Dynamo Dispatch (2025/09/08)
Issue 344 | Augment, HappyRobot, Nauta
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 đ
The trend of increasing supply chain complexity continues: This week, a federal appeals court ruled Trumpâs global tariffs illegal but delayed enforcement, intensifying the uncertainty around trade policy and its implications for supply chains. In parallel, US manufacturers remain under pressure as factory activity contracts for the sixth straight month, while Flexport and others are stepping in to handle newly complex postal duties. As always, read on for more!
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â Appellate Court Rules Trumpâs Global Tariffs Illegal, but Delays Action. A federal appeals court ruled that President Trumpâs use of emergency powers to impose sweeping, indefinite tariffs was illegal, but delayed enforcement until October 14 to allow for a potential Supreme Court review. The majority opinion argued that the law does not explicitly authorize tariffs at such scale, stressing that only Congress has constitutional authority to set long-term tariff policy, while the dissent countered that the president holds broad emergency powers in foreign affairs. At stake are tariffs on goods from countries including Mexico, China, and Canada, with a Supreme Court loss potentially unraveling much of Trumpâs trade policy and forcing refunds, though legal experts note the outcome remains uncertain. Related, US Importers Eye Refund Options as Tariff Fight Goes to Supreme Court and Tariffs Pointing to Historic Import Gap for US Container Ports: Analyst.
Factory Activity Shrinks for Sixth Month; Tariffs Remain a Key Worry. US factory activity contracted for the sixth straight month in August, though the pace of decline eased slightly as the ISM manufacturing index rose to 48.7 from 48.0 in July. While still below the 50 mark that signals contraction, the improvement was driven by a pickup in new orders and modest gains in employment. Two major industriesâfood and beverage products, and petroleum and coal productsâmanaged to expand, marking a small improvement over July. However, tariffs remain a major concern for manufacturers, with rising material costs complicating supply chain planning and making it harder to justify reshoring production to the US. For more, August Manufacturing Activity Flat as Tariff Uncertainty Looms: PMI.
US CBP Enables Flexport, 9 Others to Handle Postal Duties. US Customs and Border Protection has added 10 more providers, including Flexport, BoxC, and North American eCommerce Solutions, to the list of qualified parties that can collect and remit duties on international postal shipments. The move comes after the Trump administration eliminated the de minimis exemption, requiring parcels to either pay duties under International Emergency Economic Powers Act tariffs or face fees of $80â$200, which caused some carriers to temporarily suspend US-bound shipments. Postal operators like Ukraineâs Ukrposhta and the UKâs Royal Mail have since adapted by partnering with compliance providers or launching delivery duty paid services, giving shippers more pathways to meet the new US customs requirements. Related, Postal Deliveries from World to US Drop 80 Percent after Trumpâs De Minimis Lift.
Homegrown Robots Help Drive Chinaâs Global Export Surge. China is rapidly expanding low-cost automation, with domestic robot makers now supplying about half of the industrial robots installed annually, allowing factories to cut labor costs and boost exportsâeven in traditionally labor-intensive sectors. Factories are replacing welders with affordable local robots, doubling output and keeping prices competitive for exports to Southeast Asia, Africa, and the US While automation has driven productivity and profitability, it has also accelerated declines in labor-intensive employment, with the government now promoting a shift toward âpurple collarâ jobs like robot technicians to adapt the workforce.
EPCs Emboldened by Investments in Energy, Tech and Defense Projects. Engineering, procurement, and construction (EPC) firms are seeing strong demand from nuclear, oil and gas, semiconductor, and defense sectors, with US defense spending expected to exceed $1T by 2026 and AI driving power-hungry datacenter and chip factory projects. Worley is expanding rapidly, growing project bookings by 32% to $11.2B, supported by major LNG projects like Venture Globalâs CP2 and ExxonMobilâs Baytown refinery. Fluor is positioning itself for growth in nuclear, semiconductors, and US mining once trade and policy headwinds ease. Meanwhile, KBR is capitalizing on rising defense budgets with contracts supporting US and allied military operations, and TechnipFMC is strengthening its subsea business with a $15.8B backlog, buoyed by sustained offshore oil and gas investments expected to extend through the decade.
US Shipbuilders to Train Abroad Under $8M Labor Department Initiative. The US Department of Labor has announced up to $8M in funding to send American workers abroad to train with top shipbuilders in Japan and South Korea, aiming to bring advanced techniques back home. The initiative will create partnerships between US technical schools and allied institutions to strengthen apprenticeship programs in critical maritime trades such as welding, shipwright work, and steel fabrication. In addition to hands-on training, the program seeks to develop a globally recognized shipbuilding trade curriculum to help revitalize the US maritime industry and enhance national security. Elsewhere, Austal USA and Master Boat Builders Join Forces to Expand U.S. Shipbuilding Capacity.
