Airbnb has recently agreed to acquire HotelTonight, a last-minute online hotel booking platform, for a reported price near the company’s most recent valuation of $463 million (Bloomberg, NY Times). This marks the largest acquisition to date for Airbnb since the high-end travel website Luxury Retreats that occurred at $300 million in February of 2017.
FEMTECH MAKES ANOTHER MAJOR BREAKTHROUGH
Fall of 2018 marked the beginning of huge advancements in Venture Capital funding for the emerging “FemTech” sector. In my November article, I covered the funding expected to enter this sector within the next 6 years. This week, FemTech came $42 M closer to its $50 B goal. Elvie, a London-based women’s healthcare start-up secured $42 M in its third private financing round.
BETTING ON GAMBLING – THE ACTION NETWORK’S ROLE IN SPORTS MEDIA
People lose money in the stock market when they follow their emotions and ignore the data. Similarly, the public tends to lose money when they place bets rooting for their home team rather than what the actual numbers suggest. The growth of sports betting means that the entire environment of watching sports and entertainment has changed
KKR ENTERS INTO PARTNERSHIP WITH NEXTERA ENERGY PARTNERS
On March 4th, private equity firm KKR & Co. (NYSE: KRR) announced an agreement with NextEra Energy Partners, LP (NYSE: NEP) to buy an equity stake in a newly formed partnership between the companies that owns ten United States wind and solar power farms. KKR will provide $900 million for NEP to buy the portfolio of plants for about $1.02 billion.
FEDERAL RESERVE HALT ENCOURAGES MARKETS
On March 20th, 2019, the Federal Reserve announced what markets had for the most part been expecting: no interest rate hikes for the remainder of 2019. Currently sitting at 2.5%, the Fed’s target for the federal funds rate impacts the global economy and influences the rates at which all debt can be issued at. A lower interest rate means that money is “cheaper”, and capital is more readily available in financial markets. While the most recent announcement was expected immediately before its release, it was very different from what many expected only a few months ago.
ELECTRIC VEHICLE MARKETS: EASY TO INVEST IN?
Traditional automotive manufacturers are being forced to innovate and compete against new entrants. Many startups secured seed and early round funding from Venture Capital firms between 2007-2011 before the influx of Private Equity investors. However, several of the company’s successful in raising capital, such as Lucid Motors and Coda Automotive, eventually found themselves facing financial struggles, and, in some cases, bankruptcy. Although the electric automotive market is experiencing rapid growth with sales expected to exceed 4.5 million units per year by 2020, the potential varies drastically across regions.
GOTHAM THROWS MEDMEN A LINE (OF CREDIT)
Despite many cannabis stocks trading in the red Friday, MedMen was able to eke out a 6% gain due to cannabis-focused private equity firm Gotham Green Partners extending the marijuana retailer a line of credit valued at $250 million. The investment is composed of convertible senior secured notes divided into three tranches, with the 1st worth $100 million and 2nd and 3rd worth $75 million. Once the deal is closed, the $100 million will become available to MedMen, while the remaining two installments will be paid out every 6 months.
THE CLEAR CHOICE TO AUTO INSURANCE COVERAGE: CLEARCOVER
The FinTech industry is booming because of the attractive market for millennials. Younger generations are more flexible and less likely to choose firms based on tradition. Millennials tend to switch between preferred companies based on convenience and simplicity. FinTech has been largely steered towards millennials because mobile platforms such as Robinhood, Petal, and Acorn are able to have seamless apps with virtually no learning curve and limited costs. Beyond financial services, startups have been increasingly targeting opportunities for growth in the insurance industry.
BAIN AND CARLYLE EYEING POTENTIAL JOINT BUYOUT OF OSRAM
MUSIC SERVICES STARTUP EXPECTED TO RECEIVE A LARGE CHECK
Kobalt is a music technology and services company that grants artists royalties and serves a platform for music production. This startup is viewed extremely positively in the eyes of investors due to its software management system for digital content, which enables artists who purchase Kobalt’s services to effectively view user data and song performance across music streaming apps. The company champions the right of the artist--a right that is often forgotten in pursuit of additional income by other businesses in the music industry.