Forage Into The Future #8
On: BlackRock's $12.5B acquisition of GIP, Lightspeed's Continuation Fund, VC's tryst with QuantumTech, AI Robocalls & Democracy, sustainable inks for semiconductors, the 'Big Ring in the Sky' & more!
Hi folks! Welcome to another edition of Forage Into the Future!
In this edition of the newsletter, you can find updates on 🦄Venture Capital & Private Equity, 💻Artificial Intelligence, 🤖 Robotics, ♻️Energy & Sustainability, 💡Semiconductors, and 🚀Space & Beyond.
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Right then, onto the important tidbits!
🦄Venture Capital & Private Equity
📉 U.S. VC-backed startups hit a rough patch in 2023, with exit values at a decade-low of $61.5B. Fewer exits than in the past nine years, making it a challenging year for exits. There also seems to be a lack of IPOs and M&As in the making which have exacerbated this kind of dip.
⚖️ The fundraising environment is tough, deals are down, and check sizes are smaller. Startups are now resorting to layoffs for survival. Valuation mismatches between founders and investors don't seem to help in this scenario.
Although, mega funding rounds over US$100M have dipped drastically by 68% (!) from 843 in 2021 to 269 in 2023, there is some cause for hope. Startups with at least one female founder, have matched last year's $44.4B VC funding despite a drop in rounds.
BlackRock's latest move in infrastructure is like adding another massive tension rod to their ever-expanding bridge as they agree to buy Global Infrastructure Partners for around $12.5 billion, making their infrastructure business a whopping $150 billion strong including projects across the airports, ports, power, and digital projects segments.
BlackRock will be paying US$3 billion in cash and 12 million BlackRock shares.
Infrastructure is a hot asset class due to rising demand for logistics, digital infrastructure, and the need for green energy transition. This also positions BlackRock to compete aggressively against Blackstone & Apollo in the alternative assets segments, where both have been making significant moves.
This also signals management shakeups:
Stephen Cohen becomes chief product officer, leading a new global product strategy group.
Rachel Lord takes charge of a new international business structure.
Salim Ramji, head of iShares and index investments, departs.
GIP Chairman Bayo Ogunlesi's presence (who stepped down from the Goldman Sachs board) adds new contenders to the potential successor list for BlackRock CEO Larry Fink.
As reported previously, news seems to be flush about the massive downturn that the European VC ecosystem seems to be undergoing. Sifted reports that the deal value fell nearly 46% in 2023 from the year prior, with European startups raising €57.1bn compared to €105.1bn in 2022, according to a new PitchBook report on the state of European venture.
Health-tech unicorns are also having a bit of a binder, it seems.
Pitchbook reports that there are 70 VC-backed healthtech unicorns, and this group has collectively raised over $31 billion with an aggregate valuation exceeding $173 billion.
Only 2 new Healthtech unicorns were added in 2023, compared to a total of 52 across 2021 and 2022. Stark figures.
This represents a large pool of possible public listings over the coming years, though M&A may be the eventual outcome for many of these companies.
Not all is bad news in Europe, however. Excluding the hype in the two years prior (2021-22), VC deal value in 2023 remains higher than in previous years and the 10-year average. Clean-tech emerges as the sector attracting the “top tier” of venture capital. For instance, Sweden’s H2 Green Steel won the biggest cheque in 2023, receiving a €1.5bn investment to build its flagship plant.
Prominent VC firm Lightspeed Venture Partners plans to roll up portfolio stakes of 10 companies worth $1B into a new continuation fund. This tactic, typically followed by the private equity industry, will give existing LPs an opportunity to cash out their returns while allowing Lightspeed to hold on to portfolio stakes for a longer duration. The Fund already has ~$25B in AUM as of date, and has invested in companies such as Snap, Rubrik, and Nest among others.
For the week of Jan 13 to Jan 19, VCs tracked by ‘Insider’ went big, deploying $415.3M in late-stage startups last week. Biotech stole the show with 27% of funding. Gaming, healthcare, and food & beverage also had their slices. The five biggest rounds were:
Scottish game development studio Build a Rocket Boy securing $110M in Series D funding led by RedBird Capital Partners, with participation from NetEase Games, Galaxy Interactive, Endeavor, Alignment Growth, Woodline Partners, and GTAM Partners.
