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One hour and three minutes before Silicon Valley Bank blocked all withdrawals, Pat Phelan got the last of his company's money out. Phelan's cosmetic medicine startup, Sisu Clinic, kept the majority of its reserves with the California-based bank. When he saw whispers of its problems spreading across the internet, he joined the digital bank run that ultimately pushed Silicon Valley Bank to collapse.
“I just messaged our chief financial officer and said, ‘Get the money out,’” Phelan says, adding he had to wait all night for the funds to arrive in his Bank of Ireland account. “It was an incredibly worrying 26 hours.”
After a tense weekend, regulators in the UK and US have stepped in to protect depositors, averting the most dramatic potential consequences of the largest US bank failure since the 2008 financial crisis.
But many in Europe’s tech industry warn of a slower-burn crisis to come. The reason that Silicon Valley Bank was so popular was because it filled a role that no one else would. It was part bank, part networking community, part venture capital firm. In some countries it was a major investor. In Ireland, the bank had planned to invest more than $500 million in technology and life science startups by 2024. In the Netherlands, the bank was in discussions about how to finance more local companies. Europe’s tech sector was already struggling with funding shortfalls, mounting losses, and widespread job cuts. The loss of Silicon Valley Bank only deepens the gloom.
“What happened during the last few days is once again there was a recognition that, especially when it comes to bigger [investment] rounds … there are not that many real big funds that can play a major role,” says Rinke Zonneveld, the CEO of Invest NL, a government-backed investment firm in the Netherlands. “We are dependent on US money.”
Silicon Valley Bank was embedded in Europe’s tech sector via a series of affiliated businesses and offices. Its Danish office, which didn’t have a banking license, focused on networking. The German branch did not offer a deposit business. But at the heart of that system was the bank’s London-based subsidiary, established in 2012, which helped startups across the EU with funding, loans, and accounts. On Friday, the Bank of England declared that Silicon Valley Bank was set to enter insolvency, before that arm of the business was acquired in a last-minute £1 rescue deal by HSBC bank.
But many of Silicon Valley Bank’s customers turned to the bank exactly because they felt that traditional lenders were not set up to cater to the technology industry’s specific demands.
The bank didn’t just enable tech companies with unusual financial structures to open accounts, says Check Warner, partner at London-based inclusive venture firm Ada Ventures. It also sponsored events and organizations trying to make the UK tech sector more diverse. “SVB was much more than just a bank,” she says. “I'd love it if a homegrown UK business was doing this role, but in the absence of that, Silicon Valley did it and did it really well.”
Silicon Valley Bank's struggles started with a bad bet on long-dated US bonds. Rising interest rates meant that the value of those bonds fell. As depositors started to worry about the bank's balance sheet, they pulled their money out. High interest rates have become a challenge across the industry, ending the cheap loans that tech companies got used to over the past decade and reducing available funding.
More than $400 billion in value was wiped from Europe’s tech industry in 2022, while some companies, like the buy-now, pay-later provider Klarna, watched their valuation plunge more than 85 percent. This year there’s been little reprieve, as layoffs continue within local startups as well as at Europe’s big tech outposts. At the end of February, Google confirmed it would cut 200 jobs from its business in Ireland.
“The whole tech industry is suffering,” Warner says. “Generally, in 2023 rounds are taking much longer; there's much less capital available.”
Against this backdrop it’s unclear whether any major European bank is able or willing to fill the niche that Silicon Valley Bank is leaving.
“Silicon Valley Bank is unique. There are not that many banks which provide startups loans,” says Reinhilde Veugelers, a senior fellow at economic think tank Bruegel and a professor at Belgian university KU Leuven. “Typically, European banks are not good alternatives, because they're way too risk-averse.”
And even if a bank wanted to take the risk, they'd likely struggle to replicate Silicon Valley Bank's deep knowledge of the startup ecosystem, Veugelers adds. “You need way more than deep pockets. You also need to be sufficiently close to the whole venture capital market and have the ability to do due diligence” she says. “If the bank had that capacity, it would have already been doing this.” HSBC did not immediately reply to WIRED’s request for comment.
Silicon Valley Bank was prepared to take risks that other banks wouldn't, says Frederik Schouboe, co-CEO and cofounder of the Danish cloud company KeepIt.
KeepIt secured a $22.5 million debt financing package—a way of raising money through borrowing—last year from Silicon Valley Bank’s UK business. Although the bank opened an office in Copenhagen in 2019, the branch did not have a banking license. Mainstream banks “are ultimately impossible to bank with if you are making a deficit in a subscription business,” Schouboe says. “The regulatory environment is too strict for them to actually help us.”
The way Silicon Valley Bank operated in Europe has earned its admirers. But now those people are worried the company’s collapse will warn other banks away from funding tech in the same way. It was SBV’s banking practices that failed, not the business model of funding the startup sector, says Berthold Baurek-Karlic, founder and managing partner of Vienna-based investment company Venionaire Capital. “What they did was they made big mistakes in risk management,” he adds. “If interest rates rise, this shouldn't make your bank go bust.”
Baurek-Karlic believes European startups were benefiting from the riskier bets that Silicon Valley Bank was taking, such as offering venture debt deals. The US and UK said Silicon Valley Bank is not system critical, arguing there was limited risk of contagion to other banks. That might be true in banking, he says. “But for the tech ecosystem, it was system critical.”
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Commercial Banking Market to Witness Excellent Revenue Growth Owing to Rapid Increase in Demand
A Latest intelligence report published by AMA Research with title "Global Commercial Banking Market Outlook to 2027. This detailed report on Commercial Banking Market provides a detailed overview of key factors in the Global Commercial Banking Market and factors such as driver, restraint, past and current trends, regulatory scenarios and technology development.
Commercial banking is a division within the bank or financial institution that only focuses on the products or services specifically offered to businesses. It includes various types of services like merchant services, payment processing, commercial loans, deposit accounts, and many more. The increasing number of startups and small & medium industries will accelerate the growth of commercial banking during the forecast period as it provides finance to the SMEs or startups to foster the development of a corporate bond market and stimulate its development. Commercial banking helps to make it easy to manage the day-to-day financial tasks of any organization.
Major Players in this Report Include are
JPMorgan Chase (United States)
HSBC Holdings plc (United Kingdom)
Genpact (United States)
Accenture (Ireland)
Fiserv (United States)
WNS (India)
Wells Fargo (United States)
RBL Bank (India)
ICICI Bank (India)
Infosys (India)
PwC (United Kingdom)
Oracle Corporation (United States)
M&T Bank (United States)
Ernst & Young (United Kingdom) Market Drivers: Increasing Digitalization and Adoption of Technological Advancement to Serve Customers Online and Offer Enhanced Services
Surging Demand for Commercial Banking Service Among the Small & Medium-Sized Businesses and Startups
Market Trend: Increased Focus on the Development of Innovative Commercial Banking Solutions with Advanced Technologies like AI and Machine Learning
Emerging Trend of Open Banking in the Commercial Banking Market
Opportunities: High Growth of Commercial Banking and Increasing Digital Transformation of Commercial Banking in the United States
Increased Integration of Cloud-based Technology Due to Enhances Flexibility
The Global Commercial Banking Market segments and Market Data Break Downby Components (Solutions, Services), Services (Deposit Accounts, Lines of Credit, Merchant Services, Payment Processing, Commercial Loans, Global Trade Services, Treasury Services, Others), End Users (Startups, Small & Medium Enterprises, Large Enterprises) Geographically World Commercial Banking markets can be classified as North America, Europe, Asia Pacific (APAC), Middle East and Africa and Latin America. North America has gained a leading position in the global market and is expected to remain in place for years to come. The growing demand for Global Commercial Banking markets will drive growth in the North American market over the next few years.
Presented By
AMA Research & Media LLP
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Commercial Banking Market Unidentified Segments - The Biggest Opportunity Of 2023
Global Commercial Banking Market Report from AMA Research highlights deep analysis on market characteristics, sizing, estimates and growth by segmentation, regional breakdowns & country along with competitive landscape, players market shares, and strategies that are key in the market. The exploration provides a 360° view and insights, highlighting major outcomes of the industry. These insights help the business decision-makers to formulate better business plans and make informed decisions to improved profitability. In addition, the study helps venture or private players in understanding the companies in more detail to make better informed decisions. Major Players in This Report Include:
JPMorgan Chase (United States)
HSBC Holdings plc (United Kingdom)
Genpact (United States)
Accenture (Ireland)
Fiserv (United States)
WNS (India)
Wells Fargo (United States)
RBL Bank (India)
ICICI Bank (India)
Infosys (India)
PwC (United Kingdom)
Oracle Corporation (United States)
M&T Bank (United States)
Ernst & Young (United Kingdom) Commercial banking is a division within the bank or financial institution that only focuses on the products or services specifically offered to businesses. It includes various types of services like merchant services, payment processing, commercial loans, deposit accounts, and many more. The increasing number of startups and small & medium industries will accelerate the growth of commercial banking during the forecast period as it provides finance to the SMEs or startups to foster the development of a corporate bond market and stimulate its development. Commercial banking helps to make it easy to manage the day-to-day financial tasks of any organization. Market Drivers Increasing Digitalization and Adoption of Technological Advancement to Serve Customers Online and Offer Enhanced Services
Surging Demand for Commercial Banking Service Among the Small & Medium-Sized Businesses and Startups
Market Trend Increased Focus on the Development of Innovative Commercial Banking Solutions with Advanced Technologies like AI and Machine Learning
Emerging Trend of Open Banking in the Commercial Banking Market
Opportunities High Growth of Commercial Banking and Increasing Digital Transformation of Commercial Banking in the United States
Increased Integration of Cloud-based Technology Due to Enhances Flexibility
Challenges The Expensiveness of Commercial Banking and Business Accounts Compared to Traditional Bank Accounts
The Commercial Banking market study is being classified by Components (Solutions, Services), Services (Deposit Accounts, Lines of Credit, Merchant Services, Payment Processing, Commercial Loans, Global Trade Services, Treasury Services, Others), End Users (Startups, Small & Medium Enterprises, Large Enterprises) Presented By
AMA Research & Media LLP
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Avail small business loans and business startup loans in Ireland right here and that too without any hassle. Consult with otter financial for more info on this.
