Dynamo Dispatch (2025/04/07)
Issue 326 | Vallor, OpenTug, Merama
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
💥 Have you seen any interesting startups recently? Introduce us.
🗞️ If you were forwarded this and found it interesting, please
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.
🤝 Interested in meeting with Dynamo? Schedule here with Derrek and Madelyn.
Weekly Commentary 💭
Global trade has been spun on top of its head as the US tariffs Trump’s administration announced has left everyone reeling. It’s clear that ramifications are fluid going forward, but we’ll cover all of the latest below.
💥 We’re excited to announce our latest investment in Vallor, an AI agentic solution for supplier contract management to advance enterprise procurement automation. We’re looking forward to building the future together!
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.
We Are Dynamo,
Madelyn, Derrek, and the rest of the Dynamo team
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
⭐ What to Know About Trump’s Latest Tariffs. President Trump announced a sweeping new tariff policy that imposes a 10% duty on all US imports starting April 5, with significantly higher rates for countries like China (34%), the EU (20%), and Japan (24%) based on their trade imbalances with the U.S. The administration argues that these tariffs will revive American manufacturing, reduce the trade deficit, and curb the national debt, though critics warn of potential inflation and economic slowdown. The policy includes a 25% tariff on foreign-made cars and disproportionately high “reciprocal tariffs” on countries like Vietnam and Laos, with rates above 40%. Economists predict the tariffs will raise prices for American consumers and businesses, potentially pushing up inflation by 1% and slowing economic growth to 1.5%. For more, 5 Key Details in Trump’s Global Tariffs Order.
Trump's Reciprocal Tariff Plan Amplifies Risk of Ocean Shipping Chaos, Executives Say. President Trump's new tariff plan has created uncertainty and disruption in the global ocean shipping industry, with companies scrambling to adjust to rapidly shifting trade policies. Major container shippers and retailers are dealing with confusion, delays, and cost spikes as importers rush goods in to avoid escalating tariffs, sometimes resorting to expensive air freight. Experts warn that the unpredictable implementation of tariffs—and proposals like port fees on China-linked vessels—are paralyzing supply chain decisions and undermining US manufacturing recovery. Analysts predict a decline in US ocean freight volumes by mid-2025, as businesses brace for more tariffs and unclear regulations that could reshape how duties are assessed. Elsewhere, Forwarders Stay Cool as US 'Liberation Day' Tariffs Threaten 'Global Trade War' and Trump's Sweeping Tariffs: What Does it Mean for Trucking?
Air Cargo Braces for Impact as US Restores Duties on Chinese eCommerce. The Trump administration’s decision to end duty-free treatment for low-value imports from China and Hong Kong is expected to reduce eCommerce shipment volumes. Air cargo capacity has been strained for the past 18 months due to high demand from eCommerce platforms, with Chinese shipments accounting for nearly half of eastbound transpacific cargo. However, the new tariffs may overwhelm US Customs processing systems and disrupt logistics models built around fast, low-cost air shipping. Industry leaders warn that this unpredictability makes it difficult to plan and could destabilize the air freight market, impacting airlines, forwarders, and logistics providers alike. Completely unrelated, How Luxury Brands are Tackling Supply Chain Fraud.
Exempt or Not, the Chip Industry Won’t Escape Tariffs. Donald Trump’s exemption of semiconductors from new tariffs offers limited relief to the chip industry, as most chips are imported indirectly within electronics that remain subject to high tariffs. This indirect exposure means that even US-made chips sent abroad for assembly will face tariff-related challenges upon reentry. The anticipated rise in consumer prices could lower demand for electronics and AI servers, leading to reduced chip sales, canceled orders, and falling stock prices for major chipmakers and buyers. Analysts warn that without broader exemptions or policy reversals, the industry faces significant headwinds with little incentive to expand US manufacturing. Elsewhere, Cleveland-Cliffs Trims Workforce as Tariffs Hit Demand.
