☕ Boom days

Good morning. No real surprises, but a report by Redpoint VC quantifies some of the 2020-2022 startup/VC boom days...

April 05, 2023

Good morning. No real surprises, but a report by Redpoint VC quantifies some of the 2020-2022 startup/VC boom days...

  • The disconnect between private and public valuations blew out in 2022

    • Private valuations were usually 200-300% higher vs. public valutions in 2017-2021

    • But they were 560% higher in 2022

  • Market resets typically take 9-10 quarters

    • So far we’re only 4 quarters into this reset

  • Startups are waiting 2x as long to fundraise

    • 9mths between rounds in H2’21

    • 18mths between rounds in Q1’23

Link to the full report in the Quick Sync.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market news: It was investor day at Seek where they dropped this massively detailed presentation for those with a bit of spare time. But for others, they more notably reaffirmed FY23 profit guidance.

The company did lower revenue guidance from $1.26bn to $1.245bn — but they expect to match the decline with a reduction in opex to hit profit guidance.

THE QUICK SYNC

  • Interesting report: private vs public market valuations of software companies. (LI)

  • EQT, the Swedish private equity firm exceeding Australian expectations. (AFR)

  • Saudi Arabia reveals investments in VC firms like Andreessen Horowitz. (Forbes)

  • Frustrated judge criticises Lachlan Murdoch, Crikey in court as defamation battle drags out. (ABC)

  • Italy became the first Western country to ban ChatGPT. Here’s what other countries are doing. (CNBC)

  • Trump set to surrender in New York following hush money indictment. (Guardian)

  • 'I am truly sorry': Credit Suisse chair pleads with angry shareholders at AGM. (CNBC)

TRADING FLOOR

M&A:

  • Brookfield has sold down its 2.65% stake in AGL Energy; 12mths after its takeover attempts. (AFR)

  • BWX’s lender CBA has tipped the business into receivership. (AFR | The Australian)

    • Canterbury Partners is running BWX’s Go-To stake sale. (AFR)

    • Zoe Foster Blake rumoured to have offered up to $20m to buy back Go-To. (SMH)

  • Navis Capital takes a major stake in local NDIS care provider Caring Group. (AFR)

  • Natura & Co has sold Aussie brand Aesop to L'Oreal for $3.7bn. (AFR | BNA | The Australian)

  • ACCC is unconvinced by ANZ and Suncorp about the merger benefits. (AFR)

  • Teck rejects Glencore’s $43bn merger; the biggest mining deal in a decade. (AFR)

  • Westpac’s BT Financial Group and Mercer have closed their merger. (BNA)

  • Pacific Equity Partners walks away from $900m Serenitas buy. (The Australian)

  • Quadrant has hired Barrenjoey and Jefferies to sell Affinity Education. (The Australian)

  • Estia expected to respond on Thursday to Bain Capital’s $775.2m offer. (The Australian)

  • Tribe Brewing creditors to receive 5c in the dollar as new owners to take control. (AFR)

Capital Markets:

  • ERA ($359m), Invictus Energy ($10m), and Hartshead Resources ($20m) headline Tuesday’s raisings. (AFR)

VC:

  • Clear Dynamics, an enterprise operating system, is looking to raise $20m at a $40m pre-money valuation. (AFR)

  • AirSeed Technologies, an environmental restoration startup, is looking to raise a Series A. (StartupDaily)

  • Purpose Ventures, a Perth venture capital firm, raises $37m towards a $40m target in 6 weeks. (StartupDaily)

Others:

  • Scentre has refused to accept the change of control changes following Anchorage's acquisition of David Jones. (AFR)

  • Morgan Stanley Wealth Management is seeing major changes in its ranks following the arrival of Ian Chambers' replacements. (AFR)

TOGETHER WITH ALLIANCE ADVISORS

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We go beyond, from development to execution of bold, client-first strategies, resulting in winning outcomes.

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