| |
| Hello Insiders! Today's business newsletter covers: - 🛎 Instacart plans an IPO.
- 📉 WeWork initiates a 1-for-40 reverse-stock listing.
- 🚙 Cruise robotaxi in San Francisco crashes with emergency vehicle.
Also, tell us how you think businesses can adapt to changing consumer behaviors and preferences here! If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Arbër
p/Arber | |
| 1 | | Instacart is aiming to list for an IPO in early September 2023, according to reports. The company will not go public via a SPAC as it was previously believed, choosing to list on Nasdaq instead. More: - Instacart is a U.S.-based grocery delivery company that enables users to buy groceries through personal shoppers.
- As of 2022, the company has $1.8B in revenue and employs over 5,000 people.
- In 2021, Instacart filed confidentially with the SEC to go public, but the company decided not to go forward with the process due to difficult macroeconomic conditions and market instability.
- Analysts believe that Instacart may file for an IPO as soon as next week.
Zoom Out: - The e-commerce company was valued as high as $39B in 2021, but its valuation is now estimated to be around $13B.
- Since being founded in 2012, Instacart has raised over $2.7B from Sequoia Capital, a16z, D1 Capital Partners, etc.
|     | |
| 2 | | 
What happened: WeWork is initiating a 1-for-40 reverse stock split in order to remain listed on the New York Exchange listing. The company has not been able to reverse its negative net loss trend, as it has reported billions in losses over the last four years. More details: The New York Stock Exchange requires a minimum closing price of $1 per share for a company to be eligible for listing. WeWork's share price was 12 cents, leaving the company with few options. The reverse stock split will go into effect at 4:01 p.m. ET on Sept. 1. Why it matters: The decision comes only days after the company warned its investors that it may not resume operating much longer. In 2019, WeWork was one of the biggest lenders of commercial real estate in Manhattan and London and was valued at $47B, one of the highest startup valuations in the world at the time. The company attempted to IPO in 2019, a process that resulted in a major failure and led to the resignation of its founder, Adam Neumann. The COVID-19 pandemic accelerated the company's problems, as remote work became more common and commercial estate was suddenly viewed as too big of an expense for many companies. Since IPO-ing in 2021, its stock has plunged 99%. On Aug. 8, WeWork warned its investors that there is a high probability that it will not be able to recover from its current crisis. | | | |
| A message from our sponsor, Babbel. |  | | Unleash Your Wanderlust with Babbel for Fall Travel Picture strolling through Parisian boulevards, confidently ordering a croissant and conversing with locals in their native tongue. With Babbel's innovative language learning methods, you'll master essential phrases and cultural nuances to navigate any situation easily. Immerse yourself in the vibrant tapestry of fall festivals, savor seasonal delicacies, and form genuine connections with fellow travelers. Babbel's interactive lessons empower you to engage with people from all walks of life, yielding results in just 3 weeks of daily practice. With bite-sized, practical exercises, you'll find it effortless to integrate language practice into your daily routine, ensuring steady progress as you count down to your fall escapade. As you plan your fall travel, let Babbel be your partner in unlocking meaningful experiences. Join the 10 million+ who have transformed their travel adventures with the power of language. Get 55% off | |
|
| 3 | | A Cruise robotaxi in San Francisco crashed with an emergency vehicle yesterday, leaving one passenger injured. The crash comes days after regulators in California approved Cruise's license to offer robotaxis 24/7. More: - The crash was announced by Cruise on the social media platform X (formerly Twitter).
- According to the company, its vehicle, a Chevy Bolt EV, was hit by the emergency vehicle after it had entered an intersection at a green traffic light.
- Cruise added that the sole injured person is in stable condition and has non-life-threatening injuries.
Zoom Out: - Last week, The Public Utilities Commission in California gave permission to Cruise and Waymo to operate their robotaxis 24/7, without any limit on the number of vehicles.
- The decision was supported by some, who claim that the technology will help reduce car accidents, but was criticized by others who claim that this technology is not ready yet.
- In April of 2023, Cruise recalled 300 vehicles after one self-driving car had an accident with a bus in San Francisco. One month before this incident, a self-driving Cruise had hit a San Francisco Municipal Transit Authority bus on the rear.
| | | |
| 4 | | Apple and Intel are among tens of U.S. companies that have publically protested India's tech import restrictions in a letter sent to the Department of Commerce. The coalition of companies has asked that India reconsider the decision. More: - India plans to impose a new license requirement for tech products that are imported, including laptops, tablets, servers, etc.
- According to the statement, any trade barriers could affect the shipment of U.S.-made computers and electronics into India, which would make running a business more difficult for both Americans and Indians.
- The companies have stated that the unexpected decision will damage India's ambitions to become a global manufacturing hub and harm consumers.
- The U.S. industry groups included in the letter are the Information Technology Industry Council, the National Association of Manufacturers, and the Semiconductor Industry Association.
| | | |
| 5 | | Softbank has gained full control of Arm by acquiring a 25% stake at a $64B valuation. The company is likely to be listed on the New York Stock Exchange soon. More: - Analysts have stated that the deal reflects Softbank's confidence that Arm will surpass the $64B valuation in its initial public offering.
- The structure of its original transaction with the Vision Fund in 2017 put a ceiling of doubling its return on the $8B deal, leaving it little upside if Arm was valued at more than $64B in its IPO.
- In its financial results presentation in June 2023, SoftBank claimed that Arm had a $45B valuation, up 13% from the previous quarter.
- SoftBank bought Arm for $32B in 2016.
- SoftBank has now bought the 25% of Arm that it did not already own from the Vision Fund, the $100B fund that is managed precisely by SoftBank.
| | | |
| 6 | | Abcuro has raised a $155M Series B funding round to invest in therapies for cancer and autoimmune diseases. The company has raised $214M since its inception in 2015. More: - Abcuro is a clinical-stage biotech company that develops therapies for cancer and autoimmune diseases.
- The company is currently in the process of completing two clinical trials that aim to treat inclusion body myositis and lymphocytic leukemia.
- In 2021, Abcuro published the results of its Phase 1 clinical trial on patients with IBM, showing that the therapy managed to significantly deplete KLRG1+ T cells in these patients.
- The round was co-led by Redmile Group and Bain Capital Life Sciences with participation from RA Capital Management, Samsara BioCapital, Sanofi Ventures, New Leaf Ventures, and Pontifax.
- The company is based in Newton, Massachusetts.
| | | |
| 7 | | Quick Hits: - The AWS Cookbook — packed with practical insights and hands-on examples — is a must-have for your cloud toolkit.*
- Two parents have filed a lawsuit in the Northern District of California, accusing Roblox of facilitating child gambling.
- China has unveiled a package of economic reforms that aim to increase investor confidence in the Chinese market.
- U.K.-based life science tools company Lightcast Discovery has raised a $49M Series B funding round.
- Wildfires are estimated to cause over $22B in property damage in the U.S. by the end of 2049.
- IPOs are a rare chance to invest in VC-backed startups, but this AI company opened its round to retail investors. Invest and learn more about Jurny.*
*This is sponsored content. | | | |
| Upcoming Events | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | * This is a sponsored event | | | |
Term of the Day Lifetime value: Lifetime value calculates the total revenue that customers generate over the duration of their relationship with a business. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
INSIDE BUSINESS LEADERBOARD (30 DAYS) |
 | Writer | | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. | | This newsletter was edited by Aaron Crutchfield | |
| |
 | Summer Sale Alert: Up to 55% Off Babbel - Start Speaking a New Language in Just 3 Weeks! | |
|
| |
