Proprietary insight into private companies
Venture Bytes #89 - Generative AI Finds its Day in the Sun
Businesses-to-business (B2B) payments sector in the US is nearly three-times larger than the B2C market, but well behind in its digital transformation. Only 7% of the $120 trillion B2B payment volume is conducted digitally today. Legacy systems, lack of data standards, fragmented approaches to accounts receivable and accounts payable, and limited interoperability underlie the current payments volumes. Accordingly, the space is ripe for disruption and innovation. Goldman Sachs estimates B2B payments to reach around $200 trillion by 2028, powered by innovative startups across the payments value chain, including, Checkouts, Processing Solutions, Corporate Spend Management, among others.
Venture Bytes #84—Venture Capital Warming Up to Climate Tech
As investors warm up to climate tech, the sector is gaining momentum. Supported by the ongoing energy crisis, favorable legislation, international decarbonization push, a massive wave of technological innovations, and the subsequently surging VC interest, the climate tech space has evolved significantly. Decarbonization tech has expanded its scope to cover all sectors with a higher carbon footprint. According to a report from McKinsey, the next-generation climate technologies in areas such as carbon capture, hydrogen, power grid, agriculture, and electrification are expected to attract $1.5 trillion to $2 trillion per year by 2025. This augurs well for the sector, which is expected to become a major growth story in the coming decade.
Venture Bytes #83—Race to Beat the De-SPAC Clock Heats Up
The race to De-SPAC is on. Out of 1,304 SPACs formed since 2009, only 404 have been completed, 111 have announced a target, 31 have been liquidated and 607 are still looking for a target, per SPAC Insider. A closer examination of the recent trends reveals that of the 613 SPACs from 2021 which raised $162.5 billion in proceeds, 471 are yet to find a target. This effectively means that these companies have anywhere between 7-19 months (or more with a deadline extension) to look for worthy merger targets.
Venture Bytes #82—The IPO Market Conundrum
The US IPO market has gotten off to an unremarkable and slow start in 2022. While the adverse fallout from the Russian invasion of Ukraine has been a factor in the slowdown, new listings had started to decline before the conflict. As of February 23, a day before Russia launched the military operation, merely 21 firms had crossed the IPO finish line, raising $2.3 billion to date and roughly 90% below the prior-year level. The drop can be attributed to various factors including the poor performance of a vast majority of companies that went public last year. The Renaissance IPO Index – which holds a portfolio of the largest, most liquid, newly-listed US IPOs – is down 25% so far in 2022.