Hi there, 

We’re trying a new format today — it’s called “hot or not.”

If you like (or hate) this format, let me know. 

Hot: GenAI acquisition targets

Jasper, an AI-powered content creation suite and generative AI unicorn, is on the acquisition hunt.

CEO Dave Rogenmoser tweeted last week that the company is “sitting on a fat stack of cash and looking to acquire” (it raised a $125M Series A in October).

Jasper is 1 of 6 generative AI unicorns out there.

Our market map of the generative AI landscape offers some clues of the companies that could be in its sights, from text to visual media generation.

Over half of the companies in this space are Series A or earlier. There’s lots of opportunity for companies looking to get in on the AI talent pool. 

Dave — have your corp dev team reach out. We can help :) 

Not: Blockchain unicorns

The last quarter of 2022 saw just 2 crypto & blockchain companies emerge with $1B+ valuations, as the downfalls of Celsius, FTX, and BlockFi put a chill on the sector. 

Overall, the total blockchain unicorn count stood at 79 at the end of 2022 and has certainly leveled off.  

Dig into all of the data in our State of Blockchain 2022 Report.

Hot: Sequoia on fintech

While 2022 was a down year for venture capital at large, Sequoia remained active with over 100 investments.

Its top category was fintech — representing nearly a quarter of the firm's deals. 

We identify its top priorities in fintech here. 

And for more on top investors in fintech, check out our a16z investment thesis map here.

Not: Away’s valuation

Luggage company Away is reportedly looking for a buyer.

In 2019, the suitcase maker was valued at $1.4B on $150M of trailing revenue — a healthy 9.3x multiple.

Comparable transactions (see below) and general market negativity don’t suggest optimism for its valuation in an exit.

• Samsonite acquired Tumi in 2016 at a revenue multiple of ~3.3x.

• LVMH acquired Rimowa in 2016 as well at a revenue multiple of ~1.8x.

Based on the numbers we ran from CB Insights, it looks like Away’s valuation is going to be a lot lower — which means common shareholders are getting nada. 

Check out the full analysis of Away’s likely valuation here.

Hot: Software that reduces expenses

A #1 focus of software buyers and CFOs right now is reducing spend. 

In this case, this CHEQ customer was aiming to reduce fraudulent traffic to its ad campaigns. 

CHEQ’s ability to prove its ROI value prop was key to closing the deal.
 

Interested in more insights like these? Get in touch with us to reserve your Yardstiq subscription here.

Not: Podcast acquisitions

Spotify has been on a spending spree over the last 3 years, snatching up more than 10 podcast- and audio-related companies. 

On a January earnings call, CEO Daniel Ek said: 

“In hindsight, I probably got a little carried away and overinvested relative to the uncertainty we saw shaping up in the market. So we are shifting to focus on tightening our spend and becoming more efficient.”

See all of Spotify’s acquisitions on its CB Insights profile.

I love you.

Anand

@asanwal

P.S. Like or hate this format? Click a link to vote in the poll below.