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“I Have No Revenue … How Can I Fund My Business?”
It’s not uncommon for start-ups or small businesses to have no revenue at all. Everyone’s got to start somewhere!
But if you’ve found yourself reading this blog, you’ll be pleased to hear that you’ve come to just the right place to turn things around for your business.
Financing a business that’s not generating revenue yet can be a challenge but, actually, there are loads of funding options out there for a business like yours. Granted, there might not be as many business finance options as there would be for a revenue-generating business, but there are still options. You’ve just got to know how to access them, and that’s what Swoop’s here for.
Click here to see Swoop’s top funding tips for a non-revenue generating business
Before you start trying to contact lenders about business finance and getting hit with a discouraging “No!” we recommend that you give these three top tips a whirl.
1. Check out the UK’s start-up loan schemes
Getting a loan for a new business can be tricky. But according to Swoop’s gurus, the thing to do is start researching start-up loan schemes in the UK, immediately. These loan for business schemes offers up to £25,000 per director in your business, at a fixed annual rate of just six percent. There are no application fees or early repayment fees, which is great because of every bit of cash count.
What’s more – if you’re based in Ireland – you can still access these start-up loans for business schemes by registering a UK branch. This is something the Swoop team could give you a hand with.
Click here to talk to Swoop about UK start-up loan schemes, or for some help in setting up a UK branch for your business.
2. Look for grants available in your area
Depending on where your business is based, and what sector it falls into, you could be eligible for one of your region’s startup business grants. It’s a bit of a postcode lottery and the application process can be long and time-consuming, but when you get your grant money you won’t have to pay anything back – ever. Not a penny! Business finance doesn’t get much better.
So, for a small business, it’s well worth the effort if you end up being approved for one of these new business grants.
3. Register your business on Swoop
We specialize in business finance for companies like yours. If you’re a small company or startup that’s not generating revenue yet, and you need business funding, we can help.
We’ll match your business with a lender who’s willing to fund your company regardless of what stage you’re at in your journey. We’ve got over 1,000 investors registered who are looking for businesses to invest in, so we’re confident we can find your small business some funding solutions to kick start your growth.
Click here to start the conversation and get your business registered on Swoop Funding.
To get our funding journey started, or to discuss any of your funding needs, please drop us an email at [email protected] or visit us at swoopfunding.com
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How Corporate Welfare Hurts Small Businesses
Corporate welfare is one of those things that everybody hates for different reasons, but nobody wants to do anything about it. Big businesses grow too big to fail on government subsidies, contracts and tax breaks. When they get into trouble, they have to be bailed out or the whole economy will fail.
It’s an endless cycle and it puts small businesses on uneven ground when it comes to competition and growth. If you’re running a small business, how are you going to compete with a corporation that gets millions or even billions of taxpayer money?
By some estimates, the Federal Government spends $100 billion in corporate welfare each year. But, is it helping or hurting the economy overall?
Corporate Welfare Helped Us Avert A Global Financial Crisis
Back in 2008, when the housing market was collapsing, when the banking industry was imploding and when the auto industry was on thin ice, bailouts from the taxpayers saved the economy from almost a certain ruin. Analyses of how this crisis came to be conflicting, but the analysis that bailouts averted global crisis all seem to be in agreement. What’s more, corporate welfare has helped us to develop certain sectors of our economy that industry couldn’t have developed alone.
Corporate Welfare Is Easily Abused
We often hear about companies that re-incorporate in other countries to avoid paying taxes. But, what you don’t often hear about is the tax incentives, government subsidized loans, contracts and grants they receive while they are doing business in the United States. Corporations literally take corporate welfare handouts and then hightail it to a more favorable tax climate.
In 2012, Eaton received almost $32 million in government subsidies before it relocated to Ireland. In 1983, Texas-based McDermott incorporated in Panama, but it still received $12 million from the Defense and Energy departments between 2000 and 2015.
Corporate Welfare Hurts Small To Medium Businesses
Unless you have a huge corporation, your chances of benefiting from corporate welfare are pretty slim. Two thirds of the $68 billion in grants and allocated tax credits between 2000 and 2015 went to 600 large companies. In that same period, 78% of loans, loan guarantees and bailouts to the tune of $18 trillion went to 12 U.S. and foreign banks. Meanwhile, the yearly budget for the Small Business Administration is only $1.4 billion
The Small Business Administration doesn’t function the same way that corporate welfare does. There are no direct loans for small businesses to get off the ground. Grants are targeted for specific nonprofits and educational entities for research into medicine, science and technology. So, unless your startup is looking for a cure for a new type of cancer, you’re on your own.
See Also: How to Ensure Growth in Small Business
You can still make use of the Small Business Administration’s resources to help grow your business:
Talk with a counselor or attend a seminar
Find business partnerships
Use the website as a valuable reference
Many Sectors Thrive With Corporate Welfare Assistance
In 2008, banks received $700 billion in TARP funds to avert a global financial meltdown. A later study in 2014 found that banks took on riskier loans after they knew the bailout money was coming. So, in effect, the bailout set the precedent for riskier behavior.
A 2009 study found that the more connected a bank was to Federal Reserve boards and finance committees, the more likely it was to get higher levels of bailout funds.
The agricultural sector is supposed to help maintain our food supply and ensure that farmers don’t go out of business. Unfortunately, it’s not always being used that way.
Fifty people on the Forbes 400 wealthiest people in America list received farm subsidies before the 2014 farm bill was implemented. The largest 15% of farms take 85% of the funds, leaving small farmers in their dust.
Knowing You Aren’t Alone Is Half The Battle
Running a small business can be tough and it’s even tougher when you’re at a disadvantage. Look for other ways to compensate. Join a small business group in your area and pledge to work with other small businesses. Call your legislators at the federal, state and local levels and ask them to work toward a more level playing field. Small changes can add up over time.
Small businesses can compete if they band together. Don’t let an uneven playing field discourage you from following your dreams.
Learn more about corporate welfare from this infographic.
The post How Corporate Welfare Hurts Small Businesses appeared first on Dumb Little Man.
This article was first shared from Dumb Little Man
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Top E-2 Visa Requirements for Investors: Do You Qualify?
When deciding to file a petition for an E-2 work visa, it’s important to be aware of the key E-2 visa requirements for investors and individual guidelines. USCIS defines an E-2 investment as “the investor’s placing of capital, including funds and other assets, at risk in the commercial sense with the objective of generating a profit. Your investment may be to establish a new business venture, or purchase a pre-existing business.”
An E-2 treaty investor visa is a non-immigrant visa reserved for foreign entrepreneurs of countries that have a Treaty of Trade and Commerce with the United States. E-2 investor visa allows foreign investors to enter and work inside of the United States based on a substantial investment in a bona fide enterprise. In this article, we’re going to explain the top E-2 Visa Requirements for Investors and the qualifications.
There are two types of investor visas so before looking into E-2 visa requirements for investors you want to make sure the E-2 visa is the right fit for you as a foreign investor. If the E-2 visa isn’t the correct fit for you, there is also the option of an EB-5 investor green card.
On an E-2 visa, you may:
Work legally in the company that is the investment vehicle in the U.S.
Travel freely in and out of the U.S.
Stay on a prolonged basis with unlimited two-year extensions as long as you maintain E-2 qualifications
Be accompanied by your dependents under 21, relatives and spouse. Your spouse may also work while in the U.S. while your dependents may attend U.S. schools, colleges, and universities, and do not have to apply for a separate student visa.
However, the disadvantages are as follows:
E-2 visas are available only to nationals of countries (listed below) having investment treaties with the U.S.
You are restricted to work only for the specific employer or self-owned business that acted as your E-2 visa sponsor
E-2 visas are approved for two years at a time which makes the application/extension process slow.
Key E-2 Visa Requirements for Investors to Qualify
The E-2 visa minimum investment requirement is that you invest in a bona fide enterprise. By failing to do this, your petition will not qualify. A bona fide enterprise is defined by the immigration authorities as “a real, active commercial or entrepreneurial undertaking which produces services or goods for profit”.
Some of the evidence you may submit to demonstrate that your business is bona fide includes:
Notice of assignment of an Employer Identification Number from the Internal Revenue Service (IRS)
Tax returns
Financial statements
Quarterly wage reports or payroll summaries (i.e., W-2s and W-3)
Business organizational chart
Business licenses
Bank statements, utility bills, and advertisements/telephone directory listings
Contracts or customer/vendor agreements
Escrow documents
Lease agreement
There are a few key E-2 visa requirements for investors that will help you prepare your petition and ensure that you are a qualifying applicant. You can check the status after completing your petition.
The Investor Must Be a National of a Treaty Country
Treaty countries currently include:
Argentina, Armenia, Australia, Austria, Bangladesh, Belgium, Bulgaria, Cameroon, Canada, Colombia, Costa Rica, Czech Republic, the Democratic Republic of the Congo, Ecuador, Egypt, Ethiopia, Finland, France, Georgia, Germany, Grenada, Honduras, Ireland, Italy, Jamaica, Japan, Kazakhstan, Korea, Kyrgyzstan, Liberia, Luxembourg, Mexico, Moldova, Mongolia, Morocco, Netherlands, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Poland, Republic of Congo, Romania, Senegal, Slovak Republic, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Thailand, Togo, Trinidad & Tobago, Tunisia, Turkey, Ukraine, United Kingdom, and Yugoslav.
It is important to note that you must be a legitimate citizen of one of the above countries in order to fulfill the E-2 visa requirements. It is not enough to maintain a legal permanent residency. Your current passport must be from one of these treaty countries. However, you do not have to be currently residing in a treaty country as long as your citizenship from a treaty country.
For example, if Mr. Cousteau is a citizen of France but has been living in China for the last eight years, he still fulfills the E-2 visa requirements and can apply.
