Venture: Wrap This Week in Tweets - Dec 09, 2022
This week in Venture Wrap...
- 2022 sees twice the PE M&A of public software companies as compared to 2021
- Temasek & Blackrock partner launch a new decarbonization VC/PE firm
- Stats around cleantech/nuclear tech
- Other exciting reads/listens
Let's start the wrap!
Say goodbye to Delivery apps and hello to Decarbonization.
1. By "goodbye," we mean private equity funds are taking out public software companies left and right this year. Over $65B in acquisitions, more than double that of 2021. Such activity may speak to the gigantic rerating of the sector in the public market. In the private market, investors are shying away from software and are perhaps finding new love in Cleantech.
the full piece which goes into the factors driving this and why it might put a floor on SaaS valuations: https://t.co/m96xnmL4t5
— Tanay Jaipuria (@tanayj) December 5, 2022
2. Blackrock's Larry Fink sees capital going into decarbonization...
BlackRock CEO Larry Fink: More and more venture capital money is gonna be going and more and more early investment is going to be fundamentally in decarbonization ...
— Wittgenstein (@backtolife_2023) December 5, 2022
Source: New York Times Events (Youtube) pic.twitter.com/RfmMpQ9qRh
3. ...which is why his firm has partnered with Temasek to launch a new late-stage VC/early-growth PE firm called Decarbonization Partners, raising $1 billion for its first fund.
We're partnering @BlackRock to launch a series of late stage venture capital and early growth private equity investment funds focused on advancing #decarbonization solutions. Learn more about Decarbonization Partners https://t.co/5LQbDKN9Bd #TemasekInvests pic.twitter.com/yasmOvLC7D
— Temasek (@Temasek) April 12, 2021
4. Blackrock and Temasek are just some of the funds with a recent move into decarbonization. Lightrock announced a new $824 million climate fund just last month.
More news on funding being raised, this time Lightrock.
— Impactish (@Impactish_hq) November 4, 2022
"The private equity and venture firm plans to pump the money into startups in areas such as clean energy, decarbonization and sustainable agriculture."https://t.co/h8PW38nGXw
5. These actions are backed by data, "record amounts of capital are flowing into energy transition in North America," according to S&P Global.
From @SPGMarketIntel: Barriers to entry have eased significantly for private equity and credit looking to fund North American energy transition ventures, but premiums for sustainable financing must fall to enable deep industrial decarbonization: https://t.co/p1llbLUjEd pic.twitter.com/v1PiexRltk
— S&P Global (@SPGlobal) April 25, 2022
6. One caveat here, though, is that 2022 also marks the highest level of US VC activity in Nuclear Technology ever. Much shifting narratives following geopolitical developments in Europe and the repercussions of that. Investors are opening up to the use of nuclear as an alternative to carbon going forward.
US Venture Capital investment in #Nuclear Technology has risen to highest levels ever seen🌋 hammering final nail in the coffin of the "Nuclear is dying" narrative⚰️🔨 that's kept many investors away from #Uranium #mining #stocks.🤨 @CNBC provides a much-needed reality check!🌊🏄 https://t.co/bUTL5FwXhK pic.twitter.com/VccVLiIwXG
— John Quakes (@quakes99) December 3, 2022
In Other News
7. Blackstone's troubled real estate fund is creating concerns in the private equity funds space...
3/3. Less confidence in the private markets over the Fed pivot saving the day? No Santa rally for Blackstone. pic.twitter.com/fhs6jXpIpl
— One Bubble to Rule Them All (@shortl2021) December 6, 2022
7. E-Sports not safe from funding dry-up across tech as VC and sponsorships dwindle.
New: Venture capital and sponsorship funds are leaking out of esports. Funding sources dwindle amid a broad economic downturn, disappointed VC and crypto meltdown--particularly as many question esports orgs' ability to turn a profit. https://t.co/BnF3DF79cH
— Cecilia D'Anastasio (@cecianasta) December 8, 2022
8. Great listen as Bloomberg's Odd Lots Co-Hosts ask an industry veteran what it's like to go through a VC winter.
Particularly enjoyed this episode of Odd Lots
— Bucco Capital (@buccocapital) December 4, 2022
Serves as a nice primer on the history of Silicon Valley, too
Specifically, the under-discussed connection between government spending, venture capital, and entrepreneurshiphttps://t.co/9Q5XFlmkUu
- FT releases SBF's Alameda chaotic VC portfolio - Tweet
- WSJ reported MBS and a US PE firm looking to inject $1 billion into Credit Suisse - Tweet
- VC went from demanding 0 months of runway in 2021 to 36 months - Tweet
- 10 Hacks to Have Happier Investors - Link
Have a great weekend, and see you next week!
December 9, 2022