Turnaround Tuesday

Stocks had a strong rebound on Tuesday, US home prices keep climbing, Goldman partnered with McLaren's Formula 1 team, Tesla will lay off 10% of its staff, and Sam Bankman-Fried is basically crypto's Jerome Powell.

Litquidity Capital
June 22, 2022

Together with

Good Morning,

Stocks had a strong rebound on Tuesday, US home prices keep climbing, Goldman Sachs partnered with McLaren's Formula 1 team, Tesla will lay off 3.5% of its total workforce, and Sam Bankman-Fried is basically crypto's Jerome Powell.

The Big Swinging Decks pod is back! This week, Lit and Mark explore a story that recently unfolded on Wall Street Oasis: Indiana University students allegedly lying about their ethnicities to land internships at elite investment banks. Catch this spicy episode of our Big Swinging Decks podcast, presented by CoinFLEX.US, on SpotifyApple, and YouTube 🤝 

Let's dive in.

Before The Bell

As of 6/21/2022 market close.

Markets

  • Stocks rallied across the board in the first day of trading following the market’s worst week in two years 
    • All 11 sectors in the S&P 500 rose on Tuesday
    • The rise in stocks was accompanied by a selloff of government bonds, with the 10-year Treasury yield peaking at 3.32%
  • Jerome Powell will testify before Congress on Wednesday and Thursday, providing investors an opportunity to gain insight into the Fed’s next moves 

Earnings

  • La-Z-Boy released a very strong earnings report for its fiscal Q4, exceeding estimated EPS by 16.3%; shares subsequently rose by more than 11% in after-hours trading (MW)
  • What we’re watching this week: 
    • Thursday: FedEx, Accenture, RiteAid
    • Friday: CarMax 
  • Full calendar here

Headline Roundup

  • The median price for US existing-homes topped $400K for the first time ever, while existing-home sales fell for a fourth straight month (MW
  • US Congressional leaders are working on a $52B bipartisan deal to subsidize domestic semiconductor manufacturing (RT)
  • Goldman Sachs raised the probability of the US entering a recession in the next year to 30% (RT)
  • The Indian government has reportedly urged its oil companies to purchase large volumes of cheap crude oil from Russia, reinforcing economic ties between the two nations (WSJ)
  • TikTok agreed to boost EU users' rights in order to avoid possible sanctions (RT
  • A bipartisan group of senators released much-anticipated legislation to curb gun violence in what could represent the first major federal change to gun laws in decades (WSJ)
  • Tesla will reduce its salaried workforce by 10% (affecting 3.5% of its total workforce) over the next three months while increasing its hourly staffing (CNBC)
  • McLaren Racing announced a multi-year partnership with Goldman Sachs (MC)
  • SoftBank Group International CEO to leave after 5 months on the job (BBG)

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Deal Flow

M&A / Investments

  • Echobot and Leadfeeder, two sales intelligence startups based in Germany and Finland respectively, are merging and receiving $190M in funding from Great Hill Partners with an additional $52M allocated for future acquisitions (BW)
  • JetBlue Airways improved its offer for Spirit Airlines to $33.50 / share as it works to convince the carrier to accept its offer over Frontier Airlines’ bid (CNBC)
  • Japanese bank Sumitomo Mitsui will acquire a 10% stake in Japanese financial services company SBI Holdings for ~$443M (BBG)
  • Italy's government will choose either Certares Management or a consortium of Mediterranean Shipping and airline Deutsche Lufthansa to be Italia Trasporto Aereo's next buyer (BBG)
  • B2B telehealth infrastructure provider SteadyMD acquired clinician licensing, credentialing, and payer enrollment platform BlocHealth for an undisclosed amount (BW)
  • French distiller Pernod Ricard will sell its Tormore Scotch whisky brand and distillery to England-based Elixir Distillers (BBG)

