The economic seesaw, Benchmark's Bill Gurley compares today's markets with the 1999 Dot-Com Boom
October 05, 2020
Cyndx Insights is your daily window to the business world, focusing primarily
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Daily Insights reports and categorizes financial news from U.S., Europe and Asia for full global insights.
U.S. & Canada
Tesla to Acquire German Battery Assembly Maker
Tesla Inc TSLA.O has agreed to acquire German ATW Automation, a supplier assembling battery modules and packs for the auto industry was on the brink of liquidation due to a slump in orders, a source familiar with the transaction said on Friday.
Benchmark's Bill Gurley Compares Today's Markets to 1999 Dot-Com Boom
The technology sector’s strong run since its March lows reminds Benchmark’s Bill Gurley of the 1999 tech boom that preceded the dot-com bubble burst, the investor told CNBC. Some on Wall Street have voiced their concerns that the run bears resemblance to the bubble, pumped by easy capital, market confidence and pure speculation, that burst in 2000.
Read more on CNBC.com Image:ETAJOE / Shutterstock.com
Yesterday we highlighted global capital raising volume for the year-to-date period ending September 30, 2020 which was down 7% vs 2019, to $179.5 billion, as reported by Cyndx.
In today's report we take a closer look at Q3-2020, which showed a 5% increase in capital investments, versus Q2, to $60.1 billion. Q3-2020 investments were just 3% shy of Q3-2019 investment volume of $62B.
Late stage funding drew the bulk of the capital, representing $35.9B in Q3, or 60% of capital deployed. This was up 24% versus the previous quarter, and up 13% versus the prior year.
Cyndx provides a comprehensive picture of where the capital is flowing and where key investments are being made, globally.
America's Economic Seesaw is the Most Off-Kilter in History. Beware a Hard Fall for Those on Top
Our nation’s economic balance point has created a virtual seesaw, one where the wealthiest have risen so high, so fast, that those on the bottom may be unable to let them down without damage to everyone involved. When you see something that is not sustainable, you know it will end very badly. The only question is the timing. Well, that time is near.
Triller Partners With Digital Advertising Platform Consumable, Giving Triller Access to 250 Million Users
Triller announced today its partnership with digital advertising company Consumable. This will further monetize the Triller platform, by inserting programmatic advertising between Triller's short-form video content units. Included in this year's Inc 5000 list, Consumable is an ad technology platform that pairs engaging bite-size content with digital display and video ads.
Read more on PRNewsire.com Image: rafapress / Shutterstock.com
The fear of missing out on the next billion-dollar opportunity is one feeling that never really goes away. For VCs who invest in early-stage startups, the potential for FOMO is arguably even greater in than in other forms of investing, as limited trading data means much of the decision-making comes down to intuition or gut feel.
Read more on Forbes.com Image: the_z1b / Shuttestock.com
Airbnb Aims to Raise Roughly $3 Billion in IPO
Home rental company Airbnb Inc is aiming to raise around $3 billion in its upcoming IPO, people familiar with the matter said on Friday, taking advantage of the unexpectedly sharp recovery in its business after the COVID-19 pandemic roiled the travel industry.
Read more on Reuters.com
Image: courtesy of Roblox
Team8 Invests in Fintech Practice to Build New Companies
Company-building venture group Team8 recently launched its Team8 Fintech practice focused on founding and scaling transformative fintech companies in the areas of retail banking, credit, payments, e-commerce and trading. The new practice is led by Rakefet Russak-Aminoach, former president and CEO of Israel’s largest bank, Leumi Group
Read more on Crunchbase.com Image: metamorworks / Shutterstock.com
Gaming, Venture Capital Deals in Q3 2020
The gaming industry has entered into a completely new era being funded by revenues and large investments. As we know, venture capital represents one of the main ways to fund companies privately by way of equity capital and let them grow like Call of duty modern warfare camo boosting.