Additional information regarding individual countries is available at the Bureau of Consular Affairs.
The Investment Must Be Substantial
It must be sufficient to ensure the successful operation of the enterprise. The percentage of investment for a low-cost business enterprise must be higher than the percentage of investment in a high-cost enterprise. While some investments of less than $100,000 are approved, it’s safe to say that the investment capital and reserves should total no less than $100,000.
Some evidence you can use to prove that the investment is substantial is corresponding personal and/or business bank statements, an itemized list of goods and materials purchased for the start-up, and corresponding financial accounting documentation. It’s also wise to put together a business plan that illustrates your projected success.
The Investor Must Place the Funds at Risk
“At risk” means that the investor is to be irrevocably committed. If you’re able to walk away from the investment without losing anything, you likely do not qualify. The applicant must have already spent the money towards the startup, purchase of a U.S. business, or enterprise. Loans secured with the assets of the investment enterprise are not allowed. The investment must be at risk of being lost due to the business or enterprise being unsuccessful.
To be safe, you may put the investment amount in an escrow account and have it transferred if your E-2 visa application is granted.
If you are purchasing an existing business, you should know all there is to know about the business and its counterparts. Learn all the components of the business and come to an educated conclusion of how well they are doing presently and how successful the business is projected to be. An escrow account is even more important for those buying an existing business. In this case, you and the seller of the business will agree on the terms and conditions of the business purchase and how to later transfer the money after reaching a conclusion.
The Investment Must Be a Real Operating Enterprise
A real operating enterprise means that the enterprise must be offering a tangible good or service. Examples of these enterprises are restaurants, retail stores, medical offices, etc. Speculative or idle investment such as real estate investments, undeveloped land, or stocks held by an investor who has no intent to direct the enterprise does not qualify. Similarly, uncommitted funds in a bank account or similar security are not considered an investment.
The Investment May Not Be Marginal
A marginal enterprise will not project enough return on investment to make a significant economic contribution. The enterprise must generate significantly more income than just to provide a living to the investor and family, or it must have a significant economic impact in the U.S.
The Investor Must Be Coming to the U.S. to Develop and Direct the Enterprise.
If the applicant is not the principal investor, he or she must be employed in a supervisory, executive, or highly specialized skill capacity. Ordinary skilled and unskilled workers do not qualify. The government will not grant you an E-2 visa if they don’t believe you play an important role in the enterprise.
You must show that you will develop and direct the investment enterprise by demonstrating ownership of at least 50 percent of the enterprise, or by possessing operational control through a managerial position or other corporate devices.
How Can An Employee Qualify?
In order for an employee of an investor to apply for this visa, there are a series of E-2 visa requirements that must be met:
Your employee must be a citizen of the same treaty country that the principle E-2 investor (you) maintains citizenship.
Your employee must qualify under the definition of an “employee” as stated in the U.S. legal code.
You must be able to prove that your employee is necessary for the fulfillment of your endeavor. This is easily proven if he or she is a manager or executive, but can also be proven if he or she has specialized knowledge that makes them instrumental to the operation or development of your enterprise.
Is Business Plan Required?
It is not an official E-2 visa requirement to have a business plan. However, it is highly recommended that you submit a comprehensive business plan along with your E-2 evidence. This is because the USCIS wants to see that your enterprise will create jobs and stimulate the economy in the U.S.
To prove this, you need to make it clear that you have experience starting a business or that your enterprise has a high likelihood of success. Submitting a business plan is the best way to accomplish this.
What are the Requirements for the E-2 Investment Amount?
Unlike the EB-5 visa that has specified minimum investment amounts for its two categories, the E-2 visa does not have a minimum for business capital and instead looks for “substantial capital”. What determines an appropriate investment amount varies widely depending on the size and nature of each business.
Officials at the embassy or USCIS use their discretion to consider whether an amount of investment capital is appropriate or not. Though it is widely believed that having a minimum of $100,000 capital is a good rule of thumb, in some cases, you may need more or less. For instance, a small shop or firm may be approved with an investment amount in the tens of thousands of dollars. In general, however, having a large investment amount will be helpful and make your case stronger. This is another critical area that requires working with an experienced E-2 visa immigration attorney.
Requirements for E-2 Visa Extension
There are two ways to extend your E-2 status. The first one is to travel outside the United States and re-enter. This will give you an automatic two-year renewal. The other option is to seek renewal in the U.S. by filing an extension request with the USCIS. To do this, you will need to submit a new I-129 petition, I-539 form, and other E-2 visa extension documents.
E-2 Visa Processing Time
The processing time for an E-2 visa varies widely depending on the embassy from which you are applying. In some embassies, the process may take just a few weeks, while in others you may have to wait a number of months. If you are applying from within the United States, you may use the premium processing service to have your visa application processed within 15 calendar days. Another factor that could help expedite the process is if you are buying an existing business that is already registered as an E-2 treaty enterprise.
E-2 Visa Processing Fee
The E-2 visa processing fee will depend on whether you are changing status from inside the U.S. or applying through consular processing outside the U.S.
E-2 Change of Status Processing Fees
I-129 petition: $460
I-539 form: $370
Premium processing fee (optional): $1,440
Consular Processing Fees
DS-160 visa application fee: $205
Visa issuance fee: This depends on your country
E-2 Visa Requirements May Vary Depending on Your Nationality
While E-2 visa is open to nationals of all treaty countries, there are certain country-specific requirements that depend on an applicant’s nationality.
Unusual Requirements for U.K. Nationals: The United Kingdom has an unusual requirement, which sets it apart from other countries. This is not surprising though as the U.K. was the first nation-state to have an E-2 visa treaty agreement with the U.S. dating back to 1815.
British nationals are required to show residence in the U.K. before they can qualify for an E-2 investor visa. While this may appear simple for British nationals, it may be complicated for those living outside of both countries. As a U.K. citizen living in another country, you may need to show one of the following to get your E-2 visa approved.
Ownership or rental of a home in the United Kingdom
U.K. tax returns
U.K. payslips
U.K.-based investments
Other connections you have in the U.K.
Visa Validity May Vary: The difference in E-2 visa validity is based on whether you apply in the United States or outside the U.S. through consular processing. For every E-2 visa issued by the USCIS in the United States, the validity is two years and is subject to renewal.
However, it is not the same for those going the consular processing route. An E-2 visa issued through consular processing has an initial validity period of five years for many treaty countries. For some other countries with low reciprocity, the validity may be lower and can range from four years to as little as three months. For instance, the validity period is four years for Switzerland nationals and two years for Singaporeans. Nationals of Bangladesh, Moldova, Bahrain, Azerbaijan, and a few others are only eligible for a three-month validity period. The good news is that, regardless of your validity, once you get to the U.S., you can continue to extend your stay indefinitely.
Does the E-2 Validity Period Determine How Long an E-2 Investor Can Stay in the United States?
The validity doesn’t determine how long you can stay in the United States. As long as you maintain the rules guiding your status which include starting and running a qualified business, you can renew your visa and stay in the U.S. indefinitely.
The validity period is only based on only how long you have before the visa expires or how long you can use the same visa to travel abroad and re-enter the United States. If you are granted an E-2 visa with a five-year validity period, you can use the same visa to re-enter the United States as many times as needed within the five-year period.
The same cannot be said of those with a three-months validity period. Once such applicants get to the United States, they will first be given two years to run their business. However, if they travel out of the United States, they will have to apply for a new visa at the embassy before they can re-enter the U.S. The reciprocity status surrounding the E-2 visa can sometimes be complicated. It is important to work with an immigration attorney to help you determine what the rule says based on your nationality.
E-2 Visa Requirements for Investors Recap
Filing for a visa can be quite complex and labor-intensive, which is why it’s best to always consult a professional with this type of experience. If you believe you meet the E-2 visa requirements for Investors then the next step is to give us a call to start the filing process and gather the materials necessary to send to USCIS.
In the event that you do not meet the E-2 visa requirements for Investors then we’ll offer other visa options that may be more suitable for your case. Due to the time-sensitive nature of these filings, however, it’s ideal to get started immediately because other appropriate visas may have a fixed quota/annual allotment like the H-1B visa for instance.
Our Lawyers Are Waiting to Help You
Do you need assistance filing for an E-2 visa? Our lawyers can help you file an E-2 visa based on the USCIS and U.S. Department of State guidelines. With years of experience helping investors get their start in the U.S., we are uniquely equipped with the knowledge to help you with your specific E-2 case.
By filling out this contact form, you can schedule a consultation with one of our immigration attorneys and get started on the road to success through our firm.
During your consultation, we’ll explain which course of action will suit your case best. We may determine that you do not qualify for an E-2 visa and suggest more suiting non-immigrant status alternatives.
Related Pages: E-2 Visa Requirements for Investors
Investor Visa
E-2 Treaty Investor Visa Requirements
E-2 Visa Renewal and Extension
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Wealth Matrix Login - The Official Wealth Matrix 2020
In 2019, Wealth Matrix revealed the most complex stage that the business has seen to date. Wealth Matrix conveys an online apparatus (the "Stage") permitting clients to openly exchange between a wide range of virtual monetary forms ("Cryptocurrency").
Entering the advanced cash advertise, Wealth Matrix has separate itself from its rivals by testing industry measures for digital money trades of level monetary forms. All cryptographic forms of money on the stage can be exchanged against USD, EUR, and BTC.
Its engineers comprehended the market's requirement for advancement and better exchange execution, and made a trade stage which currently underpins mainstream cryptographic forms of money, Bitcoin, Ethereum and most as of late, Ripple, just as a few specialty virtual monetary forms as Litecoin and DASH.
Wealth Matrix Features
Speed is a basic part in successful exchange execution, yet there are other key factors also. As the world's quickest trade motor, Wealth Matrix offers probably the most secure, imaginative highlights that have increased the business expectation for digital currency trades to a more elevated level.
