Sourcery → GPT-4o
(5/6-5/10) Miami, Apple Ad, SpaceX Spacesuits 🌴 Wiz, Atlan, Lagrange Labs, CoverTree, Blackwell Security, In-House Health, TXOne Networks, RunPod, Daloopa, Numeric, Altera,
Hello from a very humid Miami 🌴
Where I will be for a while!
Musings
Macro
Q1 2024 State of Venture Update: From Devin to Robotic Foundation Models: AI's Transformative Potential [Alex Kolicich, 8VC]
The CQ: The Metal-Tested Companies Prepping for IPOs, and OURA's Upped Longevity Play [Forerunner]
We Interviewed Jack Dorsey, Apple Ad Controversy, Fake Meat Ban, FTX, & Based Met Gala [Pirate Wires]
VC
Altimeter's Returns + Their Secret Forecasts for Uber, Nvidia, Snowflake, Meta, Amazon & Microsoft [Newcomer]
AI
OpenAI releases GPT-4o, a faster model that’s free for all ChatGPT users [The Verge]
Honestly, I thought this was an internet prank at first, especially after Sam Altman’s recent conversation on the All-in Podcast pushing off talking about the next release. But it is real.
Microsoft announced a $3.3 billion investment in cloud computing and AI infrastructure in Southeast Wisconsin. [Microsoft]
This includes the creation of the first manufacturing-focused AI co-innovation lab and an AI skilling initiative for over 100,000 residents, with President Joe Biden and Microsoft President Brad Smith set to announce the investment at Gateway Technical College. [Microsoft]
TikTok will start labeling AI-generated content uploaded from outside its platform to combat misinformation. [AP News]
HardTech
Apple has been developing AI chips for data centers under the Project ACDC initiative, collaborating with Taiwan Semiconductor Manufacturing Co., (TSMC) on design and production. [CNBC]
Scientists at The University of Manchester have achieved a milestone in quantum computing by developing ultra-pure silicon, essential for high-performance qubit devices necessary for scalable quantum computers. [Space Daily]
SpaceX has unveiled new spacesuits for spacewalks, which will debut on the upcoming private Polaris Dawn mission. [Space News]
These suits, based on the Crew Dragon pressure suits, feature enhanced joint designs, improved thermal management, and upgraded helmets with a sun visor, camera, and heads-up display for status information during spacewalks. [Space News]
Other
TikTok is suing the U.S. government to stop the enforcement of a new bill requiring its Chinese owner, ByteDance, to sell the app or face a ban, arguing that the Protecting Americans from Foreign Adversary Controlled Applications Act violates First Amendment protections of free speech. [CNBC]
The lawsuit claims the bill is an unprecedented violation, barring Americans from a global online community and asserting that national security concerns are insufficient to justify such restrictions. [CNBC]
Last Week (5/6-5/10):
Relevant deals include the 80+ deals across stages below.
I've categorized the deals below into eight categories, Fintech, Care, Enterprise / Consumer, HardTech, Sustainability, Acquisition/PE, IPOs, and Fund Announcements and ordered from later-stage rounds to early-stage rounds.
Highlighted VC deals include
Wiz, Atlan, Lagrange Labs, CoverTree, Blackwell Security, In-House Health, TXOne Networks, RunPod, Daloopa, Numeric, Altera, Chip City Cookies, Iconic Arts, Kino, Bleach Cyber, Wayve, Li Industries, Zanskar Geothermal & Minerals, Xona Space Systems,
Acquisitions & PE
EQT, Synopsis, Kelly, Akamai Technologies, Sikich, Shutterstock, DocuSign
Funds
Silver Lake, Vance Street Capital, Hyde Park Venture Partners
Final numbers on Sweetgreen and the growing number of banking branches and new bank charters.
VC Deals
This roundup was customized & powered by Wonder. Start your free trial here.
Fintech:
- Honeycomb, a Chicago, IL-based digital insurer, completed a $36M Series B funding round, by Zeev Ventures, with support from Arkin Holdings, Launchbay Capital, Ibex Investors, Phoenix Insurance, and IT-Farm.
