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  • 📈 Stargate Project Promises Billions and Jobs Galore

📈 Stargate Project Promises Billions and Jobs Galore

Tapline Bags €20M to Boost SaaS Growth

January 22, 2025

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:

  • Stargate Project Promises Billions and Jobs Galore

  • Tapline Bags €20M to Boost SaaS Growth

  • Chancellor's Borrowing Dilemma: More Cuts Ahead?

The summary: The global AI gold rush is on, with tech titans pouring billions into data centres, sparking innovation, job creation, and a touch of planet-sized power concerns.

The details:

  • "Stargate" Project Takes Off: OpenAI, Oracle, and Softbank join forces for a $100bn (£81bn) AI data centre bonanza, with plans to inject $500bn over four years—talk about going all in on future tech!

  • Trump Takes a Bow: Flanked by tech titans at the White House, Trump hails the initiative as a vote of confidence in America's greatness, while Sam Altman tips his hat (despite work already underway).

  • Jobs, Chips, and Power Puzzles: 100,000 jobs are promised, but concerns swirl about energy-guzzling data centres, land constraints, and the influence of foreign investors—cue the drama.

  • A Global Gold Rush: With Microsoft, Amazon, and others splurging billions on AI infrastructure, analysts predict data centre demand will triple by 2030. The question is: can the world keep up?

Why it matters: The race to build AI data centres is the modern gold rush, shaping who controls the future of technology and where the power (literal and figurative) will sit. With billions pouring in and big players vying for dominance, it’s a spectacle of ambition, innovation, and a fair bit of ego stroking. Meanwhile, the world watches nervously, wondering if the planet can handle the bill for all this progress.

The summary: Tapline’s €20M funding round is a game-changer for SaaS startups, combining smart AI-driven financing with big-name backing to fuel growth without sacrificing equity.

The details:

  • Money matters: German fintech Tapline bags a hefty €20M pre-Series A round (a mix of equity and debt) to turbocharge its platform and help SaaS businesses cash in on future revenues.

  • Non-dilutive genius: Tapline pre-finances future receivables for B2B SaaS and subscription firms, offering funding to startups with a modest €15K MRR, powered by its clever AI-driven credit tech.

  • Star-studded backers: Equity funding led by Karim Beshara (A15 Venture Capital) with Antler and a sprinkle of strategic angels, while debt comes courtesy of WinYield’s bespoke facility.

  • Spanning Europe & beyond: Currently serving Germany, Estonia, the Czech Republic, and Poland, Tapline has grand plans for expansion, pairing funding with AI-powered analytics to tackle SaaS liquidity gaps.

Why it matters: Tapline’s €20M boost is a lifeline for SaaS startups, helping them bridge the dreaded cash flow gaps without giving away equity—a rare treat in today’s market. With AI doing the heavy lifting on credit assessments, even modest revenue companies can unlock growth funding faster than you can say "non-dilutive financing." Backed by big names and bold ambitions, Tapline is quietly rewriting the playbook for how European tech scales up.

The summary: The government’s borrowing spree has hit new highs, putting Chancellor Reeves in a tight spot with rising costs and business grumbles, but it’s all part of the thrilling rollercoaster ride of UK economic policy!

The details:

  • Government borrowing hit £17.8bn in December, the highest for the month in four years, adding strain to the UK’s finances.

  • Public spending surged, particularly on services, benefits, and debt interest, while National Insurance cuts made by the previous government offset a rise in tax receipts.

  • Chancellor Rachel Reeves faces pressure as borrowing exceeds forecasts, with economic growth flatlining and interest rates spiking; tax hikes and spending cuts may be on the horizon.

  • Businesses brace for tax increases in April, with worries about higher costs and reduced job growth, while the government insists on maintaining its borrowing rules for economic stability.

Why it matters: Well, the government’s borrowing spree is turning into quite the financial hangover, with rising costs and flat economic growth making things sticky for Chancellor Reeves. The promise of no more borrowing or taxes might soon be tested, as she faces tough choices – like slashing public services or hiking taxes. Businesses are already grumbling about higher costs, so brace yourselves for some leaner times ahead unless the economy gets a sudden boost.