Dynamo Dispatch (2025/05/05)
Issue 330 | Ceto, Mach Industries, DePoly
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 💭
The Dynamo team had the pleasure of spending the past few days with our founders at our CEO Summit in Puerto Aventuras, Mexico. The weekend was filled with thoughtful peer learning, great conversations—and, of course, more than a few tacos. We're grateful to everyone who joined us and helped make it such a memorable experience.
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Supply Chain 📦
⭐ Layoffs Coming for Trucking, Retail Ahead of Projected Recession, Report Says. Apollo forecasts a severe US recession driven by recent tariffs, with the trucking and retail sectors expected to bear the brunt through mass layoffs and reduced demand. The trucking industry faces declining freight volumes due to a sharp drop in container imports from China, exacerbating the ongoing freight recession and forcing carriers to cut labor costs. In retail, supply chain disruptions, inflation, and waning consumer confidence are expected to trigger inventory shortages, slower sales, and job cuts. Apollo warns that the broader economy is heading toward stagflation—stagnant growth paired with rising prices. For more, Trade War’s Toll Mounts as Transportation Industry Faces Major Layoffs, and Trump's Tariffs Loom Over American Economy as Shipments from China Fall.
Chinese Exporters ‘Wash’ Products in Third Countries to Avoid Donald Trump’s Tariffs. Chinese exporters are increasingly using third countries like Malaysia, Vietnam, and South Korea to disguise the origin of their goods and evade steep US tariffs imposed under Trump, a practice widely advertised as “origin washing” on Chinese social media. This tactic involves routing shipments through neighboring countries to obtain new certificates of origin, raising alarms among regional governments and prompting tighter customs enforcement. US partners and retailers are concerned about the legal risks and potential confiscation of goods, as these grey-area workarounds become more prevalent in response to tariffs as high as 145% on Chinese imports. Related, China Quietly Exempts About a Quarter of US Imports from Tariffs, and unrelated, Freight Brokers Battle Rising Fraud Schemes.
Air Cargo Braces as US Ends China’s De Minimis Exemption. On May 2nd, the US ended the de minimis exemption for packages under $800 from China and Hong Kong, subjecting them to steep tariffs and full customs processing, a major blow to platforms like Shein and Temu. With eCommerce accounting for roughly half of China–US air cargo, freight volumes have already dropped 15% YoY and forwarders report up to a 50% decline in shipment volumes since mid-April. Carriers are cancelling freighter flights and redirecting capacity to other regions, raising concerns of rate drops elsewhere and adding significant administrative burdens for logistics firms. The full market impact remains uncertain, but early signs point to a major shift in global airfreight dynamics and pricing strategies. For more, Air Cargo Market Awaits Impact of Tariffs and De Minimis Changes.
Uneasy West Coast Ports Watch as First Signs of Trade Dispute with China Emerge. US West Coast ports, particularly Los Angeles and Long Beach, are bracing for a sharp drop in imports due to blank sailings and declining container volumes tied to the US-China trade war, with May import volumes projected to fall by over 35% at each port. Further up the coast, ports in Oakland and the Northwest Seaport Alliance (Seattle-Tacoma) also expect declines, while the Port of Vancouver remains unaffected due to its focus on Canadian trade. Related, ‘No Way’ US Can Recoup Lost China Container Imports: Analyst.
US House Votes to Rescind Approval for California Heavy-Duty Truck Rules. The US House voted to rescind the EPA’s approval of California’s zero-emission truck mandates and its low-NOx emissions rule for heavy-duty vehicles. California’s Air Resources Board (CARB) and the Government Accountability Office argue that the Congressional Review Act does not permit such reversals, and that the votes violate legal precedent. Republicans claim the regulations would drive up costs and disrupt the trucking industry, while CARB emphasizes the health benefits of reduced diesel pollution and its commitment to cutting emissions. California’s broader plan mandates all medium- and heavy-duty trucks be zero-emission by 2045, a move it says is critical given these vehicles’ outsized contribution to air pollution and greenhouse gas emissions. Completely unrelated, Aurora Begins Commercial Driverless Trucking in Texas.
