U.S. car workers strike Detroit automakers / U.S. soybean market heats up / Mercedes CEO: Open markets amid China tensions

Plus, Klaviyo raises IPO target to $557M

Inside Business For September 18, 2023

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Hello Insiders!! Today's Business newsletter covers: 🚗 U.S. car workers strike Detroit automakers 🌱 Deep Dive: U.S. soybean market heats up 🌏 Mercedes CEO: Open markets amid China tensions If you enjoy reading this newsletter, please share it with your friends and colleagues.  Also, If there's a topic you want to see discussed in the newsletter, let us know! Thank you!!   Shriram p/Shriram

1 The United Auto Workers (UAW) union has begun picketing at crucial factories that build cars, including Ford's Bronco SUV, GM's trucks, and Stellantis' Jeep, in its first strike against major Detroit automakers, including Ford, GM, and Stellantis, in 88 years. This "stand-up strike" is now taking place in a few places, including GM plants in Missouri, Ohio, and Michigan, as well as Stellantis and Ford plants, with the possibility of expanding to further locations. More: The UAW has advocated for higher pay and job stability in negotiations with the automakers, particularly as the industry transitions to electric cars (EVs). The UAW works to maintain unionized, well-paying jobs in the industry while the auto industry electrifies. Nearly 150,000 unionized workers could theoretically shut down one-third of U.S. auto manufacturing during a strike, which would only have a tiny effect on GDP. Oxford Economics predicts that once the issue is resolved, the strike's effect on the full-quarter GDP will be insignificant. Q: Are there any historical precedents or lessons to be learned from previous strikes in any other industry that could shed light on the potential outcomes of this strike? Join the conversation here.

2 What the numbers say: Corteva's seed revenue has been consistently growing and reached $9B in 2022. Bayer and Corteva control nearly 70% of the corn and soybean seeds sold in the U.S. This year, Corteva expects its Enlist technology to capture over 55% of the U.S. soybean market. In comparison, Bayer claims 45%-50% of its Xtend and XtendFlex products. Relevance: The rivalry between Bayer and Corteva for market dominance among agricultural firms is evident in their struggle in the U.S. soybean industry. The significance of biotech breakthroughs in crop seeds and the effects of regulatory limitations on herbicides like dicamba are emphasized. More data: Monsanto's Roundup Ready soybeans ruled for decades, Corteva introduced Enlist E3 soybeans in 2019 with 2,4-D choline herbicide, and Bayer's Xtend soybeans have faced drift and regulation issues since 2017. Bayer and Corteva have clashed in patent disputes over soybean tech, with Bayer launching biotech soybean HT4 in 2027, which resists five weed-killing chemicals.

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3 Ola Källenius, CEO of Mercedes-Benz, emphasizes the importance of free markets and international supply chains in the automobile industry and warns that attempts to cut ties with China could jeopardize competition and supply chain stability. The European Union's investigation into Chinese electric vehicle subsidies indicates increasing industrial and geopolitical competitiveness and could lead to import taxes and heightened trade tensions. More: Mercedes depends on parts from all five manufacturing continents, which Källenius uses to demonstrate the vulnerability of supply networks. Along with Volkswagen and BMW, China is a significant market for Mercedes-Benz, accounting for about one-third of its sales. By the end of the decade, Mercedes wants to sell electric vehicles exclusively and has plans to work with partners to build eight battery plants. The United Auto Workers' strike, according to Källenius, won't substantially influence Mercedes' supply chain, and he emphasizes productivity and competition in the face of cost challenges.

4 The marketing and data automation company Klaviyo is raising $557M for its IPO by expanding the price range of its shares from $25-$27 to $27-$29. The corporation plans to sell 19.2 million shares with current shareholders, which may result in a $8.7B valuation at the top of the new price range. More: This action follows that of online grocery delivery firm Instacart, which recently increased the price range for its initial public offering and is now looking to raise it to $660M at a valuation of over $9B. Recent IPOs by semiconductor designer Arm Holdings made a record-breaking debut. Cornerstone investors with up to $100M in available capital have expressed interest in buying IPO shares, including BlackRock Inc. and AllianceBernstein LP. For the first half of the year, Klaviyo recorded a net profitability of about $15M on $321M in revenue, a significant improvement from the previous year's loss of $25M on $208M in revenue for the same time. Goldman Sachs, Morgan Stanley, and Citigroup are leading Klaviyo's NYSE IPO, which will trade under the symbol KVYO.

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5 Following a cyberattack revealed on Aug. 14, cleaning product firm Clorox has warned about probable product shortages and a detrimental effect on quarterly earnings. The attack impacted Clorox's IT infrastructure, forcing the temporary shutdown of several systems and the requirement for more extended manual order processing, which affected the supply of the company's products. More: Despite acknowledging extensive interruptions and damage to its IT infrastructure, Clorox considers the incident to have been stopped. It's still being determined when business will return to normal in full. When demand for cleaning goods outstripped supply during the early months of the epidemic, Clorox had previously experienced shortages. Despite pricing increases, the business has continued to boost sales over the past year. Shares saw a 32% surge in 2020, a 14% loss the following year, and a further 20% decline in 2022, but had increased by more than 4% this year as of Monday's trade. Clorox anticipates flat to 2% growth in sales for the current fiscal year, which began in July. Zoom Out: Last week, a cyberattack at MGM Resorts caused significant disruption in Las Vegas, forcing manual hotel check-ins and physical keycards to access rooms.