- Arbelos Markets, a NYC-based principal liquidity provider in crypto derivatives markets, secured a $28M mix of seed equity and debt financing, led by Dragonfly Capital, alongside other participating investors, including Room40 Ventures, Selini Capital and Breed VC, FalconX, Circle Ventures, Paxos, P2 Ventures, Deribit, Chorus One, StarkWare, and Immutable, and other angel investors.
- Panax, a NYC-based AI-driven cash flow management platform, closed $15M in funding from Team8 and TLV Partners.
- Lagrange Labs, an NYC-based company scaling blockchain computation, closed a $13.2M Seed funding, led by Founders Fund, alongside supporting investors, including Archetype Ventures, 1kx, Maven11, Fenbushi Capital, Volt Capital, CMT Digital, Mantle Ecosystem Fund, and various angels.
- CoverTree, a Detroit, MI-based insurtech company in the manufactured home insurance space, secured a $13M Series A funding round, led by Portage, with support from AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and others.
- Provable Markets, a NYC- and Amsterdam, the Netherlands-based front, middle, and back-office technology solutions provider for securities finance, closed $8M in Series A funding, led by Dialectic Capital Management, alongside Inkef Capital and Anthemis.
- Greenboard, a NYC-based compliance and operations software company for financial services, secured $4.5M in Seed funding, led by Base 10 Partners, with support from Y Combinator, General Catalyst, Wayfinder Ventures, Liquid2 Ventures, Twenty Two Ventures, Rogue Capital, Transpose Platform, and others.
- Dwellfi, a Palo Alto, CA-based AI, blockchain, and tokenization solutions company, closed a $3M Seed funding round, led by E1 Ventures, Stanford Blockchain, Hustle Fund, Blockchain Coinvestors, and Fortified Ventures.
- Glacis, an NYC-based developer of a Firewall and Router Protocol for simplifying cross-chain operations, raised $2M in seed funding, led by Arrington Capital and Paper Ventures.
- Outpave, a Frisco, TX-based spend management startup, closed $1.2M in Seed funding, led by Fritz-Pak Corporation.
- Arch Network, a Bitcoin-native application and smart contract platform, closed an undisclosed amount of seed funding from OKX Ventures.
- Alphastream, a NYC-based private credit analysis company, secured an undisclosed amount in Seed funding from Motive Ventures.
Care:
- Averto Medical, a San Francisco, CA-based clinical-stage medical device company, secured $30M in Series A funding, led by Cormorant Asset Management, with other participating investors, including Venrock Healthcare Capital Partners, LifeSci Venture Partners, CVF, and other investors.
- Sift Healthcare, a Milwaukee, WI-based AI-powered healthcare payment solutions company, closed a $20M Series B funding round, led by B Capital, with participation from Allos Ventures, First Trust Capital Partners, and Rock River Capital.
- Acclinate, a Birmingham, AL-based company facilitating enhanced health equity for diverse communities, secured $17M in Series A funding, led by Cencora Ventures, with support from Labcorp and Latimer Ventures.
- Triomics, a San Francisco, CA-based company advancing generative AI models to streamline workflows for cancer centers, secured $15M funding from Lightspeed, Nexus Venture Partners, General Catalyst, and Y Combinator.
- Opmed.ai, a Boston, MA-based AI optimization platform for healthcare, completed a $15M Series A funding round, led by NFX and Grove Ventures, with support from Secret Chord Ventures, Sir Ronald Cohen, and Unbox Ventures.
- Backpack Healthcare, an Elkridge, MD-based telemedical provider of pediatric mental healthcare, closed a $14M Series A funding round, led by PACE Healthcare Capital, with other participants, including ECMC, Techstars, Collab Capital, Bridge Builders Collaborative, Portland Seed Fund, Hopelab, Rethink Education, Genius Guild, and Unlikely Collaborators, along with other angel investors.
