29 July 2019 – SoftBank Secures $108bn for Second Vision Fund

Big ones

SoftBank confirmed on Friday morning that it has secured a total of $108bn for its second Vision Fund, providing $38bn of the cash itself. That’s slightly less than the $50bn rumoured earlier in the week, but still a significant increase on the $28bn the telco giant put into the first fund.

Short-term accommodation platform developer Oyo has raised a total of about $1.6bn from investors including SoftBank, Airbnb, Didi Chuxing, Grab, Hero Enterprise and China Lodging Group, and two of its other investors – Sequoia Capital and Lightspeed Venture Partners – are reportedly divesting about $1.5bn of shares through a buyback scheme led by Oyo CEO Ritesh Agarwa.

Ke.com, a spinoff of online real estate portal Lianjia that utilises technologies such as virtual reality and 3D modelling, has secured nearly $1.2bn in a series D round led by an $800m investment by Tencent.

And in an interesting cross-over deal, X-Vax Technology, a US-based herpes vaccine developer based on research at Albert Einstein College of Medicine, received $56m in a series A round featuring Johnson & Johnson Innovation – JJDC, the corporate venturing vehicle for medical products group Johnson & Johnson.

Deals

Microsoft is making its own big capital outlay, investing $1bn in artificial intelligence research organisation OpenAI. Formed as an entity that would seek to steer AI research away from malevolent or even dystopian uses toward more universally beneficial areas, OpenAI is run by a non-profit organisation and had not revealed details of any prior financing.

Toyota has invested $600m in Didi Chuxing at a reported $62bn valuation, as part of a joint venture agreement that will involve the companies partnering to provide additional services to the latter’s drivers. Didi Chuxing isn’t the only ride hailing service to get funding from Toyota either.

Hellobike has entered discussions to raise $400m in a round led by existing corporate investor Ant Financial. The bicycle sharing service will reportedly be valued at about $5bn and the news comes three months after backers including WM Motor, Fosun and Bertelsmann Asia Investments exited the company.

Digital brokerage RobinHood has received $323m in a series E round that valued it at $7.6bn. The round was led by DST Global and it took the total raised by the company, which counts Alphabet and Roc Nation as investors, to more than $860m.

Vietnamese payment technology and services provider VNPay is reportedly in talks to raise $300m at a $1bn+ valuation, with SoftBank Vision Fund in line to provide up to $200m.

Bicycle and electric scooter rental service Lime raised $310m in February, and now its key rival, Bird, is reportedly seeking up to $300m of series D funding at a $2.5bn valuation.

Gusto is proving there are still some big enterprise software exits to come, the human resources platform developer having raised $200m in a Fidelity-led round at a $3.8bn valuation.

Funds

Financial services firm Industrial Bank and insurance group Ping An’s Real Estate Investment unit have backed the inaugural healthcare-focused fund raised by China-based venture capital firm Shenzhen Capital.

VR hardware and software developer Moiin is putting together a $100m fund that will back startups working on small-scale tech that would boost VR gaming.

On GUV, life sciences incubator Pennsylvania Biotechnology Center of Bucks County is to establish a $50m fund that will take equity in resident businesses including those exploiting academic research.

Exits

Livongo Health has had one of the year’s more successful IPOs, securing more than $355m and floating well above its range while adding 2 million shares to the offering.

Healthcare data analytics platform Health Catalyst operates in a broadly similar area to Livongo and guess what – it’s also had a bumper IPO. It too increased the number of shares in the offering and priced them above its range to raise $182m.

On GUV, Jukedeck, a UK-based digital music production software developer spun out of University of Cambridge, has been acquired by  TikTok, a video-based social media platform owned by internet technology producer Bytedance, for an undisclosed sum. Jukedeck had developed an online software platform that exploited artificial intelligence to automatically compose original, royalty-free music based on certain parameters, such as genre and tempo, set by the user.


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0

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