Maersk Buys Panama Canal Railway Despite Trump Threat. Maersk, through its port operator APM Terminals, has acquired the Panama Canal Railway, a key transport link across the isthmus, from a joint venture between Canadian Pacific Kansas City and the US’s Lanco Group. The purchase strengthens Maersk’s position in a strategic trade corridor as the U.S., under Donald Trump, expresses growing concern over foreign influence near the Panama Canal. The deal reflects broader global interest in the region’s infrastructure, following BlackRock’s recent $19B port acquisition, and signals Maersk’s intent to expand intermodal container services.
Mobility 🚗
⭐ Automakers Aren’t Rushing To Move Production To US Factories To Avoid Tariffs. President Trump's new 25% auto tariffs are intended to push automakers to relocate production and supply chains to the US, but industry experts warn such moves aren't straightforward or quick. Automakers face significant uncertainty due to fluctuating trade policies, making them reluctant to commit to costly plant investments that require years to execute and could become obsolete if tariffs change again. Even shifting existing supply chains would be challenging and expensive, potentially increasing vehicle prices by thousands of dollars, as American-made cars rely heavily on imported parts. While Trump insists the tariffs will lead to rapid growth in U.S. auto manufacturing, industry executives foresee high costs, operational chaos, and limited short-term solutions. For more analysis, Global Auto Industry Faces Major Disruption From Trump Tariffs.
Stellantis To Temporarily Lay Off 900 US Workers As Tariffs Bite. Stellantis is temporarily halting production at plants in Canada and Mexico and laying off 900 workers at five US facilities following President Trump's recent tariffs on imported cars and parts. Trump's 25% auto import tariffs have severely impacted automakers, leading to sharp declines in share prices across the industry. While Trump argues these measures will eventually boost American manufacturing, unions like the UAW and Unifor criticized Stellantis's layoffs as unnecessary, highlighting the deeply integrated North American auto supply chain. Industry observers warn that short-term disruption and higher vehicle prices will continue as automakers adjust to the tariffs. In detail, UAW President Stresses ‘Excess Capacity’ In US Amid Tariffs and Auto Layoffs.
Future Auto Jobs From Tariffs? The Numbers Don’t Add Up. President Trump's new tariffs are intended to boost American manufacturing and jobs, but economic experts argue tariffs raise costs for manufacturers and consumers. Economists highlight that even if production returns to the US, automation and efficiency gains limit employment growth. Historical data indicates that manufacturing job growth in the US over the last decade occurred primarily through foreign investment and technological advancements rather than protectionist measures. Overall, analysts warn that tariffs may undermine U.S. competitiveness without achieving substantial job creation. As one response, Tariffs Prompt Nissan U-Turn on Tennessee Plant Making Rogue SUV.
Wall Street Slowly Wakes Up to Elon Musk’s Tesla Brand Damage. Tesla is facing a serious crisis as Wall Street analysts previously bullish on the company are acknowledging damage caused by Elon Musk's controversial political actions and affiliation with Donald Trump's administration. Wedbush Securities, initially optimistic, now warns of a significant "brand crisis," highlighting Tesla's sharp decline in sales and consumer backlash. JPMorgan has similarly revised its earnings projections downward, citing deeper-than-expected consumer reactions. Although some analysts remain cautiously optimistic, arguing the market is overlooking future product launches, consensus is building that Musk's political entanglements pose real risks to Tesla's brand. In China, Xiaomi’s Shares Fall After Fatal Car Accident Involving One of Its EVs.
ZETA Warns Of Economic Risk Of Tariffs On EV Supply Chain. The Zero Emission Transportation Association (ZETA), which represents companies like Tesla and Rivian, warned that President Trump's newly imposed tariffs could significantly disrupt the US EV industry. It fears job losses and the derailment of billions in planned investments, emphasizing that such tariffs could undermine efforts to establish a robust domestic EV supply chain and jeopardize recent commitments from global partners to build EV and battery manufacturing plants in the US. However, the trade group did express support for Trump's recent executive order aimed at boosting domestic production of critical minerals like lithium and cobalt, essential for EV batteries.