- Neurable, a Boston, MA-based neurotechnology company, secured $13M funding from Ultratech Capital Partners, TRAC, Pace Ventures, and Metaplanet.
- Blackwell Security, an Ann Arbor, MI-based cybersecurity for the healthcare industry, closed $13M in funding, led by General Catalyst and Rally Ventures.
- Ciba Health, an NYC-based digital health company, secured a $10M Series A funding, led by DigiTx Partners, with support from E12 Ventures, 3CC Capital, Plug and Play Ventures, and other angel investors.
- Humanaut Health, an Austin, TX-based health optimization clinic, closed a $8.7M Seed funding round, led by The Kabech Fund, alongside Midnight Venture Partners, the company’s founders, Tushara Dilanie, and other strategic individual investors.
- In-House Health, a Denver, CO-based provider of an AI-driven scheduling and management platform for modern nursing teams, completed a $4M Seed funding round, led by NEA and TMV, alongside other pre-seed investors, such as Vine Ventures and Longevity Venture Partners.
- Little Sparrows Technologies, a Woburn, MA-based neonatal medical device startup, completed a $3M Seed funding round from undisclosed investors.
- DoorSpace, a Houston, TX-based B2B healthcare technology company, secured a $2M Seed funding from undisclosed investors.
- Mae Health, an NYC-based pregnancy and postpartum support company for Black expectant mothers, secured an undisclosed amount in Seed funding, led by Jumpstart Nova, with support from the Astia Fund, Impact Engine, Joyance Partners, Gratitude Railroad, RH Capital, Avestria Ventures, Bright Ventures, and the Social Starts Health & Happiness Fund.
- Flossy, a Los Angeles, CA-based dental care company, closed an undisclosed amount in funding, led by Forecast Labs, alongside TTV Capital, The Family Fund, and B Capital.
Enterprise/Consumer:
- Wiz, an NYC-based cloud security platform, secured $1B funding at a $12B valuation, led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, alongside other participating investors, including Greylock, Wellington Management, Cyberstarts, Greenoaks, Howard Schultz, Index Ventures, Salesforce Ventures, and Sequoia Capital.
- Atlan, a San Francisco, CA-based data and AI governance company, secured $105M in Series C funding, led by GIC, Singapore’s sovereign wealth fund, with participation from Meritech Capital, Salesforce Ventures, and PeakXV Partners.
- TXOne Networks, a Taipei, Taiwan- and Irvine, CA-based cyber-physical systems (CPS) security company, closed a $51M Series B extension funding round, led by TGVest Capital, Pegatron Group, CDIB Capital Group, and CDIB-Innolux II L.P, alongside other participating investors, including joint fund - Taiwania Capital & Applied Ventures ITIC Innovation Fund, L.P. (AVITIC).
- RunPod, a Mount Laurel, NJ-based company enabling the deployment of custom full-stack AI applications, closed $20M in Seed funding, led by Intel Capital and Dell Technologies Capital, with support from Julien Chaummond, Nat Friedman, and Adam Lewis.
- Stella Automotive AI, a Tampa, FL-based automotive AI technology company, completed a $19.7M Series A funding round, from Reynolds and Reynolds, Qvale Auto Group, OREMOR Automotive Group, Mills Automotive Group, Bowers Automotive Group, MileOne Autogroup, Flow Automotive, MBB Auto Group, Ford Family Investments, and West Herr Auto Group.
- Daloopa, NYC-based AI-powered historical data provider, closed $18M in Series B funding, led by Touring Capital, with other participating investors, including Morgan Stanley and Nexus Venture Partners.
- Nudge Security, a San Francisco, CA-based SaaS security and governance company, secured Seed extension funding totaling $16.5M, backed by Forgepoint Capital and Ballistic Ventures.
- Anetac, a Los Altos, CA-based startup protecting companies from blind spots of service accounts in hybrid environments, secured $16M in funding, led by Liberty Global, with support from Shield Capital, The General Partnership, Anetac CEO Tim Eades, and Jason Witty.