Timeline, a consumer health company developing solutions for aging and longevity, raising $66M in Series D funding led by L'Oréal Group VC division BOLD.
Indian cloud kitchen startup Wow Momo Foods securing $42M in Series D funding from Malaysia's sovereign wealth fund Khazanah Nasional, The Indian Angel Network, Lighthouse Funds, and Oaks Asset Management.
Flexible laboratory infrastructure and resourcing solutions provider SmartLabs raised a Series C round of $48M with participation from ArrowMark Partners, Winslow Capital Management, and Conversion Venture Capital.
Sectoral Asset Management led a $40M Series C round into Noctrix Health, with Angelini Ventures, ResMed, and Asahi Kasei Corp. joining as new investors in the round along with existing backers OrbiMed and Treo Ventures.
Quantum Computing is also experiencing increased investor interest despite the technological infancy it seems to be at. In addition to Quantinuum’s raise of US$300 million (which we referred to in the last edition of the newsletter), there are a bunch of things that should signal optimism. And some others that should caution us.
Despite the general slowdown experienced by tech in general, quantum computing (QC) hardware and software companies raised funding in 2023 despite a decline in overall deal value.
Rigetti and D-Wave, two quantum SPACs, have lost almost 90% of their value since going public in 2021, which seems to be cause for grave concern. On the other hand, IonQ, another quantum SPAC, has doubled its stock price since its low a year ago.
Horizon Quantum Computing's $18 million Series A funding from Expeditions Fund and Peak XV valuing it at $112 million in March of 2023 is another key manifestation of this trend.
General Catalyst is exploring talks to acquire Indian VC firm Venture Highway, eyeing a bigger South Asian presence. Part of their $500M investment plan for Indian startups. It had previously expanded its presence into Europe through a merger with early-stage fund La Famiglia.
Mirae Asset Financial Group launches a U.S. biotech VC division with $50M in its debut fund, treating the fund as a Proof-of-Concept (POC) for its thesis for the sector.
Led by Naveen Krishnam (formerly at Leaps, Bayer’s CVC arm), it has already led a $75M Series C round in an undisclosed cancer drug developer.
Has revealed that the fund will be used to back up to eight U.S.-based life science startups over the next two to three years.
💻Artificial Intelligence
AI Robocalls Disrupting Democracy? In New Hampshire, an enigmatic AI-driven voice, bearing a striking resemblance to President Joe Biden, is stirring up a political tempest. These cleverly-crafted robocalls, echoing the President's signature catchphrase (‘What a bunch of malarkey’), are urging Democrats to save their votes. But what's the real agenda behind this digital mimicry, and could it have wider implications for our democracy?
The study shows that only 23% of vision-related tasks are currently economically viable for automation.
Since costs play such a pivotal role in making this shift viable, lower costs could accelerate automation, but higher costs could slow it down, giving workers time to adapt.
Scalable AI platforms could democratize access and shift the focus from individual companies to service-based models, creating new business opportunities. Examples of existing AI-as-service platforms like Nvidia's autonomous vehicle platform showcase the potential of this model.
New jobs will emerge in managing, maintaining, and improving AI systems, (see: they already are!) as well as in areas where human skills are irreplaceable.
This study could inform future research and policy-making to navigate the challenges and opportunities presented by AI in the workplace.
OpenAI's Ban on Political Chatbots: Not surprising given the thin line between creativity and controversy: OpenAI recently made headlines by banning a developer who dared to create a chatbot modeled after U.S. presidential candidate Dean Phillips. But where does one draw the line in the sand when it comes to political impersonation in the AI realm? Is this a matter of ethical boundaries or stifling innovation?
Google’s ‘X’ laying off staff: Google's tech innovation lab, X, is undergoing a transformation. It's shedding support staff like old baggage to become leaner, meaner, and more independent.
