Together with

Good Morning,

Musk expects the Twitter deal to close by Friday, Apple is cracking down on NFTs, oil companies are making bank, Amazon will accept Venmo, Kanye West is no longer a billionaire and getting canceled at an accelerating rate, and house prices are cooling at record rates.

Huge milestone today as we just passed 200,000 Exec Sum readers! We are grateful to all of you for making Exec Sum your go-to source for the most important finance news and the dankest finance memes. Next stop: 1,000,000 📈🚀. You can help us get there by using your referral code at the bottom of every email to sign up your friends, fam, colleagues and also earn rewards like free t-shirts, hats, coffee mugs, banker bags, and more!

Today's 200k edition is brought to you by EnergyFunders, the first energy fund giving ordinary accredited investors access to private oil & gas deals. Check them out here and learn more below.

Let's dive in.

Before The Bell

If you want to learn more about crypto trading strategies and the world of DeFi, check out our Foot Guns newsletter.

Markets

• All three major US stock indexes advanced for the third straight session, with mega caps leading the rally

  • The S&P 500 has climbed from its Oct. 12th bear market low

• The pan-European Stoxx 600 rose 1.4%, with their tech sector up 4.2%, as investors digested major corporate and tech earnings

• The dollar fell to a three-week low on expectations of lower future rate hikes and the pound rallied to a six-week high on optimism of Rishi Sunak becoming UK PM

Earnings

• Alphabet missed on Q3 EPS and revenue estimates on slow revenue growth and a 2% decline in YouTube ad revenue; their stock fell 6%+ in immediate AH trading (CNBC)

• Visa beat Q4 EPS and revenue estimates on strong consumer payments and e-commerce and ongoing recovery in cross-border travel, while increasing their dividend by 20%; their stock rose ~2% yesterday (MW)

• Spotify beat Q3 revenue estimates but posted worse-than-expected losses despite a 20% YoY increase in monthly active users and a 13% YoY increase in paid subscribers; their stock fell 7%+ in immediate AH trading (CNBC)

• UPS beat Q3 EPS estimates but missed on revenue amid softening global demand and declines within its supply chain solutions division, while reaffirming their FY guidance of $102B in revenue; their stock was relatively flat yesterday (CNBC)

• What we're watching this week:

  • Today: Boeing, Meta, Hilton

  • Thursday: Credit Suisse, Apple, Amazon, Shopify, McDonald's

  • Friday: ExxonMobil

• Full calendar here

Headline Roundup

• US consumer confidence fell in October amid inflation and recession fears (RT)

• US business equipment borrowings grew 11% YoY in September (RT)

• US home prices cooled at a record pace in August (CNBC)

• US oil companies' FCFs are expected to rise by 68% / barrel in 2022 (RT)

• US households without a bank account fell to the lowest level since 2008 in 2021 (RT)

• EU will propose a rule for euro zone banks to offer mandatory 'instant payments' (RT)

• CCP's Politburo will have no women for the first time in 25 years (AX)

• House progressives withdrew their Ukraine letter to Biden after backlash (AX)

• HSBC named former head of IB Georges Elhedery as new CFO (RT)

• Elon Musk plans to close his Twitter deal by Friday (RT)

• Twitter is losing its most active users (RT)

• Amazon will allow customers to make payments through Venmo (TC)

• JPMorgan Chase merchants can now receive payments through Meta Pay (RT)

• Volvo will temporarily close one of its factories due to a chip shortage (RT)

• Plant-based meat companies are laying off employees amid weak sales (AX)

• Adidas ended their partnership with Kanye West, causing Ye to lose billionaire status (AX)

• Gap will remove Yeezy Gap products from its stores (RT)

• New visa to let tourists with $130k live in Bali for 10 years (BBG)

A Message From EnergyFunders

Invest in Private Market Oil & Gas Deals

At a time when stocks, bonds, real estate, and alternative assets like gold have sustained losses, oil & gas investments have provided a rare opportunity for positive returns in 2022.

