Blackpeak Capital is pleased to present our SaaS market update for the June quarter 2022 – click on the link below:
For more information contact:
+61 416 335 455
Healthcare payers are feeling the pressure to achieve greater cost containment and reduce fraud, waste and abuse that costs the U.S. at least $120 billion annually. Shifting from traditional cost-containment methods of the past to technologies like artificial intelligence (AI) has reshaped the industry’s future. At the same time, providers are evolving and making changes to their billing processes based on new models. In order to mitigate potential payment errors, health plans are moving from a retrospective process of identification and recovery to a more cost-effective prospective approach. New laws surrounding surprise billing are also adding complexity to the payment integrity market. According to a recent survey, 74% of respondents were unsure if they can meet Advanced Explanation of Benefits (AEOB) requirements, further fueling market turmoil with patients bearing more payment responsibility. This report takes a closer look into the market as well as companies in the ecosystem, M&A and private placement activity.
Click to download AGC’s report: HCIT-Payments-Thought-Piece-January-2022-v3
The global legal and compliance tech market, estimated at ~$28B in revenue currently, is poised for explosive growth in the years ahead as legal and compliance teams fully embrace digitalization and automation tooling. Legal tech solutions increasingly revolve around real time data access to contain costs, increase automation and improve outcomes, while Compliance tech is increasingly deployed to safeguard massive amounts of data brought about by new privacy regulations. Both capital raised and M&A deals hit all time highs that far surpass the 2020 levels. With over 300 companies identified in AGC’s Legal and Compliance Tech landscape, this industry is large and growing rapidly with many new startups disrupting the status quo and a few giant incumbents competing for pole position.
Click to download AGC’s report: AGC-Legal-Compliance-Tech-Feb-2022
COVID-19 hit hospitality harder than any other industry. Overnight nearly all hotels worldwide were shut down or reduced to skeleton staffs with few guests. Revenue per available room (“RevPAR”), the industry’s most watched KPI plummeted by 80% in the US. Faced with an existential crisis, the industry turned to tech to stave off total collapse. As vaccination rates climbed and travelers returned to hotels, demand rebounded at rates that surprised nearly all industry observers, catching hoteliers flat-footed, and leading to a scramble to staff back up to normal operations.
Historically, the industry has relied on cheap labor to keep properties humming. With labor markets tight and wage inflation on the rise, that model no longer works. As the industry quickly transitions from life support to profitability, technology is playing an important role in driving efficiency on two primary fronts: short-term, solutions that enable hotels to do more with less (headcount in particular); and long-term, platforms that help hoteliers recapture distribution from OTAs.
Against this backdrop, PEs and strategics have pre-positioned for the industry’s re-opening with a frenzy in deal making. Hospitality tech M&A hit a record $15.5B in 2021, more than double the prior record in 2019.
Click to download AGC’s report: AGC-Hospitality-Tech-May-2022
Data as a Service (“DaaS”) encompasses companies that aggregate, curate, analyze and add value to data sets and then sell that data to augment organizations’ internal data sets to improve business processes and decision making. Many data providers wrap software applications or services around their core datasets to provide an integrated solution. A plethora of new data providers are emerging to coexist with – and sometimes replace – more traditional first party data providers. Don’t be confused…this report is not about other DaaS segment acronyms such as using the cloud to deliver data storage, management or analytics services, or “Desktop as a Service” that delivers virtual apps from the cloud to any device.
The data evolution has led to unprecedented demand for data outside of traditionally data-hungry markets like finance/credit, sales and marketing and real estate. Adoption has exploded for third party data across many other industries including retail, recruiting, healthcare, geospatial, food, agriculture, and others. Publicly-traded DaaS companies have demonstrated impressive operating results – above that of many other tech sectors. Companies like ZoomInfo have demonstrated that DaaS can scale, and other more sector-oriented companies achieve significant scale by wrapping around a focused software application where their data sets can provide a competitive advantage.
Data is the foundation of any winning application platform. Software and analytics are only as good as the data that powers them!
