CB Insights - banking M&A

Hi there,

We've extended the deadline to apply for this year's AI 100 awards. 

Fill out the initial application by Wednesday the 23rd (that's only 6 days away).

And now, here is this week in charts. 

You say yes, I say no. SPACs, the buzzy alternative to a traditional IPO, are losing their allure. In the first 6 weeks of this year, 6 deals have already been called off (like fintech Acorns’ merger deal). Technology stocks’ volatility and investors’ ability to redeem their shares for their money back are helping fuel the trend.  

Shake on it. Banking startups notched a record 39 M&A deals in 2021, a 160% increase over 2020. The sector also saw 6 IPOs and 4 SPACs, a first for banking startups. In Q4’21, the top M&A deal went to Fair Square Financial (acquired by Ally Financial for $750M) and top IPO to Nubank ($41.5B). 

Reverse logistics. The boom in online shopping has led to a boom in returns. But between processing costs and shoppers’ expectations of free returns, the cost for retailers can add up quickly. As a result, tech-enabled returns platforms have become essential for addressing customers’ sustainability concerns and making returns less costly for retailers and more convenient for customers.

Big bucks. In spite of myriad challenges — from supply chain disruptions to chip shortages — big tech companies like Apple, Google, and Facebook saw huge annual revenue increases in 2021. Google, for example, notched $258B in revenue, a 41% increase over 2020. See how tech’s giants have been making inroads in healthcare, pharma, quantum computing, and cybersecurity.

Here’s to never growing up. Longevity funding is off the charts in 2022 — thanks to one deal. Jeff Bezos-backed Altos Labs has come out of stealth with $3B in fresh funding and plans to reverse aging. #foreveryoung

Not even trying. The analyst who put this together is unofficially resigning with this pie chart.
 

I love you.

Anand

@asanwal
 

P.S. Find out what the hottest sector in tech means for your strategy — register for our analyst-led state of fintech webinar on March 3 here.

P.P.S. Want to hear a joke?  

Great.

Q: Why’d the monkey fall out of the tree?

A: It was dead.

P.P.P.S. Want another joke?  

Awesome.

Q: Why did the 2nd monkey fall out of the tree?

A: It was stapled to the first one.

[Retail]
Everything must go. We dig into 136 recent bankruptcies starting in 2015 and the reasons behind them.

[Industrials]
Charged up. Energy companies had a breakthrough year, seeing record funding, mega-rounds, unicorn births, and more.