Launch of Dynamo aims to help emerging logistics start-ups get established in Chattanooga

In many sectors, the concept of a so-called “incubator” to help companies, grow, flourish and develop through industry-leading support, guidance, and capital is commonplace. But in the supply chain and transportation sectors, not so much.

That appears to be changing though, with yesterday’s introduction of Dynamo, a Chattanooga, Tenn.-based concern focused on accelerating growth for logistics start-ups, with a keen focus on being a “disruptive force to drive logistics industry change.” With its leadership trio of Ted Alling, Barry Large, and Allan Davis, partners in the Lamp Post Group, a venture incubator in Chattanooga, and the founders of non-asset 3PL Access America, that was sold to Coyote Logistics in May 2014. Also serving on Dynamo’s leadership group is John Bradford, former managing director of Techstars, who will serve as entrepreneur in residence and play a role in mentoring the companies working with Dynamo.

Dynamo has a clear Chattanooga focus, with Alling explaining that more freight passes through the city on a daily basis than any other metropolitan area. As for how Dynamo will work, it is inviting young logistics companies to apply for its accelerator program in an effort to advance what it called a “lagging” logistics sector in order to create efficiencies and faster business results for various technologies and practices.

And the company applicants that make the cut are required to have at least one founder based in Chattanooga during the business week for the three-month program running from July 6-October 4. Dynamo is encouraging logistics, transportation and supply chain companies in early development stages, from pre-seed through series A, to apply. It will accept ten applications for participation in the program.

Alling told LM there were various factors that served as an impetus for launching Dynamo.

“The transportation and logistics sector in the U.S. accounts for more than $1 trillion in annual GDP, but relies on aging technology and infrastructure as well as dated business models,” he said. “Dynamo creates efficiencies and faster business results by supporting new business models, technologies and practices, from on-demand and subscription services, to “Internet of Things” and robotics, big data, drones and beyond.”

And he explained that Dynamo’s accelerator program is for logistics and logistics-related companies of all kinds, from across the world, large and small, either developing their products or services or in the early stages of generating revenue.

Accepted companies that participate in Dynamo will receive guidance and insights tailored to the needs of each individual business.

“Dynamo is hugely flexible about the stage of the companies it will consider and will tailor the program specifically for the needs of each individual company,” he said. “We also recognize that later stage companies who have already raised several million dollars of funding can hugely benefit from the relationships and network of its mentors and partners and will adjust the equity that Dynamo will take to participate in the program.”

Upon completion of the three-month Accelerator program, Alling said that by no stretch means that marks the end of the relationship between participating companies and Dynamo, stressing that those companies will always be a part of the Dynamo family even after they complete the program

“Post-program support is extremely important; we don’t want our teams to falter after they leave our offices,” he noted. “Some of our post-program plans include: a pipeline of business development opportunities built through the summer; introductions to investors; access to an active and supportive, global network · avenue for attracting talent as the business ramps; and if they choose, assistance in moving to the Chattanooga-area.”

Along with the Accelerator program, Dynamo also has a $12 million early stage fund geared to evaluate opportunities with the logistics businesses that may not fit the program’s criteria, although may share the common goal to drive change in the logistics sector.

The Fund will evaluate opportunities for its own benefit and operates separately from the Accelerator, but shares some resources, according to Alling, adding it might utilize some of the diligence the Accelerator has undertaken.

“Ultimately, the decision will rest with the Fund’s Investment Committee to determine if each opportunity merits investment and the level of support and man-power that comes with having the Dynamo Fund as a long-term partner-capital is just a component of what we offer,” he said.