Imagine wearable tech that continuously tracks nine physiological markers linked to stress responses: Caltech's latest creation represents a promising advancement in personalized health monitoring. According to a statement by the university, the device, called ‘CARES’ integrates sweat sensors with sensors that record pulse waveforms, skin temperature, and galvanic skin response. It also utilizes new materials for improved stability and incorporates machine learning to interpret complex physiological and chemical stress-related data.
AI startup ElevenLabs entered the unicorn club after raising a $80M Series B funding round. The firm was valued at $1.1B at the current round, which marks an 11x jump over its previous valuation of $100M from 2023. Andreessen Horowitz led the current round with additional support from GitHub CEO Nat Friedman, entrepreneur Daniel Gross, Smash Capital, SV Angel, and Sequoia Capital.
There seems to be some regulatory action on the AI front as well. The U.S. Federal Trade Commission issued a subpoena to Amazon, Microsoft, and Alphabet for AI development details, particularly their interactions with Anthropic PBC and OpenAI.
FTC Chair Lina Khan emphasized this as a market inquiry, warning that innovation claims shouldn't mask law-breaking activities.
This is in large part a reaction to the BigTech companies heavily investing in AI startups, which has included Microsoft's $10B in OpenAI; and Alphabet's $2B and Amazon's up to $4B in Anthropic.
The FTC aims to ensure AI complies with competition laws and doesn't mislead the public.
Explicit AI-generated images of Taylor Swift appeared on social media, leading to fan counteractions and 45 million views of one post before removal. The images contradict X/Twitter's policy against deceptive synthetic media. U.S. Senator Mark Warner condemned the situation, urging AI companies to halt such capabilities.
Google strengthened its position within the AI space as news came out of Google Cloud deciding to host Hugging Face's AI software, enhancing ties with the open-source AI community.
This support included Google Cloud's infrastructure for AI services and training, as well as access to TPUs and GPUs for model development.
This enhances Google's position in the AI market, following a $235M investment in Hugging Face.
Some interesting deals that happened: Fusemachines' $200M merger with CSLM Acquisition Corp.; Voltron Data's acquisition of Claypot for enhanced real-time AI analytics; and the announcement from Publicis, the world's largest advertising group, of a 300M euro ($327M) investment in AI over three years, with plans to advance its AI technology and workforce upskilling.
🤖 Robotics
Korea Institute of Science & Technology (KIST) recently developed ‘Moonwalk’, a wearable robot that makes mountain climbing easier. They're not just for battlegrounds or defense applications; they're helping the elderly stay active.
Wearing MOONWALK-Omni, a senior successfully climbed 604-meter Mount Yeongbong – proving the robot's potential for real-world use.
This challenge validated the robot's effectiveness in complex outdoor environments, paving the way for commercialization.
Unlike bulky hospital robots, MOONWALK-Omni is ultra-lightweight (2 kg) and easy to put on (10 seconds).
Its AI analyzes gait in real-time, offering safe and effective muscle support on slopes, rocks, stairs, and uneven terrain. The robot boosts leg strength by 30%, enabling users to enjoy activities they may have considered impossible. Add-ons include MOONWALK-Support, which is focusing on hip and knee support.
Robots + AI + Infrastructure = Green Dream? A new report by Gecko Robotics & Rho Impact reveals that digitizing critical infrastructure with robots and AI could slash carbon emissions by a staggering 853 million metric tons (MMT) annually – that's like taking almost two-thirds of US gas-powered cars off the road!
The report identifies five areas ripe for robotic-AI transformation: oil and gas (reducing pipeline leaks), pulp and paper (fighting tank corrosion), maritime shipping (optimizing routes and spotting leaks), bridge inspection (faster, more thorough), and electricity grids (predicting outages and optimizing energy flow).
The key to unlocking this eco-friendly potential lies in data. Robots can gather detailed infrastructure info, allowing AI to predict problems and prioritize maintenance – extending equipment life and slashing emissions.
China has unveiled a remarkable innovation—an aquatic robot that navigates water bodies and conducts contamination checks. This soft, radio-controlled marvel holds the potential to revolutionize water quality monitoring.
