Genuine Manufacturers cabinets IPO, to promote $12.7 billion stake to traders

Jamie Salter, CEO of Authentic Brands Group.

Source: Authentic Brands Group

The retail group Authentic Brands Group plans to have a planned IPO and instead sell significant stakes in its business to a private equity firm CVC capital, Hedge fund HPS investment partner and a pool of existing stakeholders.

The deal valued the company at an enterprise value of $ 12.7 billion and was announced Monday.

Authentic Brands’ portfolio companies include apparel retailers Forever 21 and Aeropostale, department store chain Barneys New York, men’s suit maker Brooks Brothers and Sports Illustrated magazine. The sneaker manufacturer Reebok is to be bought early next year expected to be closedto add another brand to its holdings.

The company had IPO applied for in early July. However, Jamie Salter, chief executive of Authentic Brands, said the company will now aim for an IPO in 2023 or 2024. He said he has committed to serving as CEO for another five years.

“The IPO climate is ridiculous,” said Salter in a telephone interview. “I think we would have gotten a massive rating … maybe even more than what we sold the business for. But guess what? I’d rather be private.”

In the last few months a wave of retail companies has entered the public market – eyewear manufacturers Warby Parker and fashion rental platform Rent the runway to the environmentally friendly shoe brand Allbirds and e-commerce fashion site Lulus. Investors have preferred names that have a strong presence on the internet, which some believe Collecting reviews as if they were high-growth tech companies.

CNBC reported that Authentic Brands was aiming for a valuation of approximately $ 10 billion on its public debut.

The transaction with CVC and HPS is expected to close in December this year. At this point in time, the PE company and the hedge fund each retain a seat on the Board of Directors of Authentic Brands.

“We plan to work closely with the ABG team to implement its strategic priorities, particularly with regard to international expansion,” said Chis Baldwin, managing partner at CVC.

BlackRock will retain its position as the largest shareholder in Authentic Brands, which it has held since 2019, the company said. Existing investors including US mall owners Simon Property Group, General Atlantic, Leonard Green & Partners, Brookfield and basketball star Shaquille O’Neal will maintain their equity positions.

When it went public, Authentic Brands reported that its net income increased from $ 72.5 million a year ago to $ 211 million in 2020, while sales rose about 2% to $ 489 million is.

“We have the same playbook today as we did yesterday,” said Salter. “You will hear about more acquisitions by the end of this year.”

CVC recently closed a deal to buy Unilever’s tea business. The company’s other portfolio companies include streetwear brand A Bathing Ape and the animal goods chain Petco, according to his website. HPS was spun off from JP Morgan Asset Management in 2016.

Rivian IPO proves Common Motors is undervalued, says GM CEO

GM Chair and CEO Mary Barra speaks to investors at the GM Tech Center in Warren, Michigan on October 6, 2021.

Photo by Steve Fecht for General Motors

The massive reviews from startups for electric vehicles like Rivian that made his public debut on Wednesday on the Nasdaq at a higher share price and market capitalization than General Motors, shows that the old automaker is “so undervalued,” said GM chief Mary Barra on Wednesday.

Rivian stock started trading at $ 106.75 per share, up about 37% year over year IPO price of $ 78 per share and a market valuation of $ 91 billion. This compares to GM at $ 60 per share and a market capitalization of $ 86.4 billion.

“What it sets out to me is the great opportunity. General Motors is so undervalued, “said Barra on Wednesday, without specifically naming Rivian during the New York Times’ DealBook conference.” I see it as a great opportunity for General Motors to achieve significantly more value. “

When asked if her competitors’ reviews made sense, Barra said she didn’t see them that way.

“I see every competitor as someone I respect. And that we have to get better, have to be faster, have to have vehicles that consumers want, that solve the property equation,” she said. “So that’s how I see it. I would say, if anything, it motivates me to work even harder.”

Rivian is recognized as a pioneer in EV startups that can rival the leading electric vehicle Teslaas GM and other traditional automakers invest tens of billions of dollars in the emerging market segment.

GM was interested in investing in Rivian, but its biggest rival, Ford engine, invest in the EV start-up instead. Ford, which owns about 12% of the start-up, convinced Rivian CEO RJ Scaringe that Ford would be a better fit than GM, as reported recently from the Wall Street Journal.

GM has announced plans to invest $ 35 billion in electric and autonomous vehicles by 2025, since there is Goals exceed Tesla until then in domestic EV sales.

