Dynamo Dispatch (2025/04/14)
Issue 327 | Nuro, Optilogic, Gallatin AI
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 💭
This week in supply chain and mobility: Global trade tensions are reaching new highs as the Trump administration ramps up tariffs on China while offering temporary relief to other nations, sparking retaliation and recession fears. The EU and countries around the world are preparing countermeasures or economic stimulus to blunt the fallout, while market volatility and uncertainty are stalling corporate investment and IPO activity. Amid the turmoil, Amazon expands its freight ambitions with a new LTL service, and automakers brace for disruption as tariff pressure mounts. As always, read on for more!
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Supply Chain 📦
⭐ Trump Pauses Most Reciprocal Tariffs, Hikes China’s Further. As of the time of writing, The Trump Administation has paused most country-specific tariffs for 90 days while increasing tariffs on Chinese imports to 125%, aiming to encourage trade negotiations with over 75 countries. Countries like Canada and Mexico will still face certain sector-specific tariffs, including 25% duties on non-USMCA-compliant goods, and most countries still face the baseline 10% tariff. The US-China trade war continues to intensify, with China retaliating by imposing an 84% tariff on American goods. The WTO warns this escalating conflict could slash US-China merchandise trade by up to 80% and reduce global GDP by nearly 7%. Related, Why Beijing is Not Backing Down on Tariffs, European Union to Put Countermeasures to US Tariffs on Hold for 90 Days, and Companies Pause US IPO Plans as Trump Tariffs Tank Markets.
US Tech Tariff Exemption Will be Temporary, Says Trump. Donald Trump signaled that smartphones and other electronics imported from China would still face tariffs, reversing earlier signs of relief for tech companies like Apple, Nvidia, and Microsoft. While these products were briefly excluded from steep "reciprocal" tariffs, officials clarified they will be included in a separate upcoming tariff round tied to national security concerns over semiconductors. The ongoing reversals have created chaos for markets and tech firms, with experts warning of severe economic consequences, including a potential recession. China urged the US to cancel the tariffs, while companies like Apple may increasingly shift production to countries like India to reduce trade penalties. Related, Trump’s Trade Math Ignores a Major Export: American Services and Terrible Timing and Huge Uncertainty: How Ports and Shipping are Handling Tariff Turmoil.
USTR Port Fee Proposal Would Open a ‘Second Front’ in Trade War. The US Trade Representative has proposed a controversial rule requiring Chinese-made ocean vessels to pay over $1M per US port call, a move widely criticized and likely to be revised. The plan could significantly disrupt international supply chains by increasing import costs, reducing secondary port calls, and diverting freight to Canadian and Mexican ports. Industry experts warn that the rule, if implemented as-is, could reshape port strategies and drive up costs for inland and local cargo alike, with ripple effects across transportation networks. Amid ongoing policy uncertainty and sudden shifts, businesses are hesitant to invest, raising fears of a looming recession and widespread collateral damage. Related, United States Reverses Course on Proposed Port Fees for Chinese Ships and USTR Signals that Port Fees are Coming but Plan Will be Changed.
The World Is Taking Urgent Steps to Prepare for Trade War Downturn. As the US-China trade war intensifies, countries worldwide are launching emergency economic measures to cushion the blow and avoid a severe downturn, including interest rate cuts, industry subsidies, and buy-local campaigns. Nations like South Korea, Spain, and Canada are supporting sectors hit by tariffs—particularly auto and electronics—while also preparing consumers and businesses for prolonged trade disruptions. China has responded to U.S. tariff hikes with its own levies, support for domestic manufacturing, and currency devaluation to aid exports. Economists warn the global economy could fall into recession in 2025 if trade tensions persist, and many governments are urgently negotiating with the US to avoid further damage. Related, What Would a US-China Trade War Do to the World Economy?
Amazon Launches LTL Service in US. Amazon has launched an LTL shipping service for customers sending freight to its US fulfillment centers, accessible through a self-service portal offering quotes, tracking, and payment features. The new service leverages over 60K trailers and thousands of shipping lanes across the country. This move expands Amazon's freight capabilities and follows its earlier LTL rollouts in Germany and the UK. Industry experts view Amazon’s entry into the LTL market as a potentially disruptive force against established carriers, with Amazon continuing to assess broader shipper needs. Elsewhere, FedEx, UPS Lose Parcel Market Share to Big Retailers, Smaller Couriers.
