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📈 Private Spacewalk: Billionaire's New Heights Reached

September 16, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Private Spacewalk: Billionaire's New Heights Reached

  • UK Spinouts Bounce Back with £1bn Boost

  • £4.3 Billion Deal Sinks Darktrace’s FTSE Ship

The summary: Jared Isaacman and his crew's private spacewalk, soaring higher than the ISS, marks a thrilling leap in space exploration tech, proving that with enough funds, even the stars aren’t out of reach!

The details:

  • Billionaire Jared Isaacman, alongside a crew of SpaceX engineers and a former pilot, returned to Earth after a five-day orbit higher than any since NASA’s moon missions, making a splash in the Gulf of Mexico.

  • The crew pulled off the first private spacewalk, with Isaacman becoming the 264th person to do so, all while orbiting a casual 460 miles above Earth – higher than the ISS and Hubble. How’s that for a view?

  • The mission wasn’t just for fun; they tested SpaceX's new spacesuits in preparation for future, even longer jaunts to Mars. Isaacman mused, "Earth sure looks perfect from up here," but back home, there’s always work to do.

  • This was Isaacman’s second self-funded space voyage, with two more in the pipeline – proving that when billionaires aren't launching credit card companies, they're launching themselves into orbit.

Why it matters: Jared Isaacman’s space escapades show that billionaire-funded jaunts could be the new frontier for testing tech that might one day take us to Mars – no pressure, SpaceX! It's not just a billionaire’s holiday; these missions pave the way for non-astronauts to pop out for a spacewalk, testing gear that could be crucial for future space exploration. Plus, if you're rich enough, why stop at owning a yacht when you can charter your own spaceship?

The summary: British university spinouts are making a comeback, attracting billions in funding, and with fresh government support and looser university stakes, the stage is set for the UK to power up its innovation game and lead the charge into the future.

The details:

  • Despite a post-2021 dip, British university spinouts are bouncing back, raising a sprightly £1bn in the first half of this year, eyeing a potential £2bn haul by year’s end.

  • Parkwalk, the UK's reigning spinout investor, notes that while funding has waned since 2021's £2.73bn peak, it's still above pre-pandemic levels—cause for cautious optimism.

  • With stable deal numbers (an average of 423 per year), the 2035 Enterprise Investment Scheme extension promises a boost, enabling more of these boffins' ventures to flourish.

  • Universities, meanwhile, are facing pressure to lower their equity stakes in spinouts, as the government aims to grease the wheels of innovation with more palatable terms for budding entrepreneurs.

Why it matters: The UK's spinout scene is bouncing back, and with billions at stake, it’s more than just a clever academic exercise—it’s about driving the future of British innovation. With pension funds potentially swooping in and universities loosening their grip, there’s a chance for homegrown tech to really spread its wings. If all goes well, Britain might just secure its place as the brainy powerhouse of the 21st century, rather than a nostalgia-fueled museum for old glories.

The summary: Darktrace’s grand exit from the London Stock Exchange, courtesy of a £4.3 billion private equity swoop, highlights a cheeky trend of tech stars swapping the Thames for Wall Street’s glittering shores.

The details:

  • Darktrace is bidding farewell to the London Stock Exchange, with its shares set to stop trading on September 30, ahead of a £4.3 billion private equity takeover by Thoma Bravo.

  • This deal, one of the largest take-private moves for a London-listed firm in recent memory, sees Darktrace leaving the FTSE 100 on October 1 – just as ARM and CRH fled to the glamour of Wall Street.

  • Founded in 2013, the Cambridge-based cybersecurity company made waves with its AI-driven hack-detection prowess, securing a prime spot at the AI Safety Summit last November.

  • As part of the takeover shakeup, co-founder Poppy Gustafsson has handed over the reins to new CEO Jill Popelka, following the tragic passing of fellow co-founder Mike Lynch last month.

Why it matters: Darktrace’s exit from the London Stock Exchange is a sign that even the cyber-security wizards are off to Wall Street for greener pastures, as private equity swoops in with a rather hefty £4.3 billion cheque. With its departure from the FTSE 100, the London market continues its trend of losing glittering tech stars, while the new CEO faces the task of steering the ship amidst recent turbulence. In short, if you’re keeping score, it’s a grand shake-up that leaves London a tad less glamorous and a touch more reflective.