Organizing the necessities of the general worldwide cryptographic money network as a primary concern just as the individual client, Wealth Matrix has created uncommon highlights to take into account ease with utilization.
Versatile Friendly
In addition to the fact that Wealth Matrix provides electronic preparing and a trade stage, it likewise empowers access to versatile clients. This stage can be gotten to from any cell phone, permitting the client to execute exchanges from anyplace on the planet with a Wi-Fi association.
In the present quick paced society, this component shows that Wealth Matrix has their finger on the beat of the client's needs.
Open Source
Wealth Matrix permits programming engineers to have total API get to, engaging them to make solid, successful cryptographic money applications incorporating these accessible apparatuses and administrations from Wealth Matrix into their applications.
Speculation Platform
Wealth Matrix likewise gives a solid speculation stage, empowering clients to partake in edge exchanging and edge loaning, while at the same time accepting mechanized exchanging help. Designers are at present taking a shot at upgrading Wealth Matrix's venture highlights.
Beginning With Wealth Matrix
Joining with Wealth Matrix is a straightforward procedure. In the first place, the client needs to enroll an individual free record on the site. This progression doesn't require a Visa, and no record data is required. At that point, make a store with either conventional cash or digital money.
Wealth Matrix gives adaptable store choices to the client, for example, SWIFT bank wire move, SEPA European exchanges, OKPAY and AdvCash and the sky is the limit from there. Once Wealth Matrix has gotten the store (which can take short of what one moment), the client is quickly attributed and can start to purchase and sell Bitcoins, Litecoins, Ethereum, Iconomi.
When exchanging and pulling back cryptographic forms of money, the client is allowed moment access to withdrawal reserves. Run and Iconomi can be exchanged for Dollars and Euro, and the AdvCash e-wallet permits clients to make stores and withdrawals to/from their Wealth Matrix accounts.
Wealth Matrix Customer Convenience
Guaranteeing that clients get the best client care understanding, Wealth Matrix gives a moderate, easy to understand interface alongside prepared experts who can without much of a stretch give direction and arrangements, if issues emerge.
Wealth Matrix's client support group is outfitted with experts who have ability in digital money and the stage's activities. The Wealth Matrix helpdesk is brisk, effective and clever; all inquiries are welcome. Backing is ensured.
Wealth Matrix Top-Notch Security
With the hacks and security breaks experienced by numerous digital money stages lately, Wealth Matrix pays attention to its foundation's security very. Its engineers have made a cutting edge security which has organize insurance, arrange reinforcement, a solid, present day framework, cold stockpiling and propelled checking.
These additional proportions of security guarantee that the clients' assets and put away information are ensured and secure consistently.
Wealth Matrix Background and Founder
Wealth Matrix, the inventive online exchanging and money trade stage, was shaped in Dublin, Ireland in 2016. Today, the Irish startup's base camp are situated in Fitzwilliam Street in focal Dublin where its originator and CEO, Aidas Rupsys is deliberately arranging the up and coming dispatch of full-scale speculation stage.
As a result of the accomplishment of Wealth Matrix in just under one year, Rupsys believes this stage to be the biggest and most effective digital currency exchanging stage Ireland to date. Wealth Matrix endeavors to continue improving its model by tuning in to client input and changing its abilities to the developing needs of the business and client.
Wealth Matrix Recent Developments
Wealth Matrix has been staying at work past 40 hours to improve its developing stage to make exchanging cryptographic forms of money and level as basic as feasible for its clients. In ongoing turns of events, Wealth Matrix has included XRP (Ripple) to its cryptographic money to-fiat spot trade administrations.
After their new increases (AdvCash, DASH and Iconomi exchanges) which were reported in mid 2017, Wealth Matrix stayed tuned into Ripple's standard presentation for the following hardly any months. It wasn't some time before Wealth Matrix comprehended Ripple's latent capacity effect and chose to remember the digital currency to its extending stage for June 2017.
So, Ripple empowers sheltered, moment and "about free" worldwide budgetary exchanges of any size with no chargebacks as it depends on a mutual, open database which uses an accord procedure that takes into consideration installments, trades, and settlement in a smoothed out procedure.
Wealth Matrix Summary
The organization's present target is to keep being a quickly developing, solid and easy to use answer for exchanging cryptographic forms of money and computerized resources. Wealth Matrix intends to add further crypto-to-fiat and crypto-to-crypto exchanging sets to meet the market's desires. As its organizer referenced, Wealth Matrix's cryptographic money trade is as of now the greatest in Ireland.
On the off chance that Wealth Matrix keeps on watching the present business patterns, tune in to client input and fuse advancement in its new turns of events, it will before long change into a top driving stage on the planet.
https://www.cryptoerapro.com/wealth-matrix/ https://www.facebook.com/wealthmatrixsapp/ https://www.facebook.com/events/173166664001897/ https://www.youtube.com/watch?v=i_BWkDOYAm8 https://cryptoerapro.blogspot.com/2020/05/wealth-matrix-reviews.html https://sites.google.com/site/cryptoerapro/wealth-matrix http://cryptoerapro.over-blog.com/wealth-matrix-reviews.html https://medium.com/@cryptoerapro/wealth-matrix-reviews-scam-or-secure-software-fb11dbb2d95 https://www.pinterest.co.uk/pin/858569116451717731 https://www.instagram.com/cryptoerapro/ https://twitter.com/cryptoerapro https://www.dailymotion.com/video/x7tthnm https://videa.hu/videok/hirek-politika/wealth-matrix-reviews-2020-is-jolet-lpGZ6U3GXyLUzLF9 https://tampa.eventful.com/events/wealth-matrix-/E0-001-134751731-9@2020051003 http://www.lacartes.com/business/Wealth-Matrix/1607099
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Blockchain in Fintech Market Opportunities, Comprehensive Analysis, Segmentation, Business Revenue, Future Plans, Application, Technological Advancement, Top Key Players, Financial Overview and Forecast to 2023
Market Highlights
Blockchain in fintech market is expected to grow from USD 231.63 million in 2017 to USD 6700.63 million by 2023, at a compound annual growth rate (CAGR) of 75.2% during the forecast period.
MRFR concludes in a recent research study that one out of three fintech companies is planning to adopt blockchain solutions by 2020 owing to improved capital optimization, reduced counterparty risks, enhanced transparency, and reduction in error handling & reconciliation. Major uses of blockchain in fintech can be seen in post-trade settlement, digital identity management, payment infrastructure, fund transfer infrastructure, securitization, regulatory compliance and audit, trade finance, syndication in lending and insurance. Out of these use cases, more than 60% of post-trade settlement services use blockchain technology, followed by digital identity management and payment infrastructure.
Blockchain in the near future is expected to offer tremendous potential to a wide range of industries by bringing radical changes into business models and operating processes such as payment settlement, accounting or the use of customer and loyalty cards. One of the MRFR findings suggest that implementation of blockchain in fintech would help fintech companies to save cost by 70–80% for a syndicate loan transaction facilitated by banks. Furthermore, blockchain based startups in the fintech industry are growing tremendously, as blockchain technology provides universal solution and fits most of the fintech objectives. MRFR has predicted that more than 65% of startups are expected to implement blockchain technology in their processes by 2020.
Blockchain technology is expected to play a role in some aspects of operational risk management (ORM) that includes anti-money laundering, conduct risks, counter terrorist financing, cybersecurity, and geopolitical issues among others. Most of the fintech companies are integrating blockchain technology into apps that optimize offerings via mobile platforms. MRFR has also analyzed that mobile banking and payments through blockchain are expected to reach $90 billion by 2019.
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Segmentation:
By service provider, the market is segmented into application and solutions, middleware & services and infrastructure & base protocols.
By interaction channel, the market is segmented into bank branches, mobile applications, websites, call centers, and others.
By organization size, the market is segmented into large enterprise and SME.
By application, the market is segmented into banking, payment, smart contracts, trade & supply chain finance, capital market, risk management & compliance, insurance, digital identity management, and others.
By region, the market is segmented into North America, Europe, Asia-Pacific and the rest of the world
Regional Analysis:
The global market for blockchain in fintech is estimated to grow at a significant rate during the forecast period from 2018 to 2023. The geographical analysis of blockchain in fintech market is covered for North America, Europe, Asia-Pacific, and the rest of the world.
North America is expected to contribute the highest market share owing adoption of the blockchain technology to develop business applications, rapid adoption of advanced technology & infrastructure, and presence of a significant number of key industry players in this region. Furthermore, Asia-Pacific is expected to be the fastest growing region owing to an increase in the overall investments in the blockchain technology solutions in the finance industry. Financial hubs like Hong Kong and Singapore are expected to provide huge opportunities for the adoption of blockchain applications in the financial industry.
Competitive Dashboard:
The prominent players in the blockchain in fintech market are Amazon Web Services, Inc. (US), IBM Corporation (US), Microsoft Corporation (US), Ripple (US), Chain Inc (US), Earthport PLC. (UK), Bitfury Group Limited (US), BTL Group (Canada), Oracle Corporation (US) and Digital Asset Holdings (US). However, by eliminating the intermediaries and increasing the efficiency, blockchain is expected to minimize the cost incurred in transaction processes and infrastructure for finance companies by over 50%.
Other players in the blockchain in fintech market are Circle Internet Financial Limited (Ireland), Factom (US), AlphaPoint (US), Coinbase (US), Plutus Financial, Inc. (US), Auxesis Group (India), BitPay (US), BlockCypher, Inc. (US), Applied Blockchain Ltd. (UK), RecordesKeeper (Spain), Symbiont.io (US), Guardtime (Estonia), Cambridge Blockchain, LLC. (US), Tradle (US), and Blockchain Advisory Mauritius Foundation (Mauritius) among others.
