Hey hey Flux fam!

Here's everything you need to know today - in under 3 minutes.

Today's big stories:

🦄 Pet Circle becomes Australia's newest unicorn

🤑 Aussie marketplace builder Marketplacer bags $38 million 

👎 BuzzFeed's IPO tanks as SPAC shareholders pull out

Oh and get this...

Bye-bye traffic jams on the M1 in Sydney! Sydney Seaplanes has lodged an order for 50 electric vertical takeoff and landing vehicles, with the first shipment due 2026. The flying taxis will supposedly help passengers escape the traffic...in style (obvs).

Pet Circle becomes a unicorn after being thrown a juicy $125 million bone

Background: Pet Circle is an Aussie online pet supplies company that was founded back in 2011. It started off as online dog food business but expanded into toys, health, grooming, clothes (and more).

What happened: This crew have just been thrown a juicy $125 million bone in the form of a capital raise...meaning the company is now valued at more than $1 billion (aka - they're a unicorn).

What else: The company brought on new, valuable investors like US-based Prysm capital and Sydney-based TDM Growth Partners.

So what's the key learning?

💡You often hear about product-market fit for the success of a company...but company-investor fit can be equally as important.  

💡Pet Circle's new investor, Prysm Capital, invested in US pet company Chewy.com back in 2016...which was acquired a year later for a huge US$3.35 billion. So it ain't Prysm's first pet-rodeo.

💡For companies, investors should be used as advisers, mentors and experienced professionals (rather than just a wad of cash). With Prysm backing Pet Circle...this crew could be set for big things.

Marketplacer bags a massive $38 million as retailers make a dash for digital

Background: Marketplacer is a Melbourne-based software company that helps retailers and other businesses build successful online marketplaces.

What happened: This crew are behind the online marketplaces of Woolies, Myer, Surfstitch...the list goes on. And as more retailers make the dash to digital (thanks to COVID accelerating the shift to online), Marketplacer are in high demand.

What else: Now, the company's raised a huge $38 million in funding. They have been planning to go public for a while...but the plans are on hold for now. Kinda like La Niña putting out summer plans on hold. 

So what's the key learning?

💡Marketplace models allow retailers to expand their product offerings with less risk, and fewer resources of their own.

💡In the traditional wholesale model, retailers take possession of the inventory (i.e. the physical goods), which means they need to store it, track it and pay for it. 

💡In the marketplace model, retailers connect the customer directly with the supplier. And it means they can continue to grow without the need to spend more cash. 

BuzzFeed's IPO tanked and did they get that result on the quiz?

Background: BuzzFeed is the media company that pioneered digital news and entertainment. They started back in 2006...and since then, have grown to be one of the biggest global media companies.

What happened: Recently, this crew decided to go public via a SPAC (special purpose acquisition company). Essentially, a 'shell' company that lists on the stock exchange...and then acquires a private company, which takes that company public.

What else: Here's the juicy bit: 94% of shareholders in the SPAC company 'redeemed' their stake once they found out it was acquiring BuzzFeed. And maybe they had a point, with the company's share price plunging 17% on its debut.

So what's the key learning?

💡When an investor invests in a SPAC, they’re backing the SPAC's management team to merge with a high-quality company. But thankfully for investors, there is a returns policy if they don't like what they see. 

💡SPACs typically sell shares in their blank cheque company for $10 a pop and then search for a suitable private company to buy. But in 2021, many SPACs are actually trading below that $10 price on sharemarkets, which means shareholders are losing cash before they have even merged with another company.

💡 So, the redemption rate has been higher this year. And with BuzzFeed shares trading as low as $8...we can see why shareholders pulled out.