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.❤️ 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 💭

Our Venture Fellows, Leo Girlando, Warren Wang, and Charles Mansfield, are entering their last week of our fellowship. We wanted to extend a massive shoutout to each one of you for being an integral part of the team for the last six months. We’ve enjoyed working with you all (yes, even you Leo 😉) and look forward to watching all three of you accomplish great things in the future. 

We Are Dynamo,

Clay, Santosh, Jon, and the rest of the Dynamo team

Note: please add “[email protected]” to your email client, so you don’t miss future issues due to aggressive spam filters.

Supply Chain 📦

Supercharging Trucks. Broad adoption of heavy-duty electric trucks is looking closer than ever with manufacturers releasing new big rigs and the announcement that multi-megawatt charging is coming in 2024. While multi-megawatt charging won’t be necessary for all electric-truck journeys, more than 40% of freight activity in Europe happens on trips above 500km. As a result, the region’s biggest truck makers are investing in charging infrastructure, with the European Commission approving a $525M joint venture between Volvo, Daimler Truck, and Traton to set up 1.7K charging points across Europe by 2027. Daimler Truck is also investing $650M alongside NextEra Energy and BlackRock to create a nationwide network of commercial-vehicle chargers. Moving forward, questions remain around the speed and cost of rolling out adequate charging infrastructure for big rigs. Side note: There wasn’t a link to the Hyperdrive article so we through it in a Google doc in case you wanted to read further. For more news on trucks, see Einride Orders 110 Electric Trucks From Scania and Volvo Presents New FC Truck.

Motor Insurers Facing Challenges From Rising Costs And Supply Chain Issues. Despite the cost pressures on insurers, the average amount paid by motorists for insurance has fallen to its lowest level in more than six years in the 1Q22. Alongside delays in delivering new vehicle models and getting spare parts, there have also been shortages of skilled labor in the vehicle repair sector, driving average used car prices up by ~30% in 2021. According to the Financial Conduct Authority, home and motor insurance customers are at risk of losing out when renewing repeatedly with their existing providers, also alluding to increasing concerns around cost-of-living pressures potentially driving up some cases of criminal behavior when it comes to insurance claims. With increasing challenges across industries from insurance to Packaging Being Incapacitated Due To Supply Chains Disruptions, one has to wonder Where Is The Next Wave Of Supply-Chain Innovation Coming From?

🌟State Of Logistics Report. The 33rd annual publication finds that US-based supply chains are out of sync while adjusting to short-term changes and perhaps uncovering long-term solutions. The report highlights that US business logistics costs increased by 22.4% to $1.85T in 2021, representing 8% of national GDP. Other key report findings include: 1) business inventories dropped to near historic lows, but the costs associated with storing, handling, and finance for these items rose considerably; 2) efforts to increase multi-shoring are expected to accelerate; 3) last-mile delivery volume is trending upward, and 4) ​​trucking freight continues to see more volume and opportunities. For more news on global supply chains, see Chinese Manufacturing Orders Dropping By 25% As Consumers Pull Back On Goods joining the opera of canaries increasing the likelihood of A Potential US Economic Recession And Supply Chain Bullwhip Colliding.

Amazon Announces Autonomous Robots. The robot, dubbed “Proteus” will be its “first fully autonomous mobile robot (AMR)” meant to move large carts throughout its warehouses. The eComm giant also announced the use of the robotic system Cardinal, a robotic arm that can lift and move packages weighing up to 50 pounds. The company says that its computer vision systems let it pick out and lift individual packages, even if they’re in a pile, while its deployment in warehouses awaits for next year. Separately, Amazon also presented tech that could let employees ditch the hand scanners they use to log barcodes as they shift focus around optimization and safety. More recent developments across robotics include Zipline’s Drone-Delivery Service Approved As Air Carrier By FAA and Ghost Kitchens Ride Into College Campuses On The Backs Of Delivery Bots.

DoorDash Offers 30-Minute Delivery in Canada, Amid Industry Struggles. Thanks to its new partnership with Loblaw, Canada's largest grocery retailer, DoorDash is expected to increase fulfillment centers' operational capacity, reaching up to 8K goods supplied. The Canadian express service will operate similarly to DoorDash's rapid delivery service in New York City, where couriers are employees, not gig workers, who pick and pack the deliveries inside warehouses. This is DoorDash's third move in the rapid delivery space, which has seen several startups collapse or downsize operations amid a looming recession and high inflation in the US. For more on the delivery space, see FedEx And Fourkites Partner On Platform To Track Orders And Optimize Delivery and the State Of Rapid-Delivery Startups. 