Click to download AGC’s report: AGC-DaaS-Mar-2022
She has been Australian of the Year due to her pioneering efforts in attempting to develop a world-leading quantum computer in Australia, so the challenges of a spooked global tech investment market engender little more than a shrug from Silicon Quantum Computing (SQC) boss Michelle Simmons, as she reveals plans to kick off a crucial $130 million funding round.
In July, the Scientia Professor of quantum physics at the University of NSW will formally take up the chief executive role of the company she formed in 2017, with $83 million seed backing from the federal and NSW governments, Telstra, Commonwealth Bank of Australia and UNSW.
As well as its existing backers, SQC will be navigating a global investment market to find venture capital and institutional investors at a time when some are drawing parallels to the market conditions in the dotcom crash of 2000-01. It has engaged Sydney-based corporate advisory firm Blackpeak Capital to assist its capital raising efforts.
“In general, I think the quantum computing market is very hot and lively at the moment, so from a quantum perspective it’s a good time,” Professor Simmons said.
“As a company we have got some fantastic results that we’re going to be putting out very shortly, and [raising] is part of our milestone chart, so this is a good time for us to go, and the world is always going to be the world.”
A quantum computer would prove infinitely more powerful than a classical computer for making complex calculations and decisions, and SQC’s corporate backers have been involved not just for the potentially lucrative future financial returns, but also to learn and influence development.
Area of national importance
Professor Simmons said SQC was in discussion with its existing backers about follow-on investment. It was also possible the federal government could double down on its existing backing of the company through an upcoming $1 billion critical technology fund, which names quantum computing as a target area of national importance.
“People that have worked with us for a while are very excited about the technology … It is a technology that is strategic for the country, which is obviously why government invested in the first place, and it is going to remain strategic for a long period of time,” she said.
“The key things we’re excited about is that we have got these milestones down, which we’ve been hitting, and some of those ahead of time.”
While she cannot publicly discuss details yet, Professor Simmons said she was confident the upcoming publication of a “big milestone” would generate excitement among investors and also reverberate around the manufacturing sector in Australia.
In its 2017 seed funding round UNSW and the federal government were the biggest investors with $25 million apiece, while CBA tipped in $14 million, Telstra $10 million and the NSW government $8.7 million.
CBA chief information officer technology Brendan Hopper said the bank was keen to keep working with SQC as a shareholder and as a potential customer of the company.
“CBA believes SQC has both the world-leading vision and relentless focus on engineering quality that uniquely positions it to be a future world leader in quantum computing,” he said.
“The existing global semiconductor industry is built around silicon technologies, which we believe gives SQC significant competitive advantage, and we are starting to work with SQC on our first financial use cases.”
Telstra’s group executive of products and technology, Kim Krogh Andersen, said he believed quantum computing would be a disruptive and transformative technology over the coming decades, and that Telstra’s early investment would help Australia build a “world-class technology nation”.
Professor Simmons said the funding would be used to complete the building of a 100-qubit processor and to reach a point where the company had built something commercially relevant, rather than theoretically important.
Sydney, Australia, 14 June 2022 – Silicon Quantum Computing (SQC) today announced the launch of its A$130m Series A capital raising to fund the company’s technical development, operations and strategic activities from 2023 to 2028.
The company also confirmed its appointment of Blackpeak Capital to advise it on the Series A raising.
The Series A round follows SQC’s successful A$83 million seed capital raising in 2017. Investors in the 2017 seed round were UNSW Sydney, the Australian Commonwealth Government, the NSW Government, The Commonwealth Bank of Australia and Telstra Corporation Limited.
Under the leadership of founder Michelle Simmons AO, SQC used its seed funding to advance its proprietary technology using its unique capability to manufacture sub-nanometre precision qubits in silicon. The funding was also used to establish the company’s operations at its world-class facilities at UNSW Sydney and to help propel the company toward its first watershed milestone – a quantum integrated circuit.
The Series A funding will enable SQC to continue developing its proprietary technology to meet its second watershed technical milestone – a 100-qubit quantum device – and to unlock market opportunities, resulting in a major value inflection point.