- Cheetah Technologies, a San Francisco, CA-based technology-driven restaurant supplier, completed an additional $14M in funding from undisclosed investors.
- ChangeEngine, a San Francisco, CA-based internal marketing and people design platform, secured $10M in Series A funding, led by Threshold Ventures, with support from Struck Capital and Bonfire Ventures.
- Numeric, a San Francisco, CA- and NYC-based AI-powered accounting automation platform, completed a $10M Seed funding round from Founders Fund, Menlo Ventures, 8VC, Long Journey, Friends & Family Capital, and others.
- Altera, a Los Angeles, CA-based AI company creating digital human beings, raised $9M in Seed funding, led by Patron and First Spark Ventures, with support from a16z SPEEDRUN, Mitch Lasky, Stephen Lim, Greg Harper, Bob Meese, Rich Aldrich, Vamos Ventures, and Alumni Ventures, among others.
- Paxafe, an Indianapolis, IN-based AI-powered support solutions provider for cold chain logistics, closed $9M in Series A funding, led by Framework Venture Partners, with support from M12, Rosecliff Ventures, Elevate Ventures, AngelList Quant Fund, Gaingels, Mana Ventures, Ubiquity Ventures, and Venture53.
- Chip City Cookies, a NYC-based gourmet cookie chain company, closed a $7.5M Series B funding, led by Enlightened Hospitality Investments.
- Iconic Arts, a Los Angeles, CA-based transmedia entertainment studio, secured $3.1M funding from Eric Roth, Will.i.am, Chris Heatherly, Mark Caplan, and Motoki Tani.
- Kino, a Los Angeles, CA-based interactive digital cinema platform, closed $2.35M in a Pre-Seed Extension funding round, led by Cathie Wood’s ARK Venture Fund, alongside other investors, including Lightning Capital, Hyperithm, Mindfulness, WAGMI, and others.
- Bleach Cyber, a San Francisco, CA-based cybersecurity company for startups and small businesses, completed a $2M Pre-Seed funding round, led by Everywhere VC, The Fund Austin, Rain Tree Roots Capital, BlueWing Ventures, Concept Ventures, Tynrose, and Acadian Capital Ventures, with participation from Don Douglas, Scott Nicholson, Nick Santora, Sam Murdoch, and Bill Tyndall.
- Archive Intel, an Atlanta, GA-based AI-powered communications archiving and compliance solutions company, secured a $1M Seed funding, led by Social Leverage.
- Offleash’d, a Los Angeles, CA-based developer of a social community-building mobile app connecting pet parents through its patented AI-powered matchmaking process, completed a $700K Seed funding round, led by Bill and Juliana Wong, Florexis “Flex” and Cecille Velasco, Chris and Shelly Webber, Garold and Julia Harford.
- LottieFiles, a San Francisco, CA-based animation design platform provider, secured an undisclosed strategic investment amount from Webflow Ventures and Figma Ventures.
HardTech:
- Wayve, a London, UK-based company integrating advanced AI into vehicles and robots, completed $1.05B in Series C funding, led by SoftBank Group, with support from NVIDIA and Microsoft.
- Li Industries, a Pineville, NC-based lithium-ion battery recycling technologies company, closed $36M in Series B funding, co-led by Bosch Ventures, Khosla Ventures, and LG Tech Ventures, alongside other participating investors, including Formosa Smart Energy Tech Corp., Anglo American Decarbonization Ventures, and Chevron Technology Ventures.
- Zanskar Geothermal & Minerals, a Salt Lake City, UT-based geothermal exploration company, secured a $30M funding round, led by Obvious Ventures, with support from Munich Re Ventures, Union Square Ventures, Lowercarbon Capital, Safar Partners, and First Star Ventures, and Clearvision Ventures.
- Xona Space Systems, a Burlingame, CA-based company developing a network of small satellites to provide high-precision navigation services, secured $19M in Series A funding, led by Future Ventures and Seraphim Space, with support from NGP Capital, Industrious Ventures, Murata Electronics, Space Capital, and Aloniq.