♻️Energy & Sustainability
Researchers in Hong Kong are fortifying urban transport systems to handle disruptions from climate change. It's all about making cities more resilient. Their network design is built with interconnectedness in mind offers a proactive approach to resilience, complementing traditional contingency planning. Implemented with Hong Kong’s MPTN, it shows increased resilience after integrating three key subsystems and is touted to have reduced disruption impact, faster recovery, & enhanced interoperability between modes.
Scientists from the Chinese Academy of Sciences (CAS) have made a crucial breakthrough in lithium-ion battery safety by developing separators that can withstand high temperatures. These separators, made from polyethylene terephthalate (PET), are capable of withstanding temperatures of upto 180 degrees, and could pave the way for more stable and reliable batteries for electric vehicles and other demanding applications.
The researchers used a combination of: (a) heavy ion irradiation, which creates nanoscale channels in the PET, improving electrolyte absorption and ion transport; and (b) chemical etching, which further refines the channels for optimal performance.
Researchers have developed a new, universal method to create high-performing, scalable electrolytes for multivalent metal batteries using affordable materials and simpler processes. This was given as the explosion of the market for electric and hybrid vehicles leads to the race for safer and more efficient batteries heating up.
Using this method, they built a magnesium/sulfur battery prototype boasting impressive energy density and stability, proving the approach's potential.
Researchers have also concocted a pure water-fed membrane-electrode-assembly system for electrocatalytic reduction of carbon dioxide. In simplified terms, they figured out a way to deal with ‘transforming’ CO2 into other chemicals that may have application.
The sustainably powered, electrochemical reduction of carbon dioxide (CO2) into useful chemicals and feedstock could help to mitigate greenhouse gas emissions, allowing industries to reuse released CO2 in beneficial ways.
Most of the strategies for realizing this introduced so far, however, have notable limitations, including a poor stability over long periods of time.
Scientists at Sweden's Linköping University have introduced a sustainable approach to producing conductive inks. These inks find applications in organic electronics, including solar cells and soft sensors, promising a more environmentally friendly future.
Organic electronics made from conductive polymers hold promise for flexible displays, solar cells, and even artificial neurons. Toxic solvents used in traditional processing pose environmental and health risks, hindering wider adoption.
This group of researchers have developed a revolutionary method to create highly conductive inks from water, a safe and sustainable alternative. Water-based inks boosted stability and efficiency in organic solar cells and matched the operating frequency of biological neurons in artificial neurons.
This breakthrough paves the way for mass production of eco-friendly electronic devices with minimal environmental impact.
💡Semiconductors, Advanced & Quantum Computing
The race for quantum computing is very visibly heating up, with investors and researchers alike clamoring to get an edge in what promises to be a game-changer, and there is a new entrant: bilayer graphene. This wonder material, basically two sheets of carbon atoms stacked like atomic pancakes, might hold the key to encoding quantum information in a way we never thought possible.
This may be a possible answer to the challenge in QC around finding the right "particles" to store information in these quantum computers - which is like searching for a unicorn in a haystack. Scientists have been exploring various options, like superconducting circuits and trapped ions, but the hunt continues for a material that's both powerful and stable. Right now, the frontrunners for storing quantum bits (qubits) are like tiny magnetic spinning tops – their spin direction represents the "0" or "1" of quantum information.
Researchers at ETH Zurich have discovered a hidden superpower in bilayer graphene: its "valleys." These valleys, not of the geographical kind but rather quirks in the material's electronic structure, can also store quantum information and, crucially, hold onto it for much, much longer than those spinny tops. Think of it like this: imagine writing a message in sand. The wind easily blows it away. But if you carve the message into a rock, it lasts much longer. The valleys in bilayer graphene are like those rocks, offering a much more stable home for quantum information.
This is a game-changer because the stability of qubits is crucial for building reliable quantum computers. The longer they can hang onto their information without getting corrupted, the more complex calculations they can perform. And with the valley of bilayer graphene, we might be looking at a whole new level of quantum computing prowess.
But there's more to this story than just valleys. Bilayer graphene is also super tunable, meaning we can tweak its properties with electric fields like turning a knob. This makes it a versatile platform for building different types of qubits, potentially leading to a hybrid quantum computer that combines the strengths of valleys and spins.