But energy stocks remain vulnerable to market volatility. Plus, after the recent outperformance, valuations for many public energy stocks have increased, creating risk for today’s investors.

EnergyFunders offers private market investment vehicles that bypass these risks. Get direct access to investments in oil and gas wells, managed by a team of veteran geologists and engineers. Take advantage of today’s unique economics for private market deals, which one Wall Street Journal article described as “almost too good to be true.”

In today’s market, large public energy companies are focusing capital budgets on share buybacks and dividends instead of drilling new wells. As Dan Pickering of Pickering Energy Partners explained earlier this year:

“The real winners right now are the private companies… Prices are high, and the little guys are quickly adding production to take advantage.”

That’s how EnergyFunders is finding opportunities like the Parker #10 - which repaid 100% of its principal investment within 90 days.

Eligible investors can earn deductions on their current year's tax bill by investing before December 31, 2022.

Learn how you can take advantage of this opportunity today by clicking here! 

Deal Flow

M&A / Investments

• Canada set new conditions for Rogers Communications’ proposed $14.7B merger with rival Shaw Communications, saying that a side deal to settle antitrust problems must guarantee better wireless prices for customers (BBG)

• Telecom companies Telefonica and Liberty Global are weighing a sale of their 50% stake in UK towers venture Cornerstone, which may be valued at ~$11.5B, to help raise funds for fiber broadband investments (BBG)

• Aerojet Rocketdyne, the US rocket maker whose $4.4B sale to Lockheed Martin was blocked by antitrust regulators in February, is soliciting offers from potential suitors (RT)

• Chinese conglomerate Fosun International is studying options for its holding in financial institutions in Europe, including German lender Hauck & Aufhauser, as it explores ways to raise money to repay debt (BBG)

• Bonaccord Capital Partners agreed to buy a minority stake in PE firm VMG Partners (BBG)

• Trading house Mercuria Energy agreed to buy back a minority stake that Chinese state-owned ChemChina previously held (RT)

• UAE-based Daher Group agreed to buy Zara owner Inditex’s stores in Russia (RT)

• Canadian cannabis producer Canopy Growth is creating a holding company to speed up its entry into the US and buy partners Acreage, Wana Brands, and Jetty Extracts (RT)

VC

• Bilt Rewards, a startup working with multifamily owners / operators to create loyalty programs and a co-branded credit card for property renters, raised a $150M round at a $1.5B valuation led by Left Lane Capital (TC)

• ConnexPay, a payments integration startup, raised $110M in growth equity from FTV Capital (BW)

• Vesttoo, an insurance risk transfer platform, raised an $80M Series C at a $1B valuation led by Moura Capital and an undisclosed PE firm (PRN)

• RapidSOS, a big data platform for emergency responders, raised a $75M round led by NightDragon (TC)

• Alto Neuroscience, a startup building a brain biomarker platform, raised a $35M Series B led by Lightswitch Capital and Alkeon Capital (BW)

• Axelera AI, a startup building AI hardware / software solutions for edge devices, raised $33.7M in funding: a $27M Series A led by Innovation Industries and a $6.7M loan from Netherland Enterprise Agency (TC)

• AM Batteries, a startup developing lithium-ion dry-electrode tech, raised a $25M Series A led by Anzu Partners (BW)

• Game development studio Crop Circle Games raised a $25M Series A led by the Transcend Fund and strategic partners (PRN)

• Micreos, a Dutch / Swiss biotech company developing an endolysin technology platform aiming to replace antibiotics in some areas, raised $25M in funding (BW)

• AgroSpheres, a biomanufacturing startup developing crop-based biodegradable products, raised a $22M Series B led by Lewis & Clark AgriFood and Ospraie Ag Science (PRN)

• Bob W, a hospitality startup providing an alternative to hotels and short-stay rentals, raised a $21M Series A led by IDC Ventures, Elevator Ventures, Verve Ventures, and Flashpoint (PRN)

• Life sciences augmented analytics platform WhizAI raised $21M in funding led by Shanda Group and Health Ventures (BW)

