[22] Alta Views: your latest scoop of Private Capital Markets

Hi Alta-natives! In this edition, we will look at the emerging fundraising trends in China, increasing demand for enterprise-oriented AI solutions and the emergence of new family offices in Singapore.

China companies' fundraising options narrow after IPO restrictions

• China is starting to phase out restrictions on IPOs to promote "dynamic equilibrium" between investment and financing, with stricter IPO vetting and a lengthier registration process. These efforts are also attempting to revive a lagging Stock Market and boost investor confidence in the world's second-largest economy, which has witnessed dropping growth rates.

• This could be an attempt to bolster the secondary market, such that not all funds are being poured into speculating on IPOs. Similarly, other Markets such as Debt Financing, Venture Capital and Private Equity Markets, and Alternative Investment Markets could be avenues of financing for Private Firms in China.

• This situation could be a large boon for these alternative markets, where Chinese firms could be drawn to these Markets for financing requirements, potentially enhancing the quality of deals within each industry.

OpenAI rival banks $155m from Google, others at $1.4b valuation

• The demand for enterprise-oriented AI solutions is rapidly gaining momentum within the generative AI sector. Notably, OpenAI recently introduced an enterprise-grade version of its ChatGPT service.

• Their competitor, GAI21 Labs, builds AI systems for natural language. It raised US$155 million in a series C round, pegging the startup’s valuation at US$1.4 billion. Investors include the likes of Google, Nvidia and Samsung Next

• This shows that AI, Enterprise AI in particular, remains an area of interest for investors. We'll be watching this space closely.

The rise of China’s driver-assist truck tech

• Inceptio, a Chinese startup, facilitates single-driver long-distance trucking (as opposed to the two often required) reducing hauling costs by 5% to 7%. They envision 4x surge in trucks employing its driver-assist tech in China by mid-2024

• China is a global leader in this industry, as leading suppliers of chips, sensors, the automakers and developers of autonomous trucking technologies. Amidst China's expansive $550 billion driver-assist trucking industry, Chinese companies such as Inceptio plan to explore global markets due to their potential for growth

• The Global Advanced Driver Assistance Systems (ADAS) is expected to grow at a CAGR of 22.9% from 2023 to 2032, which could be a potential opportunity for investors to look out for.

Emergence of new family offices in Singapore

• In recent years, Singapore has emerged as a global hotspot for family offices, drawing in a significant number of ultra-high-net-worth individuals seeking to manage their wealth effectively and contribute to the local economy.?

• With its stable political and economic environment, strategic Asian gateway location, and a robust financial infrastructure, Singapore has attracted notable names like US investor Ray Dalio and Google co-founder Sergey Brin.?

• The surge in registered family offices continues to grow, with a staggering 192 established in just the first four months of 2023. This follows a pattern of substantial growth, with 690 new family offices in 2022 and 672 in 2021.

Wealthy families increase allocation in bonds and PE Investments in the first half of the year

• Wealthy families loaded up on bonds and private equity investments in the first half of the year while slashing their stock exposure, according to a survey by Citigroup's (C.N) private bank.

• More than half of the 268 family offices polled, accounting for a combined net worth of $565 billion, increased their allocations in fixed income, while 38% boosted their private equity holdings. By contrast, 38% reduced their allocation in stocks.

• The family offices surveyed had an average portfolio allocations that included 22% in both public and private equities respectively, 16% fixed income and 12% cash.

Cleaner, stronger and more efficient – Hydrogen-fuelled Vehicles

• Hydrogen fuel cell vehicles are automobiles that use hydrogen fuel cell technology, whereby hydrogen gas powers a motor through a process that emits only water vapor as a byproduct

• Hydrogen fuel cells have the ability to generate electricity used for powering vehicles at large capacities. It has been used in space and marine travel

• The market for hydrogen fuel cell vehicles is projected to reach US$ 131.06 billion by 2030, growing at a CAGR of 60.1%

• Bloomberg New Energy Finance reported that Hydrogen Fuel Cell Technology is poised to supply 24% of the world’s energy demands by 2050 while cutting CO2 levels by 34%?

• Hydrogen fuel cell vehicles have significantly higher range per tank at 300 to 400 miles, surpassing electric vehicles at 150 to 250 miles. Simultaneously, Hydrogen fuel cell vehicles only require relatively short refueling times of 5 minutes, like their conventional gasoline counterparts. This is in stark contrast to lengthy electric vehicle charging times, at 45 minutes

• As governments around the world are converging towards reducing their carbon footprint, collaborative efforts between hydrogen cell tech companies and governmental bodies drive hydrogen fuel cell innovation

• For example, Plug Power, an Industry Giant, has worked with the Australian, Egyptian and Abu Dhabi Government to supply hydrogen fuel cell technology.

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?? Notable Fundraises

VTKR | US$16M | Debt | CleanTech

VKTR is engaged in wholesale trading of new cars and new motorcycles in the form of Battery-Based Electric Motorized Vehicles (KBLBB), spare parts components, car accessories, and the car body industry for four-wheeled or more motorized vehicles, battery-based electric motorized vehicles, two- and three-wheeled motorcycles and the iron and steel foundry industry, industry of spare parts and accessories for four-wheeled or more motorized vehicles through Subsidiaries.

Qashier | US$10M | Series A | SaaS

Qashier is a developer of a smart point-of-sale system designed to digitize businesses. The company's system is a connected multi-purpose device that combines POS software, a payments hub, and an open platform for third-party application integration at an affordable monthly subscription rate, enabling merchants to start, run, and grow successful stores with ease.

OLA Electric | US$140M | Series F | Automotive

Developer of an electric mobility platform designed to make electric mobility convenient, dependable, and affordable. The company's platform offers shared daily mobility and deploying charging and battery swapping networks focusing on the commercial electric vehicle segment, enabling users to get affordable e-vehicle ride-hailing with ease.

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About Alta Views

A fortnightly collection of the latest news from Private Capital Markets. Put together by Alta’s team of analysts, we bring you the most critical and timely pieces from private markets, to help you navigate the broad horizon. Stay tuned as we bring you the most notable fundraises, analysis on industries and companies trending within investor networks, the latest headlines, and more!

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About Alta

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