18 February 2019 – Mitsubishi Takes 20% Ovo Energy Stake for $256m

Big 3

Mitsubishi Corporation has paid $256m for a 20% stake in energy retailer and smart systems provider Ovo Energy, which plans to use the funding as the basis for an expansion from Germany and its home country of the UK into markets such as France, Australia and Spain. Ovo’s investors also include Mayfair Equity Partners, which acquired a 15% stake in 2015, but its founder and CEO remains its majority shareholder.

Evonik launched its first corporate venturing fund in 2012 with €100m of capital and now, six years on, it’s added €150m ($170m) in the form of a second fund.

Allied Minds prepares cost reductions

Deals

SoftBank Vision Fund has already gone big when it comes to autonomous driving, pumping some $2.25bn into Cruise Automation last year, and it’s now invested $940m in Nuro, the creator of a driverless vehicle designed for deliveries.

Ride hailing service Didi Chuxing has invested $100m in short-term accommodation booking platform Oyo, allowing the latter to close a $1bn round that valued it at $5bn.

Go-Jek is a little further along, the Southeast Asian ride hailing service having raised $1bn from investors including Google, Tencent, JD.com and Mitsubishi two weeks ago.

Two or three years ago it looked as if the e-commerce space may have been heading for some rough times (remember Fab.com?), but the sector looks to have largely steadied since then. Zillingo is the latest e-commerce marketplace to have raised sizeable funding, pulling in $226m in a series D round featuring long-term backer Burda Principal Investments. The round valued it at $970m and increased its overall funding to more than $300m.

Cancer diagnostics technology developer Burning Rock has completed a $126m series C round backed by corporate venturing unit Lilly Asia Ventures, which is in the process of raising its fifth fund (see below).

Six Fintech Ventures, the VC arm of banking services provider Six, has led a series A round for Tradeplus24, the operator of a service that provides debt financing to small businesses insured against account receivables, that was sized at approximately $119m.

Arvelle arrives with $100m

Reddit has meanwhile confirmed a TechCrunch report from last week that stated Tencent was about to lead a $300m round for the social posting platform, which has some 330 million monthly active users but which reportedly generated less than $90m of revenue in 2018.

University

Nuvaira shares $79m series E news

Recida rolls out from Frazier Healthcare

Exits

Euclid goes to WeWork in acquisition

DMP maps out Ushr acquisition

Stanford-backed Eero connects to Amazon

Harpoon snags public markets listing

Nan Fung fund Pivotal Beta was among the investors that provided $100m in convertible note financing for Stealth BioTherapeutics, developer of treatments for conditions related to mitochondrial dysfunction.

Huya went public in the US nine months ago, and now another Chinese livestreaming platform, Douyu, plans to make a similar move, confidentially filing to raise up to $500min a US IPO.

Peloton Interactive has now sold some 400,000 of its $2,000 advanced exercise bikes, which work in tandem with a subscription-based interactive workout service.

Funds

Evonik launched its first corporate venturing fund in 2012 with €100m of capital and now, six years on, it’s added €150m ($170m) in the form of a second fund.

Lilly Asia Ventures lifts $40m for fifth fund

MML seeks corporate commitments for second fund

Morgan Creek mines $40m fund


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

14 January 2019 – CloudEndure Acquired by Amazon

The big ones

Reports in late 2018 suggested SoftBank Vision Fund was planning to invest between $15bn and $20bn in order to take a majority stake in portfolio company WeWork, but sources have told the FT that after the fund’s LPs balked at the idea (though a separate report said Masayoshi Son decided to pull out during the economic turmoil on the stock markets ahead of the Christmas period), SoftBank itself is set to provide $2bn of funding for the company.

Amazon has paid a reported $200m to acquire CloudEndure, a cloud migration and disaster recovery software producer that had disclosed a little over $18m in venture funding.

Healthcare system Providence St Joseph Health launched Providence Ventures in 2014 with $150m and a brief to make strategic investments of up to $5m in health technology developers.

On GUV, Ribon Therapeutics, a US-based biotechnology company developing enzyme families activated under cellular stress conditions, has come out of stealth with $65m in series B capital provided by a consortium led by Novartis Venture Fund, the corporate venturing division of pharmaceutical firm Novartis.

Deals

One of several China-based smart electric car developers to raise substantial funding last year, Byton is reportedly now lining up an additional $500m or so in a round set to value it at $4bn.

Mobile banking service N26 has secured $300m at a $2.7bn valuation, in a series D round led by Insight Venture Partners.