• Heura, a Spanish plant-based protein startup, raised a $20M Series B bridge round from Unovis Capital, NBA player Ricky Rubio, soccer players Sergi Busquets / Sergi Roberto, and comedian David Broncano (TC)

• Renewable energy and battery storage market operator SYSO Technologies raised a $10M Series A led by Lacuna (PRN)

• Cosmonic, a PaaS startup helping developers create cloud native software, raised an $8.5M seed round led by Vertex Ventures (PRN)

• Buddha Brands, a plant-based snack and beverage company, raised $5.25M in funding from Fondaction (BW)

• Perygee, a startup helping secure IoT devices in order to protect building operations, raised a $4.75M seed round led by Ballistic Ventures (TC)

• Caplight, a startup building a platform for investors to make directional investments in private companies, raised $3.8M in financing from Deutsche Börse Group and others (PRN)

• Elion, a digital health technology marketplace, raised a $3.3M seed round led by NEA, Max Ventures, 8VC, and more (PRN)

• Rock Paper Coin, a startup providing wedding industry support with digital contracts and invoices, raised $2.3M led by Elevate Capital (PRN)

• Numurus, a startup building robotic and smart sensing open-source software, raised $2M in funding led by Tokusui Corporation America (PRN)

IPO / Direct Listings / Issuances / Block Trades

• Saudi Arabian utility Marafiq priced its Saudi IPO at the top of a marketed range to raise ~$897M (BBG)

• Mobileye Global, the self-driving technology company owned by Intel, priced its IPO above its marketed range to raise $861M, valuing the company at $16.7B (BBG)

• PT Global Digital Niaga, the owner of e-commerce group Blibli, raised ~$320M after pricing its Indonesian IPO in the upper-half of a marketed range (BBG)

Fundraising

• Canada will invest up to $350M across four VC funds-of-funds managers: HarbourVest Partners, Kensington Capital Partners, Northleaf Capital Partners and Teralys Capital (YH)

• Baukunst, a VC firm focused on technology and design, raised a $100M inaugural fund to invest in pre-seed startups (largest ever pre-seed fund) (PRN)

• Gaming solutions company GXC created Round Ventures, a $40M+ VC fund, to invest in early-stage video-game startups (FNS)

• Austria's Female Founders raised ~$12.5M for its ~$20M Fund F dedicated solely to female founders (SFT)

• Flex office space operator Workbox launched its new VC arm Workbox Ventures that will focus on the 'future of work' (GST)

Crypto Corner

• Asset managers have been increasing their holdings in bitcoin, with BTC open interest at 84% long and 16% short (CD)

• Apple tightened its App Store rules on crypto and NFTs (CNBC)

• UK lawmakers voted to recognize crypto as regulated financial instruments (CD)

• NFTs can be considered property: Singapore High Court (CD)

Exec's Picks

• Tired of ESG bullsh*t? Fortunately, there's a money manager that decided that B-A-D might be the better acronym for investors.The BAD ETF (NYSE: BAD) launched last December to let you invest in three industries: Betting, Alcohol, and Drugs. The case for these BAD industries remains strong for a simple yet important reason – they have historically offered attractive risk-adjusted returns. Want to invest? Learn more about the BAD ETF fund details and sign up for their mailing list to get the latest fund insights and information.

• In the wake of Rishi Sunak being named the UK's new PM, this Guardian article of no one from Stanford business school remembering him is hysterical.

• Twitter employees published an open letter to Elon Musk is response to his comments about laying off 75% of the workforce. Their demands are... interesting. Check it out here (via Time)

The Hiring Block 💼

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We aim to curate jobs across IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We'll sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're a company looking to hire candidates and want to list a job opening on our board and feature on Exec Sum, click the button below:

Meme Cleanser

Advertise with us // Visit our merch store // Invest alongside Lit Ventures

Thinking of starting your own newsletter? Beehiiv is the best platform for creators, period. Click here to get started building your own audience.