Dynamo Dispatch. 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.❤️ We would love your support. Please forward to friends and share on social media.🗞️ If you were forwarded this and found it interesting, please sign up.🎙 Check out Dynamo's podcast series, The Future of Supply Chain.

Weekly Commentary 💭

If you haven’t already, check out Episode 82 of the Future of Supply Chain podcast with David Warrick of Microsoft.

Thank you to Alex and Patric for the startup referrals this week.

We Are Dynamo,

Santosh, Ted, Barry, Jon, Rachel, and Emily

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Supply Chain 📦

TIACA: Air Cargo Rates Will Remain Elevated for Three Years. Air cargo industry experts believe the belly space that usually makes up more than half of all available freight capacity will remain sidelined as airlines continue to struggle with uncertain passenger demand, resulting in elevated rates for the industry. Also, Cargo Airlines Diversifying Sales Channels.

🌟📊Retailers Shifting Supply Chain Strategy Due to COVID. A new Capgemini Research Institute survey finds 68% of respondents faced difficulties in planning due to a lack of accurate and up-to-date information on fluctuating customer demand during the pandemic. To improve forecasting, 66% of all respondents plan to segment supply chains post-COVID, while 54% say they will use analytics/AI-machine learning for demand forecasting. Case-in-point, PVH Fashions New Supply-Chain Strategy in Pandemic-Hit Apparel Market.

Amazon Stronger Than Ever According to Consumer Survey. 40% of consumers now buy most of their goods on Amazon, a growth of 83% since the pandemic began.  To add, 52% of shoppers believe Amazon has a positive impact on retail, versus 45% a year ago. Despite the retailers’ popularity, more than 95% of consumers think they should support independent retailers in the wake of COVID. 

Experienced Yard Drivers are in Demand as eComm Surge. Workers who shuttle trailers and containers on company grounds are essential to freight operations as eComm spurs the opening of new and more extensive distribution and fulfillment centers. Their absence leads to delays in pickups and deliveries, congestion at distribution points, and longer transit times. Elsewhere in surface transportation, Canada’s Fast-Approaching ELD Mandate Won’t be Enforced Right Away and Ford Telematics Now Available for Non-Ford Commercial Vehicles.

Beneficial Cargo Owners Pay Millions in Penalties as Port and Rail Hub Congestion. Trucking members disputed more than $3M in detention or demurrage fees in 2020, of which 65% were tied to a lack of available appointments to either pick up or return a container. With so much congestion, drivers are struggling to complete as many jobs per day,  which could cause dray rates to increase in 2021. Meanwhile, Port of Long Beach Volume Jumps 43.3% y/y as empty containers head back to Asia and Maersk Weighs Sale of $1B Cold Container Unit Amid Pandemic Demand. 

Rethinking Labor Management. Companies were unprepared this holiday season to make frequent pivots to meet demand while keeping their workers safe. To stay productive during an ever-changing consumer base and workforce, companies should review and adjust their planning and timeframes as peak season does not operate on a set schedule anymore. Related data point, US Wholesale Inventories Increased Even as Sales Surges. 

📊Gartner: Gen Z to Drive Evolution of Supply Chain. Over the next ten years, Gen Z supply chain professionals will accelerate digitalization and hyper-automation,  involving a combination of technologies that include robotic process automation, machine learning, and AI. The first step will be for supply chain organizations to identify and automate all repetitive, non-value-added human activity, such as procure-to-pay and customer claim management. 

Rail is More Relevant Than Ever for Economic and Environmental Progress. As Congress plans to push through a significant transportation infrastructure bill, witnesses testifying at a US House hearing on Wednesday spoke about the need for public partners to invest in multimodal initiatives as a way to support the freight rail industry and its workers. Investing in rail infrastructure projects, especially in intermodal connections to the West Coast ports, supports the nation’s international trade position. Also, How Rail Helped the US Expand Interstate Commerce.

Mobility 🚗 

Tesla is Secretly Building a Giant 100 MW Battery in Texas. Along with their popular EVs, Tesla has a thriving business in battery storage that includes utility-scale battery installations to support the electric grid. The stealth installation will use lithium iron phosphate batteries that are expected to last 10 to 20 years. Related, Tesla’s Lead in Batteries Will Last Through the Decade and LG to Supply 4680 Battery Cells for Tesla.

Daimler Considers Earlier Stop to ICEs. Daimler might accelerate the phase-out of ICE in its product line. The speed of transformation depends on how stringent the upcoming emissions standards in Europe. And in Asia, Singapore will not register diesel cars from 2025 while some think Hybrid Buses Are a Path to Zero Emissions. 

