E-Scooter new merge: A Tale of Survival

LatAm is the New Frontier for Startup Expansion

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Considering that today is Tuesday, we hope everything is better than yesterday, Blue Monday. 🔵

Some startups are organizing their expansion and consolidation strategies by saying, “Yes, I do.” Mergers are marriages taken to another level, and today, we talk about one recent joint in the E-scooter field. 

However, this case is just an example of something we will continue to see.

Here come the weddings! 🤝🏽

Six bullets of updates

  1. 🚘 Hertz pulls the brakes on EVs and plans to sell 20,000 cars due to unexpected depreciation and high repair costs.

  2. 💨 Swiss startup Sirius Aviation works in the world's first hydrogen-electric vertical take-off aircraft, aiming for a 2028 takeoff.

  3. 🌐 Startup founders leverage Reg A and CF for fundraising, making equity investments accessible to a broader pool of investors. 

  4. 🫘 Specialty coffee startups in India secure nearly $100M in VC funds due to rising consumption and reduced costs.

  5. 🌧️ Climate tech is flushing with funding, with potential trillions coming from tax credits and incentives for eco-friendly investments.

  6. 🚢 Columbia Group sets sail in VC with Galactic Beacon Ventures. It aims to nurture startups in the maritime and logistics sectors.

What does the Tier-Dott merge say about survival?


E-scooter startups Tier and Dott are uniting forces. Inevitably, together, the merger will become a dominant force in European micro-mobility. Because of the context and the needs in common for these two companies, it’s a move that smells like survival spirit. 🛴

Acting separately, they were not going to reach IPO scale, so…Think on Avengers or Justice League; it’s the same thing: joining superpowers in hard times. (Thanos doesn’t like this.)

In the case of this loving couple joining forces, it will unlock new markets, harness economies of scale, and expand the portfolio. (E-bikes come as part of the formula. 🚲) 

Tier and Dott merge might be a good case of something that we might see happening once and again this same year, and we’re not talking just about the micro-mobility territory. 2024 is the year to accelerate efforts towards profitability. Market consolidation will help with that mission. 

Taking this case as an example of what a merger needs, let’s think of some characteristics required for survival in every business: 

 Shared values and objectives.
 Market dominance.
 Collaborative synergy.

The year is still too young, but let’s wait for more weddings shortly. 🔔

Takeaways from this week’s podcasts

Liza Landsman, the new CEO of Stash, shared some thoughts on the intersection of behavioral economics and consumer financial behavior to understand consumer patterns. They can be employed to create beneficial 'nudges' for consumers.

There are unique advantages of a subscription model in fintech, for example, Stash's approach. The Stash subscription model aims to align the company's goals with the financial well-being of its customers by avoiding incentives that push consumers toward unnecessary transactions. Stash's subscription tiers cater to different life stages and investment confidence levels, suggesting a tailored approach to users' financial needs.

Liza Landsman on ‘Marketer of the Month’

LatAm is the New Frontier for Startup Expansion

European startups are increasingly eyeing Latin American markets for expansion, with Poland and Romania joining Spain and Portugal in the exploration. Fintech startup Payflow, for example, has seen a third of its business come from Latin America since its expansion there.

However, the region has challenges. Recruiting experienced leaders reasonably cheaply proves difficult, and navigating local governmental requirements can be tricky. Despite this, investors claim countries like Chile are making it easier for foreign startups to establish a presence.

A Cap Table Template

Understanding stock, preferred stock, convertible notes, angel investing, venture capital, and other fundraising instruments can be truly overwhelming. This cap table template will help you plan and keep track of your equity and avoid a mistake that can cost you millions of dollars.