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 💭

It was a quieter week for raises in the supply chain realm. Nevertheless, we wanted to give a huge shoutout to the Vizion team for snagging $14M in Series A funding led by Samsung. Congratulations folks! 

We Are Dynamo,

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

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Supply Chain 📦

The Amazon Effect Is Fueling A Wave Of Robotic Investments. Amazon is leading other large retailers in the transition towards a more autonomous fulfillment process as they continue to invest in robotics and other technology start-ups. With the combination of their promise to deliver products to customers as soon as possible, rising eComm growth, and a labor shortage, Amazon has already begun acquisitions, led funding rounds, and at least one robotics IPO in the past year. This has had a positive effect on technology start-ups as well, who are actively increasing their growth to meet Amazon’s SLAs. Currently, there are over 150K warehouses globally and only 5% of those are serviced by automation in some fashion. This challenge incentivizes all those involved to meet the growing need for eComm products, faster than ever before. For more information, consider reading The Warehouse Robotics Startups Revolutionizing Retail and Alphabet’s Wing Develops Fleet Of New Drones For More Efficient Package Delivery.

🌟Is Micro-Fulfillment The 'Next Big Thing' In Retail?. Supply chain issues brought on by COVID have created inventory issues for retailers. Large retailers such as Target, Walmart, and Amazon have faced significant delays in inventory shipments, preventing them from having the products that customers most want in stores. The biggest issue has been having too much of the wrong inventory as Target reported a 43% increase in its inventory last quarter. However, a new wave of micro-fulfillment centers is now becoming the leading strategy for retailers to avoid the use of expensive inventory centers. Amazon has since started advertising for new specialists to lead the development of Amazon’s next-generation MFCs, or micro-fulfillment centers. Experts predict that 7.3K MFCs will be in use by 2030, up from just 86 in 2021. For more information, consider reading Amazon Slowdown Sends Shivers Through Red-Hot Warehouse Sector and 7.3K Automated Micro-Fulfillment Centers To Be Installed By 2030.

White House Intervenes In Labour Dispute To Prevent Rail Meltdown. The rail system continues to struggle as wage disputes threaten to cause an impasse for rail transport. As this continues to be a pressing issue, President Biden signed an executive order on July 18, forcing a board of arbitrators to seek a resolution to the railway contract dispute. The order suspends industrial action for 60 days and will see the board develop a compromise regarding wages, worker benefits, and even work rules. For more information regarding the specifics of Biden’s executive order, consider reading ATA Praises Biden’s Executive Order During Rail Negotiations and US Rail Strike Averted For Now As Biden Steps In Before Sunday's Deadline.

OOCL Adopts Electronic Bill Of Lading Solution. With increasing complexity in supply chain logistics, OOCL, one of the biggest international shippers, plans to shift toward Electronic Bills of Lading (eBLs). By moving from a largely physical process, OOCL can now have real-time status tracking of their entire shipping process. Furthermore, the shift to eBL should reduce supply chain uncertainties and “demonstrates their commitment to the environment and to providing high-quality services, according to Kenny Ye, COO at OOCL. For more information on how this affects supply chain delays, consider reading OOCL Adopts New Ebl Solution and East Coast Congestion Now Worse Than West Coast.

FMCSA Plans To Mandate Speed Limiters. The Federal Motor Carrier Safety Administration conducted a poll with over 15K truckers as they intend to implement a speed limit requirement for larger trucks. The American Trucking Association generally is in favor of a 65 mph speed limit for trucks manufactured after 1992 and 70 mph for trucks equipped with automatic emergency braking and adaptive cruise control. However, many members of the ATA claim that their trucks have been speed limited for years and are concerned about the expenses and safety risks associated with implementing new speed limiters due to “speed differentials”. With so many differing opinions, it appears a compromise will take time to find. To learn more about the potential for mandated speed limiters, consider reading FMCSA Issues ‘Notice Of Intent’ To Require Speed Limiters On Heavy Trucks and Ontario Faces Challenges Enforcing Speed Limiter Law.

Warehouse Developers See Spark of Demand for EV Chargers. As more companies aim to make the shift towards EVs to reduce their environmental impact, they now are needing warehouses to also become hubs for their EV fleet. The efficiency of charging their EV cargo fleet at warehouses is now more evident than ever due to rising gas prices and new initiatives to reduce carbon emissions. Many companies have already begun the shift, such as GE Appliances which has installed Swedish EV chargers in its warehouses. For more, consider reading Volvo Moves Closer To All-Electric Goal and Sweden’s Einride To Test Autonomous Trucks On US Roads.