Read more on Finsmes.com Image: ESB Professional / Shutterstock.com
U.S. Funding & Capital Raising Round Up
The following capital raises were reported yesterday and this morning:
Sora, an Atlanta, GA-based live, virtual high school designed to engage students with dynamic, personalized and synchronous learning, closed a $2.7m seed funding round. The round was led by Union Square Ventures. Finsmes.com
Engrain, a Denver, CO-based provider of interactive mapping technology and data visualization software for the built environment, raised $3.7m in new funding. The round was led by RET Ventures. Finsmes.com
Botisimo, a Dallas, TX-based provider of a cross-platform cloud-bot for live streamers to engage with their audience, secured $700K in seed funding. Mason Bridge made the investment. Finsmes.com
Emil Michael, a former Uber executive, registered plans with the SEC to raise $250 million in an IPO for a blank-check company that will broadly acquire a company in the tech sector. Techcrunch.com
Writer is a service that watches as you type, flagging language that doesn’t match up with your style guide and values, and it just raised $5 million to scale up. The seed round was led by Upfront Ventures, Aspect Ventures, Bonfire Ventures, and Broadway Angels. Techcrunch.com
Propy, a startup that completes property deal on the blockchain, has raised an undisclosed funding round from venture capitalist investor Tim Draper, best known for his early investments into Tesla, Skype, Twitter, Coindesk and Robinhood. This is part of a wider, ongoing fundraise. Techcrunch.com
Malomo, the service launched for small businesses to turn their order-tracking services into branded customer experiences, has raised $2.8 million from Base 10, and New York’s Harlem Capital. Techcrunch.com
Biodesix, a developer of diagnostics for lung disease and COVID-19, filed an IPO prospectus with the U.S. SEC on Friday, seeking to raise up to $75 million in a Nasdaq offering. Crunchbase.com
Eclypsium, a Portland, Ore.-based enterprise device security company, raised $13m in funding. Backers included new investors AV8 Ventures, TransLink Capital, Mindset Ventures, Alumni Ventures Group, and Ridgeline Partners. Finsmes.com
BSPK, a Menlo Park, California-based digital platform to connect sales advisors and clients for global luxury brands, raised $7 million in an oversubscribed Series A round of funding led by Northern Light Venture Capital. Finsmes.com
U.S. & Canada
Deals of the Day: M&A and Strategic Investments
Canadian mergers and acquisitions are set to increase following a modest third-quarter recovery from multi-year lows, as market stability and access to capital give companies the confidence to negotiate and price transactions. Reuters.com
AZTherapies, Inc., a Boston, MA-based biopharmaceutical company in advanced clinical trials to treat neuroinflammatory diseases, closed a $33.6m Series C-1 financing round led by Malaysia-based pharma company Duopharma Biotech Berhad. Finsmes.com
Cotton Creek Capital announced the majority recapitalization of ConeCraft, LLC, a leading engineer and manufacturer of customized equipment for the pharmaceutical and biopharmaceutical industries. VCAonline.com
Noble Energy shareholders on Friday approved a deal to sell the oil and gas producer to Chevron Corp. The all-stock deal values Noble Energy at around $4.1 billion, excluding $8 billion in debt. Reuters.com
Global Payments IncGPN.N is exploring a sale of its Netspend unit, aiming to secure a valuation of more than $2 billion for the prepaid debit card business, three people familiar with the matter said on Friday. Reuters.com
The private equity owners of Ascensus have hired investment banks for an IPO of the savings services provider that could value it at around $3 billion including debt, three people familiar with the matter said on Friday. Reuters.com
C3.ai, a software company founded by billionaire tech entrepreneur Tom Siebel, has hired investment banks to help it prepare for an initial public offering which could come next year, according to people familiar with the matter.Reuters.com
Microchip Technology has announced the acquisition of Tekron, a global leader in providing high-precision GPS and atomic clock time-keeping technologies and solutions for the smart grid and other industrial applications. Seekingalpha.com
Cyndx International News - Europe & Asia
Asda bought by Billionaire Issa Brothers in £6.8B Deal
Two billionaire brothers from Blackburn have won the battle to buy Asda from Walmart of the US, in a deal valuing the supermarket chain at £6.8bn. A consortium of Zuber and Mohsin Issa and private equity firm TDR Capital will take a majority stake in Asda.
Read more on BBC.com Image:Craig Russell / Shutterstock.com
Unsustainable Energy Production Will Stop, BP Projects
“The underlying philosophy of Delayed and Disorderly is the belief that the longer you remain on an unsustainable path, the increasing likelihood that society will change,” said BP economist Spencer Dale, “and societal preferences will change in such a way that it will trigger a decisive shift in carbon emissions.”
Read more on Forbes.com Image: Lijuan Guo / Shutterstock.com
Crowdcube and Seedrs Plan to Merge to Create One of the World's Largest Private Equity Marketplaces
Crowdcube and Seedrs have just announced that they have agreed terms for a merger, in a move that will accelerate their plans to create the world’s largest private equity marketplace and further democratise investment.
Read more on Eu-startups.com
Image: artjazz / Shutterstock.com
Thousands of UK Firms May Need to Set Up an EU Office
Thousands of UK businesses may need to set up an EU presence if they want to export goods to European markets, according to trade consultants Blick Rothenberg. Many EU companies do not want the additional risk and cost of being responsible for compliance with customs procedures.
Read more on bbc.com
Image: artjazz / Shutterstock.com
East Asia Poverty Could Rise for First Time in 20 Years
The number of people living in poverty in developing East Asian and Pacific countries could increase for the first time in 20 years, a World Bank forecast showed on Monday. The bank said as many as 38 million more people could fall below below the poverty line this year, including 33 million who would have escaped poverty if the Covid-19 shock didn’t happen.
Read more on Cnbc.com
Image: perfectlab / Shutterstock.com
India's Richest Man Has Raised $3.4 Billion for His Retail Empire in Just a Few Weeks
Asia's top billionaire on Thursday scored a major investment for his retail business, boosting the total raised for Reliance Retail over the past month to about $3.4 billion. The latest influx of cash — about 62.5 billion rupees ($855 million) from Abu Dhabi's Mubadala — will give the state investment fund a 1.4% stake in India's biggest retailer.