$18 billion retailer Fanatics prepares for IPO — here is what’s subsequent for the corporate

Fanatics Founder / Executive Chairman Michael Rubin attends the Fanatics Super Bowl Party at the College Football Hall of Fame on February 2, 2019 in Atlanta, Georgia.

Mike Coppola | Getty Images

Sports merchandising company Fanatics shocked the sports world last month after securing trading card rights to Major League Baseball, the National Football League and the National Basketball Association.

Especially Fanatics’ deal with MLB ended the league’s decades-long partnership with Topps and possibly caused the end of Topps’ plans to use a SPAC Mudrick Capital Acquisition Corp. II. It also sent Topps owners and former Disney CEO Michael Eisner back to the drawing board for reflection the next train – if there is one.

Panini, which had the NFL trading card license since 2016 and the NBA license since 2009, is also losing the rights to Fanatics.

The series of deals shows how Fanatics, under CEO Michael Rubin, plans to expand beyond sportswear into collectibles, sports betting and even broadcasting games. It has already attracted well-known investors like Jay-Z to come with his $ 18 billion private valuation before an expected IPO.

Here you can find out how Fanatics landed the partnerships and what this means for the future of the company.

Fanatics add another piece to the puzzle

Rubin’s move ends some historic sports partnerships that the NBA has already proven not to be set in stone. In May 2020, the NBA has dropped basketball maker Spalding, a partner for more than 30 years and associated with Wilson to make its basketballs.

Sports leagues like Fanatics’ moat around its products, and the company is already affiliated with most leagues and teams to make soft goods and hard goods, including sports jerseys. The pandemic forced all leagues to review deals to maximize profits after suffering significant losses. Fanatics also had to rethink their business as live sporting events were suspended at the start of the pandemic.

According to people familiar with Fanatics’ plans, the company considered expanding last summer to add more pillars to its operations. Fanatics already dominates vertical and e-commerce in sports, mostly with all of its MLB rights. But it also saw an opportunity in the trading card market.

Fanatics declined to comment on this story.

Topps trading cards are arranged for a photo in Richmond, Virginia.

Jay Paul | Bloomberg | Getty Images

The business with sports trading cards should reach $ 98.7 billion by 2027, according to Verified Market Research. In 2021 the industry was particularly active, with a 1914 baseball card from Babe Ruth to set a record. Even Luka Doncic’s rookie card set an auction record.

Entering the trading cards business is also in line with Fanatics’ plans to build its name in the NFT collectibles space via Candy Digital. To secure the new deals, Fanatics provided the leagues and player unions with equity capital that is guaranteed to generate at least 1 billion US dollars in sales over the duration of the partnerships. Leagues have no equity in their current trading card company dealings.

Fanatics’ plan for the physical trading card space is to expand it by opening up the market to take greater advantage of it through direct offers to consumers, according to those familiar with the matter. For example, when collectors buy a trading card, they can insure, value, store, and even offer the asset for sale or barter on a marketplace – all through Fanatics. The company would likely charge transaction fees, and leagues will also get valuable data they crave.

Speculation on Wall Street suggests Fanatics will also try to buy one of the trading card companies. Panini is valued at $ 1.3 billion, according to PitchBook, and there are other companies, Upper Deck and Leaf Trading Cards based in Texas.

The competition’s takeover would be similar to a takeover Fanatics completed when it bought it in 2017 VF Corp ‘s licensed sports group for approximately $ 225 million. That deal included the Majestic Athletic brand and came right after Fanatics took over the MLB apparel rights from Majestic.

Robert Kraft, Jay-Z and Mike Rubin attend Michael Rubin’s Fanatics Super Bowl Party at the Loews Miami Beach Hotel on February 01, 2020 in Miami Beach, Florida.

Kevin Mazur | Getty Images

Still business on the table

Fanatics also wants to be valued in the $ 40 billion American online gambling room through sports betting, sources said.

The company did Headlines according to plans, the entry into the New York sports betting market arose. Fanatics feels it can bring its 80 million user base tied to its sports merchandising company to a sports betting offering. If it works, Fanatics can lure Sportwetter to its platform and combine offers from its merchandise catalog as a reward for customer loyalty.

But fanatics have to buy an established sportsbook to enter the room.

