Big wins for Latin America, climate tech momentum and Rover’s $2.3B sale
Dec 1, 2023
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Topics include self-driving setbacks, Webull's purchase of Flink, Rover's $2.3B sale, upcoming IPOs of Shein and Reddit, European startup rebound, and the Australian startup scene.
Shein and Reddit's upcoming IPOs are expected to contribute to the rebound of the European tech ecosystem, which saw a drop in value in 2022 but has returned to its 2021 record of $3 trillion.
The Australian and New Zealand tech markets are experiencing sober valuations, leading to more mature startup acquisitions, strategic mergers, and joint ventures.
Deep dives
Shein and Reddit expected to go public in 2024
Fashion retailer Shein and social media platform Reddit are both planning to go public in 2024. Shein is seeking a valuation of $90 billion, up from its previous valuation of $64 billion. Reddit has been delaying its IPO since 2017 but is now aiming to go public in Q1 2024. Both companies are expected to contribute to the rebound of the European tech ecosystem, which saw a drop in value in 2022 but has returned to its 2021 record of $3 trillion. The European startup funding is estimated to reach $45 billion in 2023, showing an increase from the previous year.
European startup funding rebounds to $45 billion
The European tech ecosystem is expected to bounce back with an estimated $45 billion in startup funding in 2023, after a drop of $400 billion in value in 2022. The total value of the European tech ecosystem has returned to its 2021 record of $3 trillion. The region has seen an influx of new startups raising private capital, and follow-on capital has been deployed mostly through flat rounds or up rounds. While European startups have lower median valuations compared to their US counterparts, the overall funding rebound indicates a positive outlook for the European tech scene.
Acquisitions and valuations in the Australian and New Zealand markets
The Australian and New Zealand tech markets are experiencing sober valuations that are likely to lead to more mature startup acquisitions, strategic mergers, and joint ventures. While Sydney remains the hub of activity, Melbourne is emerging as a growing startup hub, with its population set to rival Sydney's by 2032. The regions are seeing an increase in climate tech activity and a dip in FinTech investments. Climate tech is expected to gain momentum in the coming year, while the future of FinTech remains uncertain in the Australian and New Zealand markets.
Self-driving setbacks: Cruise is set to slash its costs in the wake of a safety mess, and greater scrutiny from regulators. Alex hopes that the current set of news items doesn’t slow down the progress of self-driving tech.
Webull snaps up Flink: Free trading is not just a business model that is popular in the United States. Webull is taking the Latin American market more seriously with its purchase of Flink.
Uber <3’s taxis: What are London’s iconic black cabs doing on Uber’s platform? And how long does it take to go from enemies to frenemies?
IPOs are heating back up (a little): With Shein and Reddit targeting the IPO market in the coming months, it’s time to get our S-1 boots back on and prepare for some new debuts.
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.
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