6 Carrefour, a French grocery operator, has implemented "shrinkflation" warning signs in shops and online to inform customers of products whose sizes have shrunk while their costs have increased. Products like Lipton Iced Tea, Pepsi, Lindt chocolates, and baby milk powder now have these labels as a result of this action, which aims to exert pressure on suppliers who have raised prices despite experiencing decreasing costs for raw materials. More: Carrefour hopes to persuade manufacturers to reevaluate their pricing strategies by promoting labeling. About 26 goods had notes on the labels stating that they had lost weight or volume and had seen price rises due to suppliers. The action is being taken as companies prepare to discuss their stances with certain retailers. According to Edgar Dworsky, the creator of Mouse Print, a website tracking shrinkflation in supermarkets, shrinkflation, in which product sizes are lowered, is frequently seen in high-inflation contexts, making it difficult for customers to notice these changes.

7 Quick Hits: Big ideas demand a proven approach to product development. Revelry's process helps dev teams form and deliver 30-40% faster than industry standards.* Independent McDonald's franchisees are opposing California's historic fast food law, which passed on Thursday, claiming that it will be a "devastating financial blow" with its $20 minimum wage requirement starting on April 1 if signed into law as anticipated. After almost 10 years as CEO of Naspers, Bob van Dijk is leaving the position after the company struggled with issues resulting from its large interest in Tencent, a Chinese company. Tensions surrounding the US carmaker strike increased when Ford cut 600 jobs despite failing discussions, forcing President Biden to send top officials to mediate after GM's CEO criticized the union's rejection of a "historic" offer. Optimize your cloud costs today. This practical guide explains the steps to implement FinOps practices and how to get buy-in from your team.* *This is a sponsored listing.

Upcoming Events SEP 28 Join TruEra's Webinar on AI Observability with former CMU professor Anupam Datta. Virtual Register Here OCT 4 Join this free online and onsite event in Amsterdam and you'll hear from industry experts at Meta, Opera, AdGuard, Mozilla, Google, and more. Amsterdam, The Netherlands Register Here OCT 16 Meet Our Fund 5, Building and Investing in AI San Mateo, California Save Your Seat * This is a sponsored event

Knowledge Hub Term of the Day Angel syndicate: Angel syndicates are groups of angel investors that pool their funds to invest in startups, typically at an early stage. Read More Question of the Week Do you share details about your salary with your coworkers? Join the conversation Today's Knowledge Hub Is Brought To You By Ready to take your career to the next level? Apply to join Sidebar, a highly-vetted and private community of small peer groups designed to support exceptional senior leaders in doing their best work.

INSIDE BUSINESS LEADERBOARD (7 DAYS) 🥇 Phillip Evans (25) 🥈 Divakar Kolhe (20) 🥉 Randall Neff (11)

Shriram Jeevakumar Freelance Writer Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. This newsletter was edited by Aaron Crutchfield

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Airtable lays off 27% of staff / Minnesota med-tech startups may raise $1B / Writer raises $100M Series B round

Plus, generative AI startup for restaurant menus Superorder raises $10M

Inside Startups For September 18, 2023

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Hey Insiders, Today's newsletter covers:  Airtable's layoffs Minnesota med-tech startups to cross $1B this year Writer's $100M Series B round If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Karan p/karan-chafekar

1 Airtable, a NoCode startup, announced it would lay off 27% of its staff (237 people). The company plans to refocus efforts to attain large clients and reduce spending. More: The move follows a layoff of 254 people in Dec. 2022. "We must operate the business in a more mature way that puts us on a path to become a public company and to have durability and efficiency in how we grow," said Airtable's founder and CEO, Howie Liu. More than 136,000 people were laid off from companies in the tech sector in Q1 2023. Airtable is currently valued at $11.7B. Q: How can startup founders improve employee morale and ease anxiety among the remaining workforce following layoffs? Join the conversation here.

2 Minnesota-based medical device, biotech, and digital health startups are on track to cross more than $1B in funding by the end of this year, per trade group Medical Alley.  What the numbers say: Funding for medtech startups in Minnesota has crossed the $1B in three of the previous four years. Medical Alley's vice president of innovation, Frank Jaskulke, said, "Biotech often takes 10, 15 or 20 years [to commercialize]. It's now starting to come to fruition, and I think could be the most transformative thing for the ecosystem." Jaskulke added, "The investment rounds in biotech for a seed round, it might be a couple of million in device or digital but might be $100 million in biopharmaceuticals." What happened: Minnesota's medical device, biotech, and digital health startups have attracted billions in grants and VC funding due to its flourishing medical technology industry. Minnesota has over 1,000 healthcare companies, employing more than 500,000 residents. The state ranks first in the nation for pacemaker-related patents per capita and third in medical device patents, according to the Minnesota Department of Employment and Economic Development.