Germany Steps Up Measures To Conserve Gas As Russia Slows Supply To Europe. Germany will restart coal-fired power plants and offer incentives for companies to curb natural gas consumption while diverting gas deliveries to storage facilities to ensure the country has enough reserves to get through the winter. As of recently, Germany's natural gas imports from Russia decreased by ~20% to 35% compared to before the war, using most of it for heating and manufacturing, while power generation accounted for about 15% of total public electricity in Germany in 2021. Besides introducing an auction system that would motivate the industry to reduce consumption, the government is expected to approve the legislation affecting the use of coal on July 8, which would expire in March 2024. For more news related to fuel in supply chains, see Maersk Set To Double Down On Methanol-Fuelled Container Ship Orders and FedEx Benefits From Higher Fuel Surcharges.

Corn Piles Up As Key Brazil Region Reaps Record Crop. Corn is stacking up outside of Brazilian silos at the fastest rate in years after the country’s biggest-producing region harvests a bumper crop. Warehouses are still full of soybeans, which are reaped only a few months before the corn. Additionally, soy production was huge this season and sales have been slower than usual, leaving the warehouses with no room to receive the corn. Around 11M tons of soybeans in Mato Grosso were still in farmers' hands in May, compared with 5.5M tons a year earlier while corn is expected to increase by 20% y/y to 39M tons, representing a third of Brazil’s production and reaching a record at 115.2M this season. For more news on food supply chains, see One Grocer Wanted to Give Up Plastic But It Got Rotting Bananas and Walgreens Invests in Drones, Microfulfillent, and Same-Day Delivery.

Mobility 🚗

It’s Time To Talk About Consolidation In The EV Charging Industry. Early players like ChargePoint, Tesla, Electrify America, and EVGo have large networks in the EV charging market which has subsequently put pressure on smaller players to consolidate. The charging funding in the infrastructure bill seems to also be attracting foreign competitors to start investing in US charging networks. While this is important for charging infrastructure, it’s unclear how charging compatibility will be affected. In other news, consider reading Ford Chooses Spain Factory To Build ‘Profitable’ EVs and As Markets Bet Billions On EV Uptake, Automakers Steer Towards Sustainable Supply Chains.

A 'Flightmare': Hundreds Of Southwest Airlines Pilots Protest Lack Of Progress On New Contract. Flight delays and staff shortages remain ongoing throughout the US. The biggest problem is a lack of attendants and pilots to match demand; This is underscored by a protest by over 1.3K Southwest pilots in Texas this week. Pilots are frustrated with a lack of progress on a new contract. This isn’t unique to Southwest as many other airlines are facing similar shortages and labor disputes. Progress seems slow on the front but the pressure is being put on airlines to find a deal. In other news, You'll Be Charged To Visit Europe From 2023.

GM Cruise Takes First Fares For Paid Driverless Taxi In San Francisco. This is a big step in the robotaxi space as companies are finally starting to progress towards charging fares. The program is still only covering a third of San Francisco with around 30 cars. The pricing for a Cruise driverless taxi is not much cheaper than the competition which isn’t too alarming yet since the unit economics continue to be figured out. In related news, check out Researchers Release Open-Source Photorealistic Simulator For Autonomous Driving.

Why You Might Buy Your Next Car Online. Tesla was the first major automaker to shift to an entirely online approach to selling. This approach has been copied by other automakers, including new and legacy players, and looks like it could become the norm in the future. Earlier this month Ford CEO Jim Farley mentioned the company potentially digitizing sales of its EVs. This is good news for consumers wanting a more efficient car buying process. In related news, check out VW CEO Diess Warns Car Plants Are At Risk From Energy Supply Halt and BMW Opens $2.2B EV Plant In China As It Ramps Up Challenge To Tesla, Domestic Players.