Browse Complete Report @ https://www.marketresearchfuture.com/reports/blockchain-fintech-market-6368
List of Tables
Table 1 Global Blockchain In Fintech Market, By Region, 2018–2023
Table 2 North America: Blockchain In Fintech Market, By Country, 2018–2023
Table 3 Europe: Blockchain In Fintech Market, By Country, 2018–2023
Table 4 Asia-Pacific: Blockchain In Fintech Market, By Country, 2018–2023
Table 5 Middle East & Africa: Blockchain In Fintech Market, By Country, 2018–2023
Table 6 Latin America: Blockchain In Fintech Market, By Country, 2018–2023
Table 7 Global Blockchain In Fintech Service Provider Market, By Region, 2018–2023
Table 8 North America: Blockchain In Fintech Service Provider Market, By Country, 2018–2023
Table 9 Europe: Blockchain In Fintech Service Provider Market, By Country, 2018–2023
Table10 Asia-Pacific: Blockchain In Fintech Service Provider Market, By Country, 2018–2023
About Market Research Future:
At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research & Consulting Services.
MRFR team have supreme objective to provide the optimum quality market research and intelligence services to our clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help to answer all their most important questions.
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UK fintech Jaja pays $671M in cash to acquire the Bank of Ireland’s UK credit card business
Fintech has been one of the bigger stories of the UK startup world — due in no small part to the fact that its capital, London, is also one of the world’s major financial centers. Today, one of those startups made a big splash by buying an incumbent business, and taking on an equity investment alongside that, to scale up its position in the market.
Jaja, a mobile-first business that provides digital and physical credit cards and other financing services, today announced that it will be acquiring the UK credit card accounts for an initial cash consideration of £530 million (or $671 million at current rates). It will also become the consumer credit card issuer for the Bank’s UK business and the AA. At the same time it’s also getting an equity investment of £20 million in its own business.
“This announcement with Bank of Ireland UK is an exciting and important development in Jaja’s journey and is part of our strategy to create partnerships that will help more people embrace a simpler way of managing credit,” said Neil Radley, CEO of Jaja Finance, in a statement. “Our vision is to enable a new generation of mobile-first credit card products with unrivalled functionality, service and security. We’re excited to be welcoming Bank of Ireland UK customers as cardholders.”
The Bank of Ireland’s UK credit business includes a number of key accounts covering the AA (UK’s Automobile Association), the Post Office, as well as a card branded Bank of Ireland itself. (It excludes the bank’s commercial card business in the Republic of Ireland.)
The Bank had put the business up for sale some time ago as part of a bigger strategy to divest of its capital-intensive, competitive operations in a push to grow profitability by improving its loans and mortgages business: amid that, the Bank’s wider UK business has been a challenge for it, with investors going so far as to value the UK business at zero earlier this month.
“Jaja is an innovative company which shares our commitment to delivering outstanding customer service. We are proud to partner with them and bring their next generation credit card to customers across the UK,” said Bank of Ireland UK CEO Des Crowley in a statement. “Today’s announcement demonstrates the Bank’s continued progress in delivering against its strategic targets for growth and transformation to 2021, as set out at its Investor Day in June 2018.”
Jaja’s deal is being done in partnership with KKR, Centerbridge Partners and other unnamed investors, who are helping finance the acquisition and are also putting £20 million ($25 million) of equity investment into Jaja (pronounced “yah-yah”) alongside it. Prior to this, Jaja had raised about about $16 million, including about £3 million by way of the Seedrs crowdfunding platform.
The company is not disclosing its valuation amid this $671 million purchase.
A spokesperson for Jaja said the startup is not releasing any numbers today that point to how much the company’s current services are being used. The company, which is today active only in the UK, has taken the route of keeping a waitlist to onboard new users, and it was reported to have some 6,000 people on it back in February just ahead of the Jaja launching its cards.
The company also has a deal with Asda, the UK business of Walmart, to provide financing at the point of sale for its online storefront George.com (an Amazon-type everything store akin to Walmart.com). Given that Jaja has up to now not operated on a massive scale — even if it took on its whole waitlist, that would only number 6,000 customers, for example — it’s likely that this latest acquisition will be adding a sizeable number of users, and key brands, into its stable in one fell swoop.
Jaja was founded by Jostein Svendsen, Kyrre Riksen and Per Elvebakk — London-based Norwegian entrepreneurs who have previously found and sold other financial and tech startups (Svenden, for example, sold a previous company to American Express) — and is currently led by CEO Neil Radley, who had previously been the MD for Barclaycard in Western Europe.
Its key mission has been to bring a more modern approach to the world of credit and credit cards. That in itself is not hugely unique — it is essentially the purpose of all consumer-facing credit startups today — but given that the vast majority of credit services, and transactions, are still handled through traditional channels, it’s disruptive nonetheless.
The company describes itself as digital, mobile-first business, which in its case means that you apply for and initiate services through the company’s app — using your phone’s camera to snap your ID and an AI-based algorithm that takes in other data about you to provide what Jaja describes as “near instant” credit decisions within minutes. Jaja provides physical cards (Visa is its credit card partner), but it also allows people to use the cards through their digital wallets immediately. The company does not change for foreign currency exchanges and offers free cash withdrawal fees, with an annual percentage rate (APR) of 18.9%. And in keeping with what is now par for the course for challenger fintech services, you can use the app to get real-time updates on your account, modify repayments and more.
On that note, in addition to the challenge of onboarding a number of established brands and a large number of users on to a new platform that up to now has been adding users intentionally slowly, it will be interesting to see how and if Jaja can inject more modern infrastructure into those established operations, and a customer base that’s used to the traditional way of doing things. For now, it says that customers of those services will continue to use them as they have done.
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Less Well Known Autonomous Car Stocks
Less Well Known Autonomous Car Stocks
Car manufacturers have fully embraced self-driving or autonomous cars. It is not because they have heard a loud clamor for such technology from consumers. No, automakers are keen on the idea because manufacture of self-driving cars could help them overcome the short comings of highly cyclical sales pattern associated with its car dependent upon a single driver. In other words, they are in it for themselves whether consumers benefit or not.
If consumers are not so important, at least investors should benefit. Besides the car manufacturers there are a few smaller companies that can give investors a taste of the self-driving car phenomenon.
LiDar and Sensors
Self-driving cars will not go far without guidance input about its immediate environment. LiDar is a surveying method works much like radar, but uses pulsed laser light to illuminate a target and then measure the reflected pulses with sensors. Differences in laser return times and wavelengths are then used to create three dimensional representations of a target. Such systems show great utility for controlling autonomous vehicles.
A key player in the LiDar field is LedderTech, a privately-held developer of sensor technology. LedderTech just landed a $24 million bridge financing in the form of a revolving loan from Desjardins Group and a convertible note from Desjardins-Innovatech. Expect LedderTech to come back to the capital market in the coming months to secure a longer-term financing. In September 2017, the company closed a $101 million venture capital round that included investments by Osram Licht AG (OSR: DE), Aptiv and Integrated Device Technology (IDTI: Nasdaq). GCA Advisors acted as the placement agent for the earlier round and could be a likely conduit for investors seeking a spot in LedderTech’s next financing.
The APTIV-Lyft vehicle with autonomous technology drives on the strip Thursday, November 30, 2017 in Las Vegas, Nevada.
New car technologies are not just in the hands of high risk startups. Headquartered in Ireland, Aptiv Plc. (APTV: NYSE) manufactures electronic components and safety technology for cars and commercial vehicles. Aptiv was previously called Delphi Automotive and is the remaining business after spin out of Delphi’s legacy power train division.
What is left in Aptiv is the company’s autonomous vehicle technology. Aptiv deployed thirty self-driving BMWs in Las Vegas for use in a network service sponsored by the on-demand transportation service Lyft. The cars are outfitted with Aptiv’s LiDar and ultrasonic sensors. After a four-month trial period, Aptiv celebrated a record 96% of riders giving the service a five-star rating.
Aptiv is fortified with acquired technology as well as its own. Aptiv paid $450 million to acquire nuTonomy, a technology spin-out of the Massachusetts Institute of Technology. Just like Lyft, nuTonomy has its eye on the nascent market for ‘automated mobility on demand.’ Lyft also deployed nuTonomy’s software solution in a car ride service in Boston.
Aptiv represents an old school company with a new age product line. As such it presents a particularly compelling way to participate in the autonomous vehicle growth opportunities. The company reported $1.0 billion in net income or $4.05 per share on $14.2 billion in total sales in the twelve months ending September 2018. Aptiv is even mature enough to have established a dividend that delivers 1.4% yield at the current price level.
Lyft of its Own
Since partnering with Aptiv and several others with autonomous driving technology, Lyft made a strategic decision to develop its own technologies. Building its experience in Las Vegas with the automated car service, Lyft appears poised to become a strong player in not only a competent service provider, but also a technology leader.
Privately-held Lyft is reportedly planning an initial public offering in 2019. Until then investors could tap into Lyft’s ambition through its various investors. One is option is Canada’s Tier One auto parts manufacturer Magna International, Inc. (MGA: NYSE). Lyft received a $200 million investment from Magna as part of a $1.0 billion venture capital round led by Google’s CapitalG. The deal valued Lyft at $11.7 billion, providing the hint of a very exciting IPO!
Watchful Eye
Collision avoidance is important for self-driving cars and driver controlled cars alike. Intel’s subsidiary Mobileye Vision Technology Ltd. based in Israel has taken a lead in developing an advanced driver assistance system that is marketed to fleet owners such as trucking companies, law enforcement and bus line operators. Intel claims Mobileye has captured as much as 70% of the market for driver assistance systems that have been included on at least 27 million cars already on the road.
Mobileye really did not capture anyone’s attention until it landed a contract to supply an upgrade of its EyeQ4 to as the eyes of automated cars. Mobileye reportedly was in direct competition with Nvidia Corporation (NVDA: Nasdaq) for the order.
Of course, the only way to get a stake in the ‘eyes’ of autonomous cars is to buy shares in its semiconductor industry partner, Intel (INTC: Nasdaq). There are worse investments. Intel delivers 21% return on equity and its dividend currently provides a 2.6% yield.