Mobility 🚗
⭐ The First Victim of Trump’s Trade War: Michigan’s Economy. Heavily reliant on the auto industry, Michigan is bracing for significant economic disruption due to President Trump's newly imposed tariffs. Automakers are stockpiling imported components, negotiating price increases, and considering production shifts back to the US; although these moves often come with reduced job gains due to automation. Small businesses and suppliers already report rising costs, and some workers have experienced layoffs as companies adjust. While some believe tariffs could eventually bring jobs back, many economists warn the immediate fallout will be higher car prices, reduced consumer spending, and significant job losses across Michigan. Also, Unrelated to Tariffs, GM to Lay Off 200 Employees at Factory in Detroit.
Trump Tariffs Threaten Spread of Big Batteries on the Power Grid. Trump's escalating trade war is putting the rapidly growing US grid-scale battery sector at risk, potentially hindering a key technology in clean energy and blackout prevention. His tariffs on lithium-ion battery imports predominantly from China could increase battery prices significantly, reversing a trend of declining costs that has supported rapid adoption. Industry analysts warn the higher tariffs may cause many planned energy storage projects to be delayed or canceled, stalling momentum at a critical time. While efforts to build domestic battery manufacturing continue, sudden tariff increases create uncertainty that threatens growth in the energy storage sector.
Lawmakers Grill US Trade Official On Tariffs’ Impact on Auto Supply Chains. Lawmakers from both parties pressed the US Trade Representative on whether Trump's sweeping tariffs will disrupt automotive supply chains and weaken the USMCA trade pact. Democrats in particular warned that tariffs could severely harm auto parts suppliers by raising costs and triggering business closures, while adjustment back to US-based supply chains would take years. Trade Representative Jamieson Greer defended the policy, emphasizing duty-free treatment under USMCA rules and citing support from the UAW as evidence of the tariffs' potential to strengthen the industry. For more responses, Porsche Shipped Added Inventory To US Ahead of Tariffs and Auto Tariffs Trigger Vehicle Writedowns at VW.
Swedish Truck Manufacturer Scania Acquires Bankrupt Northvolt Systems’ Industrial Division. A month after Northvolt filed for bankruptcy, Swedish truck manufacturer Scania has acquired Northvolt's Industrial Division for its battery systems production capabilities, R&D center, and approximately 260 employees. The acquisition, now part of Scania's Power Solutions business, strengthens its electrification portfolio, particularly for heavy industry and off-road applications. Operations will continue uninterrupted at facilities in Gdańsk, Poland, and Stockholm, Sweden. Scania sees the acquisition as enhancing its role in sustainable transport and electrification innovation. Unrelated, How AI Is Transforming Automotive Design.
Wayve’s Self-Driving Tech Is Headed To Nissan Vehicles. Nissan announced it will incorporate autonomous driving software from UK startup Wayve into its advanced driver-assistance system beginning in 2027. Wayve, backed by investors including Nvidia, Microsoft, and Uber, uses a self-learning, sensor-agnostic AI system similar to Tesla's approach but designed to integrate easily into existing automaker platforms. Nissan plans to deploy this system at Level 2 autonomy, requiring driver supervision but providing enhanced collision avoidance and automation of key driving functions. The collaboration marks a significant milestone for Wayve, validating its cost-effective, data-driven AI approach as appealing to major automakers. In more self-driving tech, Robotaxi Service Waymo To Launch in Washington DC and Hyundai Accelerates Self-Driving Technology Development.
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 💸
1Logtech Raises $1.5M in Seed Funding. 1Logtech offers an AI-driven platform for transportation and logistics. The funding will be used to accelerate product development and market expansion. North Coast Ventures led the round, with participation from Queen City Angels and other investors.
Pax Raises $4.5M in Seed Funding. Pax offers an AI-powered platform that automates duty drawback refunds for importers. The funding will be used to expand the team, enhance the platform’s refund maximization algorithm, and make duty drawback accessible to businesses of all sizes amid shifting trade policies. Initialized Capital led the round, with participation from Sancus, Basis Set, Soma Capital, General Catalyst, Transpose, ZVC1, and Flexport angels.
Plug Raises $6.7M in Seed Funding. Plug operates the only EV-exclusive wholesale auction platform, enabling dealers to buy and sell used EVs. The round was led by Floodgate, Autotech Ventures, and A*.
Faume Raises €8M in Venture Funding. Faume operates a white-label second-hand platform that enables premium and luxury fashion brands to launch branded resale channels while retaining control over pricing, logistics, and customer experience. The funding will support European expansion, the launch of an AI-powered dynamic pricing tool, and onboarding 150 brand partners within four years. The round was led by Amundi Private Equity Transition Juste.
