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Market Trends

SPVs by Sector

Allocations has powered over 20,000 investments into world changing companies. The Allocations platform empowers emerging fund managers to easily raise capital and gives normal investors the opportunity to invest in companies that are changing the world.

2021 was a record year for venture and while we are seeing a slight slowdown in both public and private markets in 2022, we still expect VC investments to remain strong.

Venture capital is a long term game- so the public market volatility may have a small impact, but isn’t majorly concerning to fund managers and investors.

Thousands of investments have been facilitated through Allocations for innovative companies that are addressing some of the biggest problems in the world right now: cancer, pollution and climate change, mental health, space, biotech and fintech.

Here are 4 sectors we’ve seen significant growth in and expect investors to continue to focus on:

SPVs into Space

The Space industry has experienced massive growth over the past few years and doesn’t seem to be slowing down. In 2021, ‘the space economy grew at fastest rate in years to $469 billion', according to an article by CNBC.

Our clients have invested a combined $58M into the space sector through Allocations. To name a few, we’ve seen SPVs into:

  1. SpaceX: Founded in 2022 by Elon Musk- designs, manufactures and launches advanced rockets and spacecraft.
  2. Radian Aerospace: Building the world's first truly reusable orbital aerospace vehicle: a winged vehicle that can take off and land using runway infrastructure.
  3. Axiom Space: Exists to create a thriving home in space that benefits every human, everywhere.
  4. Relativity Space: Designs and builds small-lift and medium-lift launch vehicles (rockets) for launching civil, commercial, and military payloads to space.
  5. Voyager Space Holdings: Enabling the innovator community to create the technology ecosystem that powers space exploration.
  6. Space Forge: Developing a returnable manufacturing platform that uses the benefits of space to make new materials that are not possible on Earth.
  7. Orbit Fab: Offers a supply of satellite propellant in Earth Orbit that expands the operational potential of new and existing space assets.
  8. Gravitics: An aerospace company that designs and manufactures the building blocks for a sustainable human presence in space.
  9. Xplore: Provides space as a service to commercial, government and nonprofit customers.
  10. Cosmic Shielding Corporation: Developing measures to protect against radiation in space.

SPVs into Climate

The increased focus on sustainability has caused growth of early stage capital flow to companies in the climate-tech sector. As stated by Bloomberg, ‘Climate-tech startups raised $53.7 billion from venture capital and private equity (VC/PE) in 2021’

Despite the slow down in private markets this year, climate investments are still hot. According to Crunchbase, “Climate-focused software startups are landing big rounds in recent months”.

Allocations has powered investments into dozens of climate focused companies including SPVs into:

  1. SolarBio: Revolutionizing the way SynBio products are brought to market.
  2. New Age Meats: A new way to produce our favorite pork products that will make life better for everybody.
  3. Juicy Marbles: Creating the world’s first realistic plant-based steak.
  4. EnergyX: A renewable energy technology company focused on direct lithium extraction.
  5. Amprius: The Highest Energy Density Lithium-ion Batteries in the World.
  6. Cellibre: Cellular agriculture company that turns cells into specialized, sustainable factories for the manufacture of globally significant products at scale.

We expect to see the growth of climate investments continue to grow given the fact that climate change continues to be a major issue globally.

SPVs into Biotech

Biotech VC is another sector that has significantly grown from 2019-2022. An article by McKinsey & Co. states “VC companies invested in 2,200 biotech start-ups worldwide in 2016; by 2021, that number had grown to 3,100.”

It was also found that biotech companies raised more than $34 Billion in 2021.

And while there has been a slight decline month over month in VC investments, both investors and companies feel confident about the industry over the long term.

We’ve seen a lot of excitement from investors about companies focused in:

  • Cell therapy 2.0
  • Next-generation gene therapies
  • Precision medicine
  • Drug discovery enabled by machine learning (ML)

Allocations has powered over $8M of investments into some of these world changing companies including:

  1. Volumetric Biotech (exited through acquisition by 3D Systems): Volumetric Biotech
  2. Ashvattha Therapeutics: a clinical-stage biopharmaceutical company focused on developing novel HD therapeutics (HDTs) to treat unmet medical needs in ophthalmology, neurology, inflammatory diseases and neuro-oncology.
  3. Beckley Psytech: Helping patients suffering from neurological and psychiatric disorders by developing a pipeline of psychedelic compounds.
  4. Juvenescence: Longevity development company.
  5. OncosenX: Targets solid tumors based on transcriptional activity using a unique Proteo-Lipid Vehicle (PLV) and plasmid DNA.
  6. Insilico Medicine: An end-to-end, artificial intelligence-driven pharma-technology company.
  7. Life Biosciences: Developing innovative therapies to transform how we treat diseases by targeting aging biology.

SPVs into Fintech

To no surprise the rise of Fintech has been significant over the past few years. In 2021, about 33% of all unicorns were fintech companies, according to an article by TechCrunch.

In Q2 2022, about 18% of global venture dollars went into fintech startups, just a slight drop from 20% in 2021. Even given the market conditions, a significant amount of venture dollars are being allocated toFintech companies.

Upwards of $15M has been investe into Fintech companies through Allocations, a number we see continuing to grow. SPVs into Fintech companies include:

  1. Allocations: The fastest and one of the most advanced alternative investment platforms in the world for private funds, SPVs, and related private equity services
  2. Klarna: An eCommerce payment solutions platform for merchants and shopper
  3. Stripe: A suite of APIs powering online payment processing and commerce solutions for internet businesses of all sizes.
  4. Plaid: Helps all companies build fintech solutions by making it easy, safe and reliable for people to connect their financial data to apps and services.

Allocations is proud to have powered investments  into these powerful and impactful companies across various industries. Our mission is to create economic freedom for the world through democratized alternative investments.

Connect with our team to learn more about Allocations: allocations.com/contact

Disclaimer: The information provided in this document does not, and is not intended to, constitute legal, tax, investment, or accounting advice; instead, all information, content, and materials available are for general informational or educational purposes only and it represents the personal view of the author. Please consult with your own legal, accounting or tax professionals.