- Inkbit, a Medford, MA-based advanced additive manufacturing solutions company, closed $19M in funding, led by Ingersoll Rand (NYSE: IR), with support from Future Labs Capital, GC Ventures America, iGlobe Partners, Ocado, Phoenix Venture Partners, Stratasys, Zeon Ventures, and other private investors.
- FleetPulse, a Chicago, IL-based trailer telematics solution company, raised $11M in Seed funding, led by Four More Capital.
- Lucid Bots, a Charlotte, NC-based robotics company addressing labor-intensive tasks, received $9.1M in Series A funding, led by Cubit Capital, with participation from Idea Fund Partners, Danu Venture Group, Y Combinator’s Growth Fund, and Gratus Capital.
- Pascal, a Cambridge, MA-based startup developing heat pumps, air conditioners, and refrigerators based on solid refrigerants, closed $8M in Seed funding, led by Engine Ventures, with support from Khosla Ventures and Blindspot Ventures.
- Rapid Liquid Print, a Boston, MA-based additive manufacturing startup, secured $7M in Series A funding, led by HZG Group, alongside BMW i Ventures and MassMutual.
- Niobium, a Dayton, OH-based custom silicon provider, completed a $5.5M Seed funding round, led by Fusion Fund, with support from Morgan Creek Capital, Rev1 Ventures, Ohio Innovation Fund, and Hale Capital.
Sustainability:
- Hysata, a Wollongong, Australia-based company developing electrolyzers for producing green hydrogen, secured $111M in Series B funding, led by bp Ventures and Templewater, alongside other participating investors, including IP Group Australia, Kiko Ventures, Virescent Ventures, Hostplus, Vestas Ventures, BlueScopeX, POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, IDO, and TelstraSuper.
- Renegade Plastics, a Golden, CO- and Green Bay, WI-based company making coated fabrics more sustainable, secured an undisclosed amount in Pre-Seed funding, led by Schneider Resources Holding.
Acquisitions & PE:
This roundup was customized & powered by Wonder. Start your free trial here.
- EQT is set to take Perficient (NASDAQ: PRFT), a St. Louis, MO-based digital consultancy firm, private for about $3B.
- Synopsys (NASDAQ: SNPS), a Sunnyvale, CA-based provider of integrated software solutions, has agreed to sell its Software Integrity Group business, for a total of $2.1B, backed by Clearlake Capital Group, L.P., and Francisco Partners.
- Kelly (Nasdaq: KELYA, KELYB) agreed to acquire Motion Recruitment Partners, a Boston, MA-based parent company to talent solution providers, from Littlejohn & Co. for $485M in total consideration.
- Akamai Technologies (NASDAQ: AKAM), a Cambridge, MA-based content delivery network, cybersecurity, DDoS mitigation, and cloud services company, acquired Noname Security, a San Jose, CA-based API security company, for about $450M.
- Sikich, a Chicago, IL-based technology-enabled professional services firm, secured a minority growth investment worth $250M from Bain Capital.
- Shutterstock (NYSE: SSTK), an NYC-based content curation platform for brands, digital media, and marketing companies, acquired Envato Pty Ltd., a Melbourne, Australia-based digital creative assets and templates company, for $245M.
- DocuSign, (NASDAQ: DOCU) a San Francisco, CA-based intelligent agreement management (IAM) company, acquired Lexion, a provider of AI-powered agreement management software, for $165M.
- Stonal, a Paris, France-based data management platform, secured investments of about €100M (~$107.88M) from Aeron.
- iyzico, an Istanbul, Turkey-based financial technology company, acquired Paynet, a provider of B2B payments and collections services in the Turkish fintech landscape, for $87M from Arena Group.
- Legion Technologies, a Santa Clara, CA-based workforce management (WFM) company, received $50M in Growth funding, led by Riverwood Capital with support from Norwest, Stripes, Webb Investment Network, and XYZ.