Scientists at Heriot-Watt University have developed a new way to program optical circuits, potentially unlocking future technologies like un-hackable networks and ultrafast quantum computers.
By understanding how light interacts within optical fibers, researchers can precisely manipulate its path, creating custom circuits within the fiber itself. This breakthrough opens doors for building powerful quantum computers and secure quantum communication networks (quantum encryption).
Optical circuits can encode information on a single particle of light, utilizing its spatial, temporal, and color properties for faster processing. The new method can also manipulate quantum entanglement, a phenomenon crucial for error correction and secure encryption in quantum technologies.
🚀Space
Scientists have stumbled upon a second ultra-large structure lurking in the cosmic shadows, further shattering our comfy assumptions about how the cosmos is put together. It is being called the ‘Big Ring in the Sky’. This behemoth chills 9.2 billion light-years away, sprawled across a mind-boggling 1.3 billion light-years.
The Big Ring isn't some solo act; it's actually the understudy to another cosmic oddity named the Giant Arc – a colossal galaxy arc spanning a whopping 3.3 billion light-years. And get this: these two mega-structures are practically neighbors in the grand cosmic theater, separated by a mere 12 degrees and peeking through the same window in time. Both of these structures have been discovered by the same person: Alexia Lopez, a Ph.D. student at the University of Central Lancashire who unearthed the Giant Arc two years ago. Their immense size, unusual shapes, and close proximity scream something weird is going on here, but what exactly is it is still unanswered.
One tempting explanation involves Baryonic Acoustic Oscillations (BAOs): akin to a cosmic echo of the Big Bang, a ripple in the fabric of space-time left over from the universe's explosive birth. These ripples, called BAOs, are like ghostly whispers of the early universe, and scientists thought they might explain the Big Ring's structure. But nope, turns out the Big Ring is way too big and misshapen to fit the BAO mold.
Another explanation that could be afforded to this is the Conformal Cyclic Cosmology (CCC): This theory, championed by Nobel laureate Sir Roger Penrose, suggests the universe undergoes endless cycles of expansion and contraction.
Or perhaps it's the handiwork of cosmic strings, these giant, noodle-shaped "defects" from the early universe that Jim Peebles, another Nobel winner, thinks might be behind some galactic oddities. Imagine long, stretchy cosmic threads woven into the fabric of spacetime. These "topological defects" could have formed in the early universe and might leave their mark on the galaxy distribution, perhaps even explaining the Giant Arc's curious arc-ness.
One might wonder - and rightly so - as to why this is a big deal. The fundamental tenet of cosmology assumes the universe is roughly uniform on large scales. But the Big Ring, along with the Giant Arc and other such large-scale cosmic oddities, throw that assumption into question. The Cosmological Principle essentially states that our corner of the universe is a fair sample of the whole universe, but if matter's spread evenly everywhere, the question then is: why are there these freakishly enormous structures lurking around?
Remember the Stardust mission, the one that snagged comet dust back in 2004? (The ‘Wild 2’ comet) Turns out, that tiny sample is like a Rosetta Stone for the solar system's early days. Scientists, like Ryan Ogliore of Washington University, are painstakingly piecing it together, and here's what they've uncovered (excerpts from their research paper linked here):
18 years after NASA's Stardust mission returned from a known comet, insights into the comet's true nature emerge. Recent analysis of tiny samples reveals unexpected details about the comet's origin and history.
Contrary to expectations, Wild 2's composition is diverse, reflecting various early solar system events. These findings suggest Wild 2 witnessed crucial events that shaped our solar system.
The comet's isolation in space preserved its material, unlike asteroid samples affected by heat and water.
Unique components like carbon-iron assemblages and meteorite precursors were discovered within Wild 2. Despite minimal material (less than one milligram), each Wild 2 particle tells a unique story of the billions of miles that it traversed across eons.
Ongoing research promises more revelations, aided by evolving techniques. Stardust's microscopic grains provide a record of the distant past, offering insights into the solar system's formative years after 18 years of study.
Thank you so much for reading! From here on, onwards and upwards!