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Thanks for reading Electrified! Subscribe for free to receive new posts and support my work. Since the beginning of the year, the carbon credit market has been on a turbulent ride that reflects the public stock market. The underlying assumption by speculators seems to be that as earnings weaken and
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Since 2018, 244 software companies focused on sustainability tech or the digitization of critical infrastructure have been acquired. This includes companies in climate tech, drones, robotics, supply chain tech, cybersecurity, and sustainability. Thanks for reading Sustainable Returns! Subscribe for free to receive new posts once per week! One large shift
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All cash spending doesn't create equal results. Legendary executives are the ultimate capital allocators as illustrated in William Thorndike's The Outsiders. But, for the better part of the last decade, capital has been a commodity in the private markets. Startups easily raised capital with even the
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"When we acquire a company, we care more about margins than growth." - Fortune 500 CSO By now, we know the days of growing at all costs are gone - at least until they're back again at the top of the next cycle. But for startups
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All stocks are not created equal, some emerge from downturns stronger than they entered them. The performance of high-growth tech stocks over the last 6 months has led some to wonder whether we're in a recession like the dot-com bubble of 2000 or the Great Recession of 2008.
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This week, Broadcom announced it would acquire VMWare for $70B, the largest acquisition in software history. Surprisingly, the acquisition comes amidst the biggest market correction since 2008 and one that might look like the dot-com bubble of 2000-01. It's hard not to speculate if this acquisition is a
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Since 2018, YoY revenue growth has been the primary metric explaining public market software valuations. Now, the "Rule of 40" is the predominant driver, signaling that efficiency matters more than ever. For those of you not familiar with software metrics, the "Rule of 40" is a
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At Energize, we promise to support our portfolio companies from Series A through to IPO. Today, we're thrilled to announce we've joined Coatue Management in leading Aurora Solar's Series D growth equity round, valuing the company at $4 billion. Energize is the largest Aurora
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This week, Insight Partners announced an investment into Gamma Technologies, a physics-based simulation software. On the surface, nothing about this announcement seems out of the ordinary. Gamma offers simulation software that enables engineers to simulate fluid systems, thermal systems, fluid systems, and propulsion. The investment makes total sense given the
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Last week, software valuations finally overcame interest rate and inflation fears to post their first positive week of 2022. Where does that leave valuations after the sustained pullback, and where could they go from here? If the correction remains in place and sustains itself for a long time, the private
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Last month, Credit Suisse released their 2022 equities outlook and the top theme was decarbonization. Coming out of COP26, institutional financial managers committed $57T (yes, trillion) of AUM for net-zero by 2050. As of 2020, the number is $16T. In addition to an increase of capital with net-zero targets, 90%
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One of the key advantages of the software business model is capital efficiency. Efficient businesses earn the right to experiment in more capital-intensive customer segments that could produce higher returns at scale or deploy it more quickly to win big markets. However, the influxes of capital that fuel these experiments