House Committee Approves Truck Parking Bill. The House Transportation and Infrastructure Panel passed legislation this week to increase parking access for truckers nationwide. The new Truck Parking Safety Improvement Act, sponsored by Rep. Mike Bost, will incrementally dedicate nearly $800M to transportation agencies to expand safe parking areas for commercial vehicles. Bost claims that this should remove the risk of truckers pushing themselves too far to make it to the nearest rest stop. This safety risk is huge for truckers and a large factor in the declining labor supply. In fact, according to the American Transportation Research Institute’s “Critical Issues in the Trucking Industry” 2021 report, lack of parking ranked 5th for truckers. For more, consider reading $755M Truck Parking Bill Advances In House. 

Mobility 🚗

🌟USPS Succumbs To The EV Pressure. In a move heralded as a win for climate activism, USPS announced that its new fleet will be 40% electric, a sizeable step up from the previously announced 10% allocation. The move comes after 16 states and the District of Columbia sued the agency in an attempt to prevent further diesel purchases. In a statement announcing the plan, “The Postal Service anticipates evaluating and procuring vehicles over shorter periods to be more responsive to its evolving operational strategy, technology improvements, and changing market conditions, including the expected increased availability of options in the future.” In other related public sector news, Connecticut Is Adding More EVs To Its Rebate Program. Across the country, Arizona Is Partnering With AECOM To Develop Its $79M EV Charging Infrastructure Plan. 

Tesla Get Its Own Border Crossing Lane. In a deal announced last week, the company will have a dedicated lane for company cars and suppliers heading from Nuevo Leon to the Texas HQ in Austin. Nuevo Leon, which has goals to become an “electro-mobility hub” in the near future, is home to at least 6 Tesla suppliers, including APG Mexico and Taiwanese-based companies EnFlex Corp. and Quanta Computer. However, US Customs and Border Protection has not given Tesla any sort of exemption, so as of now, the route remains one way.  In related news, One Of Tesla’s Chinese Suppliers Is Eyeing Production Expansion In A Region Of China Mired By Human Rights Violations Allegations. Another one of Tesla’s Chinese partners is also Looking to Join The Ranks Of Suppliers Based In Mexico.

Range and Economy Satisfaction Gap Closes Between EVs and Gas Powered Vehicles. American consumer satisfaction with fuel economy and range is typically stronger among owners of gas-powered vehicles than owner satisfaction with the range/charging speed of EVs. However, due to rising gas prices, that tide has begun to turn. According to the latest study by J.D. Power, for the first time since 2014, the overall satisfaction of new car owners has fallen and the gap between EV satisfaction and internal combustion vehicle content has dropped to just 7 points on a 1k scale.  In related news, GM’s CEO Still Stands Firm In Her Prediction To Be The Global EV Sales Leader By Mid-Decade. On the other hand, Porsche Has Postponed The Launch of The All-Electric Macan Until 2024. 

Delta Places A Big Bet On The Boeing 737.  In its first order since 2017, Delta has announced it’s buying 100 Boeing 737 Max Jets, making it the largest US carrier to operate the airliner. The reported deal tags the total purchase of the airplanes at $13.5B and includes the option to purchase 30 more after customary discounts. The announcement signals a vote of confidence in Boeing, which has struggled to keep up with European rival Airbus, after the two-year grounding of the 737 Max and other tribulations. For a glimpse into the future, Checkout This Piece Highlighting Airbus’s CEO’s Vision For Hydrogen Based Aviation. Despite this lofty goal, Zero-Carbon Flying Is Still A Long Ways Away. 

Public Micro-Transit Takes Off in Wilson, NC. Ever wished you could ride public transit with the ease of an Uber or Lyft order? Well the booming metropolis of Wilson, NC is doing just that. The town took the dramatic step of switching to on-demand minivans, discontinuing a bus system that only had 5 routes running every hour. The new system, which has a standard fare of $1.50, runs anywhere within the city’s 55-mile limits and runs about 3.7k rides a week, which is more than 2x the rides the old bus system ran in a pre-pandemic week. A couple of states away, Twin Falls, ID, Is Also Exploring Micro-Transit. And the concept has already taken off over in Lake Tahoe.

The Curtain Get’s Pulled on Nikola’s First Fuel Cell Truck. If you have been following the EV market for the past few years, then you’re probably familiar with the Nikola story - flying high two years ago after going public via SPAC and briefly surpassing Ford in market value, before crashing and burning over fraud allegations. In a newly released Bloomberg interview that was conducted in June 2020, former CEO Trevor Milton admitted that the showcased prototype, the Nikola One did not contain a functioning fuel cell or electric motor. Milton is set to go on trial this September, facing charges that he misled investors to pump up the Nikola stock price. In other surprising EV news, Shell Is Planning To Release Electric Scooters And Other Non-Diesel Based Products. In addition, Ford Announced This Week That It’s Cutting 8K Jobs To Fund Its EV Investments. 