Industry talks connected Fanatics and online casino operator Rush Street Interactive, which operates sports betting through its SugarHouse property. But sources told CNBC that Fanatics was not interested in the takeover. Rush Street is traded under the ticker on the New York Stock Exchange RSI symbol and has a market capitalization of $ 2.6 billion. Rush Street declined to comment.

It’s unclear who Fanatics is targeting, but it will have to show its hand on that front at some point as sports betting laws require.

Rubin’s company has made no secret of being a global powerhouse with various offers in the digital world. Fanatics wants to participate in sports media rights, games of chance, revised ticket models, memorabilia, NFTs and now also trading cards.

And while business goes on, an IPO awaits.

In sports betting circles, it is not a question of whether but when fanatics go public. Fanatics scored his $ 18 billion Evaluation after taking up additional funds. It also starts a China operation after a Investment from entertainer Jay-Z. MLB and NFL were already partners, and SoftBank gave Fanatics cash from its $ 93 billion Vision fund.

Barrett Daniels, a partner at global accounting firm Deloitte, said that companies similar to positioning Fanatics and securing big deals typically seek public offers sooner rather than later.

Daniels, who serves as Deloitte’s national IPO co-leader and heads the SPAC Western region, said companies with status like Fanatics have decided to go public to “reward and share in this success to be able to. This is a big driver and an important piece of the puzzle. And there are some companies that feel they are the dominant player in their field, they need to be public. “

Though an IPO might be involved, Daniels added that staying private is no longer as taboo as it used to be.

“You used to go public when you hit about a billion dollars, but these days there doesn’t seem to be a limit,” Daniels said. “Companies keep getting bigger in the private market and staying private. And there is still a lot of money in the private markets.”

Robinhood IPO: Deal raises much less cash than it hoped

The rapidly growing trading company couldn’t raise as much money as hoped. Robinhood’s IPO at a price of $ 38 per share, the lower end of the expected range. That suggests that demand for the controversial company may have been weaker than expected. The deal values ​​Robinhood at about $ 32 billion, making it more valuable than big companies like Nasdaq (NDAQ), Southwest Airlines (LUV) and Kroger (KR). That is well above the $ 12 billion price of Robinhood in its most recent private funding round.

And yet Robinhood failed to reach its target valuation of $ 35 billion.

The IPO brings in $ 2.1 billion and Robinhood is expected to trade on Thursday under the symbol “HOOD” on the Nasdaq.

The deal is still a major milestone for a company that revolutionized the way Americans invest and is growing explosively.

Robinhood reveals new regulatory probes on the eve of its blockbuster IPO

“The business was great fun. They have a great platform to build on, ”said David Weild, former vice chairman of Nasdaq and now CEO of investment bank Weild & Co.

Robinhood’s sales have increased 245% to $ 959 million last year as user growth and trading volume skyrocketed.

Robert Le, an analyst at PitchBook, said Robinhood seemed to be leaving some cash on the table to help its stock price rise on day one.

“Robinhood is playing it safe here,” Le said in an email. “A successful novel IPO has more than a few hundred million dollars in the company’s bank.”

“It seems to be rich”

But investors are paying a premium for that growth.

At the high end of Robinhood’s IPO palette, the deal would have valued the company at roughly 22 times trailing revenue, according to Renaissance Capital. That compares to multiples of just five for Charles Schwab (SCHW), a rival that is expanding more slowly. “It seems to be rich – unless the company can maintain that high growth,” said Kathleen Smith, a director at Renaissance Capital who manages the Renaissance IPO ETF (initial public offering). Robin Hood completely disturbed the online brokerage industry through the pioneer of commission-free trading. When Robinhood attracted new and existing investors to its platform, competitors were forced to cut trading fees and band together to survive.

Now Robinhood is disrupting the IPO process. The company allows its users to buy a portion – up to a third – of the IPO’s stock before they start trading on the Nasdaq. Usually only corporate insiders and powerful institutions get access to these coveted stocks.