Just three weeks ago in our 2018 round up we were talking about the rapid growth of e-scooter rental platforms, and now news has emerged that Bird – one of the two key players in the sector – is lining up $300m in funding at a $2bn valuation.

Financial leasing service Tokyo Century has been an investor in strategic partner Grab since 2016, and has expanded its overall commitment to the ride hailing platform to $175m, consisting of both equity funding and financing for its Grab Rentals subsidiary.

ClearMotion, a developer of object-sensing systems for use in autonomous vehicles that was spun out of MIT, emerged from stealth almost two years ago having just raised $100m in series C funding from investors including Qualcomm.

Boom Supersonic is working on an aircraft that will be able to reach supersonic speeds while producing the same carbon footprint as business class travel. Its earlier investors include Japan Airlines and Ctrip, and it’s raised $100m in a series B round led by Emerson Collective.

Energy utility CLP has co-led a $100m series C round for digital health management platform Kang Sheng Health Management with China International Capital Corporation.

Instalment buying platform and credit provider Akulaku is in advanced talks to raise $100m in a series D round set to be led by Ant Financial, e-commerce firm Alibaba’s financial services affiliate.

Indian ride hailing service Ola has received $74m in funding from Steadview Capital at a reported valuation of $5.7bn, adding to an ongoing round it aims to close at $1bn.

Funds

Appliance producer Midea has raised $104m for an investment fund with a targeted close of up to $293m that will target developers of intelligent home products, smart manufacturing, retail and new energy technology.

Exits

Neurological disorder drug developer Alector has filed to raise up to $150m in an initial public offering that will enable investors including corporate venturing units MRL Ventures (which owns a 6% stake), GV, AbbVie Ventures, Lilly Asia Ventures and Amgen Ventures to exit. All five contributed to Alector’s last funding round, a $133m series E closed six months ago.


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

09 October 2017 – Uber’s Board Approves SoftBank Investment

Deals

Uber’s board of directors has approved an investment by SoftBank of up to $1.25bn, in a deal that will also give the corporate two board seats, and has resolved to launch an IPO by 2019.

Indian ride hailing platform Ola has raised $400m from Tencent, reportedly as part of a round also backed by SoftBank that is set to close at $2bn.

Harmony Biosciences, a biopharmaceutical company that forms part of the Paragon Biosciences group, has secured $270m in funding from investors including Novo and Nan Fung Life Sciences.

Curated holiday provider Secret Escapes has closed a $111m series D round led by Temasek that featured a combination of equity and debt financing.

Macro, which produces film, TV and online video content with a brief of creating artistic content that portrays people of colour in a realistic fashion, has raised $150m in debt and equity from investors including entertainment company MNM Creative.

KSQ Therapeutics has emerged from stealth with $76m of financing from investors including life sciences real estate trust Alexandria Real Estate Equities.

Amgen was among the investors in a $58m series E round closed by cancer immunotherapy developer Immatics that will enable it to move multiple drug candidates into clinical trials.

On-demand ride platform Grab has been revealed as an investor in the $45m series B round announced by Singapore-based bicycle sharing platform oBike in August.

Recursion Pharmaceuticals, a US-based biotech spinout from University of Utah, obtained $60m in an oversubscribed series B round featuring Abu Dhabi’s sovereign wealth fund Mubadala Investment.

Funds

Union Square Hospitality Group, which oversees a network of restaurants, cafés and bars including the Shake Shack chain of fast food outlets, has formed a $200m growth equity fund called Enlightened Hospitality Investments.

Corporate venturing unit WuXi Healthcare Ventures formed investment vehicle 6 Dimensions in May with venture firm Frontline BioVentures, and the two pledged to raise dollar and renminbi-denominated funds through the entity.

UTokyo Innovation Platform, the venture capital arm of University of Tokyo, has backed a ¥1bn ($8.9m) first close for 360ip Japan Fund 1, which will support technology spinouts from domestic universities and research institutes.

Fletcher McCusker, founder of University of Arizona’s (UA) medication management spinout SinfoníaRx, has launched a venture capital fund called UAVenture Capital to invest in university-linked companies.

Russia government-owned investment vehicle Russian Direct Investment Fund (RDIF) will join Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) to invest $1bn in a Russia-based technology investment fund.

Multilateral development finance provider African Development Bank (AfDB), has agreed to invest in a $200m healthcare-focused fund formed by investment bank EFG Hermes.

SoftBank paid $3.3bn to acquire alternative asset manager Fortress Investment Group at the start of the year, and now news has emerged that it is considering building up a portfolio of $300bn of assets that would be managed within a dedicated unit.

