202203 Aug

SpaceData develops AI that can create digital twin of entire planet, raises $10M+ in seed round

Summary

Yet I am observing a phenomenon here on the ground in Japan that I thought might be relevant to share.Lets start with recapping the current macroeconomic backdrop, a context upon which numerous experts both armchair and real have weighed in. When executed successfully, private equity transactions can generate value creation in up to three different ways (VCs like to joke that there are only three, but Ill resist the temptation here):Operational efficiencies can result from restructuring. Higher multiples can be attained via both internal actions such as enhanced strategic focus, improved corporate governance, and external factors such as investing in a sector which is growing or coming back into favor.Leverage means using a significant portion of debt to acquire the target company in the PE buyout. Yet I would submit that such forces of multiple compression run deeper in the U.S. and Europe right now than what we are witnessing in Japan.However, thanks to its low interest rate environment, debt financing in Japan remains a relative bargain compared to the rest of the world. The potential imminent $20 billion buyout of Toshiba would serve as a bellwether.Whether these data points portend a broader trend remains to be seen, but if they do, this could result in increased competition for Japans domestic PE firms.

Source: Thebridge

Funding

$10.58M
Amount
Aug 03 2022
Date
-
Investor
space data
Company

Classifications

Companies