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 💭

Huge shoutout to our friends over at Milk Moovement for the recent $20M Series A raise. We’re thrilled to be a part of the ride. 🐮

Last week, we launched our brand new blog series, Unicorn Briefs, where we dive deep into supply chain unicorns to get the full story behind their success. Up first, Convoy!

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 📦

🌟California Truckers Struggle To Comply With New Employment Law. Following the Supreme Court’s decision not to review the forming of AB5, trucking companies are struggling to operate in the new landscape. AB5 forces trucking companies to now treat drivers as full-time employees, including providing benefits. This expands to over 70K independent contractors who enjoy the independence of owning and operating their own truck, who will now have to take on expenses such as buying their own insurance. Many truck drivers plan to protest in the ports of LA, Long Beach, and Oakland. The law will go into effect on Jan 1, 2023, forcing truck owners to consider finding a new line of work. To read more on how this impacts California’s trucking industry read Hundreds Of Truckers Protest AB5 At Southern California’s Busiest Ports and Truckers Plan LA/Long Beach Work Stoppage Wednesday To Protest AB5.

Amazon Puts The Best Possible Spin On An Overbuilt Network. To prepare for Prime day, Amazon released a statement in which they outlined the expansion of their global operations. This includes over 110 aircraft, 50K trailers, 400 fulfillment centers, 150 sortation centers, and 1K delivery stations worldwide. It also implemented “Good-to-Man” robots and computer vision systems at their fulfillment to expedite its operations. Like most companies, Amazon’s limiting factor during COVID remained a labor shortage, so their expansion may come as a surprise. In essence, Amazon overcompensated for post-COVID demand, having nearly doubled its capacity, but this does not represent a sunk cost. Many other suppliers are struggling to find warehouse space, particularly near large eComm hubs, so this capacity will eventually be required. For more information, read Amazon Warehouse Opening Delayed; Supply Problems Cited and Why Amazon’s Warehouse Pullback Is Good News For Contractors.

Biden Team Pushes For Billions In Chips Funds As Shortages Bite. As the US continues to compete against China as the biggest, global chip manufacturer, new legislation now incentivizes semiconductor factories. The new US Innovation and Competition Act, which has been gaining momentum this past month, would appropriate nearly $2M in incentives to American chip manufacturers. However, in the meantime, China’s semiconductor industry has been the fastest growing. In fact, analysts forecast that the deficit of chips will result in 20% lower automobile sales compared to this time last year. To read more, consider Intel Warns US Lawmakers Factory Plans Hinge On Stalled Chip Bill and US Sanctions Help China Supercharge Its Chipmaking Industry.

Los Angeles Port Boss: Fix Rail Service Or Risk ‘Nationwide Logjam’. June was reportedly the highest-performing June ever recorded at the Los Angeles port with over 875K twenty-foot equivalent units (TEUs) of total throughput. Although total throughput was only up less than 1% y/y, it was up 15% vs the five-year average for June. TEU exports were down 2% y/y while empty containers shipped were up 8% y/y. This proves as a major risk for the entirety of the country’s supply chain according to Gene Seroka, executive director of the Port of Los Angeles. With the national rail services’ inability to handle increased imported cargo, more and more containers are beginning to pile up at terminals for longer periods of time. “All eyes are focused on improving the rail product” he claims, otherwise we are looking towards a “nationwide logjam”. To read more about container backlogs in California, consider Long Beach Container Backlog Crosses Red Line As Delays Mount and Boom Times Not Over Yet: US Container Ports Still Near Highs.

Walmart To Purchase 4.5K Canoo EVs To Boost Last Mile Coverage. As Walmart attempts to feed continuing online same-day delivery demand, they have decided to ramp up its last-mile delivery system. Announced on Tuesday, Walmart will be acquiring 4.5K delivery vehicles from EV manufacturer Canoo in 2023. In fact, Walmart will be the first company to use Canoo’s new Lifestyle Delivery Vehicle (LDV). These EVs will be driven by Walmart employees for both normal product delivery and grocery delivery through GoLocal. Also included was an option to purchase up to 10K more units from Canoo, which could potentially convert Walmart’s entire last-mile delivery fleet into an eco-friendly, sustainable system. To find out more on how this impacts Walmart’s delivery process, consider reading Walmart Nearly Doubles Coverage Of Inhome Grocery Delivery Service and EVs Could Deliver Your Walmart Groceries In 2023.

