17 May 2021 – Grocery Delivery App Dingdong Maicai Orders Up $330m Series D

The Big Ones

China-based grocery delivery app operator Dingdong Maicai closed a $330m series D-plus round led by SoftBank’s Vision Fund. Founded in 2017, Dingdong Maicai has built a grocery e-commerce platform it claims delivers fresh produce and seafood ingredients door-to-door in under 30 minutes. It has served more than 5 million households across 27 markets in its home country. The company’s overall funding now stands at more than $1bn. It had secured $700m in a series D round last month co-led by DST Global and Coatue.

SoftBank has increased the size of its Vision Fund 2 from $10bn to $30bn. Its original Vision Fund closed at $98.6bn in 2017 with contributions from corporate LPs and sovereign wealth funds, but it has so far been unable to secure backing for its successor, instead committing the capital itself. The first Vision Fund booked a $16.8bn net loss for 2019 due to bankruptcies for portfolio companies OneWeb and Brandless, the failure of WeWork to successfully float and lacklustre share performance for others such as Uber. However, the coronavirus pandemic has caused tech stocks in several industries to skyrocket while also driving the pre-IPO funding market, leading to a considerable turnaround in SoftBank’s fortunes – the Vision Funds have now made a $37bn paper profit. The overall fair value of Vision Fund 1 and 2 stood at $154bn as of the end of March this year and SoftBank has returned $22.3bn to its LPs.

Better, the US-based digital mortgage services provider backed by SoftBank, American Express, Ping An, Citi and Ally Financial, agreed a reverse merger at a $7.7bn post-deal valuation. The company will join forces with SPAC Aurora Acquisition Corp, taking the position on the Nasdaq Capital Market that Aurora acquired in a $220m initial public offering in March this year. The deal will be supported by $1.5bn in PIPE financing from SoftBank’s SB Management subsidiary, Activant Capital and Novator Capital, Aurora Acquisition Corp’s sponsor.

University

Ginkgo Bioworks, a US-based microbe engineering services spinout of MIT, agreed to a reverse merger with SPAC Soaring Eagle Acquisition Corp. The deal values Ginkgo at $15bn and includes a $775m PIPE financing co-led by Baillie Gifford, Putnam Investments and Morgan Stanley Investment Management’s Counterpoint Global. Soaring Eagle had raised $1.73bn through its own initial public offering three months ago, putting the reverse merger deal’s total value at a jaw-dropping $17.5bn. Ginkgo had raised more than $789m in equity financing since being founded in 2009.

Deals

Vinted, the Lithuania-based operator of a second-hand fashion marketplace, picked up €250m ($303m) today in a series F round featuring Burda Principal Investments, a subsidiary of media group Hubert Burda. The round was led by EQT Growth, a fund operated by investment firm EQT, at a $4.2bn valuation, and it included Insight Partners, Lightspeed Venture Partners and Sprints Capital.

Telkomsel, the mobile network subsidiary of Telkom Indonesia, has invested $300m in Indonesia-based ride hailing service Gojek, having supplied $150m for the company in November 2020. Gojek runs an app-based on-demand ride service which has expanded into food, package and grocery delivery in addition to mobile financial services. The funding comes as the company prepares to merge with e-commerce marketplace Tokopedia in a deal that will create a company called GoTo which would be valued at about $18bn. The deal is reportedly expected to be formally agreed by the end of June.

US-based diagnostic testing technology developer Cue Health completed a $235m financing round backed by Koch Industries and Johnson & Johnson, which took part through subsidiaries Johnson & Johnson Innovation – JJDC and Koch Strategic Platforms respectively, joining Perceptive Advisors, MSD Capital, Decheng Capital, Cavu Ventures, Acme Capital and undisclosed other investors.

Masterclass, the US-based online education provider backed by Bloomberg, Endeavor and Novel Group, secured $225m in a series F round led by investment and financial services group Fidelity. Baillie Gifford, Balyasny Asset Management, Eldridge, IVP, New Enterprise Associates, Javelin Venture Partners and Owl Ventures also took part in the round. It valued the company at $2.75bn, sources told CNBC.

US-based life insurance platform developer Ethos Technologies received $200m in series D funding from investors including Roc Nation and GV. General Catalyst led the round, which valued the company at $2bn. It included Sequoia Capital and Accel as well as Will Smith’s Dreamers VC fund and a vehicle representing fellow actor Robert Downey Jr that may have been Downey Ventures.

WeRide, a China-based autonomous driving technology provider that counts several corporates among its investors, has raised hundreds of millions of dollars in series C funding. IDG Capital, Homeric Capital, CoStone Capital, Cypress Star, Sky9 Capital, K3 Ventures, CMC Capital Partners, Qiming Venture Partners and Alpview Capital supplied the capital at a valuation of $3.3bn. The series C proceeds will be channelled into research and development and commercialisation activities. The deal comes four months after WeRide closed a series B round led by $200m from bus manufacturer Yutong Group at $310m.

Funds

China-based cryptocurrency trading platform developer Huobi has established a $100m strategic investment fund. Founded in 2013, Huobi operates a blockchain-equipped online platform where users can buy and sell digital currencies such as Bitcoin, Ethereum and XRP. Huobi Ventures will make early-stage investments in blockchain-focused companies which can integrate their operations with its parent company’s businesses, in addition to decentralised finance projects and merger and acquisition deals. The unit has reserved $10m of the capital for investments in NFTs and NFT marketplaces, and it brings together existing Huobi subsidiaries including Huobi Eco Fund, Huobi Capital and Huobi DeFi Labs.

