30 July 2018 – Alphabet Shares Hit All-time High

With Facebook and Netflix stumbling without recognised corporate venturing units, it has been interesting to see the other big four US internet companies, Microsoft, Amazon, Alphabet and Apple, with powerful CVC investments report or predict strong results.

Alphabet was the most clear-cut as it reported better-than-expected second-quarter earnings last Monday, driving Alphabet shares to a new all-time high the following day. It generated adjusted earnings per share of $11.75 versus the Wall Street consensus of $9.59 for the quarter, according to cable news provider CNBC. Alphabet also posted a $1.06bn gain in its equity investments for the time period, which translated into $1.17 EPS of the outperformance.

Funds

With the growth of investment in the VC space, it’s often not just the hard transactions that raise an eyebrow but also prospective deals, and so it is today. Rocket Internet has built up a mass of e-commerce holdings by focusing on Europe and the emerging markets, but is reportedly now eyeing the US and raising between $1bn and $2bn for a corporate venturing fund that will focus on that region.

Credit Suisse Next Investors closes $261m fund

BIF’s fundraising efforts beget $50m

University

UNC Chapel Hill details incubator proposal

Deals

New TV, the short-form video producer formed by entertainment vet Jeffrey Katzenberg and overseen by his WndrCo company, has closed $1bn in funding, $200m of which was supplied by large entertainment companies such as Disney, Warner Bros, 21st Century Fox and Entertainment One.

Elsewhere in China, facial recognition software provider Megvii has raised upwards of $600m from investors including Alibaba and will use the cash to spearhead an expansion of its technology in the retail space.

WeWork launched its WeWork China offshoot a year ago with $500m in series A funding, and WeWork China has now doubled that, raising another $500m in a series B round co-led by five investors including both SoftBank and SoftBank Vision Fund.

Tencent is reportedly lining up an investment of $300m to $500m in India-based short-term accommodation provider Oyo Rooms that will support the latter’s expansion in China, a market now responsible for almost all its overseas revenue.

Genetic testing services and research provider 23andme was valued at $1.75bn last September when it last raised funding, but that valuation is surely higher now it’s closed a $300m investment by GlaxoSmithKline in connection with a collaboration agreement.

Alector collects $133m in series E funding

The RealReal luxuriates in $115m

Stem grows bigger to close $106m round

Cancer radiotherapy technology and services provider Allcure was spun off with the telemedicine assets of hospital management services provider Concord Medical Services in 2015, and three years later the company has raised a reported $103m in series B funding.

University

Galvanize animates $32m series C

Beddr snuggles up to $5.6m series A

Exits

Group buying platform Pinduoduo has become the latest Chinese tech company to go public in the US, floating at the top of its range to raise $1.6bn, just three years after it was founded.

Pinterest meanwhile is looking to launch an initial public offering in a year’s time in order to capitalise on a boost to its advertising stream that is set to double ad revenue to $1bn in 2018.

Huya had a fairly successful IPO in the US a few months back and now its chief rival in China’s livestreaming space, Douyu, is looking to follow the same path, preparing for an offering expected to net it between $600m and $700m.

Ascletis has priced a $400m initial public offering in Hong Kong in the middle of its range, a month after its lead hepatits C treatment received regulatory approval in China.

It’s been a long wait for fuel cell system supplier Bloom Energy, which was founded in 2001 and first touted for an IPO at the latter end of that decade.

Allakos, which is developing antibodies to treat white blood cell-related conditions, has had one of the year’s more successful IPOs, pricing its shares above the range to raise $128m, before watching its stock almost double in price in the first two days of trading.

Constellation consummates $60m IPO

Aridis arrows to public markets

LevelUp rewards investors with $390m exit

Stamps.com collects MetaPack in $230m deal


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

18 September 2017 – ZhongAn Lines up $1.5bn IPO

Exits

All eyes will be on Chinese online property and casualty insurance platform ZhongAn next week as it is lining up a Hong Kong IPO that could net it as much as $1.5bn.

Advanced data centre developer and builder Switch is looking at its fifth straight profitable year, and has filed to raise up to $100m on the NYSE, in an offering that will allow Intel Capital to exit.

Volvo has closed the acquisition of on-demand valet parking service Luxe, which was valued at $140m as of its last funding round, for an amount reckoned by TechCrunch to represent pennies on the dollar.

