Ignition Lane’s Weekly Wrap: SPAC moonshots, on-demand snacking, OnlyFans flip


Story by: Gavin Appel & Rebecca Eastwood Startup Daily

Welcome to Ignition Lane's Weekly Wrap, where they break through the noise to bring you their favorite insights from the world of technology and startup. Ignition Lane works with ambitious business leaders to apply the startup mindset to their technology, product and commercialization problems.

This wrap is distributed free to subscribers every Saturday. Don't forget to watch Gavin Appel talk about the week every Monday at 2:00 p.m. on the Startup Daily show on AufbauBiz. If you miss it, check out the shows of the week here.

Here is your weekly review.

The little missile that could

A great week for missile SPACs.

On Monday, Sir Richard Branson's Virgin Orbit announced that it would go public through a special purpose vehicle (SPAC). This deal is expected to raise $ 483 million and valued the company at $ 3.7 billion.

Two days later, the NZ-US Rocket Lab went public and was listed on NASDAQ. The company merged with SPAC Vector Acquisition, which valued Rocket Lab at $ 4.8 billion and added $ 777 million to its war chest.

$ RKLB has started! Today's exciting next step in Rocket Lab's history was made possible by the incredible people behind us – our team, our families, our customers, and our investors. Thank you thank you thank you. #SpaceIsOpenForBusiness #NasdaqListed pic.twitter.com/DLmVsmtqOj

– Rocket Lab (@RocketLab) August 25, 2021

Rocket Lab was founded by Peter Beck, who has been obsessed with missiles since his school days in Invercargill:

“It was always about the rocket, there was never really a question – even in high school. I remember failing a job placement test and they had to talk to my parents about it. I was so defined what I wanted to do and the test did not allow that. "

He began to experiment seriously with missiles while working as an apprentice to Fisher and Paykel. In 2000, at the age of 23 (or 24?), He built a rocket-powered bicycle that whizzed down a street in Dunedin and accelerated from zero to 140 km / h in just under five seconds.

In 2006 he founded Rocket Lab and by 2009 it was the first private company in the southern hemisphere to reach space after launching its Ātea-1 sounding rocket from Michael Fays * private NZ island (video below) .

* For all non-Kiwis, Michael Fay was a banker notorious for his involvement in a 1990s scandal known as the Wine Box Inquiry.

Today Rocket Lab is considered to be the leader in the small launch room.

Its electron rocket is the only reusable small launch vehicle currently on the market. Since its first orbital launch three years ago, it has launched 105 satellites into space, anticipating sales of $ 48 million in 2019 and estimated Virgin Orbit sales of 33 million in 2020, $ 15 million this year and 2.1 by 2026 To bring in billions of dollars.

The latest cash injection of $ 777 million will help Rocket Lab expand its existing business and build a larger rocket called the Neutron, which was unveiled earlier this year. Neutron is able to send about 8,000 kg into near-Earth orbit and will compete against SpaceX.

The company also tested a new approach to recovering and reusing its boosters. With atmospheric friction and a parachute, the booster slows down until a helicopter can fish it from the sky.

Beck, still at the helm of Rocket Lab, achieved all of this even though he never went to college. He and the Rocket Lab team are an inspiration to Kiwis and rocket enthusiasts around the world.

But wait, there's more (e-commerce deals & games)

D2C hero. BWX to acquire 50.1% of Go-To Skincare for $ 89 million in cash. BWX owns a number of natural beauty and skin care brands and websites, including Sukin and Flora & Fauna. Go-To Skincare, founded by beauty expert Zoe Foster-Blake, has built a solid business focused on a direct-to-consumer (D2C) model. The customer experience and branding are the gold standard (aside from that), resulting in strong sales and EBITDA growth (below). + Bonus mini-analysis by Adir Shiffman here.

A deal-deal. Global Marketplace (the company behind Click Frenzy) acquires GrabOne for NZ $ 17.5 million. The GrabOne marketplace has more than 2,400 active dealers and 300,000 members.