Mobility 🚗
⭐ Trump Set To Soften Auto Tariffs After Industry Pushback. The Trump administration unveiled a new executive order softening the blow of auto tariffs by offering US automakers credits tied to domestic vehicle assembly, aimed at encouraging reshoring of supply chains. Automakers can now import some foreign parts duty-free, except from China, up to a set percentage of US vehicle value to help offset the cost of ongoing tariffs. While OEMs like GM, Ford, and Stellantis publicly praised the move, they also signaled concern over continued policy volatility, with GM even withdrawing its annual forecast. The deal buys time for domestic adjustment, but mounting supply chain disruptions and lingering uncertainty still cloud industry confidence. Elsewhere, Canadian Auto Workers Face Crisis As Trump Threatens Higher Tariffs and More Than Half Of Japan’s Major Auto Parts Makers Considering Raising Prices.
Tesla Board Opened Search for a CEO to Succeed Elon Musk. Tesla’s board quietly initiated a CEO succession search earlier this year amid mounting investor unease over Elon Musk’s deepening involvement in Washington and the company’s weakening financials. As Tesla’s core EV business falters, Musk pledged to refocus on Tesla after a sharp 71% drop in quarterly profit. Meanwhile, his proximity to President Trump has become a liability, tarnishing Tesla’s brand globally and complicating operations in China and North America. While Tesla publicly denies succession rumors, internal tensions and Musk’s pivot toward AI and robotics signal a company at an inflection point. In response, Musk, Tesla Board Chair Deny Report On Search For New CEO.
Waymo, Toyota Strike Partnership To Bring Self-Driving Tech To Personal Vehicles. Waymo and Toyota have announced a preliminary partnership to explore integrating AV tech into personally-owned vehicles, signaling a strategic shift beyond ride-hailing fleets. The collaboration could also see Toyota models added to Waymo's robotaxi service, expanding on the Alphabet-owned company's growing AV footprint. This move reflects broader industry momentum toward consumer-facing autonomy, as rivals like GM and Tesla pivot in the same direction. With Waymo now logging 250,000 weekly paid rides, the partnership with the world’s largest automaker strengthens its hand in both commercial scale and long-term platform optionality.
Chinese Carmakers Reset European Ambitions As EU Tariffs Bite. Chinese EV makers are dialing back their European expansion plans as steep EU tariffs of up to 45% undermine their cost advantage and stall product launches. Brands like Nio and Leapmotor have struggled with higher than expected distribution costs and regulatory setbacks, prompting delays, sales model pivots, and production halts. While hybrids remain a workaround and BYD and Zeekr are pressing ahead, the overall market share of Chinese EVs in Europe has slipped. As trade tensions escalate, automakers and governments alike are pushing for a more stable, equitable path forward. However in China, Tesla Rival XPeng Triples Deliveries As Chinese Carmakers Post Strong April Sales.
Oil Industry That Trump Wants To ‘Drill, Baby, Drill’ Has Taken Beating Since He took Office. Despite Trump’s push for energy dominance, US oilfield services firms are facing sharp declines as low oil prices, economic uncertainty, and tariffs stall drilling activity. Crude has dropped over 20% since Trump’s second term began, triggering production pullbacks and grim earnings calls from Baker Hughes, SLB, and Halliburton, all warning of reduced exploration and capital spend. Executives cite rising tariffs and global oversupply as key pressures, with US shale especially vulnerable due to price sensitivity. While the administration promises regulatory relief, industry leaders remain skeptical, citing the most uncertain outlook since the pandemic. Related, BP Pledged To Boost US Production As It Reported Fall In Profit and Hyundai Announces Plans For First-Ever Commercial Truck Hydrogen And Electric Station.
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 💸
💥 Ceto Raises $4.8M in Seed Funding. Ceto leverages high-frequency data to prevent machinery breakdowns on vessels and deliver market-first connected insurance. The funding will be used to expand product offerings and expand its team to enable international growth. The round was led by Dynamo Ventures with participation from existing investors Howden Ventures, Signal Ventures and Motion Ventures.
Tow4Tech Raises $1.5M in Pre-Seed Funding. Tow4Tech is a SaaS platform connecting fleet managers with medium- and heavy-duty tow operators through real-time geolocation and intelligent dispatching. The funding will support national network expansion, platform enhancements, and engineering team growth. The round was led by BrightCap Ventures.
Materials Market Raises £2M in Funding. Materials Market is an online marketplace for heavy-side building materials. The funding will be used to recruit talent and expand the marketplace model. The round was led by Fuel Ventures, with participation from Active Partners.
Replenysh Raises $8M in Series A Funding. Replenysh is a supply chain and software platform that connects brands to sources of recycled materials through a nationwide recovery network. The funding will support expansion into key domestic markets, deepen marketplace operations, and strengthen sourcing infrastructure for materials like glass and aluminum. The round was led by M13, with participation from Incite, Kindred Ventures, Floodgate Fund, and other angel investors.