New regulatory probes revealed

Robinhood’s public debut was delayed by a Series of controversies, the end record-breaking settlements too massive Failureswho have favourited questions about the business model, the management team, and the company’s ability to keep up with its explosive growth. Just this week Robinhood announced that regulators are investigating the fact that CEO Vlad Tenev is not with FINRA. licensed, Wall Street’s powerful self-regulatory agency. (Robinhood has argued that Tenev does not need to be licensed because he is the CEO of the parent company, not the broker-dealer). The Financial Industry Regulatory Authority and the Securities and Exchange Commission are also investigating whether Robinhood employees have shares in GameStop (GME), AMC (AMC) and other “meme” stocks ahead of the trading platform’s infamous trading restrictions in January. Robinhood settles lawsuit against 20-year-old trader who died of suicideLast month, FINRA beat the brokerage firm with its highest sentence to date, accusing the company of harming millions of customers and providing “false or misleading information” to investors. FINRA quotes in partial options trading proceedings in the center of a Recently settled family lawsuit a 20 year old Robinhood dealer who died of suicide last year.

Robinhood has neither admitted nor denied the FINRA charges.

Weild, the former Nasdaq executive, said Robinhood’s struggles may have only raised public awareness of the company – something that ironically helps. He compared the situation to the challenges America Online faced during its rapid expansion.

“All it did was increase their visibility and branding,” said Weild.

Other companies with legal problems have also been able to go public, including Airbnb and above (ABOUT).

“These are not free apps”

But Robinhood’s struggles have also shed bright light on the company’s controversial business model known as paying for the flow of orders. Like some other online brokers, Robinhood makes most of its revenue from selling its retail order flow to high-speed trading companies like Citadel Securities.

Robinhood argues that this tactic will benefit everyday investors as it paved the way for commission-free trading. But others say it’s really the high-speed trading firms that benefit – otherwise they wouldn’t be paying Robinhood for the flow of orders.

A surprising tech company could join the Dow nextNow the business model that Robinhood relies on is in question. The Securities and Exchange Commission verifies the payment for the order flow. SEC chairman Gary Gensler warned in May that there were “inherent” conflicts of interest with this business model and expressed concern about them playful nature of trading apps.

“These are not free apps. They are just free apps. The costs are within the scope of the order,” Gensler told the legislature.

If the SEC bans paying for the flow of orders, it would deal a blow to Robinhood.

“We believe paying for the flow of orders is a benefit for retail investors,” said Le. “But if the regulators don’t see it that way and forbid it, Robinhood will have to find new sources of income. That would be a great risk.”

Leveraged by the market boom

Robinhood not only faces competition from established online brokers, but also from Upstarts like Public.com and Invstr market the fact that they do not sell the retail order flow to high speed traders.

Smith, the manager of Renaissance Capital, said another risk was how closely Robinhood’s bottom line was tied to the fate of booming markets.

“What if we get a negative market? People could easily be put off if they lose money,” said Smith. “This company is so focused on the equity and crypto markets. A downturn would hurt Robinhood more than a Charles Schwab. ”

Journey.com up greater than 4% in Hong Kong IPO, bullish on China journey in Might

Online travel agency Trip.com made a strong debut in Hong Kong on Monday, with shares rising around 4.55% from issue price.

The China-based company is now joining other U.S.-listed Chinese tech heavyweights such as: Alibaba, JD.com and Baidu who have returned closer to their homeland through second offers in Hong Kong. The IPO was valued at $ 268 Hong Kong per share and $ 8,478 million (US $ 1.09 billion) was raised unless the over-allotment option is exercised.

The secondary listing comes as a Chinese tech companies remain at risk of delisting in the US, clouded investor sentiment.

This May vacation we already have … some of the inbound people and we’re seeing a record number of travelers in China – likely double digit growth from pre-Covid levels.

James Liang

Chairman of the Board of the Trip.com Group

James Liang, CEO of Trip.com Group, told CNBC that the “main reason” for listing the company as a secondary listing in Hong Kong was to make it easier for global investors in Asia and China to trade stocks.

“Most of our customers are in Asia. I think it’s pretty natural for us to be listed in Hong Kong,” he said in an interview with CNBC’s Street Signs Asia on Monday.

“Very optimistic” about the May vacation

Even if much of the global travel market continues to stall due to the coronavirus pandemic, Trip.com expects a “record number of travelers in China” for the long vacation ahead in May.

“This May vacation, we already have … some of the numbers that are coming in, and we’re seeing a record number of travelers in China – likely double-digit growth from pre-Covid levels,” Liang said. Labor Day holidays are May 1-5 in China.

In particular, upscale accommodations like resorts and short-haul travel are expected to see “very, very rapid growth” that could actually more than offset the decline in international travel, Liang predicted.

An employee walks through the reception area at the headquarters of Trip.com Group Ltd. on Thursday, February 4, 2021. in Shanghai, China.

