🌟 Top Headlines in Startupland 🌟 

The Acquisition that Almost Was: Cybersecurity Startup Wiz Opts for IPO over $23 Billion Deal with Google

Instead of journeying to Mountain View, CA to join Google, the cybersecurity startup Wiz will remain its own entity and commence its plans to IPO in the next couple of years.

In an email to employees from Wiz Chief Executive Assaf Rappaport, viewed by the WSJ, the executive affirmed that the deal would not go forward. Instead, the startup aims to rocket from its current revenue of $500M to $1B in recurring revenue within a year before IPO-ing in the next couple of years.

Speculations as to why the acquisition fell through include Wiz’s concerns about retaining its autonomy after being absorbed into Google and regulatory obstacles.

The search engine titan has been embroiled in antitrust legal battles with the DOJ and has been receiving government scrutiny as of late, so this acquisition (should it have gone through) might have been struck down in the end. While this all went down, a stretched-out regulatory battle would have hampered Wiz’s financial opportunities and overall growth.

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📚 Dive A Bit Deeper 📚

This New Government Initiative for Startups is Black, White & Green All Over

Founders don’t need to have their news notifications turned on to know that funding is limited this year. Venture-backed seed rounds last longer and run larger on average, inhibiting startups’ growth. 

Luckily, the Small Business Administration (SBA) has come through for energy and climate startups who haven’t had the best luck in private equity. The all-new Green Lender Initiative expands loan options that support climate-focused and environmentally-minded startups and small businesses. 

Wait, what is this new initiative?

Suppose you’re a startup in the area of alternative energy, decarbonization, or sustainability. In that case, the SBA expands your options for accruing capital all while contributing to the U.S.’s transition to clean energy.

Instead of seeking funding from VCs or other private equity sources, startups in these markets should consider applying to government-backed loan programs like those from the SBA.

Here’s a breakdown of the different loan programs under the Green Lender Initiative:

• Microloans are short-term loans of up to $50,000 that startups can use to rebuild or improve their small businesses. These could be essential for early-stage climate startups that need to get their business off the ground.

• 504 Development loans can deliver up to $5.5 million to businesses with less than $15 million in net worth. Long-term and fixed-rate, 504 loans can be used for purchasing new or improving existing fixed assets like facilities, machinery, and land. These can be especially useful to startups that are ready to expand their operations.

• 7(a) loans are divided into Community Advantage and Small Business Lending Companies under the Green Lender Initiative. Both are long-term loans and have more flexibility in how startups can use them, but the Community Advantage program is mission-driven to support the development of underserved communities.

In summary, the Green Lender Initiative offers clean energy and climate startups at diverse stages secure and flexible loan programs they need to support their business development, thus increasing their value proposition and strengthening their investibility.

P.S. Investors can benefit, too.

VCs can join in on the Green Lender Initiative as well. In addition to expanding their portfolio and supporting the U.S.’s transition to clean energy, VCs who co-invest in startups alongside lenders are…

• Putting forward lower-risk investments thanks to SBA’s guaranteed loans

• Building relationships with SBA-certified and regulated lenders, which include nonprofits, banks, and other institutions 

Read more about the Green Lender Initiative here

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Deep Dives Galore

🏃‍♀️ SPEAKING OF IPOs… — IPOs are on the mind of many as of late. According to Louis Lehot, a Silicon Valley lawyer, the environment for IPOs in H2 2024 is becoming more hospitable. Whether you’re close to reaching it or are only dreaming about it, knowing what an IPO involves nowadays is useful.

🗳️ PUTTING THE AI IN CAMPAIGNING — AI has had a PR nightmare in politics lately because of its ability to spread misinformation, sometimes with malicious intent. AI has its place in politics, and the startups helping small political campaign teams show how it should be leveraged.

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