November Tech Round-Up: Logistics and Supply Chain Edition
History will record this as the time when some of the tech giants started mass layoffs, when quarterly results stumbled, when FTX failed and when Twitter changed hands.
Such turmoil! Yet entrepreneurs and investors are still remarkably positive in selected verticals. One of those is Logistics and Supply Chain. Dive in with us.
Enjoy, from all of us at North Ridge Partners…
Original Thinking From North Ridge Partners
The aftermath of COVID, the inevitable shift to eCommerce, the war in Ukraine, tensions over Taiwan, and the drive to build sustainable and often digitised supply chains are collectively creating challenges for international logistics providers. This month we dive into the forces transforming the sector.
And of course, any time there is a disruption you will find entrepreneurs looking to capture new opportunities. We cover three such companies that are planning to recast the world of logistics, or at least their own pieces of it.
In this month’s minicast North Ridge partner Kevin Waller pulls together the threads to understand the wider logistics start-up investment story.
Whether its trains, planes, or trucks, here are some tunes to keep the cargo rolling by.
The FTX Story Is Even Crazier Than Twitter
On 9 November Binance said it was going to buy FTX…yet just the next day, Binance pulled the pin on that deal.
But wait - the drama was only just starting. By the weekend. FTX was reporting that as much as US$600 million had just been drained from user accounts.
Within hours social media was full of (apparently erroneous reports that) CEO Sam Bankman-Fried was fleeing to Argentina on a private jet. But it turns out, according to the man himself, he was actually in the Bahamas. (The authorities, it seems, are keen for him to stay and enjoy the scenery there for a little longer!)
Meanwhile, Alameda, a related company, owes FTX as much as US$10 billion according to some reports after FTX lent it money for risky investments.
CNBC anchor, Brian Sullivan tweeted: “FTX bankruptcy shows the company had 134 affiliates spread across the globe and may have liabilities of up to US$50 billion. Enron had liabilities of US$23 billion. FTX may be worse than Enron.”
Little wonder then that US Treasury Secretary Janet Yellen has come out in favour of much tougher crypto regulation.
As a footnote, John Ray III, the new CEO of FTX, also sorted out the Enron bankruptcy.
Asia Pacific Tech News
Is the mighty Sea all at sea? 7,000 unfortunate workers might think so.
Following Ooredoo IndoSat’s hugely successful data centre carveout (which NRP advised on), is PT Telkom Indonesia looking to the same strategy?
Capitalism with Chinese characteristics continues to reveal itself, as the mega-wealthy face sharp reversals.
Indonesian eCommerce company BliBli goes public in US$509 million IPO.
NTT Docomo bets US$4bn on Web3 infrastructure. Wow.
Web3 captures the imagination of China’s next generation of programmers.
Reporting Season
Mega Meta reversal as shares sink by 24%.
Against the trend Apple beats the street - but gravity still prevails.
Star billing for Netflix as subscriber, revenue and profit growth beat consensus.
Few are immune, as the digital advertising slowdown hits Alphabet.
Still to drop – what to expect from Alibaba.
Big Tech’s Big Reversals
Meta jettisons thousands of employees as Zuck plunges headfirst into the metaverse - incurring the ire of his investors.
Is Google Cloud immune to the tempest, even as Alphabet’s other businesses flounder?
Twitter… seriously… where do we even start?
How to cope with the cognitive dissonance of rising tech spending and falling tech valuations.
Sad But True
Layoffs and hiring freezes plague the global digital giants.
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North Ridge Partners works with technology companies across the Asia Pacific to achieve transformational outcomes through providing strategic financial advice, advising on M&A transactions and raising capital services. We’re experienced deal makers who have built, run, and sold numerous technology companies.
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