Cargo Ships Are Notoriously Dirty. A New Bill Aims To Clean Them Up. A new environmentally friendly cargo-based bill known as the Clean Shipping Act was introduced in Congress this week. The act aims to reduce the vast amounts of air pollutants and greenhouse gas emissions that cargo ships produce. There are two key provisions, both directing the US Environmental Protection Agency (EPA) to set standards for cargo ships entering US ports. One will set carbon-intensity standards for the fuel used by these ships, progressively getting stricter over time that, by 2040, marine fuels must be 100% below the life-cycle CO2 emissions baseline. The second provision will attempt to eliminate the emissions of docked/anchored ships by the beginning of 2030. The bill, despite just being introduced, is the first wave of new carbon-friendly legislation that aims to make the cargo supply chain more sustainable. For more information regarding the practicality of the legislation, read How Congress Aims To Reduce Carbon Emissions In Shipping and how potentially US Shipping Law Won’t Do Much To Address Soaring Cargo Costs.

US Foods Will Collaborate With Suppliers To Reduce Scope 3 Emissions. US Foods plans on joining competitors such as Sysco in plans to reduce Scope 3 carbon emissions by 2027, following a press release. They plan to work in cooperation with their suppliers to find “science-based emission reduction goals” that would allow US Foods to reduce 32.5 of its emissions by 2032. This comes in addition to US Foods’ commitment to convert fleet fuel in California distribution centers to renewable diesel fuel by mid-2022. Much of this fervor to convert came following a coalition formed last year between Mars, PepsiCo, and McCormick to give suppliers the tools that would allow for similar climate action plans. In unrelated news, The Speedy Downfall Of Rapid Delivery Startups.

Mobility 🚗

🌟The Uber Files Leak. Last week, The Guardian published a bombshell of a report centered on 124K leaked internal documents from ridesharing titan, Uber. The documents, including internal memos, emails, and private texts dating back to five years during the Travis Kalanick days, reveal a culture of troubling and ethically questionable company policies and relationships. The implications of the leak are significant and include advocacy for violence, intentional efforts to avoid regulatory constraints, and intense lobbying of governments and political leaders across the world, such as Joe Biden and Emmanuel Macron. For further reading, Check Out The Response From Kalanicks’s Spokesperson. In other news, European Airline Lufthansa Continues To Cancel Flights, Citing Staff Shortages.

European eBike Sales Hit A New Record. According to the latest data from the European trade organization CONEBI, eBike sales in Europe topped 5M last year, driving overall sales north of 22M, which represents a 7.5% y/y change in market value. The report suggests that including direct and indirect jobs, the market has created 170K jobs in the cycling industry. “Reshoring is taking place, and the well-known supply chain disruptions are triggering a new wave of industrialization in Europe: it’s a process that will take time but represents a unique opportunity for the European industrial ecosystem to grow sustainably in the long-term,” said Erhard Büchel, President of CONEBI. In related news, Rising Gas Prices Has Driven eBike Adoption To New Records In Denver. Nearby, In Kansas, Panasonic Is Planning A $4B EV Battery Factory. 

DC Electric Buses Plan to Tap Into Solar Power. Washington DC has announced plans to launch a microgrid to power its electric bus fleets. Using energy that resonates from solar panels as opposed to the traditional electricity grid, the move is part of Maryland's effort to convert publicly owned vehicles to zero-emission by 2035. The grid is slated to come on in September and will be the first of its kind in the D.C. area and one of the first nationwide. “The grid is clean, so the cleaner energy we use as a source, the more likely we are to be successful in reducing our total greenhouse gas emissions. That’s the goal,” said Montgomery County Executive, Marc Elrich. In related news, Canada Has Introduced Subsidies For Medium Sized and Heavy EVs. For further reading on government support for mobility innovation, check out this piece on Denver’s eBike Rebate Program.

GM Plans a Network of Fast Chargers. General Motors has reached a partnership with Pilot Co., to build a fleet of fast chargers along major US highways. The companies intend to install 2K chargers along specified routes by year-end of 2023. The plan is for the chargers to be installed, operated, and maintained by EVgo and include high-power fast charging capability, charging at up to 350 kilowatts as well as charging stalls designed to accommodate electric vehicles towing trailers. In other EV news, Geely, Aka Volvo, Polestar, Lotus Launches New Brand To Go After Rivian, and Berlin Pledges To Use All Electric Buses By 2030.