- Mobix Labs, Inc, (Nasdaq: MOBX), an Irvine, CA-based semiconductor company is set to acquire RaGE Systems Inc., a Lowell, MA-based radio frequency design and manufacturing company, in a deal worth a total of about $20M, consisting of cash, stocks, and possible earn-out payments.
- AI Squared, a Washington, DC-based data and information integration company for business applications, acquired Multiwoven, a Mountain View, CA and Bangaolore, India-based open-source reverse ETL (rETL) company, for an undisclosed amount.
- Beacon EmbeddedWorks, an Eden Prairie, MN-based global embedded electronics company, is set to acquire Diamond Technologies, Inc., a Hudson, MA-based data collection, automation, and industrial communications company, for an undisclosed amount.
- HALO Dream, a portfolio company of Transom Capital, acquired BreathableBaby, a St. Louis Park, MN-based manufacturer of sleep products for babies, for an undisclosed amount.
- Axon (NASDAQ: AXON) is set to acquire Dedrone, a Washington, D.C.-based developer of airspace security technology for an undisclosed amount.
- Ironmark, acquired Deliver Media, a Tampa, FL-based provider of multi-channel marketing campaign services, and L & D Mail Masters, a New Albany, IN-based direct mail firm, for an undisclosed amount.
- Traffic & Mobility Consultants, a portfolio company of Grovecourt Capital Partners, acquired Lincks & Associates, a Tampa, FL-based transportation and traffic engineering services firm, for an undisclosed amount.
- ISSQUARED Inc., a Westlake Village, CA-based IT and cybersecurity solutions company, acquired CCT Technologies, a San Jose, CA-based high-quality IT solutions company, for an undisclosed amount.
- Innovative Motion Technologies, a Germantown, WI-based industrial interface and control solutions company, acquired Check Technology, a Troy, MI-based flexible heating systems company, for an undisclosed amount.
- Echo360, a NYC-based global SaaS platform for comprehensive learning engagement outcomes, acquired Inkling, a San Francisco, California-based digital training and development company, for an undisclosed amount.
- Pearl, a West Hollywood, CA-based company providing AI solutions for dentistry, secured an undisclosed investment amount from Dental Innovation Alliance VC Fund I.
- Reveal, a Chicago, IL-based provider of an AI-powered eDiscovery, review, and investigations platform, acquired Onna Technologies, a NYC-based data management platform company, for an undisclosed amount.
- Heartland, a Detroit, MI-based material sciences company, secured an undisclosed investment amount from Chemovator.
- Corpay, (NYSE: CPAY), an Atlanta, CA-based corporate payments company, is set to acquire Paymerang, a Richmond, VA-based accounts payables automation solutions company, for an undisclosed amount.
- Black Mountain Software, a Polson, MT-based accounting and billing software company for government organizations, acquired Fiscalsoft, a Kentucky-based accounting and payroll software solutions company, for an undisclosed amount.
- Multitude Insights, a Cambridge, MA-based AI-powered solution company enabling collaboration and fast case resolution for law enforcement agencies and first responders, secured an undisclosed investment amount from NEC X.
- Boomi, acquired the federated API management business of APIIDA and API management assets from Cloud Software Group, for an undisclosed amount, backed by TPG and Francisco Partners.
- Special Aerospace Services, acquired Quintron Systems, a Santa Maria, CA-based communications technology company for the space and defense sector, for an undisclosed amount, backed by Godspeed Capital.
IPO:
- Proficient Auto Logistics, a Jacksonville, FL-based auto transportation and logistics services provider, closed $215M in an offering of 14.3M shares priced at $15.
- Silvaco Group, a Santa Clara, CA-based developer of software for semiconductor and photonics companies, closed $114M in an offering of 6M shares priced at $19.
Fund Announcements:
- Silver Lake, the global technology investor, closed its Silver Lake Partners VII at $20.5B, backed by public and corporate pension funds, sovereign wealth funds, insurance companies, endowments, foundations, funds of funds, family offices, technology industry leaders, and individual investors.