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 💸
💥 Vallor Raises $4M in Seed Funding. Vallor is an agentic solution for supplier contract management, advancing enterprise procurement automation. The funding will be used to grow the team and accelerate product development across AI automation, contract intelligence, and supplier performance analytics. The round was led by Dynamo Ventures and Bloomberg Beta, with Liquid 2 Ventures, El Cap Ventures, Rock Yard Ventures participating.
OpenTug Raises $2.2M in Funding. OpenTug provides marine logistics software that optimizes freight efficiency on inland and coastal waterways. The funding will support product development and market expansion. TMV led the round.
EVident Battery Raises in $3.2M Seed Funding. EVident Battery develops non-destructive, AI-enabled battery pack diagnostics. The funding will be used to accelerate R&D and launch its pilot product. The round was led by Ibex Investors, with participation from Nationwide Ventures, Automotive Ventures, Avesta Fund, and angel investors.
GRACE Raises €5.9M in Seed Funding. GRACE is a Franco-Swiss fintech providing AI-enhanced insurance for luxury items against theft and loss, activated automatically upon purchase. Funding will support international scaling and expansion of partnerships with luxury brands. FinTech Collective and Speedinvest led the round, with participation from Firstminute Capital, Purple, Kima Ventures, Bpifrance, and others including a16z and Sequoia through their Scout Program.
BetterFleet Raises $15M in Series A Funding. BetterFleet provides comprehensive sustainable fleet planning and operational management. The round will facilitate international expansion. The funding comes from Aligned Climate Capital, Ecosystem Integrity Fund, and Remarkable Ventures Climate.
Fairly Made Raises €15M in Funding. Fairly Made provides brands with tools for supply chain traceability, environmental impact assessments, and consumer-facing digital product passports. The funding will help expand its platform, hire talent, and scale its global presence. The round was led by BNP Paribas Solar Impulse Venture Fund, GET Fund, ETF Partners, and Frenchfounders.
Fourier Raises $18.5M in Series A Funding. Fourier is building on-site, on-demand hydrogen systems with a modular, software-defined system architecture. The funding will be used to scale manufacturing, accelerate commercial deployments, and expand engineering efforts. The round was led by Paramark Ventures and General Catalyst, with participation from Airbus Ventures, GSBackers, MCJ, Borusan Ventures, and Positive Ventures.
Maverick Metals Raises $19M in Seed Funding. Maverick Metals has developed advanced chemical processes for the extraction of lithium and copper. The funding will be used to support commercialization. Olive Tree Capital led the round, and was joined by Y Combinator, Hanwha Group, Liquid 2 Ventures, Nomadic Venture Partners, Soma Capital and TechNexus Venture Collaborative.
Chef Robotics Raises $20.6M in Series A Funding. Chef Robotics builds AI-powered robotic arms designed for food-assembly lines in processing plants. The funding will be used to expand operations in the US and Canada, scale robotic installations, and enhance the robots' imitation learning capabilities. Avataar Ventures led the round, which also included $22.5 million in equipment financing debt.
LightSource Raises $33M in Funding. LightSource provides procurement management software to manage vendor relationships and control costs. The funding will enable LightSource to scale its platform, grow its team, and expand its client base across industries including automotive, aerospace, consumer packaged goods, and eComm. Bain Capital Ventures and Lightspeed Venture Partners co-led the round, with participation from J2 Ventures.
Merama Raises Raises $45M in Funding. Merama acquires and helps scale LatAm eComm brands through shared technology, logistics, and operations. The funding will ensure proper working capital holdings, as well as expand manufacturing and logistics capabilities. Advent International, SoftBank, Valor Capital, Balderton Capital, Monashees Capital, and Marcel Telles participated in the round.
Fairmat Raises €51.5M in Series B Funding. Fairmat is a carbon composite recycling company, sourcing material from industries such as aerospace. The funding will be used to support industrialization. The round was led by Bpifrance’s Large Venture fund and Slate VC, with participation from Cape Capital and existing investors Singular, Temasek, CNP, and Pictet Group.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Customs Associate at Importal in Dallas, TX (Remote).
Integrations Engineer at Stord in Atlanta, GA (Remote).
Customer Support at Manna in Dublin, Ireland.