Mobility as a Service
If a large semiconductor company with interests in automotive components is not appealing, private-held Zoox, Inc. might be an alternative. Zoox is a very early stage company with lofty goals for autonomous driving technology and mobility services. Zoox distinguished itself by become the first company to be allowed to test driverless cars in California with real passengers. The company wants to debut a ride-hailing service using autonomous vehicles as early as 2020.
It is an ambitious goal and that takes money. Zoox has already raise a total of $800 million in two venture capital rounds.
Before investors start writing checks to invest in Zoox, the risks of an early stage operation should be fully considered. The company has none of the stuffy protocols of an established operator like Intel or Aptiv. However, there is still a bit of instability at Zoox as evidenced by the firing one of its founders just a few weeks after the closing of the round one financing.
These are dozens of companies, large and small, homing in on autonomous driving and the services that could develop using the technology. The movement portends a significant change in the automotive industry as well as transportation fuel. The individually directed car and its combustion engine have been a central part of modern American culture. The muscle car of the fifties and all its attendant images of machismo and power is likely to become a thing of past. It will be interesting to see what imagery advertisers and brand managers conjure up for the car that does everything.
Debra Fiakas is the Managing Director of Crystal Equity Research, an alternative research resource on small capitalization companies in selected industries. Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.
This article was first published on the Small Cap Strategist weblog on 12/21/18 as “Stake in Autonomous Cars.”
The post Less Well Known Autonomous Car Stocks appeared first on Alternative Energy Stocks.
http://bit.ly/2LKNUII
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Less Well Known Autonomous Car Stocks
Less Well Known Autonomous Car Stocks
Car manufacturers have fully embraced self-driving or autonomous cars. It is not because they have heard a loud clamor for such technology from consumers. No, automakers are keen on the idea because manufacture of self-driving cars could help them overcome the short comings of highly cyclical sales pattern associated with its car dependent upon a single driver. In other words, they are in it for themselves whether consumers benefit or not.
If consumers are not so important, at least investors should benefit. Besides the car manufacturers there are a few smaller companies that can give investors a taste of the self-driving car phenomenon.
LiDar and Sensors
Self-driving cars will not go far without guidance input about its immediate environment. LiDar is a surveying method works much like radar, but uses pulsed laser light to illuminate a target and then measure the reflected pulses with sensors. Differences in laser return times and wavelengths are then used to create three dimensional representations of a target. Such systems show great utility for controlling autonomous vehicles.
A key player in the LiDar field is LedderTech, a privately-held developer of sensor technology. LedderTech just landed a $24 million bridge financing in the form of a revolving loan from Desjardins Group and a convertible note from Desjardins-Innovatech. Expect LedderTech to come back to the capital market in the coming months to secure a longer-term financing. In September 2017, the company closed a $101 million venture capital round that included investments by Osram Licht AG (OSR: DE), Aptiv and Integrated Device Technology (IDTI: Nasdaq). GCA Advisors acted as the placement agent for the earlier round and could be a likely conduit for investors seeking a spot in LedderTech’s next financing.
The APTIV-Lyft vehicle with autonomous technology drives on the strip Thursday, November 30, 2017 in Las Vegas, Nevada.
New car technologies are not just in the hands of high risk startups. Headquartered in Ireland, Aptiv Plc. (APTV: NYSE) manufactures electronic components and safety technology for cars and commercial vehicles. Aptiv was previously called Delphi Automotive and is the remaining business after spin out of Delphi’s legacy power train division.
What is left in Aptiv is the company’s autonomous vehicle technology. Aptiv deployed thirty self-driving BMWs in Las Vegas for use in a network service sponsored by the on-demand transportation service Lyft. The cars are outfitted with Aptiv’s LiDar and ultrasonic sensors. After a four-month trial period, Aptiv celebrated a record 96% of riders giving the service a five-star rating.
Aptiv is fortified with acquired technology as well as its own. Aptiv paid $450 million to acquire nuTonomy, a technology spin-out of the Massachusetts Institute of Technology. Just like Lyft, nuTonomy has its eye on the nascent market for ‘automated mobility on demand.’ Lyft also deployed nuTonomy’s software solution in a car ride service in Boston.
Aptiv represents an old school company with a new age product line. As such it presents a particularly compelling way to participate in the autonomous vehicle growth opportunities. The company reported $1.0 billion in net income or $4.05 per share on $14.2 billion in total sales in the twelve months ending September 2018. Aptiv is even mature enough to have established a dividend that delivers 1.4% yield at the current price level.
Lyft of its Own
Since partnering with Aptiv and several others with autonomous driving technology, Lyft made a strategic decision to develop its own technologies. Building its experience in Las Vegas with the automated car service, Lyft appears poised to become a strong player in not only a competent service provider, but also a technology leader.
Privately-held Lyft is reportedly planning an initial public offering in 2019. Until then investors could tap into Lyft’s ambition through its various investors. One is option is Canada’s Tier One auto parts manufacturer Magna International, Inc. (MGA: NYSE). Lyft received a $200 million investment from Magna as part of a $1.0 billion venture capital round led by Google’s CapitalG. The deal valued Lyft at $11.7 billion, providing the hint of a very exciting IPO!
Watchful Eye
Collision avoidance is important for self-driving cars and driver controlled cars alike. Intel’s subsidiary Mobileye Vision Technology Ltd. based in Israel has taken a lead in developing an advanced driver assistance system that is marketed to fleet owners such as trucking companies, law enforcement and bus line operators. Intel claims Mobileye has captured as much as 70% of the market for driver assistance systems that have been included on at least 27 million cars already on the road.
Mobileye really did not capture anyone’s attention until it landed a contract to supply an upgrade of its EyeQ4 to as the eyes of automated cars. Mobileye reportedly was in direct competition with Nvidia Corporation (NVDA: Nasdaq) for the order.
Of course, the only way to get a stake in the ‘eyes’ of autonomous cars is to buy shares in its semiconductor industry partner, Intel (INTC: Nasdaq). There are worse investments. Intel delivers 21% return on equity and its dividend currently provides a 2.6% yield.
Mobility as a Service
If a large semiconductor company with interests in automotive components is not appealing, private-held Zoox, Inc. might be an alternative. Zoox is a very early stage company with lofty goals for autonomous driving technology and mobility services. Zoox distinguished itself by become the first company to be allowed to test driverless cars in California with real passengers. The company wants to debut a ride-hailing service using autonomous vehicles as early as 2020.
It is an ambitious goal and that takes money. Zoox has already raise a total of $800 million in two venture capital rounds.
Before investors start writing checks to invest in Zoox, the risks of an early stage operation should be fully considered. The company has none of the stuffy protocols of an established operator like Intel or Aptiv. However, there is still a bit of instability at Zoox as evidenced by the firing one of its founders just a few weeks after the closing of the round one financing.
These are dozens of companies, large and small, homing in on autonomous driving and the services that could develop using the technology. The movement portends a significant change in the automotive industry as well as transportation fuel. The individually directed car and its combustion engine have been a central part of modern American culture. The muscle car of the fifties and all its attendant images of machismo and power is likely to become a thing of past. It will be interesting to see what imagery advertisers and brand managers conjure up for the car that does everything.
Debra Fiakas is the Managing Director of Crystal Equity Research, an alternative research resource on small capitalization companies in selected industries. Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.
This article was first published on the Small Cap Strategist weblog on 12/21/18 as “Stake in Autonomous Cars.”
The post Less Well Known Autonomous Car Stocks appeared first on Alternative Energy Stocks.
http://bit.ly/2LKNUII
0 notes
Text
UK fintech Jaja pays $671M in cash to acquire the Bank of Ireland’s UK credit card business
Fintech has been one of the bigger stories of the UK startup world — due in no small part to the fact that its capital, London, is also one of the world’s major financial centers. Today, one of those startups made a big splash by buying an incumbent business, and taking on an equity investment alongside that, to scale up its position in the market.
Jaja, a mobile-first business that provides digital and physical credit cards and other financing services, today announced that it will be acquiring the UK credit card accounts for an initial cash consideration of £530 million (or $671 million at current rates). It will also become the consumer credit card issuer for the Bank’s UK business and the AA. At the same time it’s also getting an equity investment of £20 million in its own business.
“This announcement with Bank of Ireland UK is an exciting and important development in Jaja’s journey and is part of our strategy to create partnerships that will help more people embrace a simpler way of managing credit,” said Neil Radley, CEO of Jaja Finance, in a statement. “Our vision is to enable a new generation of mobile-first credit card products with unrivalled functionality, service and security. We’re excited to be welcoming Bank of Ireland UK customers as cardholders.”
The Bank of Ireland’s UK credit business includes a number of key accounts covering the AA (UK’s Automobile Association), the Post Office, as well as a card branded Bank of Ireland itself. (It excludes the bank’s commercial card business in the Republic of Ireland.)
The Bank had put the business up for sale some time ago as part of a bigger strategy to divest of its capital-intensive, competitive operations in a push to grow profitability by improving its loans and mortgages business: amid that, the Bank’s wider UK business has been a challenge for it, with investors going so far as to value the UK business at zero earlier this month.
“Jaja is an innovative company which shares our commitment to delivering outstanding customer service. We are proud to partner with them and bring their next generation credit card to customers across the UK,” said Bank of Ireland UK CEO Des Crowley in a statement. “Today’s announcement demonstrates the Bank’s continued progress in delivering against its strategic targets for growth and transformation to 2021, as set out at its Investor Day in June 2018.”
Jaja’s deal is being done in partnership with KKR, Centerbridge Partners and other unnamed investors, who are helping finance the acquisition and are also putting £20 million ($25 million) of equity investment into Jaja (pronounced “yah-yah”) alongside it. Prior to this, Jaja had raised about about $16 million, including about £3 million by way of the Seedrs crowdfunding platform.
The company is not disclosing its valuation amid this $671 million purchase.
A spokesperson for Jaja said the startup is not releasing any numbers today that point to how much the company’s current services are being used. The company, which is today active only in the UK, has taken the route of keeping a waitlist to onboard new users, and it was reported to have some 6,000 people on it back in February just ahead of the Jaja launching its cards.