To Succeed In The Mass Market, EV Makers Must Focus On Cost, Not Speed. The sales of battery-electric vehicles are set to make up half of the global vehicle market by 2035. To compete on cost, automakers will have to build EV designs from the ground up instead of fitting vehicles meant for engines with batteries for the sake of speed. OEMs plan to invest $536B towards developing EVs through 2026 to accomplish precisely this goal. Be on the lookout for joint ventures as automakers look to create competitive advantages by combining specialties. In other news, consider reading China’s Electric Vehicle Battery Supply Chain Shows Signs Of Forced Labor, Report Says and Ford Ending Lease Buyouts For All Its Electric Vehicles In The US.

🌟China’s Electric Vehicle Battery Supply Chain Shows Signs Of Forced Labor, Report Says. The New York Times reported that mining conglomerate Xinjiang Noferrous Metal is forcing people from China’s Uyghur population to work in the North. The company produces minerals and metals such as lithium, nickel, and copper. It exports metals to the US, Germany, the UK, Japan, and India. If certain restrictions are enforced due to the Uyghur Forced Labor Prevention Act, it could result in disruptions to the mineral supply chain.  In other news, Honda, Ford, Jeep, Lamborghini Among Vehicle Recalls This Week and Toyota Recalls First Mass-Produced EVs Less Than 2 Months After Launch.  

Musk Says Tesla’s Factories In Berlin And Texas Are ‘Gigantic Money Furnaces’. Tesla's Texas and Berlin factories are losing billions of dollars. Further Chinese supply chain disruptions hamper their ability to ramp up production. The resurgence of COVID in China has caused lockdowns in major cities including Shanghai where Tesla’s plant is located. The company still plans on producing 1.5M cars this year but will most likely continue to take a hit at many of its factories for the foreseeable future. In other news, look at Sorry Elon Musk. Hyundai Is Quietly Dominating the EV Race and GM Is Latest To Join The Race To Streamline EV Charging. 

Fundraises and M&A 💸

e-Mission Control Raises $3M Led By Skyview Ventures. e-Mission Control designs, manages, and executes electricity consumption data platforms and services for fleet operators. Its platform currently facilitates access and participation for hundreds of fleets and tens of thousands of pieces of equipment in both California and Oregon. The funds will be used to scale its platform.

Rider Raises $3.1M Seed. Rider is a Pakistan-based logistics startup focusing on eComm deliveries. Investors include Y Combinator, i2i Ventures, Flexport, Soma Capital, and Rebel Fund. It has delivered 3M+ parcels across Pakistan and has grown its customer base to 650 online sellers.

Posh Raises $3.8M Seed. Posh automates EV battery recycling to build sustainable energy storage solutions. The company’s goal is to bring affordable lithium-ion batteries to the masses and help create a circular economy for an electric future. Investors include Muse lead singer Matt Bellamy (through Helium-3 Ventures), Y Combinator, Metaplanet, Outbound Capital, Starling Ventures, Uphonest Capital, and Global Founders Capital.

ReturnGo Raises $6.5M Led By TPY Capital. ReturnGo has developed a ML-based platform that enables efficient management of returns and exchanges for products purchased online. The company’s platform has already been implemented as a SaaS in more than 1.5K Shopify stores. Additional investors include Cresson, Good Company, SeedIL, and Aristagroa.

Vamstar Raises $9.5M Led By Alpha Intelligence Capital And Dutch Founders Fund. Vamstar is a SaaS-based global sourcing and procurement platform for medical supplies and pharmaceuticals. The platform connects both buyers and suppliers electronically to automate transactions and process flow across the supply chain. The funds will be used to accelerate its market and product development plans.

Synop Raises $10M Led By Obvious Ventures. Synop is an EV fleet management startup. It was started by Gagan Dhillon and Andrew Blejdep to minimize the unknowns and accelerate the adoption of EVs in commercial fleets. Additional investors include Wireframe Ventures, Congruent, and Better Ventures.

SHARE Mobility Raises $12M Led By Iron Gate Capital And Renewal Funds. SHARE Mobility offers a platform for enterprise companies to implement new transportation programs or optimize an existing one. By offering reliable transportation to work, SHARE Mobility riders save an average of $5K per year on commuting. The funds will be used to scale its platform.

TradeLink Raises €12M Led By Insight Partners. TradeLink is an end-to-end digital collaboration platform for document management between shippers, warehouses, and carriers. Additional investors include Point Nine and Fly Ventures. The funds will be used to enhance the functionalities of its SaaS platform and scale marketing and sales activities.