“SQC’s unique approach ensures the scalability and quality of our technology. Combined with our ability to manufacture in-house and secure world-leading talent and partnerships, we are on track to deliver useful commercial quantum computing by 2028,” says SQC Chairman, Stephen Menzies.
“It is an exciting time for us as we move through the next phase of the company’s business and technical development, and we are delighted to have Blackpeak Capital supporting us throughout the capital raising process.”
According to Simmons, who will formally take up the role of CEO of SQC on July 1, investment in the Series A funding round also creates an opportunity for strategic investors to engage directly with the company during its next phase through a bespoke end user collaboration.
“Our investors are vital partners as we continue to work with end user organisations to identify and develop solutions that address their business outcomes and help them solve complex challenges,” says Simmons.
Independent corporate advisory firm, Blackpeak Capital, will provide strategic advice to SQC throughout the capital raising process.
“Australia has a world-leading position in the quantum computing space and is recognised for its outstanding talent in the field. We believe SQC is incredibly well positioned globally to win the race to scalable quantum computing, which is a once-in-a-generation technology opportunity,” said Scott Colvin, Managing Director, Blackpeak Capital.
“We are delighted to play a role in facilitating the company’s Series A capital raising and continuing to bring quantum and industry closer together. This raising offers an outstanding investment opportunity to support a leading quantum computing company and allows strategic investors to work with SQC to develop co-generated quantum computing solutions.”
SQC’s seed investors remain closely engaged with the company to support the Series A capital raising and are working with the company to understand the technology through end user collaborations.
In line with its strategy and portfolio of technology investments, Telstra has been a foundation partner of SQC since its initial capital raise in 2017.
“Quantum computing will be a disruptive and transformative technology over the coming decades, and through our early investment in SQC and innovative partnerships with Government, we’re helping to build a world class technology nation. We look forward to continuing our involvement with the SQC team and this dynamic, world-leading project,” said Kim Krogh Andersen, Group Executive Products and Technology at Telstra.
The Commonwealth Bank of Australia (CBA) will also continue to work closely with SQC both as a shareholder and potential customer of the company.
“CBA believes SQC has both the world leading vision and relentless focus on engineering quality that uniquely positions it to be a future world leader in quantum computing,” said Commonwealth Bank’s Chief Information Officer Technology, Brendan Hopper. “The existing global semiconductor industry is built around silicon technologies, which we believe gives SQC significant competitive advantage, and we are starting to work with SQC on our first financial use cases.”
Silicon Quantum Computing Pty Limited (SQC or the Company) is an Australian private company at the forefront of global efforts to build a commercial-scale quantum computer and bring quantum computing to market.
SQC was formed in May 2017 by the Commonwealth of Australia, UNSW Sydney, Telstra Corporation, the Commonwealth Bank of Australia and the State of New South Wales. It was funded with A$83 million to acquire a portfolio of world leading, silicon quantum computing intellectual property (IP) developed over the previous twenty years at the Centre of Excellence for Quantum Computation and Communications Technology (CQC2T) and to undertake a technical development program to build a silicon quantum computer.
Since May 2017, SQC has assembled a world class team of quantum scientists, engineers and technicians, specialist equipment and globally unique laboratories at UNSW to further its program. In addition to its core processor technology, SQC is developing a ‘full stack’ quantum computer ‘to ensure it can deliver a useful and manufacturable quantum device.
Blackpeak Capital is a leading independent corporate advisory firm providing corporate finance and strategic advice on M&A transactions, capital raisings and capital market transactions including IPOs. Blackpeak offers independent, objective advice and is focused on building long-term relationships with clients to assist them achieve their growth ambitions and create value for their shareholders. Blackpeak has established a track record of advising leading technology growth companies in Australia and New Zealand and has completed approximately 50 technology transactions over the last 7 years.
Espresso Communications on behalf of Silicon Quantum Computing
Natasha David: +61 401 389 638
Catherine Arnott: +61 432 405 155