🌞 40%+ Solar Drop YoY. $400M+ VC Funding.
Impact Capital Markets #79 looks at our Solar stock index, major impact deals, M&A, and upcoming economic releases.
Kia ora 🥝
📉 Today's Global Economic Update: In April 2024, Germany's Ifo Business Climate indicator increased to 89.4, exceeding market forecasts and marking its third consecutive monthly rise. The rise reflects heightened optimism driven by expectations of potential ECB interest rate cuts and easing inflationary pressures.
💉 Deal of the Day: Endeavor BioMedicines, a biotechnology company, raised a $132.5M Series C to drive product development.
What's New?
🌞 Solar. 40%+ YoY solar slump, 7% down in 3M
💰 Funding. Biotechnology, virtual healthcare, workflow automation + more
💼 M&A. KnowBe4 acquires Egress software technologies
📅 Economics. US & Euro area GDP, Japan inflation rate, balance of trade + more
🌞 40%+ YoY Solar Slump, 7% down in 3M
HolonIQ’s Solar index is seeing a continued decline after the steep drop in 2H 2023, when the index plunged by more than 40%. The index declined 7% in the last 3 months, following some volatility. The downturn is mainly due to economic headwinds in China and the US, with China's economic slowdown and high interest rates in the US hurting the industry's profitability. LONGi Green Energy Technology ($19B MCap), a major manufacturer of solar panels, fell by 16% in the last 3 months as the company laid off workers and shifted production away from China due to the economic climate. In the US, record-high interest rates have raised the cost of solar power by one-third, impacting companies like Enphase Energy ($14B MCap), whose stock price has fallen 51% over the past year.
The index is forecasted to recover towards the latter part of Q2 with companies like First Solar and Sungrow Power Supply showing positive returns over the last 3 months (22% and 9% respectively). Sungrow is expanding its reach in Thailand's solar market through a major partnership to provide battery storage and inverters for a multi-gigawatt renewable energy project helping sustain the stock price. Expected interest rate cuts by the US Federal Reserve in the coming months could also ease financing burdens and allow developers to restart stalled projects, improving profitability.
💰 Funding
💉 Endeavor BioMedicines, a California-based biotechnology company, raised a $132.5M Series C from AyurMaya to drive product development.
🤖 Parloa, a German conversational AI platform raised a $66M Series B, to accelerate growth in international markets.
🩺 Midi Health, a California-based women's virtual healthcare clinic, raised a $60M Series B from Emerson Collective to expand insurance coverage.
🔒 Tines, an Irish workflow automation company, raised $50M Series B from Felicis and Accel to expand its operations.
🔐 BforeAI, a French predictive security company, raised a $15M Series A from SYN Ventures to recruit staff across all departments.
📊 Alaffia Health, a New York-based health tech company, raised $10M from FirstMark Capital to broaden its market reach.
💼 M&A
📧 KnowBe4, a Florida-based security platform acquired Egress Software Technologies, a UK-based data protection company.
📅 Economic Calendar
US & Euro Area GDP, Japan Interest Rate, Balance of Trade + More
Thursday, April 25th 2024
🇩🇪 Germany GfK Consumer Confidence Index, May
🇺🇸 US GDP Data, Q1
🇯🇵 Japan BoJ Interest Rate Decision
Friday, April 26th 2024
🇺🇸 US Core PCE Price Index, March
🇺🇸 US Personal Income & Spending, March
Monday, April 29th 2024
🇩🇪 Germany Inflation Data (Preliminary), April
🇨🇳 China NBS Manufacturing PMI, April
🇨🇳 China Caixin Manufacturing PMI, April
Tuesday, April 30th 2024
🇫🇷 France GDP Data (Preliminary), Q1
🇫🇷 France Inflation Data (Preliminary), April
🇩🇪 Germany GDP Data Flash, Q1
🇮🇹 Italy GDP Data, Q1
🇪🇦 Euro Area GDP Data Flash, Q1
🇪🇦 Euro Area Inflation Data Flash, April
🇮🇹 Italy Inflation Data (Preliminary), April
Wednesday, May 1st 2024
🇯🇵 Japan Consumer Confidence Index, April
🇺🇸 US ISM Manufacturing PMI, April
🇺🇸 US Job Openings, March
🇺🇸 US Fed Interest Decision
🇦🇺 Australia Balance of Trade Data, March
Thursday, May 2nd 2024
🇨🇦 Canada Balance of Trade Data, March
Thursday, May 3rd 2024
🇺🇸 US Non-Farm Payrolls Data, April
🇺🇸 US Employment Data, April
🇺🇸 US ISM Services PMI, April
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