The company also has a deal with Asda, the UK business of Walmart, to provide financing at the point of sale for its online storefront George.com (an Amazon-type everything store akin to Walmart.com). Given that Jaja has up to now not operated on a massive scale — even if it took on its whole waitlist, that would only number 6,000 customers, for example — it’s likely that this latest acquisition will be adding a sizeable number of users, and key brands, into its stable in one fell swoop.
Jaja was founded by Jostein Svendsen, Kyrre Riksen and Per Elvebakk — London-based Norwegian entrepreneurs who have previously found and sold other financial and tech startups (Svenden, for example, sold a previous company to American Express) — and is currently led by CEO Neil Radley, who had previously been the MD for Barclaycard in Western Europe.
Its key mission has been to bring a more modern approach to the world of credit and credit cards. That in itself is not hugely unique — it is essentially the purpose of all consumer-facing credit startups today — but given that the vast majority of credit services, and transactions, are still handled through traditional channels, it’s disruptive nonetheless.
The company describes itself as digital, mobile-first business, which in its case means that you apply for and initiate services through the company’s app — using your phone’s camera to snap your ID and an AI-based algorithm that takes in other data about you to provide what Jaja describes as “near instant” credit decisions within minutes. Jaja provides physical cards (Visa is its credit card partner), but it also allows people to use the cards through their digital wallets immediately. The company does not change for foreign currency exchanges and offers free cash withdrawal fees, with an annual percentage rate (APR) of 18.9%. And in keeping with what is now par for the course for challenger fintech services, you can use the app to get real-time updates on your account, modify repayments and more.
On that note, in addition to the challenge of onboarding a number of established brands and a large number of users on to a new platform that up to now has been adding users intentionally slowly, it will be interesting to see how and if Jaja can inject more modern infrastructure into those established operations, and a customer base that’s used to the traditional way of doing things. For now, it says that customers of those services will continue to use them as they have done.
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Less Well Known Autonomous Car Stocks
Less Well Known Autonomous Car Stocks
Car manufacturers have fully embraced self-driving or autonomous cars. It is not because they have heard a loud clamor for such technology from consumers. No, automakers are keen on the idea because manufacture of self-driving cars could help them overcome the short comings of highly cyclical sales pattern associated with its car dependent upon a single driver. In other words, they are in it for themselves whether consumers benefit or not.
If consumers are not so important, at least investors should benefit. Besides the car manufacturers there are a few smaller companies that can give investors a taste of the self-driving car phenomenon.
LiDar and Sensors
Self-driving cars will not go far without guidance input about its immediate environment. LiDar is a surveying method works much like radar, but uses pulsed laser light to illuminate a target and then measure the reflected pulses with sensors. Differences in laser return times and wavelengths are then used to create three dimensional representations of a target. Such systems show great utility for controlling autonomous vehicles.
A key player in the LiDar field is LedderTech, a privately-held developer of sensor technology. LedderTech just landed a $24 million bridge financing in the form of a revolving loan from Desjardins Group and a convertible note from Desjardins-Innovatech. Expect LedderTech to come back to the capital market in the coming months to secure a longer-term financing. In September 2017, the company closed a $101 million venture capital round that included investments by Osram Licht AG (OSR: DE), Aptiv and Integrated Device Technology (IDTI: Nasdaq). GCA Advisors acted as the placement agent for the earlier round and could be a likely conduit for investors seeking a spot in LedderTech’s next financing.
The APTIV-Lyft vehicle with autonomous technology drives on the strip Thursday, November 30, 2017 in Las Vegas, Nevada.
New car technologies are not just in the hands of high risk startups. Headquartered in Ireland, Aptiv Plc. (APTV: NYSE) manufactures electronic components and safety technology for cars and commercial vehicles. Aptiv was previously called Delphi Automotive and is the remaining business after spin out of Delphi’s legacy power train division.
What is left in Aptiv is the company’s autonomous vehicle technology. Aptiv deployed thirty self-driving BMWs in Las Vegas for use in a network service sponsored by the on-demand transportation service Lyft. The cars are outfitted with Aptiv’s LiDar and ultrasonic sensors. After a four-month trial period, Aptiv celebrated a record 96% of riders giving the service a five-star rating.
Aptiv is fortified with acquired technology as well as its own. Aptiv paid $450 million to acquire nuTonomy, a technology spin-out of the Massachusetts Institute of Technology. Just like Lyft, nuTonomy has its eye on the nascent market for ‘automated mobility on demand.’ Lyft also deployed nuTonomy’s software solution in a car ride service in Boston.
Aptiv represents an old school company with a new age product line. As such it presents a particularly compelling way to participate in the autonomous vehicle growth opportunities. The company reported $1.0 billion in net income or $4.05 per share on $14.2 billion in total sales in the twelve months ending September 2018. Aptiv is even mature enough to have established a dividend that delivers 1.4% yield at the current price level.
Lyft of its Own
Since partnering with Aptiv and several others with autonomous driving technology, Lyft made a strategic decision to develop its own technologies. Building its experience in Las Vegas with the automated car service, Lyft appears poised to become a strong player in not only a competent service provider, but also a technology leader.
Privately-held Lyft is reportedly planning an initial public offering in 2019. Until then investors could tap into Lyft’s ambition through its various investors. One is option is Canada’s Tier One auto parts manufacturer Magna International, Inc. (MGA: NYSE). Lyft received a $200 million investment from Magna as part of a $1.0 billion venture capital round led by Google’s CapitalG. The deal valued Lyft at $11.7 billion, providing the hint of a very exciting IPO!
Watchful Eye
Collision avoidance is important for self-driving cars and driver controlled cars alike. Intel’s subsidiary Mobileye Vision Technology Ltd. based in Israel has taken a lead in developing an advanced driver assistance system that is marketed to fleet owners such as trucking companies, law enforcement and bus line operators. Intel claims Mobileye has captured as much as 70% of the market for driver assistance systems that have been included on at least 27 million cars already on the road.
Mobileye really did not capture anyone’s attention until it landed a contract to supply an upgrade of its EyeQ4 to as the eyes of automated cars. Mobileye reportedly was in direct competition with Nvidia Corporation (NVDA: Nasdaq) for the order.
Of course, the only way to get a stake in the ‘eyes’ of autonomous cars is to buy shares in its semiconductor industry partner, Intel (INTC: Nasdaq). There are worse investments. Intel delivers 21% return on equity and its dividend currently provides a 2.6% yield.
Mobility as a Service
If a large semiconductor company with interests in automotive components is not appealing, private-held Zoox, Inc. might be an alternative. Zoox is a very early stage company with lofty goals for autonomous driving technology and mobility services. Zoox distinguished itself by become the first company to be allowed to test driverless cars in California with real passengers. The company wants to debut a ride-hailing service using autonomous vehicles as early as 2020.
It is an ambitious goal and that takes money. Zoox has already raise a total of $800 million in two venture capital rounds.
Before investors start writing checks to invest in Zoox, the risks of an early stage operation should be fully considered. The company has none of the stuffy protocols of an established operator like Intel or Aptiv. However, there is still a bit of instability at Zoox as evidenced by the firing one of its founders just a few weeks after the closing of the round one financing.
These are dozens of companies, large and small, homing in on autonomous driving and the services that could develop using the technology. The movement portends a significant change in the automotive industry as well as transportation fuel. The individually directed car and its combustion engine have been a central part of modern American culture. The muscle car of the fifties and all its attendant images of machismo and power is likely to become a thing of past. It will be interesting to see what imagery advertisers and brand managers conjure up for the car that does everything.
Debra Fiakas is the Managing Director of Crystal Equity Research, an alternative research resource on small capitalization companies in selected industries. Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.
This article was first published on the Small Cap Strategist weblog on 12/21/18 as “Stake in Autonomous Cars.”
The post Less Well Known Autonomous Car Stocks appeared first on Alternative Energy Stocks.
http://bit.ly/2LKNUII
0 notes
Text
Less Well Known Autonomous Car Stocks
Less Well Known Autonomous Car Stocks
Car manufacturers have fully embraced self-driving or autonomous cars. It is not because they have heard a loud clamor for such technology from consumers. No, automakers are keen on the idea because manufacture of self-driving cars could help them overcome the short comings of highly cyclical sales pattern associated with its car dependent upon a single driver. In other words, they are in it for themselves whether consumers benefit or not.
If consumers are not so important, at least investors should benefit. Besides the car manufacturers there are a few smaller companies that can give investors a taste of the self-driving car phenomenon.
LiDar and Sensors
Self-driving cars will not go far without guidance input about its immediate environment. LiDar is a surveying method works much like radar, but uses pulsed laser light to illuminate a target and then measure the reflected pulses with sensors. Differences in laser return times and wavelengths are then used to create three dimensional representations of a target. Such systems show great utility for controlling autonomous vehicles.
A key player in the LiDar field is LedderTech, a privately-held developer of sensor technology. LedderTech just landed a $24 million bridge financing in the form of a revolving loan from Desjardins Group and a convertible note from Desjardins-Innovatech. Expect LedderTech to come back to the capital market in the coming months to secure a longer-term financing. In September 2017, the company closed a $101 million venture capital round that included investments by Osram Licht AG (OSR: DE), Aptiv and Integrated Device Technology (IDTI: Nasdaq). GCA Advisors acted as the placement agent for the earlier round and could be a likely conduit for investors seeking a spot in LedderTech’s next financing.
The APTIV-Lyft vehicle with autonomous technology drives on the strip Thursday, November 30, 2017 in Las Vegas, Nevada.
New car technologies are not just in the hands of high risk startups. Headquartered in Ireland, Aptiv Plc. (APTV: NYSE) manufactures electronic components and safety technology for cars and commercial vehicles. Aptiv was previously called Delphi Automotive and is the remaining business after spin out of Delphi’s legacy power train division.