Field Materials Raises $10.5M in Series A Funding. Field Materials automates material and equipment procurement for the construction industry by processing quotes, delivery slips, and invoices with LLMs to reduce manual entry and improve cost efficiency. The new funding will be used to double the team and scale adoption, helping contractors cut procurement processing time by 90% and access better pricing. Navitas Capital led the round, with participation from Blumberg Capital, DivcoWest Ventures, S16vc, and Superseed Ventures.
Emmi AI Raises €15M in Seed Funding. Emmi AI is building AI-powered smart simulation tools for industrial engineering. The round will enable growth of the team, improvement of the platform, and expansion into additional industries. The funding was led by 3VC, Speedinvest, Serena, and PUSH VC.
Glacier Raises $16M in Series A Funding. Glacier provides an AI-powered robotics systems to automate the sorting of recyclables. The round will enable the company to expand its robot fleet to additional municipalities. The round was led by Ecosystem Integrity Fund with participation from AlleyCorp, Alumni Ventures, Amazon Climate Pledge Fund, Cox Exponential, Elysium, New Enterprise Associates, One Small Planet, Overlap Holdings, Overture, VSC Ventures, and Working Capital Fund.
Eeden Raises €18M in Series A Funding. Eeden has developed a textile recycling technology. The company plans to build a demonstration facility following the validation of its pilot plant with industry partners. The round was led by Forbion and joined by Henkel Ventures, NRW.Venture, and existing investors TechVision Fund, High-Tech Grunderfonds, and D11Z.
Conifer Raises $20M in Seed Funding. Conifer is an electric motor startup developing rare-earth-free hub motors using ferrite magnets and a proprietary stator for higher efficiency and power in a smaller footprint. The funding will support production ramp-up and localized, automated manufacturing, with the first shipments expected later this year. The round was led by True Ventures with participation from MaC Ventures, MFV Partners, and others.
OmniRetail Raises $20M in Series A Funding. OmniRetail is a B2B commerce platform transforming informal retail across West Africa by digitizing procurement, logistics, and embedded finance for FMCG suppliers and retailers. The funding will support expansion into Ghana and Ivory Coast, deepen credit and payments infrastructure, and accelerate growth across new product categories like personal care and cold storage. The round was co-led by Norfund and Timon Capital, with participation from Ventures Platform, Aruwa Capital, Goodwell Investments, and Flour Mills of Nigeria.
DePoly Raises $23M in Seed Funding. DePoly has developed a technology to enable recycling of PET and polyester waste. The funding will support the launch of a 500-tonne-per-year showcase plant in Monthey, Switzerland. Investors include MassMutual Ventures, Founderful, ACE & Company, Angel Invest, Zürcher Kantonalbank, BASF Venture Capital, Beiersdorf Venture Capital, and Syensqo.
P-1 AI Raises $23M in Seed Funding. P-1 AI is developing an AI agent designed to cognitively automate engineering tasks across physical product domains. The funding will support initial deployment in data center cooling systems, with expansion plans into industrial, mobility, and aerospace sectors. The round was led by Radical Ventures with participation from Village Global, Schematic Ventures, and Lerer Hippeau.
Growers Edge raises $25M in Venture Funding. Growers Edge provides risk management and lending tools for farmers, including crop warranties and input financing, helping growers adopt sustainable practices amid market and climate volatility. The funding will expand partnerships with ag retailers and lenders, enhance farm-level data products, and build on recent acquisitions The round was co-led by S2G Investments, Cibus Capital, and Lowercarbon Capital.
Nuvo Raises $34M in Series A Funding. Nuvo is a B2B trade network that streamlines the purchasing of physical goods between businesses through verified profiles, credit data, and real-time partner connections. The funding will accelerate vertical expansion, AI-powered features, and international growth. The round was led by Sequoia Capital and Spark Capital, with participation from Founders Fund, Index Ventures, and notable angels including Ryan Petersen and Gokul Rajaram.
Mach Industries Raises $100M in New Funding. Mach Industries is a defense tech startup developing hydrogen-powered weapons systems, vertical takeoff vehicles, and modular factories for scalable production. The funding will accelerate development of its Strategic Strike missile platform and support factory deployment. The round is co-led by Khosla Ventures and Bedrock Capital.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Financial Controller at Manna in Dublin, Ireland.
Central Operations Specialist at Gatik in Mountain View, CA.
Sales Coordinator at Steam in Minneapolis, MN.