Cineworld Brings Down Curtain on US, UK Theaters; 45,000 Jobs Hit
The world’s second-biggest cinema chain said the reluctance of studios to push ahead with major releases such as the new James Bond film had left it no choice but to close all 536 Regal theatres in the U.S. and its 127 Cineworld and Picturehouse theatres in the UK from Oct. 8.
Read more on Reuters.com
Image: Chaz Bharj / Shutterstock.com
E-commerce Provides Big Push to Digital Payments in India During Covid Pandemic
The mass adoption of ecommerce and boom in online shopping have been the single biggest push for digital payments during the Covid-19 pandemic, panellists at an ET webinar said, as restrictions on physical businesses forced Indian consumers to redefine their spending behaviour.
The following capital raises were reported yesterday and this morning:
Airly, which can accurately measure the air quality in homes, has raised a $2 million round led by the newly formed investment firm Giant Ventures, as well as Sir Richard Branson’s and Sir Ronald Cohen’s families. Techcrunch.com
Shiok Meats, a Singapore-based cell-based crustacean meat company, raised $12.6M in Series A funding.The round was led by Aqua-Spark, an investment fund focused on sustainable aquaculture. Finsmes.com
GeoSpock has announced €4.6 million in additional funding to accelerate the development and adoption of what it calls the fastest, most scalable database on the market. The round was led by nChain and Cambridge Innovation Capital. Eu-startups.com
Synklino ApS, a Copenhagen, Denmark-based biotech company developing first-in-class breakthrough treatment to eliminate cytomegalovirus (CMV) infections in the transplant setting, closed a seed financing round of undisclosed amount.
Finsmes.com
Sendinblue, a Paris, France-based digital marketing platform, raised $160m in Series B funding. Backers included Bridgepoint, Bpifrance, and BlackRock, and existing backer Partech. Finsmes.com
Colette, a French social impact startup helping young people to move in with seniors who have a free room at home, announced securing its first funding round of €1 million. Eu-startups.com
Pynk, the London-based wealth management startup has raised $2 million through crowdfunding ahead of the launch of its retail investor wallet. Finextra.com
Iceye, a Helsinki, Finland-based SAR data provider, closed an $87M Series C funding.The round was led by return investor True Ventures. Finsmes.com
Nu Quantum, a Cambridge, UK-based quantum photonics company, raised £2.1m in seed funding. Backers included existing investors Amadeus Capital Partners. Ahren Innovation Capital, IQ Capital, Cambridge Enterprise and Martlet Capital and new investor Seraphim Capital. Finsmes.com
B-North, the Manchester-based firm building an SME lending bank for the UK, has raised a further £1m as it moves closer to obtaining regulatory approval. B-North has teamed up with County Durham fintech specialist, Growth Capital Ventures. Finextra.com
Europe & Asia
Deals of the Day: M&A and Strategic Investments
Japan’s NEC Corp said on Monday it will buy Swiss financial software company Avaloq Group AG for 2.05 billion Swiss francs ($2.2 billion), a move that will spearhead its entry globally into finance software. Reuters.com
Spain’s Unicaja and Liberbank are holding informal talks about a potential tie-up to create the country’s fifth-biggest lender with over 100 billion euros in total assets, a source with knowledge of the matter said. Reuters.com
SasolSOLJ.J, based in South Africa, said on Friday chemical company LyondellBasell IndustriesLYB.N had agreed to acquire a 50% stake in a unit of its U.S-based business for $2 billion. Reuters.com
Conrad Energy has agreed to acquire Viridis Power, more than doubling its share of flexible generation for the UK power market, and bringing its operational portfolio to over 440MW at 28 sites across the UK and equivalent to the average hourly electricity needs of one million homes. Businesswireindia.com
BorgWarner Inc. (NYSE: BWA) announced it has completed its acquisition of Delphi Technologies. The combination of BorgWarner and Delphi Technologies is expected to strengthen BorgWarner's electronics and power electronics products, capabilities and scale, creating a leader in electrified propulsion systems.
Finance.Yahoo.com
Italy's biggest payments firm NexiNEXII.MI on Monday announced a long-awaited merger with rival SIA to create a group with 1.8 billion euros ($2 billion) in annual revenue that looks to expand further in Europe. Reuters.com
New Zealand's FonterraFCG.NZFSF.NZ said on Monday it has agreed to sell its farms in China for a total of NZ$555 million ($367.97 million) as the dairy producer continues to focus on the domestic market and reduce debt. Reuters.com
Italy’s Newlat Food has presented a preliminary, non-binding offer to buy Hovis, the 134-year-old British bread maker, a source with knowledge of the matter said on Sunday. Reuters.com
Swedish multinational retail company H&M has been hit with a monumental €35 million ($41.3 million) GDPR fine for illegally surveilling employees in Germany. Forbes.com
The outlook for the aviation industry has deteriorated again due to rising coronavirus infections and renewed travel restrictions, Airbus chief operating officer Michael Schoellhorn was quoted as saying on Saturday. Reuters.com
British finance minister Rishi Sunak warned that a further lockdown would cripple both the economy and society, in an interview with The Sun newspaper, stating that lockdowns have a very strong economic and social impact. Reuters.com
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