Recycling Batteries Might Be The Next Frontier For EV Investing. As investors, suppliers, and manufacturers look to fortify EV supply chains, the focus is slowly consolidating around battery recycling. While most of the historical attention and capital has been directed at startups improving battery technology, recycling companies are starting to gain ground, resulting in partnerships and investment across the value chain. “The supply side of batteries available for recycling is growing fast, and no one had really anticipated it,” Alex Smout of InMotion Ventures told TechCrunch. “So the ability for these companies to hit scale sooner than had been previously anticipated is really showing itself.” In other news, Tesla’s Giga Factory In Berlin Is Said To Only Create Black And White Model Ys.  In addition, Rivian Is Planning Significant Job Cuts.

Target Response Times for Smart Motorways Fall Short. This week in the UK, the Office of Rail and Road (ORR) announced that drivers who break down on some smart motorway stretches aren’t being reached by traffic officers within a target response time, a goal set by National Highways in 2021. Specifically, National Highways fell short of attending to stopped vehicles on highways within 10 minutes - with most response times falling between 12-and-a-half minutes to 10-and-a-half minutes. The findings do not bode well for long-standing fears about the safety of smart motorways following fatal incidents where vehicles stopped in live lanes were hit from behind. For more on European markets, check out this piece on Auto Lobby Exits. In addition, Pedestrian Deaths are Rising on US Roads. 

Texas Releases An Impressive EV Charging Plan. The Texas DOT has released its vision for developing an EV charging ecosystem, and experts are applauding it. Some high-level goals include fast EV charging stations no more than 50 miles apart on interstate highways, which is enough support for 1M EVs in Texas, and charging locations available on multiple third-party applications. For more on state charging infrastructure plans, you can read here. In addition, states are required to submit their plans to the Joint Office of Energy And Transportation By August 1st.

Fundraises and M&A 💸

💥Milk Moovement Raises $20M In Series A Funding. Canada-based dairy supply chain management platform that connects all key players in the industry. The round was led by VMG Catalyst. The new funding will be used to accelerate product development and adoption of Milk Moovement among leading dairy businesses in North America.

VECKTA Corporation Raises $3.3M Seed. VECKTA is the end-to-end energy marketplace that integrates and accelerates the development of distributed energy systems and microgrid projects. The round was led by VoLo Earth Ventures and was joined by Cove Fund, Triple Impact Capital, SeedFolio, She's Independent, and Nomadic Ventures. The capital raised will be used to expand and grow its pipeline in different industries.

Hors Normes Raises A €7M Seed Round. The Paris-based startup is tackling the tragic problem of food waste by taking retail-rejected fresh produce and delivering them straight to consumers. The round saw participation from Project A and Stride VC. Hors Normes is going to put the funding towards “consolidating its service and accelerating its deployment in France and abroad to multiply the number of regular customers by 8 by the end of 2023 and save over 3,000 tons of products.”

Sortera Alloys Raises $10M Series B Round. The Indiana-based startup provides a dedicated solution for end-of-life circular recycling in the aluminum industry. The round was led by Assembly Ventures and saw participation from Breakthrough Energy Ventures and Novelis. The funds will go towards increasing the recycled content in Sortera’s products, specifically its automotive materials. 

Wheelocity Raises $12M Series A Financing Round. Wheelocity handles fresh food supplies for quick commerce platforms in India. the round was led by Lightspeed India Partners and saw participation from Anicut Capital among others. The funds will go towards expanding its geographic presence and team.

EVCS Raises $18.8M Series A Round. The West Coast-based EV charging network will use the funding to expand its presence to 35+ cities in California, Oregon, and Washington as it looks to double its network size by 2023. The round was co-led by Abdo Partners, Spring Lane Capital, and the Copulos Group. 

Blue Ocean Barns Raises $20M In Series A Funding.  Blue Ocean Barns is an agritech company that produces dairy and beef products from real cattle. The round was led by Valor Siren Ventures, Tao Capital Partners, and strategic investors. The funding will be used to expand farming and commercial adoption of Brominata, its seaweed-based digestive aid for cattle.

Fort Robotics Raises $25M In Series B Funding. The Philadelphia-based startup built the first-of-its-kind safety platform for smart machines. The round was led by Prologis, Tiger Global, and others. The funds will be used for operating, sales, marketing, and R&D.

Kadmos Raises $29.5M In Series A Funding. A German startup created an end-to-end salary payment platform for migrant workers. The round was led by Blossom Capital, with participation from Addition and Atlantic Labs. The funds will be used to expand into other sectors such as construction, healthcare, and hospitality.

Deuna Raises $30M Series A Round. The Silicon Valley-based startup is enabling one-click checkout commerce for LatAm. The round was led by Activant Capital and was joined by Valor Capital, Abstract Ventures, Acrew Capital, and Upload Ventures. The funding will go towards expanding operations throughout LatAm, hiring, and product development. 