VC

  • Community-centric NFT marketplace Magic Eden raised a $130M Series B at a $1.6B valuation co-led by Electric Capital and Greylock (BBG)
  • Footwear technology enterprise Miracle Miles raised a $100M Series A co-led by IDG Capital and Sequoia Capital China (PRN)
  • CloudNC, a software provider for autonomous manufacturers, raised a $45M Series B led by Autodesk (PRN)
  • Huspy, an accessible real-estate platform for homebuyers in the Middle East, raised a $37M Series A led by Sequoia Capital India (TC)
  • Fido, a Ghana-based fintech startup, raised a $30M Series A led by Fortissimo Capital (TC)
  • LogRocket, a provider of software frontend monitoring and analytics services, raised a $25M Series C co-led by Delta-V Capital and Battery Ventures (TC)
  • Clinical whole genome insights company MyOme raised a $23M Series B led by Healthcare Venture Partners (PRN)
  • Deno, the data management startup behind Deno runtime, raised a $21M Series A led by Sequoia (TC)
  • Modern healthcare billing platform Rivet raised a $20.5M Series B led by Catalyst Investors (PRN)
  • Idoven, an AI-powered health tech company advancing early detection and prevention medicine, raised $19.8M in funding: a $12.9M Series A co-led by Insight Partners and Northzone, and $6.9M in grant and equity funding from the European Innovation Council Accelerator (PRN)
  • Bardeen, a software automation vendor, raised a $15.3M Series A led by Insight Partners (TC)
  • Validio, a data quality platform based out of Sweden, raised a $15M seed round led by Lakestar (TC)
  • Share Mobility, a startup focused on helping companies transport their employees to work, raised a $12M Series A led by Iron Gate Capital and Renewal Funds (TC)
  • Neuron7, a customer service data management platform, raised a $10M Series A co-led by Battery Ventures and Nexus Venture Partners (TC)
  • Accelario, an accelerated data management platform, raised $10M in its latest round from unnamed investors (PRN)
  • B2B healthcare payments company Nibble Health raised an $8.5M seed round co-led by Wing Venture Capital and Tiger Global Management (PRN)
  • Autozen, a simplified car selling platform, raised a $5M+ seed round led by Vanedge Capital (PRN)
  • Kibo School, an online school set to offer STEM degree programs to students in Africa, raised a $2M seed round led by Neo (TC)
  • Healthtracka, a Nigerian health tech company that offers at-home lab tests, raised a $1.5M seed round led by Ingressive Capital and Hustle Fund (TC)

IPO / Direct Listings / Issuances / Block Trades

  • Indian skincare startup Mamaearth is in talks to raise ~$300M at a ~$3B valuation in a potential 2023 IPO (RT)
  • Filipino sustainable infrastructure firm Prime Infrastructure Holdings filed for a domestic IPO that could raise up to $472M (BBG)
  • Chinese podcasting startup Ximalaya is pushing back its planned Hong Kong IPO amid market volatility concerns (BBG)
  • Southeast Asian used-car online marketplace Carsome is delaying its dual-listing plans in Singapore and the US on valuation concerns amid current macroeconomic conditions (BBG)

SPAC

  • Blockchain-based payments company Roxe is in discussions to merge with Goldenstone Acquisition Ltd in a $3.65B deal (RT)

Restructuring

  • Food giant Kellogg's will split into three independent companies to jump-start its faster growing snack business (WSJ)

Fundraising

  • Supply Change Capital, a women and Latina powered venture firm investing in early-stage food technology businesses, secured an equity investment from Bank of America for its $40M fund (PRN)

Crypto Corner

  • BlockFi secures $250M revolving line of credit from FTX (DC)
  • Swiss luxury watchmaker Hublot partnered with BitPay to accept Bitcoin as a payment for a limited edition watch collection (BM)
  • Public utility company Black Hills Energy signed a deal to power a bitcoin mining operation in Cheyenne, Wyoming for at least five years (CD)

Exec's Picks

  • Heading to the Hamptons, Nantucket, Amalfi Coast, or Nice? Need to freshen up your swim shorts game? Check out Meriggi, the premium men's swimwear brand inspired by the Mediterranean lifestyle and aesthetic. Their swim shorts are some of the cleanest in the game.
  • In honor of today's BSD podcast episode, we wanted to remind y'all about our Non Target t-shirt line for all the hustlers looking to break into Wall Street. Check to see if your school's colors are in the store and scoop some for you and the squad.

Big Swinging Decks Podcast

Big Swinging Decks is *BACK*

This week, Lit and Mark explore a story that recently unfolded on Wall Street Oasis: Indiana University students allegedly lying about their ethnicities to land internships at elite investment banks.

Why are students resorting to this? Is the IU Investment Banking Workshop turning a blind eye to this? How do you prove that they are lying? Lit and Mark then focus the discussion around diversity on Wall Street and their thoughts on how to balance representation across socioeconomic, gender, and ethnic groups.

This episode is spicy af 🌶️🌶️🌶️🌶️

Catch the latest episode of our Big Swinging Decks podcast, presented by CoinFLEX.US, on SpotifyApple, and YouTube 🤝 

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've got 40+ jobs spanning IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.
  • 💼 Today's highlighted job 💼
    • Liquidibee, a capital provider for businesses of all sizes, ranging from startups to established companies, is hiring an underwriting analyst. Responsibilities for this role include the analysis of financial documents such as credit reports and bank statements, detailed financial analysis to determine credit worthiness, and communication with ISOs, sales managers, and merchants. Think you're the perfect candidate? Apply here through our job board!

Meme Cleanser

Catch the latest episode of our Big Swinging Decks podcast, presented by CoinFLEX.US, on SpotifyApple, and YouTube 🤝 

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