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3 ICONIQ Growth led a $100M Series B funding round into Writer, a full-stack generative AI platform for enterprises. The firm will use the proceeds to develop its AI models further and enhance the functionality of its products. Writer was valued at over $500M at the current round.  More: Writer helps businesses produce product descriptions, write job listings, analyze data, summarize posts, and create marketing material.  The firm counts L'Oréal, Spotify, Accenture, and Vanguard Group as its most esteemed customers.  The latest capital infusion brings the firm's total raised to $126M.  WndrCo, Balderton Capital, Insight Partners, and Aspect Ventures participated in the funding round.  Iconiq's general partner, Doug Pepper, joined Writer's board of directors as its seventh member.

4 Superorder, a startup formerly known as Fordward Kitchens, announced it raised $10M through a round led by Foundation Capital. The company works on developing websites, menus, tools, and financial management for restaurants. More: The startup uses generative AI to create menus and photos for digital restaurant listings. Superorder operates in 180 cities in the U.S., claiming over 1,500 restaurants as customers. The company says it has facilitated 1.5 million orders since its launch. Other participants in the round include Y Combinator managing director Michael Seibel, Cruise co-founders Kyle Vogt and Daniel Kan, and I2BF Global Ventures, among others.

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5 Proba, a Netherlands-based carbon credit startup, raised an undisclosed amount from ECG Ventures. The company plans to use the funds to expand its client base.  More: Founded in 2022, Proba works on issuing carbon certificates under the ISO 14064, SBTi, and GHG protocols for corporations that reduce or remove CO2.  The startup works with third-party verifiers to certify each metric ton of CO2 through a blockchain ledger.  ECG invests in deep-tech startups in agriculture, food, and climate, including Corvus Drones, Healthy Fridge, and Urban Farming Partners, among others.

6 San Jose, Calif.-based startup UltraSense Systems inked a deal with South Korea's Mobase Electronics. Under the agreement, UltraSense will supply its touch-sensitive chips to Mobase, an established supplier to Korea's automotive industry. UltraSense's products will appear in high-end models from Korean automakers. "The first car rolls off the production line in January, and there'll be three or four other cars that roll off the line throughout 2024," said Chief Business Officer Daniel Goehl.  More: Mobase's chairman and co-chief executive Son Byeong-Jun said, "With UltraSense's partnership, we are confident that our solid-surface infotainment systems and other next-generation touch products will stand out with our customers to deliver exceptional touch user experiences." UltraSense's chip detects a human input using ultrasound waves.  The startup has raised $23.9M in total VC funding to date from Artiman Ventures and Bosch Ventures.

7 Get noticed and join the conversation! Create your account on Inside.com and participate in our featured questions to be featured in our newsletters here and reach a wider audience. See your name in lights and share your expertise with the community. ⭐️ Go to Inside.com

8 Quick Hits: Big ideas demand a proven approach to product development. Revelry's process helps dev teams form and deliver 30-40% faster than industry standards.* Bastion, a crypto startup founded by two former Andreessen Horowitz executives, emerged from stealth mode with a $25M seed funding round led by a16z crypto. Laser Digital Ventures, Robot Ventures, and Not Boring Capital participated in the funding round.  Fin Capital and Y Combinator co-led a $3M seed round into accounting startup Truewind.  Carly Nuzbach Lowery launched a new startup called Gateway 21 Ltd, which aims to help crypto startups deal with tough regulations. Lowery was the former chief legal officer at British crypto custody firm Cooper Technologies Ltd.  Global Frontier Technology Ventures secured $140M in capital commitments from investors towards its Fund I, which aims to invest in startups working on AI and other frontier technologies.  Optimize your cloud costs today. This practical guide explains the steps to implement FinOps practices and how to get buy-in from your team.* *This is sponsored content.

Upcoming Events SEP 28 Join TruEra's Webinar on AI Observability with former CMU professor Anupam Datta. Virtual Register Here OCT 4 Join this free online and onsite event in Amsterdam and you'll hear from industry experts at Meta, Opera, AdGuard, Mozilla, Google, and more. Amsterdam, The Netherlands Register Here OCT 16 Meet Our Fund 5, Building and Investing in AI San Mateo, California Save Your Seat * This is a sponsored event

Knowledge Hub Term of the Day Angel syndicate: Angel syndicates are groups of angel investors that pool their funds to invest in startups, typically at an early stage. Read More Question of the Week Do you share details about your salary with your coworkers? Join the conversation Today's Knowledge Hub Is Brought To You By Ready to take your career to the next level? Apply to join Sidebar, a highly-vetted and private community of small peer groups designed to support exceptional senior leaders in doing their best work.

INSIDE STARTUPS LEADERBOARD (7 DAYS) 🥇 Manoj Ranaweera (16) 🥈 Irina Poslavsky (12) 🥉 Dane Madsen (6)

Karan Chafekar Analyst Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot.  Nicolas is a Sr. Analyst at Inside, covering startups and transportation trends. He is an avid map maker and data nerd. Nicolas has worked in the shared-scooter space, as well as advised e-bike and moped start-ups.  This newsletter was edited by Vibha Chapparike

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