Dynamo Dispatch (2025/01/27)

Dynamo Dispatch (2025/01/27)Issue 316 | Kaya AI, Basetwo, Package.ai
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Dynamo Dispatch (2025/01/27)
Issue 316 | Kaya AI, Basetwo, Package.ai
Madelyn O'Farrell and Derrek Li
Jan 27

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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 💭
💥 Huge shoutout to Dynamo portfolio company Milk Moovement for their new partnership with Texas-based Premiere Source Cooperative. Another major step in driving efficiency across the dairy industry!
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Supply Chain 📦
⭐ Drone Makers Looking to Steer Clear of China Fear Beijing’s Wrath. As US drone makers seek to reduce dependence on Chinese components due to supply chain weaponization amongst geopolitical tensions, Taiwan sees an opportunity to become a key alternative supplier. Taiwan is investing $1.35B over four years to bolster its domestic drone manufacturing, including R&D for advanced drone chips and improving cybersecurity standards. Despite slightly higher costs, Taiwanese suppliers are seen as competitive, though fears of retaliation from Beijing remain a challenge for both U.S. and Taiwanese firms navigating the geopolitical landscape. Beyond drones, TSMC Plant Spurs Japan Chip Material Makers to Boost US Output.
Canada Vows Strong Response to Trump’s Tariff Threats, Mexico Urges ‘Calm’. President-elect Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico starting Feb. 1, citing concerns over illegal migration and drug trafficking. Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have signaled their willingness to respond with countermeasures, emphasizing the importance of trade partnerships under the USMCA. Trump is also threatening a 10% tariff on Chinese goods for alleged fentanyl trafficking and is considering tariffs on the European Union over trade imbalances. Unrelated, Retail Crime ‘Queenpin’ to Pay Millions in Restitution to Ulta, Other Retailers for Theft Ring.
Research Shows Supply Chain Industry Sees Nearly 40% Annual Increase in Disruptions. Supply chain disruptions increased by 38% YoY, driven by factors including factory fires, labor disruptions, leadership transitions, and M&As. Factory fires remained the top disruption with over 2,299 alerts, though their frequency dropped 20% from 2023. Labor disruptions surged to the second spot, increasing 47% YoY due to strikes, protests, and layoffs at companies like Amazon and Intel. These trends underscore the growing need for businesses to prioritize proactive risk management to mitigate the rising complexity and frequency of supply chain disruptions. An ongoing disruption, Shipping Lines Including Maersk and Hapag-Lloyd Seeking More Security Assurances Before Returning to the Red Sea and DP World Says Sea Freight Prices Could Fall 20% If Red Sea Attacks Curbed.
How Automation is Solving Logistics’ Biggest Problems in 2025. As the logistics sector anticipates a more positive 2025, automation leveraging AI and ML is poised to address key industry challenges such as supplier management, fraud mitigation, EV fleet optimization, and non-revenue task automation. Tools like multi-tier supplier mapping, AI fraud detection, and electric fleet planning systems are transforming operations, while startups bring efficiency to communication-heavy brokerage tasks. This shift underscores the growing need for logistics providers to invest in AI-driven tools and workforce training to remain competitive in an evolving market where automation is a critical differentiator. Elsewhere, 18K Costco Workers Threaten to Strike and ‘Won’t Work a Day Past Jan 31’ If Contract Demands Aren’t Met.
ATA Forecasts Trucking Volume Growth After Two Years of Decline. The American Trucking Association forecasts a recovery in truck volumes, expecting an 1.6% increase in 2025. While the ATA Truck Tonnage Index revealed a volatile 2024 marked by dips in factory output and fleet growth challenges, a more stable and optimistic 2025 is anticipated. Industry leaders like Old Dominion and Truckstop survey results echo this sentiment, citing improving economic conditions and carrier confidence. However, experts caution that demand will hinge on factors like government policy and legislative actions, which could shape the trajectory of growth. Also, Prologis Sees Post-Election Rush for Logistics Real Estate in US.
Mobility 🚗
⭐ What Trump’s Executive Orders Mean for Automakers. President Donald Trump’s executive orders are expected to slow the pace of EV adoption by pausing federal funding for charging infrastructure and potentially eliminating EV tax credits, while easing emissions rules could extend the lifespan of gas-powered vehicles on US roads. Analysts predict that consumer-driven demand will still push EV adoption forward, albeit at a reduced rate. Established automakers like Ford and GM may benefit in the short term from Trump’s policies, as their gas-powered vehicle production could offset slower EV adoption. Meanwhile, proposed tariffs on vehicles and parts from Mexico, Canada, and China could disrupt automakers’ supply chains. Related, Trump's EV Rollback Not Expected to Suppress Appetite for Critical Minerals and Trump Considers 10% Tariff on China from February.
