CLIMATE TECH
We operate in within the fintech, tech-enabled commerce, communications tech sectors but more importantly our main focus is CLIMATE TECH, an area in which we have deep expertise.
Momentum to tackle the climate crisis has been building across the world, with progress being made at every front. Bold new emissions-reduction targets, more stringent regulations and a shift to ESG in the private sector have spurred massive investments. Climate tech is only just starting to heat up and we want to support that growth.
The global climate tech market size is estimated to be at US$16.9 bn and is expected to reach US$147.5 bn by 2032, growing at a CAGR of 24.2%. The lion share of funding has flowed to startups in energy, mobility, food, agriculture, land use and water and industry/manufacturing sectors.
As our environment reaches a tipping point, climate tech is set to play an increasingly important role in enabling and accelerating transformation at the speed and scale required to address the climate crisis.
We have advised on over 30 transactions within the climate sector, where our landmark deals include the:
AFRICA/MENA & NEW EMERGING MARKETS
As Africa’s economy continues to recover from the pandemic, there are positive indications to suggest a robust M&A market is on its way. Economic sentiment is healthy, capital is flowing in, and companies are maturing and looking to expand.
In the last few years, we have seen significant changes; funding is pouring in at an unprecedented rate, and large funding rounds are becoming increasingly common. Last year alone we saw nearly $300m invested, an impressive figure considering this was the approximate total amount of funding recorded in the five years from 2015 to 2019. Africa has been described as the fastest-growing continent for foreign direct investment, ideal for investors.
Beyond deals involving large private companies and big multinationals, we’re likely to see the continued rise of locally led M&As as a growing number of African entrepreneurs are launching fast-growing companies and looking for ways to scale.
In the last few years we have been on the frontlines facilitating deals and monitoring new developments as these markets continue to transform.
We have advised on over 10 transactions within these markets, where our landmark deals include:
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Founders of leading tech banks
$bn*
Tech transactions
$m-bn
Per transaction
>*
transactions
*Deals by founders and partner at DAI Magister and prior
Over the next decade, it is expected that companies offering climate related technology, will garner the same attention from financiers as technology companies have enjoyed. Market capitalisation of green equities ballooned from under $2 trillion in 2009 to over $7 trillion by 2021, almost doubling its share of the global investable market from 4% to 7%.
Green hydrogen is now a key part of global governmental energy strategy, growing the current $150bn market to $600bn by 2050. The surge in oil and gas prices, and sudden risks of supply, has only accelerated commitment to fund technologies that improve production.
High-velocity M&A situations occur when companies that aren’t up for sale are approached by one or more buyers who can and want to move quickly to close a deal..
Good governance may not be the most scintillating topic, but today it can deliver real value to growth company founders facing investors increasingly concerned about risk amid the current market uncertainty.
Microcredit organisations have long served as the only source of affordable loans for Africa’s millions of unbanked or underserved MSMEs but they remain fundamentally limited in their reach and loan offerings.
After the highs of the pandemic, it’s been a rough ride for tech stocks this year with valuations plummeting. But despite the downturn, there is already evidence the sector has plenty to offer.
Africa’s tech-enabled commerce sector has come a long way over the last decade and is now on the cusp of a significant shift. After years of development, some attrition along the way, the ecosystem is maturing, and winners are starting to emerge.
With total installed capacity of wind power plants climbing to 129 GW by 2026, there needs to be investment in weathertech to match. With growing political support and falling costs year after year, investors in the renewables space are rightfully focused on companies building new wind farm installations that add GWatt capacity to the grid.
Transitioning towards a cheaper, cleaner, and more secure renewable energy future that can simultaneously provide grid stability will require a more significant shift in how data is viewed. Companies must begin treating data as a valuable asset and utilise it to increase profits.
Computing power using classical methods (conventional transistors) is nearly maxed out, due ironically, to quantum mechanics. As transistors reach the scale of individual atoms, electrons can “quantum tunnel” across a transistor rendering it useless.
After long falling short of its potential and lagging behind other emerging markets, Pakistan’s tech sector has suddenly sprung to life and shows no signs of slowing down. The Pakistani tech ecosystem is live and kicking with $170m being raised in Q1 2022.
The rise of batteries over the last decade has been nothing short of meteoric as lithium-ion batteries have now reached a point where they are now commercially viable to power vehicles and our homes. Batteries continue to garner the lion’s share of media and investor attention.
It’s been an interesting few months for mergers and acquisitions (M&A) in Africa. Several significant M&A deals have transpired after a COVID-driven slowdown in 2020 and most of 2021 driven by key factors, including a growing imperative to reach economies of scale, rising customer acquisition costs, and a need to become pan-African to mitigate regulatory risks.
Since Apple introduced the Apple Store in 2008, single-use apps have multiplied exponentially and become part of everyday life. Fast forward to today, and consumers in western markets like the US and EU are using single-purpose apps for everything from hailing a taxi and food delivery to gaming, online shopping, and banking.