Qilai Shen | Bloomberg via Getty Images

“The money people save by buying international airline tickets is what people are spending on hotels, especially high-end hotels and cars, you know, on local transport,” he said. “While the total transaction amount may not hit record levels, we are very optimistic about the number of travelers and margins.”

China was the first country to report on the coronavirus pandemic. After tight lockdown measures launched across the country weeks after the earliest Covid-19 cases occurred in Wuhan city in late 2019, the country largely managed to contain the spread of the virus and stepped as one of the few major economies in 2020 that expanded this year.

In contrast, authorities in other countries continue to struggle to vaccinate their populations in the face of increasing viral infections and potential mutations.

One example is India, which has seen a second wave of coronavirus infections since February Brazil overtook last week to become the second worst affected country after the US

It is act two for leisure big Endeavor’s IPO

Ari Emanuel, the stubborn Hollywood super agent, won’t let a setback get him down.

And so after a year in which the prediction of the impending implosion of Endeavor Group Holdings became a spectator sport, and around 18 months after Endeavor pulled out of its much-anticipated IPO, the owner of talent agency WME, the Miss Universe Pageant and the UFC sports league is aiming again for an IPO.

Endeavor announced its IPO plans on Wednesday in a filing from the Securities and Exchange Commission.

Founded in 1995, the entertainment company, which also owns production company Endeavor Content and sports agency IMG, had sales of $ 3.47 billion in 2020, a net loss of $ 625.3 million.

Endeavor did not disclose the expected amount, other than a stand-in worth of $ 100 million. However, the records indicated that Endeavor plans to acquire the remaining shares in the Ultimate Fighting Championship of the Mixed Martial Arts League. It currently has a 50.1% stake in the UFC.

Emanuel’s second shot in an IPO, expected later this year, would be the first public offer from a Hollywood agency owner and a repayment opportunity for the company’s founder.

The public offering takes place in the midst of a tumultuous time for agencies whose profits have been hurt by the surge in streaming and the aftermath of the COVID-19 pandemic that shut down productions and live entertainment.

In March last year, the company announced wage cuts and layoffs across the company. Emanuel and his partner, Executive Chairman Patrick Whitesell, waived their own salaries for the year.

Sport is a growth area for agencies looking to diversify their revenue streams and reduce their reliance on the traditional talent advancement business. In October, for example, ICM Partners acquired Stellar Group, a London-based sports representation agency with more than 800 athletes.

UFC has been very profitable for Endeavor, which, along with a group of investors, acquired the Mixed Martial Arts League for $ 4 billion in 2016. MMA was the first major sport to return to scheduled live events. The match between UFC 249: Ferguson and Gaethje took place in Jacksonville, Florida on May 9th.

Endeavor declined to comment.

Citing market volatility, Endeavor scrapped its first attempt at IPO in September 2019, one day before the start of trading. It was expected to raise up to $ 600 million and the company was valued at $ 8 billion. The offer should also fund Emanuel and Whitesell’s ambitious plans to build the media company of the future and fund future acquisitions while repaying the heavy debt burden, which was then trading at $ 4.6 billion.

This time, Endeavor is hoping for a better, if more modest, reception from Wall Street.

“With this IPO, Endeavor can distinguish itself as the winner of the reopening,” said Lloyd Greif, investment banker in Los Angeles. “When the vaccinations go out and TV and movie production opens, the UFC and professional bullfighting – all of the things directly related to live events will benefit the company and, based on the current state, become a growth story will.”

Greif, however, cautioned that Endeavor is adjusting to a more modest offer and rating.

“Endeavor was clearly not a growth story in the past 12 months. It has to be hit by the pandemic, but now there is light at the end of the tunnel, ”he added. “I’m sure you have mixed feelings about not getting the rating you wanted [the first time]. In retrospect, it was a pretty good rating; Because of COVID, there was no other place than a descent. This will be a lower valuation despite a strong market. “

In May, Endeavor sold part of its stake in Epic Games, publisher of the popular Fortnite title, for an estimated $ 80 million. In the same month, Endeavor announced that it had raised $ 260 million in a debt offering, mainly from the investment firm Oaktree Capital. The loan arranged by JPMorgan Chase was used to fund operations during the pandemic.

WME and other top agencies are also looking into the terms of new agreements with the Writers Guild of America. Under one recently announced deal, WME and its investor Silver Lake will reduce their stake in Endeavor content to 20% or less and finish packaging – where an agency charges fees for bringing talent together for a project – by the end of June 2022.