Canoo Files for Bankruptcy, Ending Its Dream of Funky EV Vans. Canoo, the EV startup founded in 2017, has filed for Chapter 7 bankruptcy, ceasing operations and initiating the liquidation of its assets after failing to secure funding from the US Department of Energy and foreign investors. Despite early promise with innovative designs like the Lifestyle Vehicle and commercial contracts with Walmart, USPS, and NASA, the company struggled to scale production beyond a small number of test vehicles. Canoo's ambitious plans for snub-nosed electric vans and trucks ultimately fell short, leaving only prototypes to mark its brief presence in the EV industry. For more, Canoo Craters and Trump Comes for EVs.
Why Autonomous Vehicles Could Be in for a Breakout Year. Kodiak Robotics has sold fully driverless trucks to Atlas Energy Solutions for operations in the Permian Basin. This development, alongside similar expansions by Waymo and Aurora Innovation, highlights significant momentum in the AV industry despite regulatory uncertainty. With Donald Trump back in office, the AV industry hopes for a national approval framework, which could streamline deployment but may also ease reporting requirements for crashes involving automated systems—a move that could benefit Tesla. As global competition intensifies, companies like Tesla and Kodiak are pushing for rapid advancements in AV commercialization, signaling a potentially transformative year for the industry. Elsewhere, Feds Close Probe Into Cruise After GM Kills Off Robotaxi Firm.
Auto Lobby Group Sues Over Mandatory Automatic Emergency Braking Systems. The Alliance for Automotive Innovation, representing major automakers like BMW, Toyota, and Ford, has sued the US DoT to challenge new NHTSA regulations requiring all new vehicles to include advanced automatic emergency braking systems by 2029. While automakers acknowledge the value of AEB technology, they argue that the mandate’s strict requirements are technologically unfeasible, costly, and inconsistent with international standards, proposing instead to adopt Europe's less demanding AEB guidelines. Despite opposition, the NHTSA defends the rule, emphasizing its potential to save 362 lives and prevent over 24,000 injuries annually.
Rivian Says Other Automakers 'Knocking on Door' About Tech from VW Joint Venture. Rivian and Volkswagen's $5.8B joint venture is developing advanced electrical and software architecture for future EVs and is attracting interest from other automakers seeking to modernize their technology. Rivian’s streamlined architecture reduces vehicle complexity, enabling over-the-air updates and creating "software-defined vehicles," an area where traditional automakers lag behind. While Rivian focuses on launching its smaller, affordable R2 SUV by 2027, the joint venture is poised to become a major technology partner in the Western market, addressing Rivian's cost concerns and offering automakers a faster path to innovation. Elsewhere, Battery Maker LG Energy Slashes Spending on EV Demand Risks.
The Future of Supply Chain 🎙️
Check out our podcast series that’s 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 💸
TreZix Raises $2M in Seed Funding. TreZix, a Mumbai-based SaaS platform simplifying export-import operations, offers end-to-end digital solutions to address compliance and documentation challenges in cross-border trade. The funding will be used to strengthen its presence in India, expand product offerings, and enter the US market. Morphosis Venture Capital and Pentathlon Ventures led the round.
BPR Hub Raises $2.6M in Seed Funding. BPR Hub provides a cloud-based compliance management system for manufacturing companies, integrating quality assurance, production control, and inventory management into a unified platform. The funding will be used to scale operations in North America and accelerate global adoption of its compliance solutions. The round was led by Accel and Kae Capital, with participation from angel investors in the manufacturing sector.
Lyteflo Raises $3M in Seed Funding. Lyteflo is a Toronto-based EV merchandising solution, providing dealerships with data-backed tools to accelerate EV sales and appraise EV batteries with precision. The funding will be used to expand product offerings and support partnerships with dealerships. Diagram led the round, with participation from Whitecap Venture Partners and Amplify Capital.
Kaya AI Raises $5.3M in Pre-Seed Funding. Kaya AI is an AI-enabled construction supply chain intelligence platform, helping interconnect stakeholders and streamline procurement tracking in the construction industry. The funding will be used to expand operations and enhance development efforts. The round was led by 53 Stations, Suffolk Technologies, and Soma Capital, with participation from Barclays Black Formation Investments (BBFI), RXR, Mantis VC, and others.
Matchory Raises €6M in Seed Extension Funding. Matchory is an AI-powered supplier discovery platform. The funding will be used to expand internationally and enhance its supplier matching technology. The round was led by Capmont, with participation from existing investors Earlybird-X and industry angel investors.
ENAPI Raises €7.5M in Seed Funding. ENAPI is a German connectivity platform streamlining interoperability in the EV charging industry. The funding will be used to scale its secure transaction infrastructure, expand operations across Europe and the US, and grow its technical team. The round was led by Voyager Ventures, with participation from Project A, Seedcamp, and Helloworld VC.
Basetwo Raises $11.5M in Series A Funding. Basetwo offers an AI-powered copilot for manufacturing engineers to optimize production processes in industries such as pharmaceuticals, consumer goods, and gas processing. The funding will be used to further develop its AI platform and expand its team across Canada. The round was led by Axa Venture Partners, with participation from Glasswing Ventu...