World Spain's startups avoided COVID-19 havoc thanks to second-generation entrepreneurs and strong VC interest
Biden is reportedly beefing up the national security panel CFIUS to scrutinize Chinese investment in US tech startups
Under President Joe Biden, CFIUS will scrutinize Chinese investment in US startups, the Wall Street Journal reported. CFIUS will likely order divestments of US tech firms during 2021, officials told WSJ. It will examine deals where investors have bought into US firms via intermediaries, they said. Visit Business Insider's homepage for more stories. A government body that scrutinizes foreign investment has been staffing up with experts from investment banks, VC firms, and tech companies, and under President Joe Biden will hunt for Chinese investment in American startups, according to a Wall Street Journal report.
- The COVID-19 pandemic struck just as Spain's startup scene was reaching its tipping point.
- But the country's second unicorn was followed with more investments in new companies.
- They may seem the most vulnerable but their funding has surged, while older companies' has faltered.
The youngest businesses should have been worst hit by COVID-19. For Spain's startups, it came just as things were taking off.
At the end of 2019, Glovo, the on-demand delivery service app, became the country's second unicorn â€" a startup valued at more than $US1 billion â€" after ride-sharing app Cabify in January 2018. It raised â'¬300 million ($US361 million) in just 12 months, of a total investment of around â'¬488 million ($US587 million). It expanded into more than 20 countries. It was just four years old.
Russia's vaccine won't be in the US any time soon
Hello, We just found out more about how vaccines might impact transmission of the coronavirus. The vaccine developed by AstraZeneca and the University of Oxford slowed transmission of the virus, according to new data that has not yet been peer-reviewed. Plus, some pharma M&A news for you â€" Jazz Pharmaceuticals is acquiring GW Pharma, the company that got the first cannabis-based drug approved by the FDA in 2018.
Despite the world locking down to combat coronavirus, the investments in the country's newest businesses continued. In June 2020, biotech Ona Therapeutic raised â'¬30 million ($US36.1 million) in the largest first round of private funding of any start-up in Spain. Data integration company Onna raised â'¬24 million ($US28.9 million).
On-demand freight logistics platform Ontruck netted â'¬17 million ($US20.48 million). International investors included Atomico, Endeavour Catalyst, Cathay Innovation, CRV, Slack Fund, OGCI Climate Investment and Dawn Capital.
2020 saw far more deals, but smaller ones. There were no "mega-rounds" of more than $US100 million. There was a 35% rise in the number investments in businesses at pre-seed and seed rounds â€" the earliest stages of their existence.
The Pandemic Is in Tenuous Retreat
New COVID-19 cases, hospitalizations, and deaths all dropped this week.The good news in COVID-19 data continued this week, as new cases, hospitalizations, and deaths all dropped. For the seven-day period running January 28 to February 3, weekly new cases were down more than 16 percent over the previous week, and dropped below 1 million for the first time since the week of November 5. This is still an astonishing number of new cases a week, but far better than the nearly 1.8 million cases reported the week of January 14. Tests also declined nationally, but by less than 3 percent, nowhere near enough to explain the steep drop in cases.
There was a 78% rise in Series A deals â€" the next stage of investment, according to. The more established startups felt the impact: their investment fell by 40%.
expressed surprise given that young companies "are usually first affected in crisis situations". In the end, 2020 was the second best year ever for investment in Spanish startups.
They earned â'¬1.101 billion ($US1.326 billion), compared with â'¬1,098 billion ($US1.322 billion) in 2019 and â'¬1.227 billion ($US1.478 billion) in 2018, the record year, according to figures from Observatorio de la FundaciÃ³n InnovaciÃ³n Bankinter and.
One explanation is the gathering wave of investment that early tech entrepreneurs banked up. Another is investors are increasingly confident to take a risk to unlock talent that will pay dividends.
Israel outpaced the world in vaccinations. Now it’s seeing the results.
There’s still a long way to go, but also a reason for hope.Data suggests that the pandemic is starting to slow in Israel. Infections and the number of seriously ill people are declining, particularly among those over 60, one of the groups targeted in the early rollout of the vaccination campaign.
For years, Spain's startups were.
But the startup ecosystem "has gone from being a market with mainly local interest to an ecosystem of global interest," Mario Teijeiro, director of Deloitte's StartmeUP, tells Insider. "More and more international investors are competing in the Spanish market."
Barcelona and Madrid, where most of the activity is clustered, are ranked fifth and seventh respectively in. Valencia, Bilbao and Malaga are also firmly on the map.
It's attractive precisely because it's still several years behind the UK, France and Germany, Teijeiro says. Target Global, which had invested in several Spanish startups from its headquarters in Berlin,to support Spain's "amazing breadth of talent and innovation" with expertise and â'¬30,000 ($US36,147) investments.
Likewise, TheVentureCity, headquartered in Miami with a campus in Madrid, runs a five-month program for 25 founders a year that covers product development and the wider, worldlier skills of fundraising strategy, going international, work culture and talent acquisition â€" "a mindset approach that is rarely found outside of Silicon Valley".
Andy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for him.
Hello everyone! Welcome to this weekly roundup of stories from Insider from Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday. Read on for more on the next CEO of Amazon, a meltdown at coworking company Knotel, and how Robinhood conditioned inexperienced users to obsessively play the market. Read time: 5 minutes Hello! The migration to Miami shows no signs of slowing down. Tech and Wall Street firms continue to show interest in making the move to South Florida, with home prices jumping 25% in the past year, according to recent data.
"Evolving takes time but we're advancing," says Jaime Novoa, from K Fund, a major investor in emerging talent. "In the last five years, the quality and ambition of companies has gone up dramatically. There are more startups, so there are more employees experiencing how to build them and leaving to build their own."