🌟Piedmont Lithium Supports America's Hopes for a Battery-Powered Car. Piedmont Lithium has deployed drilling rigs throughout a 2.3K acres plot in North Carolina as they prepare to launch one of the first significant new lithium mines in the US. Lithium is an increasingly crucial material expected to surge, as it is central to the rechargeable batteries that power cellphones and  EVs. Also, GM Invests in Battery Cell Production in the USA.

Lordstown Motors Facing Short Seller Scrutiny. Hindenburg Research is targeting Lordstown Motors, the Ohio electric automaker, stating “extensive research reveals that the company’s orders appear largely fictitious and used as a prop to raise capital and confer legitimacy.” Hindenburg has taken a short position on Lordstown Motors, causing shares to plummet 21%.

How Toyota Learned from Fukushima and is Managing Chip Shortage. Toyota is prevailing during the chip shortage due to stockpiling supplies early on. The Japanese automaker learned from the Fukushima nuclear disaster in 2011, where they were stricken by supply chain issues similar to the ones automakers are experiencing now. It's unclear how much Toyota has depended on its chip stockpile and how long it's going to last, but as the world very gradually turns back to normal, it's a safe bet that they’ll be able to make it through unscathed. Speaking of auto manufacturing, Apparently, Apple Could Build a Car Without Collaboration.

Bike-Sharing and the E-Bike Boom. Social-distancing, sustainability, and accessibility helped accelerate eBiking during the pandemic, and the trend is showing up in urban bike-sharing programs. Sales of e-bikes grew 145% in 2020 compared to 2019, outpacing sales of all bikes, up 65%. Also, Demand for Bikes Driven by COVID Could be Here to Stay.

Drivers are 24% More Likely to Speed When Using Adaptive Cruise Control. Adaptive cruise control is marketed as a convenience feature, not a safety feature, but some studies have linked it to decreased crashes and insurance claims. However, this link may be muddied because the system is usually used in combination with forward collision warning or automatic emergency braking.  Related, Waymo Reconstructs Real-Life Crashes and Luminar and Volvo Collaborate on ADAS.

Fundraises and M&A 💸

Refraction AI Raises $4.2M in Seed Round Led by Pillar VC. The company that develops semi-autonomous delivery robots has benefited from COVID as much of the US hastens the adaptation of self-guided robots and drones for goods transportation. Refraction says that the proceeds will be used for customer acquisition, geographic expansion, and product development well into the following year.

Populus Raises $5M. The smart data platform empowers cities to manage shared mobility services, streets, and curbs. The funding reaffirms Populus’s market strength in delivering digital solutions for cities to leverage data and analytics to manage mobility services. 

Digital Motors Raises $10M in Series A Led by DN Capital. The startup allows customers to experience the entire automotive purchasing process entirely online by turning dealers and manufacturer websites into online stores.  The company is planning on financing its international expansions with the new funding. 

Damon Motors Raises $30M. The high-tech HyperSport EV motorcycle makers announced that $20M worth of preorders have been made along with the funding. The money will be used to further fuel Damon’s path to market and enable demo tours, pre-production development, and testing. 

SEA Electric Raises $42M.  SEA Electric is an Australian-founded EV truck and van technology company now based in Los Angeles. The company said the capital raising would solidify its position as a market leader in the electrification of commercial vehicles while funding its considerable backlog and facilitating more pilot programs with operators. 

NuOrder Raises $45M Led by Brighton Park Capital and Imaginary Ventures. NuOrder is a B2B eComm platform that has benefited from the surge in the industry. Over the past 12 months. This investment will support their continued growth and expansion within focus markets and enable the company to claim and transform interactions with brands and retailers within the global B2B marketplace.  

Nimble Robotics Raises $50M in Series A. The San Francisco-based startup focuses on robotics and eComm fulfillment technology. The capital raised will further accelerate the company’s hiring plans, product and technology development, and scaling of robot deployments for its customers’ fulfillment operations.

Rimac Automobili Raises €70M. The Croatian company develops and produces high-tech components for electromobility, including high-performance drives and battery systems. It also makes electrically powered super sports cars.

Optibus Raises $107M in Series C Led by Bessemer Venture Partners and Insight Partners. The startup spent three years developing the AI that powers its transit operations product to help plot and schedule drivers and vehicles’ movements. The money will be used to support the development of a new platform called the geospatial suite, which seeks to improve transportation networks through data-driven planning.

Zego Raises $150M in Series C Led by DST Global. Zego started by offering flexible motorbike insurance for gig economy workers but has since expanded with a range of tech-enabled commercial motor insurance products. The insurance company says it will use the funding to expand across Europe rapidly and beyond and double its workforce. 

