Sunday, November 24, 2024

Manufacturers prep for new tariff regime

Plus: AI and agriculture, European VC valuations on the rise & more
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The Weekend Pitch
November 24, 2024
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(Jenna O'Malley/PitchBook News)
President-elect Donald Trump's pledges to impose broader tariffs on most goods from US trading partners and a heavy levy on Chinese goods have, as usual, triggered a maelstrom of skepticism, anxiety and excitement.

Now, advisers and investors with clients and portfolio companies in manufacturing and associated sectors tell me companies are bracing for the possibility of higher import costs and other protectionist measures, with some already taking decisive action.

I'm Madeline Shi, and this is The Weekend Pitch. You can reach me at madeline.shi@pitchbook.com or on X @Madelin94615831.

Some, such as domestic manufacturers, are banking on the potential upsides of business-friendly policy changes.
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Trivia

This week, Blackstone made its latest bet in the restaurant franchise space when it acquired a majority stake in which US submarine sandwich chain?

A) Subway
B) Jersey Mike's Subs
C) Jimmy John's
D) Potbelly Sandwich Shop

Find your answer at the bottom of The Weekend Pitch!
 

European VC valuations
are on the upswing

(Getty Images)
European startup valuations are recovering as interest rates stabilize and inflation slows. Our Q3 2024 European VC Valuations Report shows higher deal values across all stages, putting the year on course to beat 2023's figures.

The data suggests that European VC may be past the worst of the downturn.
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Will AI's impact
transform agriculture?

(Winexa/Getty Images)
What AI will bring to the agrifood tech sector was the question on everyone's lips at this year's Thrive Global Impact Summit. AI models can ingest massive amounts of data and may be a key to accelerating solar cell development and bridging supply chain gaps, senior agrifood analyst Alex Frederick reports.

But AI comes with downside risk: greenhouse gas emissions. Industry players will have to evolve their processes to keep the Earth healthy, not just their soil.
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Quote/Unquote

"When you have the FDIC breathing down your neck for the past 18 months, banks have really had to tighten up, which has created a lot of opportunity for the private credit funds."

—James Turner, CEO and founder of venture debt advisory firm 5th Line Capital talking about why non-bank lenders are doing better following the collapse of SVB over a year and a half ago.
 

Stay tuned

Keep an eye out for these insights and research reports coming out this week:
  • Q3 2024 Clean Energy Tech Report
  • Q3 2024 Public PE Roundup
  • Q3 2024 Aerospace & Defense Launch Report
  • Q3 2024 AI & ML Report
  • Emerging Space Brief: GPU Cloud
  • Analyst Note: Quarterly Fintech M&A Review
 

Trivia

(iStock/Getty Images)
Answer: B

Earlier this week Blackstone acquired a majority stake in Jersey Mike's in a deal that values the submarine sandwich chain at around $8 billion. Read more about that deal and other franchise bets the firm has made here.
 

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This edition of The Weekend Pitch was written by Madeline Shi and Jacob Robbins. It was edited by Heather West and Clarinda Simpson.

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