In 2012, Silver Lake invested $ 200 million in WME in return for a 31% stake in the company, and two years later increased the stake by an additional $ 500 million for an additional 20% stake. In 2016, Softbank invested $ 250 million in a 5% stake in WME.

In May last year, Endeavor president Mark Shapiro told The Times, “There are so many … rumors” spreading speculation that the company was preparing to file for bankruptcy protection from creditors. “We made very responsible and prudent decisions to reshape our cost structure in the face of the pandemic.”

Despite the canceled IPO, cost-cutting measures, and industry issues, Endeavor continued to make acquisitions. In November 2019, the company acquired Harry Walker Agency. In January 2020, On Location Experiences, an events business founded by the National Football League, opened for $ 600 million.

Morgan Stanley leads the offer along with Goldman Sachs, who handled the first round.

The Times staffer, Wendy Lee, contributed to this report.

TuSimple IPO Submitting Reveals Self-Driving Vans Nonetheless a Cash-Loser

Self-driving company TuSimple Inc. released filing for its initial public offering on Tuesday, showing it lost more than $ 300 million in the past three years when it became the first to bring fully autonomous long-haul trucks to market Has.

TuSimple had already submitted in confidence For an IPO, the Wall Street Journal reported, and Tuesday’s filing provided the public with the first detailed look at a startup that has received more funding than many of its Silicon Valley counterparts and has maintained separate operations in California and China.

The China connections have caught the attention of US regulators. The U.S. Foreign Investment Committee, or Cfius, has identified TuSimple as a company worthy of review because of its ties with China and the fact that autonomous driving technology is viewed as a critical technology for the Department of Defense. Cfius warned TuSimple this month that it was considering a Chinese investment in the company from 2017, according to its IPO filing.

TuSimpleFounded in 2015, the company has raised approximately 800 employees and hundreds of millions of dollars from investors. The company had sales of $ 1.8 million and a net loss of $ 177.9 million for the past year.

TuSimple has made money so far as a traditional freight forwarder, not from selling its self-driving technology in 2024. It has customer reservations for more than 5,700 trucks, even though they don’t match revenue.

Bumble IPO a win for feminine founders, enterprise capital funds nonetheless low

Whitney Wolfe Herd speaks on stage during the Fortune Most Powerful Women Next Gen conference at Monarch Beach Resort on November 13, 2017 in Dana Point, California.

Joe Scarnici | Getty Images Entertainment

As a 31 year old Whitney Wolfe Herd, CEO of Bumble, takes her company public This week she will be known not only for her youth, but also as one of the few founders to have her company go public.

It’s a fitting achievement for the founder of a dating app that aims to put women in the driver’s seat. But it also hammers home the still unsuitable playing field for entrepreneurs.

Hummel, his board includes 73% womenis expected to be traded on the Nasdaq on Thursday a few days earlier Valentine’s day. The company will sell its shares to $ 43 per share, which is $ 2.2 billion from investors. The company initially appreciates the offer more than $ 7 billion.

The market reaction will serve as the litmus test of investing in women-owned businesses.

Today, Women make up only 7.4% of Fortune 500 CEOs – an all-time high, but still an astonishingly low number. Even fewer women founders of public limited companies. Nasdaq estimates that only 20 of the currently active US public companies were led by their founder through the IPO.

Women’s funding falls as global deals rise

The problem is not a lack of women entrepreneurs, but a lack of support where it matters: funding.

In a 2018 study The Boston Consulting Group found “a significant gender gap in new business financing.” According to the study, investments in businesses founded or co-founded by women averaged $ 935,000, less than half the average $ 2.1 million men receive.

Even so, startups founded by women and co-founded made 78 cents for every dollar invested, while startups founded by men made only 31 cents.

Covid-19 could be the greatest threat to female founders.

Matt Krentz

Managing Director and Senior Partner of the Boston Consulting Group

The pandemic has only widened this gap.

In 2020 Global Risk Finance Up 13% however, compared to the previous year, investments in women fell by 27%. In the meantime, the proportion of founders assigned only to female founders decreased from 2.8% to 2.3% Crunchbase data. That comes as women, often primary caregivers, are supposed to be adversely affected from the pandemic as a whole.