Renault Sells $1.4B Stake in Daimler. The French automaker will exit its entire holding in Daimler, roughly a 1.5% stake worth $1.4B. Proceeds from the sale will allow Renault to accelerate it’s financial de-leveraging. I’ts industrial partnership with Daimler is not affected by the transaction.

Lineage Logistics Raises $1.9B. Lineage Logistics is the largest refrigerated-storage company in the world by space. Lineage plans to utilize a substantial amount of the new equity to continue making strides in its strategy of transforming the global food supply chain to eradicate waste and help feed the world by investing in disruptive technologies for temperature-controlled warehouses.

AerCap Merges with GE Capital Aviation Services Valuing Company at $34B. GE agreed to combine its jet-leasing unit with rival AerCap Holdings to create a leasing giant with more than 2K aircraft. The jet-leasing unit was the biggest remaining piece of GE, accounting for more than half of the unit’s $7.25B of revenue in 2020.

Panasonic Acquires Blue Yonder for $6.45B. The news follows Panasonic’s purchase of a 20% stake in Blue Yonder last year. An acquisition will bolster Panasonic’s supply chain management services as COVID focuses on its resilience to disruption.

Amazon Spends $131M for Stake in Cargo Airline ATSG. Amazon scooped up a minority stake of about 13.5M shares in the cargo airline that operates a large amount of its air cargo division. This is the latest sign of the retailer’s long-term ambitions to expand its airfreight operations.

Via Acquires Remix at $100M. Remix, the startup that developed mapping software used by cities for transportation planning and street design, was born out of a hackathon during a Code for America fellowship. The acquisition will let the startup maintain its independent brand. 

EasyPark Acquires ParkMobile. ParkMobile is a parking technology company a part of the PARK NOW Group,  a venture between BMW Group and Daimler that brought together companies looking to address ride-sharing, charging, trip planning, and parking issues across the transportation and mobility space. The other PARK NOW Group companies, including RingGo, and Park-line, will also be part of the acquisition. 

Northvolt Acquires Cuberg. The acquisition of the US-based battery technology company by Northvolt came along with establishing a new advanced technology center in Silicon Valley. Northvolt’s US operations, led by Cuberg, will develop battery cells for the EV market with a lower price point, better performance, and increased safety.

SPAC Radar 📡

Grab Said to Weight $40B  Deal with Altimeter Capital Management SPAC. Singapore-based Grab has been delivering restaurant, grocery, and other items and provides digital financial services to merchants since 2011. Altimeter Capital, of Menlo Park, Calif., has around $16B under management and primarily invests in technology companies.

Vista in $15B Deal with Apollo Strategic Growth Capital SPAC. Three of Vista Equity Partner’s auto technology companies are in talks to combine to go public, including  Solera Holdings., DealerSocket. and Omnitracs. The SPAC combination would be at least the fourth time Vista has tried to exit its investment in Omnitracs, and a merger with Vista portfolio company Solera would represent a re-do of the deal that led to a 2019 lawsuit brought by Solera’s founder.

Holley Performance in $1.55B Deal with Empower SPAC. Holley is the largest and fastest-growing platform in the enthusiast branded performance automotive aftermarket category. The definitive merger agreement with Empower will result in Holley becoming a publicly listed company on the NYSE under the new ticker symbol “HLLY”.

Plus in Deal with SPAC. Self-driving truck startup Plus seeks to bankroll its expansion in the autonomous driving industry by way of a merger. The Sequoia Capital-backed company has received several letters of intent from the SPACs and is weeks away from a deal announcement. 

Company Building 🛠️

Starting Greatness: Annie Duke on Decision Making. The sections on good/bad decision making, knowledge trees, and pricing might be of particular interest.

Tactical Guide to Building Community. A very practical approach for startups to go from 0 to 1 with regards to their user community. This is growing in importance for our portfolio with 4 of our investments in the last year being very intentional in building a bottoms-up product.

The First 10 Systems. “A company is a collection of both its people and its systems. People can come and go over the years, but the systems they put in place and gradually refine over time become part of the company — and companies ultimately compete based on if those systems are strong or not.”

Who's Hiring? 👩‍💻

Product Designer at Backbone AI in New York, NY (remote ok).

Senior Software Engineer at Token Transit in San Francisco, CA (remote ok).

Software Engineer, Applications at Vizion in Atlanta, GA (remote ok).

Check out other jobs at Dynamo portfolio companies.💥 Have you seen any interesting startups recently? Introduce us.❤️ We would love your support. Please forward to friends and share on social media.🗞️ If you were forwarded this and found it interesting, please sign up.🎙 Check out Dynamo's podcast series, The Future of Supply Chain.