Glimpse Raises $10M in Series A Funding. Glimpse helps CPG brands recover deduction from retailers through an AI-powered deduction management service. The funds will be used to hire engineers and tech talent, as well as enable commercialization efforts. The round was led by 8VC, with participation from existing investors YCombinator, Origin Ventures, and Informed Ventures.
Xindus Raises $10M in Series A Funding. Xindus is a cross-border trade enablement startup based in India. The funding will be used to expand operations and onboard 10,000 SME customers. The round was led by 3one4 Capital and co-led by Orios Venture Partners, with participation from Shastra VC and Caret Capital.
Zero Industrial Raises $10M in Series A Funding. Zero Industrial develops and finances thermal energy storage systems that decarbonize industrial heat by converting stored electricity into clean heat or steam. The funding will accelerate deployment of projects across the US and Canada. The round was led by Evok Innovations with support from Rusheen Capital Management.
Cargado Raises $12M in Series A Funding. Cargado operates the first invite-only cross-border freight marketplace and load board for US-Mexico shipments. The funding will expand product capabilities, engineering, and network reach as Cargado evolves into a full collaboration platform for cross-border logistics. The round was led by LGVP, with participation from Conversion Capital, Assembly Ventures, Friends & Family Capital, Primary Venture Partners, Ironspring Ventures, Zenda Capital, and Proeza Ventures.
Gallatin AI Raises $15M in Pre-Seed Funding. Gallatin AI is using AI to transform defense logistics and supply chains. The funding will be used to accelerate its technology development and team expansion. 8VC led the round and was joined by Silent Ventures, Moonshots Capital, Timeless Partners and Banter Capital.
Arena Technologies Raises $30M in Series B Funding. Arena Technologies is developing an AI-powered hardware engineer that accelerates testing, diagnostics, and optimization by integrating data from schematics, instruments, and real-world lab environments. The funding will be used to scale across enterprise customers, enhance its agentic capabilities, and launch Atlas Edge for self-diagnosing, self-repairing machines. Initialized, Fifth Down Capital, and Goldcrest Capital led the round, with continued support from Founders Fund, Shield Capital, and Garuda Ventures.
Parallel Systems Raises $38M in Series B Funding. Parallel Systems is building autonomous, battery-electric freight railcars that can detach and operate individually or in small groups, offering a cost-effective alternative to trucks for short-haul freight. The new funding will support commercialization efforts, including a pilot program recently approved by the Federal Railroad Administration in Georgia and a planned commercial launch in 2026. Anthos Capital led the round, with participation from Collaborative Fund, Congruent Ventures, and Riot Ventures.
Optilogic Raises $40M in Series B Funding. Optilogic offers a supply chain optimization and decision-making platform. The funding will be used to advance development of the company’s platform, as well as bring industry experts onto the team. The round was led by NewRoad and joined by MK Capital and Moore Strategic Ventures.
Jobandtalent Raises $103M in Series F Funding. Jobandtalent is a Madrid-based “workforce-as-a-service” marketplace that connects hourly workers with companies in logistics, retail, and other sectors across 10 countries. The funds will be used to expand internationally and build AI-powered agents to improve hiring efficiency and reduce costs for employers. Atomico, BlackRock, DN Capital, Hercules, Infravia, Kibo, and Kinnevik participated in the round.
Nuro Raises $106M in Series E Funding. Nuro is an autonomous driving technology company. The funding will be used to scale the company’s technology and advance commercial partnerships. Investors include T. Rowe Price Associates, Inc., Fidelity Management & Research Company, Tiger Global Management, Greylock Partners, and XN LP.
SILQ Raises $110M in Funding. SILQ is merger of Saudi Arabia-based Sary - which connects small businesses with manufacturers and lenders to procure supplies - and Bangladesh-based ShopUp - a B2B commerce platform connecting mills, brands, and manufacturers to small shops. The funding will help establish company’s presence in Qatar. The round was led by Sanabil Investments, Valar Ventures, Flourish Ventures, VSQ, MSA Capital, Rocketship VC, STV, Wafra Investment, Peak XV, Prosus, Tiger Global, Endeavor Catalyst, and Raed Ventures, and joined by the Qatar Development Bank.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Insurance Producer at Logrock in Concord, North Carolina (Remote).
Senior QA Engineer at Zeelo in London, UK.
Account Executive at Token Transit in San Francisco, CA.