BotsAndUS Raises $13M Led By Lakestar. BotsAndUs is an autonomous warehouse robot maker. Additional investors include Maersk Growth, Kindred Capital, and Capnamic. The funds will be used for robot development and international expansion.

Vahak Raises $14M Led By Nexus Partners. Vahak is an online transport marketplace and networking community of truck owners, transporters, and consignors. Additional investors include Foundamental, iSeed Ventures, Leo Capital, RTP Global, and Tital Capital. The company is currently in the pre-revenue stage, but it will soon monetize through value-added services, like escrow, insurance, fuel, GPS, and direct commissions on transactions.

Epsilon3 Raises $15M Led By Lux Capital. Epsilon3’s web-based platform provides collaboration tools that are tailor-made for spacecraft manufacturing and operations. Customers include Rocket Lab, Virgin Galactic, Sierra Space, and the US Space Force. The funds will be used to build new software products, including analytical tools for making workflows more efficient.

Statiq Raises $25.7M Led By Shell Ventures. Statiq is an India-based EV charging network that enables customers to locate the nearest charging station, book a slot, and pay digitally. It has recently teamed up with Hero Electric and EV maker Ather, to enhance the combined EV charging network in the northern states of India. The funds will be used to scale its network and improve its technology.

ReshaMandi Raises $30M Led By Creation Investments. ReshaMandi digitizes the silk supply chain and provides full-stack support including logistics, finance, and scientific testing to stakeholders. According to the company, its platform has helped increase small business incomes by 35-55%. The funds will be used for R&D and market expansion.

XYZ Robotics Raises $40M Led By Capital Today. XYZ Robotics develops AI-enabled robotic perception and manipulation technology for logistics and manufacturing automation. It has accumulated hundreds of customers in China, Japan, and the US. The funds will be used for R&D and market expansion.

Wingcopter Raises $42M Series A Extension. Wingcopter is a Germany-based delivery drone manufacturer and service provider. Investors include REWE Group, Salvia, XAI technologies, ITOCHU, Futury Capital, and Xplorer Capital. The funds will be used to expand its drone delivery services globally, ramp up production, accelerate R&D efforts, and hire 80 new employees.

DB Schenker Acquires USA Trucks For $435M. DB Schenker, a ​​supply chain management and logistics solutions provider, is acquiring USA Trucks, a capacity solutions provider. The acquisition is part of DB Schenker’s ambition to become a full-service supply chain provider in the US– and around the world. As part of the deal, DB Schenker is paying cash for all outstanding shares of USA Truck common stock, for $31.72 per share. 

Ever.Ag Acquires Cainthus. Ever.Ag, an ag-tech provider dedicated to empowering supply chains to feed a growing world, has acquired Cainthus, a company that offers AI-enabled cameras for analyzing dairy operations. Following the Cainthus acquisition, Ever.Ag plans to enhance the offerings of its My Dairy Dashboard product and producer portals ― which integrates data from milk pickups, feed delivered, recorded cow events, milk schedules, and payment information. The terms of the deal were not disclosed.

Schneider Electric Acquires EV Connect. Schneider, a leading energy management and automation company has acquired EV Connect, an EV charging solution provider. The goal of the acquisition is to accelerate the EV revolution. The terms of the deal were not disclosed.

SPAC Radar📡

Polestar Goes Public Via SPAC. Polestar is an EV maker. As of today, Polestar is listed on the Nasdaq stock exchange under the ticker PSNY. It plans to use the proceeds of the SPAC deal to fund a global expansion and eventually become profitable.

Business Building 🛠️

How to Validate Your Idea. Protip- it has nothing to do with investors and all about customers.

Seeing A Clear Path. A Clear Path is “ a way of summarizing the combination of current growth, TAM and future prospects into where things are going.” We’ve seen this across our portfolio and it’s an accelerant to rally employees, partners, and draw greater value from investors.

What Founders Should Know About Raising Debt. Parts of this are increasingly relevant to supply chain companies who are monetizing using financial products. In our portfolio, there are three-going-four companies who see payments/credit as a necessary value-add for customers given the workflow they facilitate.

Who's Hiring? 👩‍💻

Competitive Intelligence & Industry Relations Analyst at Verusen in Atlanta, GA (remote ok).

Sales Account Executive at Forwardize in Berlin, Germany.

Marketing Manager at Tangram Vision in Boulder, CO (remote ok).

💥 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.