Alta Views: your fortnightly scoop of Private Capital Markets

?? Happy Lunar New Year, Alta-natives. We trust that the Year of the Water Rabbit has kicked off to an auspicious start! Let's catch you up with the latest updates from private markets.

Despite early fears, world economies appear to have avoided global recession

● China drops its COVID protocols, the US embarks on a green initiative, and the EU adjusts to Russia’s war in Ukraine; World leaders and business executives are taking steps to push a more optimistic stance towards the future. IMF Deputy Managing Director Gita Gopinath, is even forecasting an “improvement” in the global economy in the second half of 2023 into 2024, though the rest of 2023 might still be "tough".

● The Fed's measure of where inflation is expected to be, as measured by bond market activity, has declined precipitously, from a peak of 3.59% 5-year breakeven rate on March 25, 2022, to 2.21%, as of Thursday. In the last three months alone, core inflation annualized at a 3.14% rate, down from 4.5%, on a six-month basis, just prior.

● Investors might not want to be too hasty; US non-farm payrolls increased by 223,000 in December, while the unemployment rate fell to 3.5% and average hourly earnings were up 4.6% from a year ago. While the US labor market is sturdy enough to survive some bloat, investors should still be aware of potential risks.

Southeast Asia to remain a bright spot amid gloomy fundraising environment; venture capital plays a part

● Deal value fell 27% in 2022 from the previous year despite a volume increase, due to rising inflation and fears of an incoming global recession. Despite this, VC experts predict sunny skies for SEA. The region has been a hotspot for start-ups who are now seeking funding amidst a drought, providing ample opportunity for investors.

● With the largest middle class in SEA and high rates of start-up and innovation, Indonesia is shining as a unique beacon of opportunity in the region. B Capital Group and Northstar Ventures closed funds at $250M and $90M in the new year, expressing intent to support mainly Indonesian start-ups, as well as in other SEA countries.

Thousands of Chinese run to Singapore amid uncertainty at home, buoying markets

● Chinese immigrants are flocking en masse to Singapore, which is becoming a magnet for professionals and high-net worth families. Wealthy Chinese see Singapore as a safe haven to park financial assets and safely invest in private markets – digital assets, real estate, luxury goods, etc. - all while offering a welcoming and pro-business climate.

● The number of Chinese family funds in Singapore has soared to an estimated 600, and some 500 Chinese businesses have registered in the city in the past year, said Joylin Su, asset-management firm executive. It's another feather in the city state's cap as an Asian financial hub, allowing it to offer more promising opportunities to investors.

Fast Growth for Food Delivery

• Ready-to-eat food delivery is emerging as a major category. In post-pandemic 2023, online food delivery stands as a global market worth $130 billion.

• COVID-19 has propelled the industry ahead of the pack, as millions of people in lockdown ordered food online for the first time. The industry forecast projects a CAGR of 18.7% between 2020 and 2023 and a market value of over US$275.22B by 2028.
• Major players in the Southeast Asia food delivery market include Grab , foodpanda , and Gojek , who contributed for 84.8% of the region’s total food delivery market share in 2021. The SEA food delivery market is expected to reach $50B by 2030.
• Food delivery has proven to be very fertile ground for fundraising; food delivery and logistics start-ups raised over $19B in 2021, with 418 deals made worldwide.
• Asia Pacific held the largest revenue share of over 35.0% in 2021 and is expected to register the highest CAGR from 2022 to 2028. Rising per capita income, swelling populations, and the penetration of smartphones and the internet in China and India propel market growth and provide ample opportunities for investors.

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eFishery,?Brandless,?edamama,? Lalamove , Mynt ?- discover the hottest names in private markets that are trending with our investor network! Researched by experts, voted by insiders.?View our Top Picks here!

?? Notable Fundraises

CyberX | US$15M raised | Series A | FaaS

CyberX is a technology firm building digital asset infrastructure and market making. The company utilizes advancements in blockchain, deep learning, and financial engineering, enabling users to accelerate the flow of global digital assets.

Holmusk | US$45M | Series B | Health Technology

Holmusk is a data science and health technology company that aims to reverse chronic disease and behavioral health issues. The company's technology leverages data science to accelerate research and improve outcomes for people with chronic diseases and behavioral health disorders using predictive algorithms and provides actionable insights for personalized medicine through its proprietary modelling platform.

LionsBot International | US$17.39M | Series A | AI

LionsBot is a developer of an autonomous warehouse cleaning robot designed to maximize its cleaning speed and efficacy. The company's robot is based on human-centered AI with multiple features like a 3D LiDAR sensor and auto docking mechanics capable of vacuuming and scrubbing, helping clients clean a large area within less time.

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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

Alta is Southeast Asia’s largest digital marketplace for alternative investments. Alta gives investors direct access to invest and trade in a wide range of curated alternative assets, from direct investment into early to late-stage private companies, PE/VC funds, asset-backed securities of luxury assets, real estate, and more.

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Alta is headquartered in Singapore with global offices in Malaysia, Indonesia and India.

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