President Biden Wants Electric Farming and Construction Vehicles.  Biden’s Energy Department is looking to spend approximately $96M in federal funding to reduce emissions by accelerating technology and charging infrastructure needed to electrify tractors, construction equipment, trains, boats, and other off-road vehicles. The announcement is the latest in Biden’s plan to tackle transportation emissions, which account for approximately 29% of all US GHG emissions. “Achieving President Biden’s climate goals will require expanding accessibility to electric vehicles for all drivers and modernizing vehicles that power the agricultural and construction industries,” said Energy Secretary, Jeniffer Granholm. For further context, Here’s A Piece On How Heavy Farm Equipment Is Damaging Fertile Soils. In related news, Electric, Autonomous Tractors Are Being Tested In California. 

Fundraises and M&A 💸

💥Vizion Raises $14M In Series A Funding. Our portfolio company has developed an API-based solution for ocean freight visibility that helps logistics companies by integrating and analyzing their data. The round was led by Samsung Venture Investment Corporation (SVIC) with participation from Maersk Growth and Valuestream Ventures. The new funding will be used to develop Vizion`s software, customer expansion, and HR.

SafeDigit Raises $1.2M In Pre-Seed Funding. The Vancouver-based startup helps logistics businesses quickly integrate with the platforms its customers love. The round was led by Ascend VC, Acequia Capital, and the Cascade Seed Fund. The fresh capital will be used to accelerate its technology innovation in last mile and help delivery businesses release their own applications on eComm platforms.

Veg Route Raises $1.1M In Seed Funding. The India-based online delivery platform offers freshly hand-picked fruits & vegetables right at your doorstep. The round was led by VGROW Ventures along with angel investors from India, UAE, and the US. The funding will be used to enhance tech and data-driven solutions for strengthening and revolutionizing the fresh produce supply chain. 

Natron Energy Raises $7M In Additional Capital. Natron, a global leader in the manufacturing of sodium-ion batteries, received funds from Nabors Industries, an active player in the global energy industry, to evaluate the introduction of sodium-ion batteries as an energy storage solution for drilling markets. The corporate round brings the startup’s total funding amount to $57.1M.  “Natron plans to use the funds to accelerate the production of its sodium-based battery technology at its Michigan facilities, concentrating on industrial power and energy transition markets.”

Koffie Raises $11M In Series A Funding. The startup “deploys technology and multiple data sources in its underwriting, loss control, claims handling and fleet operations and is dedicated to reducing preventable truck crashes and rewarding transportation fleets for prioritizing safety.” The round was led by Anthemis Group and saw participation from Lerer Hippeau Ventures, Plug and Play Ventures, Breakout Capital, and Two Lanterns Venture Partners, among a few. Expect the new funding to go towards product development and team expansion. 

Gordian Secures $25M in Series A Funding. The Seattle-based startup developed an API that enables the travel industry to sell flight add-ons such as additional baggage and premium seat selection. The round was led by Accomplice and Vinyl with participation from Kinnevik, DST Global Partners, and Latitude. The funding will go towards add-ons such as new types of insurance and fare protection, automatic check-in, and health testing, as well as expanding the team.

SupplyPike Raises $25M In Series B Funding. The Fayetteville-based startup provides retail analytics software for CPG brands. The round was led by Noro-Moseley Partners and Frontier Growth. The funding will be used for HR and product development. 

Normative Nabs $31M In Series B Round. The Swedish startup has developed a platform that more accurately measures carbon emissions from businesses’ supply chains since current market alternatives lack reliability. The round was led by Blume Equity and included participation from Horizons Ventures, Future Five, ETF Partners, and 2150. The new funds will go towards expanding its measurement services. 

FlexGen Raises $100M In Series C Round. The company, based out of North Carolina, is a US energy storage technology provider and system integrator. ​​The round was led by Vitol, the commodities and energy trading group hailing from Holland. The invested capital will be put towards progress on its pipeline of large-scale battery energy storage system (BESS) projects for customers across multiple regions.

Who's Hiring? 👩‍💻

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

Business Development Representative at Forwardize in Berlin, Germany. 

Frontend Software Engineer at Solvento in Mexico City, Mexico. 

💥 Have you seen any interesting startups recently? Introduce us.❤️ We would love your support. Please forward this to friends and share it 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.