“The convergence of crises – demands for racial justice, #MeToo, Black Lives Matter, Covid-19 and an economic downturn – makes this a crucial moment for business integration, justice and diversity,” said Matt Krentz, Managing Director and Senior Partner at BCG and The study co-authored, said CNBC. “Of all these problems, Covid-19 could be the greatest threat to female founders.”

Redirect investments where they are needed

The economic benefits of investing in women are well documented. According to some estimates, equal business participation by men and women could help $ 5 trillion for the world economy.

And companies and institutions seem to be listening now. Many have made bold commitments to better support gender equality and female founders.

What female founders need is simple and equal access to financial investments.

Tanya Rolfe

managing partner, Her Capital

“Awareness of the funding gap and the impact of different leadership teams is better understood, and investors have begun to ask directly about the diversity of founders and leadership teams,” said Krentz.

Too often, however, these investments are poorly channeled, according to Tanya Rolfe, managing partner at Her Capital, a women-run venture capital company that focuses on female founders in Southeast Asia.

“Women seem to be at the center of a lot of additional mentoring, which only suggests that women are missing something,” said Rolfe. “What female founders need is simple and equal access to financial investments.”

Tanya Rolfe, managing partner of Singapore-based venture capital firm Her Capital.

Your capital

To achieve this, more diversity is needed at the fund manager level, Rolfe said.

In 2020, women made up only 13% of all venture capitalists. after all raise, a non-profit organization focused on accelerating the success of female founders and funders. An appreciated 11% of the fund managers were womenSaid All Raise.

“If we want to see diversity at the founder level, we need to invest in diversity at the capital allocator level – fund managers like me,” continued Rolfe. “It is almost more important to invest in venture capital funds with specific strategies for investing in different founders. This is where we will see the major changes.”

Revision of traditional investment figures

Nevertheless, various funds continue to face an uphill battle.

Since many are still in their infancy and have little success, they are usually outside the investment criteria of the institutes. As a result, managers often seek less lucrative and more time-consuming deals from private investors.

Pippa Lamb, a partner in early-stage mutual fund Sweet Capital, says such an approach needs to be revised.

The pricing of perceived risk based on a person’s race or gender is very out of date to me.

Pippa Lamb

Partner, Sweet Capital

“The pricing of perceived risk based on a person’s race or gender is very out of date to me,” said Lamb. “I would guess top-tier institutional investors are ready to do the job for full diligence managers no matter what they look like.”

“We need more diverse representation in all areas of the start-up ecosystem,” she said, citing female founders, female board members, female venture capitalists and female institutional investors. “When it comes to raising capital, the latter two are most critical, especially at the limited partner (LP) level: the investor’s investors.”

BCG’s Krentz hopes the tide will turn.

“Investors should understand that current market forces offer promising opportunities for women-owned companies,” he said. “The lack of funding means that there is less competition for women-supported companies and, on average, these companies perform better than companies with all male founders.”

But until this understanding grows, Rolfe and Lamb’s advice to female founders is simple: keep going.

“Women can do the same thing that male founders do to attract investors,” said Rolfe. “If you’re a great founder with a solid business plan and traction to prove your execution and thesis, that should be enough.”

China’s Love of TikTok-Type Apps Powers $5 Billion IPO

Kuaishou Technology has its sights set on the world’s largest IPO in more than a year and is looking to raise around $ 5 billion from a stock sale in Hong Kong as short video and live streaming apps grow in popularity in China.

Kuaishou, which competes with ByteDance Ltd., the rival Chinese company behind TikTok and its sister app Douyin, took orders from investors on Monday. In the offer, which could be valued at more than $ 60 billion, Kuaishou joins a number of Chinese tech companies listed in Hong Kong.

Kuaishou, which means “quick hand” in Chinese, is owned by Tencent Holdings Ltd. supported. It was co-founded by Su Hua and Cheng Yixiao, software engineers who previously worked for Google China and Hewlett Packard, respectively.

Both Kuaishou and ByteDance have benefited from the growing demand from younger Chinese people to watch and record short videos on their smartphones. The short video platform of the same name is the second largest in the world according to the data given in the brochure. In China, there were an average of 305 million daily active users for their apps and mini-programs in the nine months from September.

With a minimum trading volume of $ 4.95 billion, the IPO would be the largest in the world since late 2019 when the state-controlled Saudi Arabian Oil Co., commonly known as Aramco, raised $ 29.4 billionShowing dealogic numbers.