Perhaps showing that there’s still plenty of room for offline consumer brands to emerge, as long as they appear sufficiently high-quality, Nestlé has agreed to buy a 68% majority stake in Blue Bottle Coffee, an upscale coffee brand that as of the start of 2017 had only 29 branches across four US and Japanese cities.

Investments

Alphabet is already an investor in Uber, its GV unit (then known as Google Ventures) having made a big bet in its 2013 series C round. Now however, the corporate is reportedly in talks to invest $1bn in its main US rival, Lyft.

Uber is reportedly in line for a mammoth investment by SoftBank, Didi Chuxing and Dragoneer that will involve the firms investing between $8bn and $10bn in the company in the form of primary and secondary share purchases.

Augmented reality technology developer Magic Leap remains in stealth and is yet to release a product, but that doesn’t mean investors aren’t still interested. The company is looking to raise $500m in a series D round that could include Singapore’s Temasek, and which would follow a $794m Alibaba-led series C round in early 2016.

United Imaging Healthcare collects $505m series A

Wish aspires to $250m in funding

Genomic testing and research service 23andMe has raised $250m in a Sequoia Capital-led round that reportedly valued it at $1.5bn pre-money, taking its total funding to about $490m.

Goldman Sachs has supplied approximately $133m in debt and equity financing for Neyber, a UK-based online lender that takes repayments directly from a borrower’s salary.

Government

Foodee serves up $8.2m series A

Funds

Samsung meanwhile is making a big play in connected and autonomous car technology,putting together a $300m fund to make strategic investments in the sector.

Asus finds Fenox VC for $50m fund

Madasamy moves from Qualcomm to $50m fund

University

Mars Innovation sets up Lab150 experiment

Austria boosts spinout support

Government

Ireland acts on $120m fund

Kerala accepts $78m mission

ScaleUp grows to $82m with BC Tech Fund


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

11 September 2017 – Judging Purchase Versus Investment

Exits

Johnson & Johnson is celebrating an exit with the acquisition of its portfolio company NeoTract by Teleflex for a total consideration of $1.1bn.

Intel Capital also celebrated an exit as its portfolio company StarCash, a digital gift card service, was acquired by fintech company Blackhawk Network for $175m in cash.

Madsack hails CleverShuttle

Paytm to make Little acquisition

Juicero breaks down

It seems as though Roku is serious about an initial public offering this time. The company was rumoured to be seeking a flotation all the way back in 2014 but those plans never materialised. Fast forward to last July and reports emerged that Roku was hoping to go public this year. On Friday then, the media streaming software and device maker finally made its regulatory filing that revealed it is aiming for $100m in its IPO.

Matrimony.com, a matchmaking service aimed at the Indian market backed by Yahoo, is gearing up for an initial public offering that will launch next week and is expected to bring in $78m in proceeds (though part of that will be existing stockholders selling some of their shares).

Government

RedOwl reaches Forcepoint

Compositence puts acquisition deal together

Investments

Via, the operator of a shuttle-based carpooling service, has collected a reported $250m in funding from a consortium led by Daimler.

LeddarTech, which was spun out of Canada’s National Optics Institute in 2007, has raised $101m in fresh funding.

Innoviz appears on corporates’ radar

23andMe is seeking to top up its capital resources with another $200m – which would nearly double the amount of equity and debt it has raised so far to approximately $445m.

Gritstone Oncology, which is working on personalised cancer immunotherapies, has collected $92.7m in a series B round led by Lilly Asia Ventures with participation from investors including GV.

Entasis restructures $81.9m series B

If you are one of those people who dream about owning a flying car, you may be excited to hear that Lilium Aviation, a company that is working on precisely such technology, today secured $90m in series B funding from a consortium of investors that included Tencent.

Lendingkart shops around for $80m series C

MapR outlines $56m funding round

University

Amal develops $9.6m series B

Minnesota embraces CoreBiome

Prowler.io sneaks into $13m series A

Funds

Investors have long taken note and Fidelity International, which already has dozens of portfolio companies in the area, hopes that a $250m fund set up by its investment arm Eight Roads Ventures will help it grab a bigger piece of the pie.

Qingsong attracts $130m for third fund

Government

Corporate venturing news from Poland are a rarity, but that could be about to change withthe government’s launch of a $225m fund of funds that is expected to back both domestic and international companies hoping to establish investment subsidiaries that support Polish startups.

Ireland sows $24m agtech fund

University

Melbourne gains $64m incubator


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