Viewsroom: Breakingviews’ new SPAC needs a name 18 Feb 2021 Blank check mania has crossed the Atlantic, bringing with it hopes of riches for well-connected financiers, underwriters, startup founders and ordinary investors. The U.S. example, though, offers some warning signs, our columnists suggest, as they ponder a vehicle of their own.
Shared scooters jump into a profitable future 14 Jan 2021 The pandemic has given a new boost to startups offering two-wheeled rentals, previously dented by high operating costs and safety fears. With increased demand, more European cities legalising e-scooters, and funding from investors like SoftBank, the business is gaining speed.
Corona Capital: Filming drama, Spanish bank 16 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Actor Tom Cruise’s outburst about social distancing may not have been scripted, but it’s on point; Spanish bank Sabadell lines up a new leader.
Corona Capital: Merck sells Moderna stake 2 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.
The Exchange: Eating worms is good for the planet 1 Dec 2020 Growing global demand for food is putting a squeeze on available land and one French startup says it has the answer: indoor insect farming. Ynsect co-founder Antoine Hubert on how growing mealworms for fertilizer will benefit the environment – and eventually our diets too.
Corona Capital: Salvatore Ferragamo 10 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.
Corona Capital: Texas hold it 7 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The iconic State Fair of Texas has been canceled as coronavirus cases in the region soar. The decision adds some $500 mln to the Lone Star State’s economic and human toll from the pandemic.
TransferWise sellers get the best of $5 bln deal 7 Jul 2020 Investors in the UK fintech may cash out at a 30% premium to a similar transaction last year, Sky News reported. The valuation only makes sense if revenue withstands a Covid-19 slump. Since that’s unlikely, the buyers are taking a dicey punt on the currency-exchange specialist.
Lemonade’s secret ingredients are tech and hope 25 Jun 2020 The digital insurer’s $1.3 bln valuation is leagues above what a regular insurer would command. Then again, Lemonade is less of an insurance company and more of a marketing machine with some charming quirks. Its biggest threat is that old-school insurers copy the recipe.
Corona Capital: SpongeBob, Cirque du Soleil 23 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Cinema chains raring to reopen may find that movie studios have already made other plans. Meanwhile, Cirque du Soleil may get new financing, but with strings.
VCs mistake diversity for a new asset class 12 Jun 2020 Andreessen Horowitz and SoftBank have new funds to back entrepreneurs of color, prompted by U.S. protests against racial injustice. Yet the problem isn’t a lack of capital – it’s that what’s there rarely goes to black founders. The fix starts with the VC firms themselves.
SoftBank could end up making lemons from Lemonade 10 Jun 2020 Masayoshi Son’s insurance project is prepping a $2 bln New York listing. Like WeWork, Lemonade is marketed as a disruptor, with an ability to pay claims in seconds. But given its technology may be easy to replicate, a valuation of 30 times sales looks overly fizzy.
Complacency is as much a disruptor as antitrust 8 Jun 2020 Big Tech critics credit the 1969 push to break up IBM for spurring the today’s software industry. But it was as much Big Blue’s shortsightedness that led to others’ power. As probes of newer tech companies ramp up, Microsoft, with similar challenges, tells a more promising story.
Uber-Grubhub’s big obstacle is delivery not price 18 May 2020 Some to-and-fro over value is normal in a potential merger. But for two money-losing companies with volatile stocks, financial tweaks are a second-order issue. The more critical question about combining their meal-delivery operations is whether antitrust watchdogs would block it.
Uber, Lyft need more than cuts to fill profit tank 7 May 2020 The U.S. ride-hailing firms are slashing staff amid a drop in their core business. Uber is in better shape with more revenue streams like food delivery. But lowering expenses only goes so far. Reductions can also hurt their long-term future if autonomous-vehicle investments fall.
U.S. aid excludes startups, entrenches Big Tech 30 Mar 2020 Many Silicon Valley firms will miss out on $350 bln in new small business loans. In some cases, entities with the same venture capital investor are lumped together, pushing them above the 500-employee limit. Big players like Google can further entrench themselves.
The big VC giveaway is going up in smoke 12 Feb 2020 From Uber’s rides to Harry’s razors, consumers have benefited from the largesse of venture capitalists, who knew they could sell cash-sucking companies to IPO investors or big rivals. Regulators and twitchy markets are threatening to break the cycle. It’s bad news for customers.
Silicon Valley wakes up to financial independence 13 Jan 2020 Scooter-sharing outfit Lime is exiting cities and letting staff go in the hope of turning a profit. After WeWork’s nightmarish IPO failure, it’s not the only startup whose vision now includes making money. What’s old has become new for tech newbies, but growing up isn’t easy.
Direct listings will move nearer IPOs – and Europe 27 Dec 2019 After Spotify and Slack’s non-standard floats in 2018 and 2019, respectively, expect more direct listings in the United States in the year ahead. The method could start borrowing more features from traditional IPOs, and the whole notion may jump across the Atlantic too.
Buy now, pay later faces Juul-style backlash 24 Dec 2019 Companies offering the credit innovation say it can drive online sales and help retailers deal with refunds. One player, Klarna, is valued at $5.5 bln. But making it a lot easier to shop for free could prompt a reaction like that which befell the vaping heavyweight.