FTI Consulting News Bytes – 18th November 2022
This week, the UK witnessed a major milestone towards becoming a leading launch nation after an operating license was granted to Spaceport Cornwall. Diving into the world of big tech, TikTok looks set to return nearly $10 billion in ad revenue, more than double what it generated last year. Moving from tech giants to start-ups, we then look at the developing row between the British government and the start-up community as the Department for Culture, Media and Sport (DCMS) prepares to appoint Barclays in a key “championing” role for the ecosystem. Dominating the news in the world of crypto this week, Binance CEO calls for more regulation following FTX’s high-profile collapse, and we end the roundup with a summary of a landmark development in the food industry of “cultivated meats.”
This week’s news
Spaceport Cornwall receives first UK spaceport license
The UK took a huge step forward towards becoming a leading launch nation this week after the Civil Aviation Authority (CAA) granted an operating license to Spaceport Cornwall. According to BBC, the CAA said Spaceport Cornwall had demonstrated it had met the appropriate safety, security and environmental aspects to operate a spaceport in the UK. Richard Branson’s Virgin Orbit will launch its next satellite from Cornwall following a successful mission in California. Unlike many rockets, Virgin Orbit’s Launcher One takes off horizontally, carried aloft by a modified Boeing 747 aircraft named Cosmic Girl. Transport Secretary Mark Harper said: “Virgin Orbit’s planned launch reinforces our position as a leading space nation as we look to the future of spaceflight which can spur growth and innovation across the sector, as well as creating thousands of jobs and apprenticeships.”
TikTok’s digital advertising strategy pays dividends
A long read in The New York Times on Monday explores how TikTok, the company best-known for viral dance videos, has become an attractive platform for advertisers. It reports that TikTok’s prioritisation of digital advertising means it is on track to make nearly $10 billion in ad revenue this year, more than double what it generated last year, surpassing rivals Twitter and Snap. Analysts cite long ‘dwell’ time on the app as a key driver behind the brand’s decision to flock to the platform, alongside its large reach and cultural cachet, particularly among young adults.
UK Founders reject DCMS start-up sector shakeup
This week saw a sparking of tensions between the UK start-up community and the British government. Prompted by reports that the Department for Culture, Media and Sport (DCMS) is set to appoint Barclays in the role of “start-up champion”, more than 60 start-up founders signed an open letter urging the government to stick with the incumbent, Tech Nation. It argued the move would be “pulling away” from the tech startup ecosystem rather than retaining a close interest, threatening vital services which Tech Nation has provided, such as visa sponsorship and applications for staff hired from abroad, as well as the external promotion of the U.K.’s startup scene globally. DCMS is yet to comment publicly on the rationale behind the reported decision. According to TechCrunch, Tech Nation had been “bidding for a continuing £12 million contract, starting from March 2023.”
Binance CEO calls for more crypto regulation
In a not-so-well disguised comment on former crypto rival FTX’s high-profile collapse last week, Binance CEO Changpeng Zhao called for more regulation of the sector to “protect consumers.” As the FT reports, Zhao argued that crypto companies need to be forthcoming with proof of reserves to match their liabilities to customers, and unsurprisingly suggested Binance would be leading the way on this front. His comments come as investors continue to pull out of crypto following FTX’s collapse, with Bitcoin, often used as a bellwether for broader industry health, falling 20% in the past week to about $16,000. BBC reported that over a million people and businesses could be owed money following FTX’s collapse.
Landmark day for “cultivated meat”
Lab-grown meat edged a step closer to our supermarket shelves this week as the US Food and Drug Administration (FDA) approved start-up Upside Foods’ chicken product on safety grounds. The first approval of so-called “cultivated meat” in the US, the FT reports Upside Foods is now waiting on approval from the US Department of Agriculture before it can start the commercial production and sales process. Rosie Wardle, co-founder and partner at Synthesis Capital, an investor in the start-up, described the news as “one of the most important milestones for the future of the food industry to date,” according to TechCrunch. In April this year, Upside Foods closed a $400m series C fund, with participation from investors including Synthesis Capital, who announced the world’s largest food technology fund at over $300m in May.
Top Tweets of the Week
- Cristiano Ronaldo announced in a tweet he is launching an NFT collection exclusively on Binance, inviting followers to “join his Web3 community”
- Elon Musk reveals on Twitter a postponement to the planned relaunch of Blue Verified to November 29th following large-scale criticism from users of the first iteration
- BBC Technology Editor, Zoe Kleinman, tweets job cuts figures for leading tech firms
Number of the Week
8 billion – In a momentous milestone for our species, the world’s population surpassed 8 billion people this week
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