How practical. The food delivery war is definitely heating up. Woolworths has partnered with Uber to offer hourly deliveries (a formalization of the service that was tested in 2020). Geezy Go launched in Sydney and offers delivery under 20 minutes. And Send, just starting operations in Melbourne and Sydney, raised $ 3 million from international investors.

If you've read last week's newsletter (The start of Aussie's food delivery wars?) You probably think we have a crystal ball. You're not wrong.

The little birdie started with a bang. Little Birdie (founded by Catch alumni) wants to become “the homepage of shopping”. The site, which contains pricing data for approximately 70 million products, helps customers find the lowest prices by providing detailed data on how an item was rated in various stores and by offering exclusive discounts.

You want wine with it? Grocery wholesale marketplace FoodByUs announced that it is expanding into alcohol after entering into several large partnerships with the liquor industry. The marketplace was co-founded by Menulog alumni and originally began as a sharing economy platform that connects amateur chefs with members of the community.

ASX FY21 result balance

Kogan's sales top 1 billion US dollars for the first time – gross sales rose 53% to 1.179 billion US dollars. Revenue increased 57% to $ 780.7 million, gross profit increased 61% to $ 203.7 million, and gross margin increased 26.1%. However, due to logistics costs, excess inventory costs, and the Mighty Ape acquisition, that growth was not reflected in statutory results – EBITDA fell 86.8% to $ 22.5 million and NPAT fell 88.3% to 3.5 Million USD back.

MyDeal gross sales increased 111% to $ 218.1 million, sales increased 150% to $ 38.3 million, and gross profit increased 119% to $ 33.3 million . The company posted a $ 4 million EBITDA loss due to investments in customer acquisition and its newer private label business. Private label sales in the fourth quarter of FY21 accounted for 5.2% of gross sales. It is a great opportunity to expand margins.

AfterPays Group Income rose 78% to $ 924.7 million. EBITDA decreased 13% to 38.7 million and the net margin as a percentage of underlying sales decreased 0.2 percentage points to 2.1%. A legal loss of $ 156.3 million has been reported. In the first few weeks of the new financial year it cracked 100,000 dealers.

Zips Sales increased 150% to $ 403 million. The net margin as a percentage of underlying sales decreased by 0.3 percentage points to 3.5 percent. Thanks to its aggressive acquisition activities and the purchase of US-based BNPL QuadPay last August, losses totaled $ 653 million. It also announced the takeover of the South African BNPL company Payflex.

HiPages Revenue rose 19% to $ 55.8 million, 94% of which are recurring. The statutory EBITDA was $ 5.6 million, adjusted for one-time IPO-related costs of $ 6.1 million (listing is expensive, friends).

Local raising news. In trend: HealthTech

Seer raised $ 34 million from Cochlear, EWM Group, SG Hiscock and Giant Leap. The company's home epilepsy diagnostic service uses devices that monitor physiological signals (such as brain, heart, and respiratory function) and behavior to differentiate epilepsy from other conditions such as heart, sleep, or mental disorders. Its systems have been used to monitor over 7,600 Australians, saving the healthcare system over $ 100 million and 140 years of bedtime. It is planned to expand into the field of sleep and heart diagnostics.

Quantum Brilliance raised $ 13 million – jointly led by a consortium of Main Sequence and the founder of QxBranch. The goal of the startup is to commercialize quantum accelerators the size of a lunch box with over 50 qubits by 2025.

Quantum Brilliance uses synthetic diamonds to build quantum accelerators that do not require a temperature close to absolute zero, or complex laser systems that give other quantum computers a large physical footprint.

The smaller accelerators have the potential to accelerate the adoption of quantum applications by bringing the technology to a wider range of industries.

Carbonix raised $ 6.3 million led by the ASX-listed arms manufacturer Quickstep. Carbonix offers carbon fiber drones, flight and data acquisition services. It recently signed a contract with Ausgrid (the largest power distributor on the east coast) to map and monitor power lines, reducing reliance on helicopters.

ezyCollect raised $ 6.2 million on a rumored EV of $ 38.4 million in a pre-IPO raise. The accounts receivable management software helps around 1,000 customers manage accounts receivable totaling more than $ 11 billion. His ARR is approximately $ 4 million.