The Cold Chain Goes Airborne: A New Era of Expedited, Temperature-Controlled Logistics. Air cargo is becoming the backbone of the cold chain, enabling the fast and precise movement of high-value, temperature-sensitive goods such as pharmaceuticals, perishables, and emergency supplies. Logistics providers and carriers are scaling temperature-controlled capabilities, with technology ensuring precisionâsince even a 2°F variance can cut produce shelf life in halfâwhile seasonal peaks like Motherâs Day highlight the critical role of seamless air-ground integration. The industry is shifting from generic transport to ecosystem-based solutions, where carriers, brokers, and tech partners collaborate to guarantee speed, visibility, and uncompromising temperature control, making expedited cold-chain freight both a necessity and a differentiator. Related, Heatwaves and Supply Chains: What the Food Industry Must Do to Safeguard its Future.
Big Fish Getting Better Bite at Trans-Pacific Container Spot Rates. Spot container rates on the trans-Pacific trade have diverged sharply, with smaller shippers paying significantly more than large importers who can negotiate lower prices. As of Sept. 4, average rates from the Far East to the US West Coast rose to $2,010 per FEU and $2,976 to the East Coast, with the biggest increases hitting the 75th percentile of shippersâup 29.2% week-over-week to $2,414 per FEU on the West Coast. Larger shippers at the 25th percentile saw minimal changes, highlighting how smaller players without bargaining power face steeper hikes, while spot rates into North Europe and the Mediterranean continue to fall, extending declines that began earlier in the summer. Elsewhere, 'Volatile Few Years' for Shipping Could Prompt New Contracting Approach.
Canadaâs Carney to Delay EV Mandate as Country Deals with Trumpâs Tariffs. Canadian Prime Minister Mark Carney has postponed a 2026 mandate requiring automakers to hit minimum EV sales targets, citing financial strain on the sector from US President Trumpâs tariffs. Industry leaders said the decision reflects Canadaâs dependence on the US market, where EV incentives have been rolled back, and factories must now navigate heavy tariffs on steel, aluminum, and vehicles despite USMCA protections. Alongside this delay, Carney announced new support measures for affected workers and industries, including a $370M incentive for canola producers after China retaliated with tariffs, underscoring how trade tensions are reshaping Canadaâs economic strategy. Related, Many EV Owners Say Theyâre Undeterred After the Federal Governmentâs Mandate Pause.
Adobe: Generative AI-Powered Shopping Rises with Traffic to US Retail Sites up 4,700%. Adobe reports that generative AI is rapidly reshaping online shopping, with AI-driven traffic to US retail sites surging 4,700% YoY in July 2025. Shoppers using AI tools are more engagedâspending 32% longer on sites and bouncing 27% lessâthough conversions still lag behind other traffic sources, the gap has narrowed from 49% in January to 23% in July. As a result, AI-driven revenue-per-visit has improved dramatically, now just 27% below non-AI traffic compared to 97% a year earlier, showing that consumers are increasingly comfortable moving from product research to actual purchases through generative AI-powered experiences. Completely unrelated, Palo Alto Networks, Zscaler Customers Impacted by Supply Chain Attacks.
The Future of Supply Chain đïž
Check out our podcast series thatâs 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 đž
Yottar Raises $1M in Pre-Seed Funding. Yottar provides a SaaS platform that maps electrical grid capacity, helping companies identify where they can plug in data centers, EV chargers, and other high-demand equipment. The funding will be used to expand product features and prepare for international growth beyond the U.K. The round was led by Haatch with participation from Cape Capital and angel investors.
Orbital Paradigm Raises âŹ1.5M in Pre-Seed Funding. Orbital Paradigm is developing reusable orbital re-entry capsules designed to enable repeat access to and from orbit for research and manufacturing. The funds will be used to launch its first vehicle, codenamed âKID,â before the end of 2025 and accelerate development of a second mission planned for 2026. The round included Akka, Demium Capital, id4 Ventures, and other investors.
Mantic Raises $4M in Pre-Seed Funding. Mantic is developing an AI system for âjudgemental forecasting,â designed to predict world events such as supply chain disruptions and geopolitical shocks. The funding will support further development of its forecasting platform and expansion of its engineering team. The round was led by Episode 1 Ventures with participation from DRW and angel investors.
TracXon Raises âŹ4.75M in Seed Funding. TracXon develops flexible printed electronics designed to replace traditional circuit boards in industries like medical devices, cars, and consumer products. The new capital will fund expansion, industrial-scale production, and commercial rollout of its R2R VIA Printer, with first models expected in 2027. The round was backed by Invest-NLâs Deep Tech Fonds, DeepTechXL, and the Brabantse Ontwikkelings Maatschappij (BOM).
Throxy Raises âŹ5.3M in Seed Funding. Throxy provides a fully managed outbound sales service that guarantees clients only pay when meetings are booked, targeting hard-to-reach industries like manufacturing, logistics, and healthcare. The funds will be used to scale the team nearly fivefold and expand adoption of its proprietary data and tech-driven approach following graduation from Y Combinatorâs Spring 2025 cohort. The round was led by Base10 Partners with participation from Y Combinator.