He cites how, after IÃ±igo Juantegui and JosÃ© del Barrio sold food delivery startup La Nevera Roja for â'¬80 million ($US96.4 million) in 2015, Juantegui launched OnTruck and del Barrio set up an investment company, Samaipata, which later invested pre-seed money into OnTruck.
After selling Ticketbis to eBay, founders Ander Michelena and Jon Uriarte set up All Iron in their hometown Bilbao and reinvested in the next generation of startups.
K Fund launched its â'¬70 million ($US84.3 million) K Fund II last July to investments of between â'¬200,000 ($US241,000) and â'¬2 million ($US2.41 million) in 25 to 30 of the most promising. Part of the fund is dedicated to supporting companies that are less than six months old. It follows the â'¬50 million ($US60.24 million) K Fund I which launched in 2016 with the same objective. It backed 28 companies and saw several grow exponentially.
It invested in travel company Exoticca when its turnover was â'¬10 million ($US12.049 million). It went on to double sales each year, to â'¬25 million ($US30.1 million) and then to â'¬50 million ($US60.2 million). Another, Factorial, raised â'¬16 million in a series A round deals at the height of the pandemic. The software services company attracted investment from CRV, a major investor in Twitter and Dropbox.
Scientists, including Fauci, are facing off over whether to delay 2nd vaccine doses. Here's why the risk of more mutations from delaying shots may ultimately be worth it.
Experts are split on whether to delay the second dose of COVID-19 vaccines to get more people immunized. Prioritising first doses means that more vulnerable people get some protection against coronavirus, which could save lives. The risk of more coronavirus mutations could be the price we have to pay. Visit the Business section of Insider for more stories. Experts are split on whether governments should delay the second doses of coronavirus vaccines to ensure more people get a first shot.
It's also a way to beat the competition. "Investors used to be able to set the terms," says Novoa. "The balance of power in the market has shifted the other way. If you're a founder with an interesting product you can choose what investor you want."
The pandemic could have spelled disaster but demand is up for the products and services startups are adept at providing â€" financial tech and cybersecurity to medical tech and biotech. The B2B software sector is smaller than in the UK, France and Germany but the number of investment deals are growing faster. E-commerce sales are predicted to grow 22.9% by 2023, the largest growth in Western Europe and among the highest in the world.
E-commerce growth was part of the reason AliExpress chose Spain for its first European venture. Owned by Alibaba, AliExpress is a marketplace which enables customers to purchase global supplies â€" predominantly Chinese and local. Spanish sellers can sell their products to Europe and Russia.
Operating largely without shops and entirely without stock, its success depends on building an "ecosystem of e-commerce" by recruiting local partners for logistics, banking and marketing.
"We see ourselves as a startup in Spain," says operations director William Wang. The aim is to help raise the digital capability of partners, buyers and sellers so all mutually benefit, he adds. "We have an online university and live streaming helping Spanish companies upgrade to our capabilities and understand the marketplace."
Meet the Elected COVID Clowns Hyping Get-Rich-Quick Schemes
In November, as Reno County, Kansas, weathered its worst-yet wave of COVID-19, an unusual guest took the lectern at a county commission meeting. The woman, dressed in sunny yellow, described herself as a local mother there to discuss health in the pandemic era. “I’m also privileged to represent the top two percent of the world’s largest essential oil company, doTERRA, which means ‘gift of the earth,’” she said in a presentation previously reported by the Kansas Reflector. “My job is to empower people to use safe, natural, 100 percent pure essential oils to manage their families’ needs proactively.”She began to continue, only to be cut off.
Along with major banks and corporations, AliExpress is partnering with other startups. They use the same technology, making it easier to collaborate, says Wang.
"They use the same technology as us, making it easier to collaborate," says Wang. As well as the shipping logistics company Packlink, and mobile-first neobank Bnext, AliExpress â€" which recently launched a food and drink category â€" has struck a deal with Glovo, which already has links with major supermarkets and a presence in almost every major city.
Wang calls Glovo "a good fit", as. "We see the potential to work with them but we are starting with more of an alliance approach." Glovo will be delivering international AliExpress orders from depots in Barcelona and Madrid.
Glovo operates successfully around the world and, though the Barcelona startup recently sold its Latin American operation to Delivery Hero, the ease with which ambitious Spanish companies can access Latin American markets is driving investment.
Like most startups, AliExpress plans to create a model and replicate it â€" in Southern and Western Europe and then beyond. When it came to location, Spain was an obvious choice.
"Spain is not the biggest ... but Spanish is spoken in most of Latin America and Spain is part of the EU," says Wang. "It basically opens the doors to two continents for us."
Miguel Vicente, of Antai Venture Builder and president of Barcelona Tech City, says Spain's startups should forget "unicorns". He says they should set their sights more on being "camels" that are efficient, reliable, thrifty.
They should be "more focused on primary activities" and "lean in order to adapt to the changes that are coming", Vicente adds, rather than merely seek "a high valuation and a quick exit".
Spain's business ecosystem benefits from companies being "in it for the long run", he adds. "A startup born in the new normality of Coronavirus has these ideas in its genes."
The needless clash between teachers’ unions and science is harming America’s kids .
The evidence it clear: We can open schools safely now.Educators’ anxiety is based on reasonable concerns. Covid-19 is a serious illness. And schools are an indoor group setting with the potential to spread infection. But schools, it turns out, with a few basic safety measures, including masks and reasonable distancing, are not a high-risk venue for Covid-19 transmission. In fact, they appear to have far lower rates of the virus than their surrounding communities. Still, some education union leaders are beginning to lay the foundation for schools remaining shuttered into the 2021-22 school year.