Nutromics raised $ 5.7 million under the direction of Artesian. Nutromics is developing biosensor technology that is integrated into a wearable smart patch (like a “lab-on-the-skin”) for remote patient monitoring and individualized antibiotic dosing. The real-time information on a patient's drug exposure provides information on dosage decisions, which can lead to better patient outcomes and less stress on the health system.

The Nutromics team shared their experiences from the upgrade process – great. Some interesting data points for you:

Total time for the increase: 11 months

No. Investors we contacted: ~ 200
No. Investor meetings: ~ 100
No. Committed investors: 19
No. Cornerstone Investors: 2

Oscer raised $ 5 million led by Blackbird. According to a study published by the Medical Journal of Australia, diagnostic errors occur in up to one in seven clinical encounters and more than 80% of diagnostic errors are preventable. To reduce these statistics, Oscer is building a diagnostic support tool for doctors that uses automated transcription, coding and analysis of consultations.

Send $ 3.1 million for its 15 minute grocery delivery service.

Pi.Exchange raised $ 2.75 million. Pi.Exchange describes itself as an KI-as-a-Service provider – its KI engine offers companies a faster, easier and more cost-effective way to set up and maintain KI. It is aimed at the banking and retail sector for professional services.

HEO Robotics has launched a seed round . HEO Robotics visually monitors satellites and space debris, helps satellite operators monitor their space resources, and helps governments understand space situation awareness. The funds will be used to release HEO's inspection product for satellites, HEO Inspect, which will help reduce space debris by addressing known issues and preventing future outages.

In VC-Land

Jelix Ventures has raised $ 15 million for a new early stage fund to invest in up to 20-25 software and deep tech startups. The fund has already made its first investments in FL0, Quantum Brilliance and Bitwise Ag. Founder and CEO Andrea Gardiner and her team are among an increasing number of people who are changing the face of VC financing – "Over a third of our existing portfolio has a founder, and over 20% of our fund investors are female."

VCs want you to join their startups. It's a war for talent out there, especially in the world of technology. VCs try to help a brother with job boards, talent networks, and scholarships. This week AfterWork launched a new talent network. Blackbird did the same thing a few months ago. Innovation Bay (not a VC, but Jelix & # 39; s Investment Partner, Ian Gardiner, is co-founder of Innovation Bay) recently launched a job board and is running a talent and team building miniseries. Here is a practical link to all job portals.

Around the world

OnlyCorn returns (replace C with P). Don't be afraid of OnlyFan lovers, the company changed its stance from last week to ban sexually explicit content, saying it has received "assurances" from banking partners that it can support payments from its creators (which, let's be honest, are mainly sex workers). PR gag? The ban generated tons of headlines and renewed interest in OnlyFans around the world – check out the Google search trend "OnlyFans" below – that culminates in the announcement of the ban.

In case you're interested, here are the best Australian cities looking for OnlyFans:

Two large Q2s:

China-based Xiaomi reported sales of 87.8 billion, with shipments of 52.9 million units. The company wants to become the world's largest smartphone manufacturer in three years and get into electric vehicles. Likewise Apple.

Salesforce Second quarter revenue increased 23% to $ 6.3 billion. It is expected to close the year with sales of $ 26.2 billion to $ 26.3 billion. Only around 100 Salesforce employees work in the company's 61-story tower, the tallest building in San Francisco, which can accommodate several thousand people.

Before we go … props for the growing list of companies giving their team a paid day or two off to ease the pressure of lockdown (especially on children): Auror, AdoreBeauty, Carted, Linktree, and CircleIn.

Here's a lockdown sport you can try:

this is my favorite sport highlight of the year pic.twitter.com/MFiUFhywKO

– Tim Marcin (@TimMarcin) August 20, 2021

That's a wrap! We hope you enjoyed it.

Bex, Gavin and the team at Ignition Lane


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Source References: Startup Daily