Heave Raises $7M in Series A Funding. Heave operates an on-demand platform that connects construction companies with certified mobile mechanics to deliver heavy equipment repairs within 24 hours. The new funding will support market expansion, customer acquisition, and team growth as the company scales beyond its stronghold in Florida and Texas. The round was led by Outsiders Fund with participation from FJ Labs, Long Journey Ventures, and Slow Ventures.
Nauta Raises $7M in Seed Funding. Nauta offers an AI-powered logistics orchestration platform that serves as a control center for importers, automating workflows and improving visibility across shipments. The funding will support global expansion and broaden its offering to stakeholders across the logistics value chain. The round was led by Construct Capital.
LightYX Raises $11M in Series A Funding. LightYX develops a laser projection system that displays construction plans directly onto jobsite surfaces with sub-2 millimeter accuracy, reducing errors and accelerating project timelines. The new funding will support US and EU expansion, product development, and partnerships with contractors and distributors. The round was led by NOVA by Saint-Gobain with participation from Yachad Capital Partners, Shibumi International, Somersault Ventures, and private investors.
Reframe Systems Raises $20M in Series A Funding. Reframe Systems is developing AI-driven microfactories that automate home construction. The funds will be used to expand deployment of its microfactories, advance robotics and software capabilities, and scale production in US markets. The round was co-led by Eclipse and VoLo Earth Ventures, with participation from MassMutual Catalyst Funds, Cubit Capital, RA Capital Management, Saga Ventures, and Norâeaster Ventures.
FirstClub Raises $23M in Series A Funding. FirstClub is a Bengaluru-based premium eComm platform offering curated groceries and household products, targeting Indiaâs top 10% of households with exclusive, quality-focused selections. The new capital will fund expansion of its âclubhouseâ dark stores in Bengaluru, new category launches including childrenâs food, pet food, nutraceuticals, and home goods, and entry into additional cities. The round was co-led by Accel and RTP Global, with participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures.
HappyRobot Raises $44M in Series B Funding. HappyRobot develops AI-powered âsupply chain workersâ that automate tasks such as appointment scheduling, collections, and outbound sales for enterprises. The new funding will be used for hiring, product development, and scaling enterprise deployments. The round, which reportedly values the company at $500M, included participation from existing and new investors (not disclosed).
Citymall Raises $47M in Series D Funding. Citymall operates a budget-focused grocery delivery platform for Indiaâs tier 2 and tier 3 towns, targeting value-conscious consumers with low-cost essentials and private-label products. The funds will be used to expand operations into adjacent cities, strengthen supply chain efficiencies, and grow its customer base. The round was led by Accel with participation from WaterBridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.
Blue Water Autonomy Raises $50M in Series A Funding. Blue Water Autonomy designs and builds unmanned, long-range ships for security and logistics missions for the US Navy. The funding will enable the company to construct and deploy its first full-sized autonomous vessel next year while scaling production and supplier partnerships. The round was led by GV with participation from Eclipse, Riot, and Impatient Ventures.
Paragraf Raises $55M in Series C Funding. Paragraf manufactures graphene-based electronic devices, such as sensors and semiconductor components, using standard chip manufacturing processes. The new funding will be used to expand production of its next-generation technologies. The round was led by Mubadala.
Shift5 Raises $75M in Series C Funding. Shift5 provides a real-time visibility platform into defense and commercial transportation assets, helping teams detect cyber threats, anticipate failures, and improve fleet performance. The funding will be used to scale its OT monitoring capabilities, accelerate R&D, and expand partnerships across aviation, rail, maritime, and ground vehicles. The round was led by Hedosophia with participation from Insight Partners, Center 15 Capital, 645 Ventures, Moore Strategic Ventures, Booz Allen Ventures, Squadra Ventures, AE Industrial, Disruptive, CSP Equity Partners, and Savano Capital Partners.
LIZY Raises âŹ75M in Funding. LIZY offers a fully digital, sustainable car leasing platform focused on re-leasing used EVs to provide businesses with lower-cost, flexible mobility options. The new capital will support expansion beyond Belgium, France, and the Netherlands into additional European markets. The round, a mix of debt and equity, was led by DâIeteren, Alychlo, and NewAlpha Asset Management.
Augment Raises $85M in Series A Funding. Augment develops an AI assistant called âAugieâ that automates communications and repetitive tasks for freight shippers, carriers, and brokers, such as rate bidding, load building, and invoicing. The new funding will be used to hire engineers, expand product features, and scale adoption across the logistics sector. The round was led by Redpoint with participation from 8VC, Autotech Ventures, and others.
BETA Technologies Raises $300M in Funding. BETA Technologies develops electric aircraft and hybrid propulsion systems for regional transport. The investment will support development of a turbogenerator system based on GEâs CT7 and T700 engines, targeting longer range, higher payload, and faster speeds than battery-only eVTOLs. The funding comes from GE Aerospace.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
AI Engineer at FreightHero in Brazil (Remote).
Commercial Insurance Agent - Trucking at Logrock in Concord, NC.
Senior Operations Supervisor at Sennder in Milan, Italy.