Exits

Roku, the TV subscription service backed by media companies Sky, 21st Century Fox, News Corp and Viacom, went public last week, floating at the top of its range and going off like a rocket once its shares began being traded.

Medical device maker Boston Scientific has agreed to acquire catheter system developer Apama for up to $300m, providing an exit to corporate venture capital unit Ascension Ventures. Boston Scientific will pay $175m upfront, with up to $125m more available in the form of milestone payments.

Private equity firm Thomas H. Lee Partners has paid an undisclosed amount for a majority stake in online property marketplace Ten-X at a $1.6bn valuation.

Rhythm Pharmaceuticals raised $120m in an upsized IPO and immediately saw its share price increase by 75% on the first day of trading.

E-commerce and internet company Amazon has acquired Body Labs, a US-based body scanner developer based on research at Brown University, in a deal that is worth between $70m and $100m.

Nucana, a UK-based company working on chemotherapies for resistant tumours that is backed by Scottish Investment Bank, the investment arm of government-owned economic development agency Scottish Enterprise, secured nearly $100m in its flotation on Nasdaq, slightly below its target of $115m, though its shares had climbed from an opening price of $15 to $18.37 on the second day of trading.

Nightstar Therapeutics, a UK-based spinout from University of Oxford that is developing retinal gene therapies, secured slightly more than $75m in its offering – below its initial target of $86m set a month ago.

There is an in-depth look at both Nucana and Nightstar on Global University Venturing.com and Global Government Venturing.com. Do check those out.


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

27 March 2017 – MuleSoft’s Shares Soar Following $221m IPO and Much More

MuleSoft raised $221m in its IPO on Friday, only to see its share price soar to almost twice the mid-point of its range. The offering is good news for the IPO market generally but also for enterprise software providers looking to go public.

Deals

Flipkart has raised $1bn in funding from investors including Tencent, Microsoft and eBay and is reportedly seeking up to $1bn more in the next few months.

Tencent has led a $350m round for Kuaishou, which is also backed by Baidu, and both the corporates will help the company enhance user experience of its app, which boasts 50 million daily active users.

SoftBank has invested $300m in working space provider WeWork at a $17bn valuation and reportedly expects to add another $2.7bn through Vision Fund.

Sutro Biopharma spinout SutroVax has raised $64m, $60m of that coming from a series B round backed by Roche Venture Fund, and will use the funds to advance its development of a conjugate vaccine for pneumococcal disease.

Haoeyou has raised $40m for its medical tourism platform, which allows Chinese patients to access consultancies from US-based doctors through video conferencing, and to travel between countries for treatment.

Legend Capital is among the investors that have provided $39m in series B funding for Suzhou Ribo Life Science, a Chinese company developing RNA therapeutics to treat diseases such as hepatitis B, hyperlipidaemia and liver cancer.

Genome editing technology startup eGenesis has raised $38m in a series A round backed by healthcare services firm Heritage Provider Network and biotech property developer Alexandria Real Estate Equities.

Autonomous car tech continues to roll on, with Autotalks, a developer of chipsets that will be used in vehicle-to-vehicle communication, raising $30m in series D funding.

GlaxoSmithKline and Johnson & Johnson have contributed to a $30m series B round for Pulmocide, a developer of therapies to combat diseases caused by respiratory syncytial virus.

Funds

Aflac has joined the numerous insurance providers that have established strategic investment arms over the past two years, forming a subsidiary called Aflac Corporate Ventures, in which it plans to invest $100m over the next three years.

Kabbage, the operator of an online lending platform for small businesses, is said to be in talks with investment firms to raise “a few hundred million dollars” that will be put toward acquisitions.

The European Fund for Strategic Investments (Efsi), also known as the Juncker Plan, is now set to trigger more than €177bn ($190bn) in total investments, figures released following a meeting of the European Investment Bank’s board of directors show.

Exits

Amazon has beefed up its international e-commerce holdings, entering the Middle East through a $650m acquisition of local market leader Souq.com that provided Naspers and Jabbar Internet Group with exits.

Alibaba paid an undisclosed sum for a 32% stake in Damai.cn in 2014 and has now finished the job, acquiring the rest of the online ticketing platform.

Netshoes, a Brazil-based sports e-commerce company backed by Singapore government-owned GIC and Temasek as well as the International Finance Corporation, has filed for an initial public offering on the New York Stock Exchange that could bring in $100m in proceeds.


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