Hey there! We've gathered some interesting news as of 22.02.23
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1.Startup funding slowdown: Here's why it can be a blessing in disguise
Dinesh Agarwal, founder of IndiaMART InterMESH, believes now is a great time for entrepreneurs to start a business despite a drop in startup funding. He thinks the internet and mobile penetration in recent years, combined with less funding, can lead to more rational and long-lasting businesses. He also believes that most businesses can be self-sufficient and not require external capital, and that customers can fund businesses. Agarwal encourages entrepreneurs to focus on finding the right market fit and to run slower but steady.
2.Hyperloop Dreams Endangered After SPAC Deal Fails
Hyperloop technology was first introduced by Elon Musk a decade ago, sparking the interest of many entrepreneurs. However, despite the hundreds of millions of dollars invested, no startup has succeeded in creating the high-speed transportation system. Hyperloop Transportation Technologies, which recently abandoned an attempt to go public, is now facing the challenge of financing its projects and winning over paying customers. With a decline in funding for transportation startups and a lack of tangible progress, the viability of the hyperloop system is in question.
3.European VC firms Amadeus and Apex partner for €80m early-stage ‘deep tech’ fund
Amadeus Capital Partners and Apex Ventures have joined forces to create the Amadeus Apex Technology Fund, an €80 million ($85 million) fund aimed at early-stage deep tech start-ups. The fund's core investment team includes Amadeus’ co-founders and Apex partners. Its goal is to invest €1-1.5 million in seed and Series A stage start-ups with "unique and defendable technology." The DACH region is its primary focus, but the fund has plans to meander into nearby markets.
4.MassPRIM ups PE target, sees opportunity in 'volatile times'.
Massachusetts Pension Reserves Investment Management Board (MassPRIM) is planning to increase its allocation to private equity by $1 billion in 2023, as it sees opportunities in the current volatile market. The board’s private equity target was previously set at 13% but has now been upped to 14%, with a target allocation of $15.2 billion. The move comes as MassPRIM looks to capitalize on the downturn in the economy, caused by the Covid-19 pandemic, and invest in buyout and venture funds. The pension fund currently manages $85 billion in assets and has an average annual return of 8.9% over the past 10 years.
5.Micromobility company Lime reports first profitable year, mulls IPO
Lime, the shared micromobility company, claims to have achieved full-year profitability in 2022, something that is rare in an industry that has struggled to make money. Lime reported adjusted EBITDA profitability of $15 million and unadjusted profitability of $4 million. The company's strategy has been to invest heavily in building its own vehicles with swappable batteries, and getting the design right has reduced Lime's capital expenditures. Additionally, Lime has gained market share with higher vehicle utilization, and the company expects to achieve free cash flow positivity this year or next.
6.US stocks are in the 'death zone' and could crash 26% within months
Morgan Stanley's Mike Wilson warns that US stocks are at unsustainable highs, comparing current valuations to the "death zone" just below the summit of Mount Everest. He sees investors pushing on blindly towards the top, ignoring the risks. Wilson believes the market rally won't last due to stickier inflation, forcing the Fed to hold rates higher for longer. He predicts that the S&P 500 will bottom out at 3,000 points this year, 26% below its current level, which is more pessimistic than most of Wall Street. Wilson calls the "no landing" scenario just another symptom of the death zone.
7.UK's FCA: eMoney CEOs Must Make Consumer Duty Rules ‘Top Priority’
UK eMoney firms have been warned by the Financial Conduct Authority (FCA) to improve their practices before the introduction of new Consumer Duty rules on July 31. The FCA has highlighted areas of focus for firms, including providing various customer authentication methods and clear communication on regulated products. The regulator also advised firms to ensure their fees are in line with actual costs and to consider the treatment of fraud victims. The Consumer Duty aims to establish higher standards for consumer protection in the finance industry.
8.Bolt unveils a three-wheeler EV mini car in Malta
Estonia's Bolt and Dubai-based micromobility startup Buzzz Electric's Carver have collaborated to introduce a new, electric compact vehicle on Malta's roads. The Carver vehicle is a three-wheeled, enclosed vehicle that has a range of 100 kilometres and can seat two passengers. Bolt users can access the Carver via the Bolt app and use it as a 'traffic buster' option. The companies claim that this partnership will provide a solution to Malta's mounting traffic and environmental issues. With its unique tilting technology, the Carver is ideal for filtering through traffic and offers a more effective and environmentally friendly transportation option for locals and tourists alike.
9.London’s bid to attract mega IPOs flops
The UK's new premium listing category for state-backed enterprises, designed to attract overseas giants to London, has failed to attract any takers since its introduction in 2018, according to Financial News. The rule changes were intended to ease the burden on related-party transactions and exempt governments from controlling shareholder agreements, but no entities have applied to the category. The changes were aimed partly at securing a London listing for Saudi Aramco, which instead listed on Saudi Arabia's Tadawul exchange in 2019.