Weekly digest - April 28 2021

28 April 2021

TALKING POINTS

CULTURE CLUB

Insight Partners' $172.5 million investment in Australia's Octopus Deploy this week resets the spotlight on Australia's natural advantages in the fast-growing enterprise software space. Perhaps chief among these is the country's natural cultural familiarity with the US, the deepest enterprise software market globally. US enterprise software revenues are set to top $115 billion this year, more than 10x the China figure.

In the past month alone, a flurry of high-profile deals has demonstrated the point. Airwallex, an enterprise-focused fintech player, raised $300 million a valuation of $2.6 billion, while Linktree, a social media services platform, received $45 million. Both deals brought in US investors, including Insight in the latter. Graphic design platform Canva remains the standout example, however, having grown from $3.2 billion to $15 billion in valuation in the last 18 months.

Going viral in this space is a matter of resonating with IT teams, which have a kind of borderless culture all their own. But Australia is punching well above its weight, which suggests that the language connection – as well as a global-first mindset that comes with a small home market – is a significant factor.

In Depth:
• Coronavirus & Australia VC: In SaaS we trust - April 2020

• Australia technology: Taking care of business - February 2020

DEAL FOCUS

DCP, KKR MILK NEW DAIRY OPPORTUNITY

DEAL FOCUS

XINGYUN'S TRADE FLOW PROPOSITION

DEAL FOCUS

CHINA BIG DATA PLAYER GOES GLOBAL

DEAL FOCUS

CATTLE HERDING ENTERS THE APP AGE

ANALYSIS

VINTAGE UPDATE: AUSTRALIA 2010-2012

By the numbers

AVCJ RESEARCH

PRIVATIZATION PLAY

The $4.6 billion privatization of China Biologic Products Holdings is the third largest of a US-listed Chinese company by a PE consortium. 58.com took second spot – based on market capitalization – last year at $8.7 billion and a $5.6 billion transaction involving 51Job is pending. While US take-privates are getting bigger, they are not growing in number. The peak years were 2012 (when valuations were at a post-accounting scandal low) and 2015 (after Focus Media's relisting showed how much money could be made). The expected flood of activity triggered by US accounting compliance requirements threatening the listing status of Chinese companies has yet to materialize. Additional listings in Hong Kong are the preferred option.

The rest of the week

UPCOMING EVENTS

• April 29 - AVCJ SPACs Spotlight

• May 27 - AVCJ Vietnam Forum

• July 26-28 - AVCJ Australia & New Zealand Forum

• August 3-4 - AVCJ Singapore Forum