term partner to stay competitive. Foxconn has expressed interest in collaborating on EV production, and private equity firm KKR is reportedly exploring an investment in Nissan. Meanwhile, Nissan cut its annual profit forecast for the third time as Q3 profits dropped 78%, while Honda maintained its earnings outlook. For another take, Nissan’s Pride Doomed Its Emergency Merger With Honda.
Tesla Is Losing Ground Against Its Biggest Rival in China. BYD is expanding its lead over Tesla in AI-powered driver-assistance technology in China, launching its "Eyes of God" system across all models including a $9,600 EV. Meanwhile, Tesla continues to face regulatory hurdles preventing the release of its Full Self-Driving software in China, despite CEO Elon Musk's lobbying efforts. BYD's ability to integrate AI at a low cost threatens Tesla’s premium positioning, as assisted-driving features become a key selling point in China’s EV market. With a $14B investment in AI and over 5K engineers dedicated to development, BYD is positioning itself as a leader in autonomous driving. Also in China, Dongfeng and Changan Merger Rumors Emerge, Could Create China’s Biggest Auto Group.
US Carmakers Push for EV Tax Credits to Be Phased Out Over Several Years. Automakers are lobbying to preserve EV tax credits, pushing for a phased reduction instead of an immediate repeal under the Trump administration. Companies like GM and Ford argue that these incentives support jobs, particularly in Republican-led states, and help drive down battery costs for long-term competitiveness. Meanwhile, Tesla CEO Elon Musk has called for eliminating subsidies, despite the company benefiting from them through price cuts and leasing incentives. Any changes to the tax credits will likely be debated in Congress, balancing Trump’s policy goals against the economic impact on the growing US EV manufacturing sector. On that point, Japanese Automaker Isuzu Will Invest $280M For New Plant in South Carolina and Toyota’s Expanded $14B North Carolina EV Battery Plant Ready to Roll.
Trump Steel, Aluminum Tariffs Likely to Drive Up Car Costs Says Industry Leaders. President Trump’s new 25% tariffs on steel and aluminum imports are raising concerns among US automakers, who warn of increased production costs and higher vehicle prices. While companies like Ford and GM source most of their steel domestically, executives fear supply chain disruptions and speculative price hikes. Ford CEO Jim Farley described the situation as "a lot of cost and a lot of chaos," while industry analysts predict potential downstream effects on consumer prices and profitability. Unrelated, How OEM Telematics Integration Can Maximize EV Fleet Efficiency and ROI.
Boeing Marks Busiest January Since 2019 With Over 40 Deliveries. Boeing started 2025 on a strong note, delivering 45 aircraft in January — its best January performance since 2019. This marks a recovery after a turbulent 2024, during which production flaws, FAA restrictions, and labor strikes significantly impacted operations. The company also secured 36 new orders to outpace Airbus in deliveries, though its European rival received more total orders. With airlines regaining confidence and deliveries picking up, Boeing is looking to rebuild market strength and financial stability. On the ground, Heathrow to Push Ahead With Plans For Third Runway and New Terminals.
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 💸
💥 Freight Hero Raises Pre-Seed Funding. Freight Hero is streamlining brokerage operations using AI-driven automation and human oversight. The funding will be used to expand its team, develop its hybrid AI-human freight management model, and onboard clients to refine product design and operations. Dynamo Ventures and AI Fund led the round.
Gaia Dynamics Raises $1.5M in Pre-Seed Funding. Gaia Dynamics is an AI-driven platform for global trade compliance. The funding will be used to expand operations and accelerate platform development. AI Fund and Zenda VC led the round.
Tusk Logistics Raises $2M in Seed Funding. Tusk Logistics is a nationwide network of alternative parcel carriers. The funding will be used to scale the platform. Ivy Ventures led the round, with participation from TitletownTech, Forum Ventures, and others.
Keychain Raises $5M in Funding. Keychain is a platform connecting CPG brands & retailers with manufacturing partners. The funding will help fuel the company’s launch of two new platforms in the categories of packaging and ingredients, as well as its European launch. Bright Pixel Capital led the round.
ACCURE Battery Intelligence Raises $16M in Series B Funding. ACCURE Battery Intelligence is a predictive analytics software solution for batteries. The funding will be used for scaling its battery safety & performance platform across Europe, the Americas, and Asia Pacific. The round was led by Incharge Capital Partners, with participation from existing investors BlueBear Capital, HSBC Asset Management, Riverstone Holdings, Capnamic, and 42CAP.
BRKZ Raises $17M in Series A Funding. BRKZ is a Riyadh-based B2B managed marketplace for construction materials with embedded financing. The funding will be used to scale its platform. Investors include BECO Capital, Aramco’s Waed, 9900 Capital, Better Tomorrow Ventures, RZM Investment, Class 5 Global, MISY Ventures, Knollwood Investment Advisory, and Fluent Ventures.
MarketLeap Raises $18M in Series A Funding. MarketLeap offers platform to help D2C SMBs manage eComm logistics, marketing, compliance, and fulfillment. The funding will be used to fuel customer acquisition by accelerating platform development hires. The round was led by Smedvig Ventures, and joined by Expon Capital, and Motier Ventures.
Endera Raises $36M in Funding. Endera is a manufacturer of electric shuttles and school buses. The funding will be used for scaling the company’s manufacturing capacity and developing new product lines. Magnetar led the round and was joined by Pulse Fund. The equity funding comes alongside a $13M credit facility.
High Definition Vehicle Insurance Raise $40M in Funding. High Definition Vehicle Insurance is a technology-driven commercial auto insurance provider. The capital will be used to enhance the company’s products, expand coverage, and improve tools for insurance agents as the company scales across the country. The round was co-led by existing investors 8VC, Autotech Ventures, Munich Re Ventures, and Weatherford Capital.
Archer Aviation Raises $300M in Funding. Archer Aviation is an eVTOL manufacturer. The funding will also help reinforce its balance sheet as it works toward certification. The round included institutional investors such as accounts managed by BlackRock.
Apptronik Raises $350M in Series A Funding. Apptronik is developing humanoid robots for warehouse, manufacturing, and similar use cases. The funding will be used to demonstrate useful work with existing early customers and move into full commercialization in 2026. B Capital and Capital Factory co-led the round and were joined by Google.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Lead ML Engineer at Ceto in Newcastle, UK (Remote).
Digital Marketing Specialist at Verusen in Atlanta, GA.
Senior Technical Marketing Designer at Gatik in Mountain View, CA.