- Vance Street Capital, a Los Angeles, CA-based private equity firm, raised its Vance Street Capital IV at $775M, backed by founder-owned companies, multi-generational family businesses, and corporate carve-outs.
- Hyde Park Venture Partners, a Chicago, IL-based venture capital fund, raised $98M for its fourth fund focused on early-stage startups in the Midwest and Toronto.
Final Numbers
Greener linings
Shares in salad seller Sweetgreen jumped a whopping 34% on Friday, after the company beat Wall Street’s expectations, as revenues rose 26% year-on-year to hit $158M in the first quarter.
That makes Sweetgreen — popular for peddling premium salads that can cost as much as $20 — one of the best performing stocks in America this year, having soared more than 185% in 2024.
Raw deal
Investors were buoyed by the company raising both its revenue and adjusted EBITDA guidance for the rest of 2024. However, despite selling more salads than ever before in Q1, Sweetgreen still isn’t profitable... which may come as a shock to anyone who’s paid $15-20 for a salad and left feeling like they could have made it themselves for a fraction of the price.
By indexing Sweetgreen’s earnings to $15 — roughly the price of a typical salad at the chain — it’s easy to see exactly where the leafy costs are coming from. In fact, for every $15 of revenue in Q1, the company incurred operating expenses of more than $17.50.
Interestingly, the cost of the actual food, drinks, and packaging is only a fraction (about $4.15 out of $15 in our example) of the final sale price. Labor costs take another $4.35 bite out of the earnings, and then rent, property costs, and other expenses swallow $3.78. Those total costs tally just over $12 — great! Sweetgreen’s restaurant operations, in isolation, are very profitable for a food service business… but, of course, there are overheads to consider. Those overheads take Sweetgreen well into the red.
Over the hot summer months, Sweetgreen is likely to sell more salads (who doesn’t love a light lunch when it’s hot?), which might finally get the premium salad chain’s bottom line into the black. Other things that might help the rest of this year? Robots and steak.
Beefing up
Last year, Sweetgreen began deploying robots in the kitchen to mix salads, dispense ingredients, and take orders. Indeed, its first automated location opened in Illinois last May, following rivals in the quick-serve sector that were already tinkering with automated stores. That’s good for the “labor” part of Sweetgreen’s costs on the chart above… and less good for employment prospects. In fact, the two locations that are automated, which Sweetgreen calls its “Infinite Kitchens”, posted profit margins (at the restaurant level) of 28%... some 10% higher than all of the others, per QSR.
The other innovation is more recent: Sweetgreen has started selling a number of steak-heavy salads. Those have quickly become best-sellers in initial testing, according to the company, although they jar with the company’s very public push to be sustainable.
Data: U.S. Federal Deposit Insurance Corporation; Chart: CNBC
Contrary to predictions, in-person banking is experiencing a resurgence with the first annual gain in branch count nationwide in a decade, reaching nearly 70,000 branches in 2023. [CNBC]
Banking giants, such as JPMorgan Chase and PNC are leading this trend, with Chase planning up to 500 new branches and 1,700 renovations, and PNC adding 100 new branches and renovating another 1,000 for $1 billion over the next three to five years. [CNBC]
New Research
Using Transfer Learning and XGBoost for Early Detection of Fires in Offshore Wind Turbine Units
This paper presents a method to enhance the efficiency of offshore wind turbines and reduce fire monitoring costs. It uses a data-driven fire warning system based on transfer learning. [MDPI]
The system processes (SCADA system) operational data, uses an algorithm, XGBoost, to build a fire warning model, predicts key parameters, applies this model to different wind turbines, and provides early fire warnings, achieving superior accuracy with an average MAPE of 0.016 and RMSE of 0.795 over other methods. [MDPI]
The Association between Circadian Syndrome and Frailty in US adults: a cross-sectional study of NHANES Data from 2007 to 2018
Keep reading with a 7-day free trial
Subscribe to Sourcery to keep reading this post and get 7 days of free access to the full post archives.