Circ Raises $30M In Series B Financing. The Virginia-based apparel recycling startup is developing technology that would make textile recycling achievable by tackling both components of cotton-poly blends, which make up a major portion of the textiles produced every year. Existing recycling processes often treat one or the other component as waste, if they can handle blends at all. The round was led by Breakthrough Energy Ventures and joined by Inditex and Milliken, among other new and existing investors. The funds will go towards product development, scaling, and hiring.

Hivery Raises $30M Series B Round. The Australian startup focuses on what it calls “hyper-local retailing.” The tech sits between the big brands and retailers to customize a store’s assortment of products to match the demand of the local customer. The round was led by Tiger Global and saw participation from Blackbird Ventures, AS1 Growth Partners, and OneVentures. Hivery will use the proceeds to “fuel the growth of products designed to help brick-and-mortar businesses make decisions about physical space and product displays.”

Assembly OSM Rises $38M Series A Round.  Assembly is a modular construction startup that builds houses using its “post-modular” construction method “because it is more akin to a car or aircraft assembly line than a traditional modular build-out, where the structure is put together on a single factory floor.” Fifth Wall’s climate tech fund and Bessemer Venture Partners led the latest round which also saw participation from the Jefferies Group, Manta Ray Ventures, FJ Labs, New Vista Capital, and Moving Capital among others. 

Terra CO2 Raises $46M In Series A Funding. The Colorado-based startup develops a low-carbon alternative for cement production. The round was co-led by Breakthrough Energy Ventures and LENx. The investment will be used for R&D in low-carbon material science, scaling the organization, and commercialization of Terra's OPUS cementitious materials, decreasing the carbon footprint of concrete which is the world's second most used material. 

Nyolbolt Raises $59M In Series B Financing. Nyolbolt's charger relies on re-engineered materials that provide less friction for ions moving to and from the cell during charging. H.C. Starck Tungsten Powders led the round which also included unnamed existing investors. The funding will go towards product development and its pilots.

Wildcat Discovery Technologies Raises $90M Series D Round. The tech firm is building a “supercell” EV battery combining three key components–a cobalt and nickel-free high-energy cathode, a composite solid-state electrolyte, and a lithium metal anode. The round was led by Koch Strategic Platforms, the investment arm of Koch Industries, and saw participation from Eastman Kodak and Fifth Wall Climate. The funds will go towards developing a high-energy density battery cell for EVs.

Merlin Labs Raises $105M In Series B Funding. The Boston-based company is developing an autonomous flight system designed to be installed in existing aircraft. The capital raised will go towards expanding testing. Building in New Zealand, and growing internal staff. The round was co-led by Snowpoint and Baillie Gifford with participation from GV. 

May Mobility Raises $111M In Series C Funding. May Mobility provides autonomous vehicle services for public transportation. The round included investment from SPARX Group Co., Ltd.’s Mirai Creation Fund II, Tokio Marine, Toyota Tsusho, Bridgestone Americas, and follow-on investments from Toyota Ventures, Millennium Technology Value Partners, Cyrus Capital Partners, LG Technology Ventures, and Maven Ventures, among others. The funds will be used to pursue its deployment programs and to develop new vehicle designs. 

Markforged Acquires Digital Metal For $40M. Markforged, a metal and carbon fiber company, will use Digital Metal’s powder-binding jetting machine lineup, to unlock large-scale, high-volume metal part production capabilities. The acquisition highlights Markforged’s intentions to expand into additive manufacturing for industrial customers, a space that is rapidly heating up. The merger should close by the end of the summer.

Business Building 🛠️

How to Be a Great Remote Manager. Gitlab’s handbook to being a great remote manager- covers a range of topics from work hours and communications through to the documenting process. We’ve especially found the documenting process as a necessity in a world where the team is distributed but consistent work product is essential.

What is AI?. A visual description. Powerful.

Sales Enablement. “In a way, sales enablement is the glue keeping all GTM strategies tied together and on track for success. A successful sales enablement strategy: 1) Designs skilling and readiness programs to build accelerated sales expertise, 2) Ensures that sellers “sell on strategy” following the company’s sales methodology, 3) Translates sales analytics into actionable insights for marketing & engineering teams, 4) Simplifies and automates the sellers’ journey of discovering marketing assets curated for their target customers and personas.” 

Who's Hiring? 👩‍💻

Director of Sales at Plus One Robotics in San Antonio, TX (remote ok).

Business Development Representative at Forwardize in Berlin, Germany.

National Sales Representative at LogRock in Chicago, IL (remote ok).