What is left in Aptiv is the company’s autonomous vehicle technology. Aptiv deployed thirty self-driving BMWs in Las Vegas for use in a network service sponsored by the on-demand transportation service Lyft. The cars are outfitted with Aptiv’s LiDar and ultrasonic sensors. After a four-month trial period, Aptiv celebrated a record 96% of riders giving the service a five-star rating.
Aptiv is fortified with acquired technology as well as its own. Aptiv paid $450 million to acquire nuTonomy, a technology spin-out of the Massachusetts Institute of Technology. Just like Lyft, nuTonomy has its eye on the nascent market for ‘automated mobility on demand.’ Lyft also deployed nuTonomy’s software solution in a car ride service in Boston.
Aptiv represents an old school company with a new age product line. As such it presents a particularly compelling way to participate in the autonomous vehicle growth opportunities. The company reported $1.0 billion in net income or $4.05 per share on $14.2 billion in total sales in the twelve months ending September 2018. Aptiv is even mature enough to have established a dividend that delivers 1.4% yield at the current price level.
Lyft of its Own
Since partnering with Aptiv and several others with autonomous driving technology, Lyft made a strategic decision to develop its own technologies. Building its experience in Las Vegas with the automated car service, Lyft appears poised to become a strong player in not only a competent service provider, but also a technology leader.
Privately-held Lyft is reportedly planning an initial public offering in 2019. Until then investors could tap into Lyft’s ambition through its various investors. One is option is Canada’s Tier One auto parts manufacturer Magna International, Inc. (MGA: NYSE). Lyft received a $200 million investment from Magna as part of a $1.0 billion venture capital round led by Google’s CapitalG. The deal valued Lyft at $11.7 billion, providing the hint of a very exciting IPO!
Watchful Eye
Collision avoidance is important for self-driving cars and driver controlled cars alike. Intel’s subsidiary Mobileye Vision Technology Ltd. based in Israel has taken a lead in developing an advanced driver assistance system that is marketed to fleet owners such as trucking companies, law enforcement and bus line operators. Intel claims Mobileye has captured as much as 70% of the market for driver assistance systems that have been included on at least 27 million cars already on the road.
Mobileye really did not capture anyone’s attention until it landed a contract to supply an upgrade of its EyeQ4 to as the eyes of automated cars. Mobileye reportedly was in direct competition with Nvidia Corporation (NVDA: Nasdaq) for the order.
Of course, the only way to get a stake in the ‘eyes’ of autonomous cars is to buy shares in its semiconductor industry partner, Intel (INTC: Nasdaq). There are worse investments. Intel delivers 21% return on equity and its dividend currently provides a 2.6% yield.
Mobility as a Service
If a large semiconductor company with interests in automotive components is not appealing, private-held Zoox, Inc. might be an alternative. Zoox is a very early stage company with lofty goals for autonomous driving technology and mobility services. Zoox distinguished itself by become the first company to be allowed to test driverless cars in California with real passengers. The company wants to debut a ride-hailing service using autonomous vehicles as early as 2020.
It is an ambitious goal and that takes money. Zoox has already raise a total of $800 million in two venture capital rounds.
Before investors start writing checks to invest in Zoox, the risks of an early stage operation should be fully considered. The company has none of the stuffy protocols of an established operator like Intel or Aptiv. However, there is still a bit of instability at Zoox as evidenced by the firing one of its founders just a few weeks after the closing of the round one financing.
These are dozens of companies, large and small, homing in on autonomous driving and the services that could develop using the technology. The movement portends a significant change in the automotive industry as well as transportation fuel. The individually directed car and its combustion engine have been a central part of modern American culture. The muscle car of the fifties and all its attendant images of machismo and power is likely to become a thing of past. It will be interesting to see what imagery advertisers and brand managers conjure up for the car that does everything.
Debra Fiakas is the Managing Director of Crystal Equity Research, an alternative research resource on small capitalization companies in selected industries. Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.
This article was first published on the Small Cap Strategist weblog on 12/21/18 as “Stake in Autonomous Cars.”
The post Less Well Known Autonomous Car Stocks appeared first on Alternative Energy Stocks.
http://bit.ly/2LKNUII
0 notes
Text
Less Well Known Autonomous Car Stocks
Less Well Known Autonomous Car Stocks
Car manufacturers have fully embraced self-driving or autonomous cars. It is not because they have heard a loud clamor for such technology from consumers. No, automakers are keen on the idea because manufacture of self-driving cars could help them overcome the short comings of highly cyclical sales pattern associated with its car dependent upon a single driver. In other words, they are in it for themselves whether consumers benefit or not.
If consumers are not so important, at least investors should benefit. Besides the car manufacturers there are a few smaller companies that can give investors a taste of the self-driving car phenomenon.
LiDar and Sensors
Self-driving cars will not go far without guidance input about its immediate environment. LiDar is a surveying method works much like radar, but uses pulsed laser light to illuminate a target and then measure the reflected pulses with sensors. Differences in laser return times and wavelengths are then used to create three dimensional representations of a target. Such systems show great utility for controlling autonomous vehicles.
A key player in the LiDar field is LedderTech, a privately-held developer of sensor technology. LedderTech just landed a $24 million bridge financing in the form of a revolving loan from Desjardins Group and a convertible note from Desjardins-Innovatech. Expect LedderTech to come back to the capital market in the coming months to secure a longer-term financing. In September 2017, the company closed a $101 million venture capital round that included investments by Osram Licht AG (OSR: DE), Aptiv and Integrated Device Technology (IDTI: Nasdaq). GCA Advisors acted as the placement agent for the earlier round and could be a likely conduit for investors seeking a spot in LedderTech’s next financing.
The APTIV-Lyft vehicle with autonomous technology drives on the strip Thursday, November 30, 2017 in Las Vegas, Nevada.
New car technologies are not just in the hands of high risk startups. Headquartered in Ireland, Aptiv Plc. (APTV: NYSE) manufactures electronic components and safety technology for cars and commercial vehicles. Aptiv was previously called Delphi Automotive and is the remaining business after spin out of Delphi’s legacy power train division.
What is left in Aptiv is the company’s autonomous vehicle technology. Aptiv deployed thirty self-driving BMWs in Las Vegas for use in a network service sponsored by the on-demand transportation service Lyft. The cars are outfitted with Aptiv’s LiDar and ultrasonic sensors. After a four-month trial period, Aptiv celebrated a record 96% of riders giving the service a five-star rating.
Aptiv is fortified with acquired technology as well as its own. Aptiv paid $450 million to acquire nuTonomy, a technology spin-out of the Massachusetts Institute of Technology. Just like Lyft, nuTonomy has its eye on the nascent market for ‘automated mobility on demand.’ Lyft also deployed nuTonomy’s software solution in a car ride service in Boston.
Aptiv represents an old school company with a new age product line. As such it presents a particularly compelling way to participate in the autonomous vehicle growth opportunities. The company reported $1.0 billion in net income or $4.05 per share on $14.2 billion in total sales in the twelve months ending September 2018. Aptiv is even mature enough to have established a dividend that delivers 1.4% yield at the current price level.
Lyft of its Own
Since partnering with Aptiv and several others with autonomous driving technology, Lyft made a strategic decision to develop its own technologies. Building its experience in Las Vegas with the automated car service, Lyft appears poised to become a strong player in not only a competent service provider, but also a technology leader.
Privately-held Lyft is reportedly planning an initial public offering in 2019. Until then investors could tap into Lyft’s ambition through its various investors. One is option is Canada’s Tier One auto parts manufacturer Magna International, Inc. (MGA: NYSE). Lyft received a $200 million investment from Magna as part of a $1.0 billion venture capital round led by Google’s CapitalG. The deal valued Lyft at $11.7 billion, providing the hint of a very exciting IPO!
Watchful Eye
Collision avoidance is important for self-driving cars and driver controlled cars alike. Intel’s subsidiary Mobileye Vision Technology Ltd. based in Israel has taken a lead in developing an advanced driver assistance system that is marketed to fleet owners such as trucking companies, law enforcement and bus line operators. Intel claims Mobileye has captured as much as 70% of the market for driver assistance systems that have been included on at least 27 million cars already on the road.
Mobileye really did not capture anyone’s attention until it landed a contract to supply an upgrade of its EyeQ4 to as the eyes of automated cars. Mobileye reportedly was in direct competition with Nvidia Corporation (NVDA: Nasdaq) for the order.
Of course, the only way to get a stake in the ‘eyes’ of autonomous cars is to buy shares in its semiconductor industry partner, Intel (INTC: Nasdaq). There are worse investments. Intel delivers 21% return on equity and its dividend currently provides a 2.6% yield.
Mobility as a Service
If a large semiconductor company with interests in automotive components is not appealing, private-held Zoox, Inc. might be an alternative. Zoox is a very early stage company with lofty goals for autonomous driving technology and mobility services. Zoox distinguished itself by become the first company to be allowed to test driverless cars in California with real passengers. The company wants to debut a ride-hailing service using autonomous vehicles as early as 2020.
It is an ambitious goal and that takes money. Zoox has already raise a total of $800 million in two venture capital rounds.
Before investors start writing checks to invest in Zoox, the risks of an early stage operation should be fully considered. The company has none of the stuffy protocols of an established operator like Intel or Aptiv. However, there is still a bit of instability at Zoox as evidenced by the firing one of its founders just a few weeks after the closing of the round one financing.
These are dozens of companies, large and small, homing in on autonomous driving and the services that could develop using the technology. The movement portends a significant change in the automotive industry as well as transportation fuel. The individually directed car and its combustion engine have been a central part of modern American culture. The muscle car of the fifties and all its attendant images of machismo and power is likely to become a thing of past. It will be interesting to see what imagery advertisers and brand managers conjure up for the car that does everything.
Debra Fiakas is the Managing Director of Crystal Equity Research, an alternative research resource on small capitalization companies in selected industries. Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.
This article was first published on the Small Cap Strategist weblog on 12/21/18 as “Stake in Autonomous Cars.”
The post Less Well Known Autonomous Car Stocks appeared first on Alternative Energy Stocks.
http://bit.ly/2LKNUII
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