Exits

Plus, a US-based automated driving technology developer backed by Full Truck Alliance, Quanta Computer, Wanxiang and SAIC, announced a reverse merger. The deal involves the company merging with SPAC Hennessy Capital Investment Corp V at a $3.3bn valuation, with the combined business taking the Nasdaq Capital Market listing secured by the latter in a $300m initial public offering in February this year. Funds and accounts managed by BlackRock and DE Shaw Group are among the participants in a $150m PIPE financing.

Bird, the US-based mobility services provider backed by Simon Property, is merging with SPAC Switchback II Corporation. The company will acquire the position on the New York Stock Exchange taken by Switchback II in a $275m initial public offering in January this year. The deal grants Bird a $2.3bn pro forma enterprise valuation. The transaction will be boosted by $160m a PIPE financing from investors including Fidelity Management & Research.

Science 37, a US-based clinical trials technology provider backed by Sanofi, Amgen, Alphabet, Novartis and PPD, agreed to a reverse merger with LifeSci Acquisition II Corp. The transaction will involve the Science 37 taking the position on the Nasdaq Capital Market taken by LifeSci in a $75m initial public offering in November 2020. It will give Science 37 an initial enterprise value of about $1.05bn. Science 37’s technology helps run clinical trials for developmental stage therapeutics and medical devices, helping bridge the gap between laboratory research and patient care.

UK-based encryption technology developer Arqit agreed to a reverse merger with Centricus Acquisition Corp that will be backed by corporates Sumitomo and Virgin Orbit. The deal will create a new company called Arqit Quantum, which will be valued at $1.4bn and which will take on the listing Nasdaq Capital Market Centricus Acquisition got in a $300m initial public offering in February 2021. The merged business will receive approximately $70m from a PIPE deal featuring Virgin Orbit, Sumitomo Corporation and Heritage Group.

Waterdrop, a China-based digital health insurance marketplace which counts corporates Meituan Dianping, Tencent and Swiss Re as investors, raised $360m in an initial public offering. The company issued 30 million American depositary shares (ADSs) on the New York Stock Exchange, each ADS representing 10 ordinary class A shares. Waterdrop priced the ADSs at $12 each, at the upper end of the $10 to $12 range it had set for the offering, valuing the company at over $4.7bn. The shares closed on $9.70 on the first day of trading on the New York Stock Exchange, but dropped over the course of the week to open at $7 on Friday morning.

Ane Logistics, a China-based small freight services provider backed by insurer Ping An and dairy product manufacturer Yili, has filed for an initial public offering on the Hong Kong Stock Exchange. The size of the offering has not been disclosed but the company was looking to raise $500m, according to a Bloomberg report in February. CICC Capital and JPMorgan Chase are lead underwriters for the flotation.


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

Leadership Series: Linda Yates (Mach49)

We have teamed up with 500 Startups’ CVC Insider Series, where top CVC practitioners offer advice and best practices regarding common challenges encountered within corporate venturing. Featured this week is an interview with Linda Yates of Mach49 and Nicolas Sauvage of TDK Ventures.


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

10 May 2021 – Oxford Nanopore Pockets $280m in Equity Financing

The Big Ones

Canada-based digital investment platform developer Wealthsimple received C$750m ($610m) in funding from investors including Allianz X, a subsidiary of Allianz, at a valuation of almost $4.1bn. Meritech Capital and Greylock Partners co-led the round, which also featured DST Global, Sagard, Iconiq Capital, Dragoneer, TCV, iNovia Capital, Base 10 Partners, Redpoint Ventures, Steadfast Capital, Alkeon Capital Management, TSV, Plus Capital and multiple individuals. The valuation represents a large jump from the $1.07bn valuation at which the company raised $86.8m in an October 2020 round led by TCV that included Allianz X, Greylock, Meritech Capital and Two Sigma Ventures.

China-based roasted seed and nut provider Qiaqia Food and domestic snack food producer Juewei Food have formed a RMB1.1bn ($170m) industry investment fund. Sichuan Chengdu Xinjin Siyiwu Investment will be equipped with almost $100m from Juewei Food’s Wangju Capital vehicle, which will take a 58.6% share, while Qiaqia Food is set to provide $9m in return for a 5.45% stake. The vehicle will invest in companies operating in areas like restaurant chains, snack and condiment brands, pet food producers and developers of technology which can enhance the supply chain.

Roivant Sciences, the US-based biopharmaceutical company backed by telecommunications and internet group SoftBank and pharmaceutical firms Sumitomo Dainippon Pharma and Dexxon, agreed a reverse merger at a combined $7.3bn valuation. The deal will take place with a SPAC called Montes Archimedes Acquisition Corp which floated on the Nasdaq Capital Market in a $400m initial public offering in October 2020. Sumitomo Dainippon, SoftBank subsidiary SB Management and data analytics service provider Palantir Technologies all contributed to a $200m private investment in public equity (PIPE) financing supporting the transaction.

Crossover

Oxford Nanopore, the UK-based DNA sequencing technology spinout of University of Oxford, pocketed £195m ($270m) in equity financing from investors including commercialisation firm IP Group. Nikon, Temasek, Wellington Management and M&G Investment took part in the round, providing $174m, while unnamed, existing backers also contributed capital. IP Group committed £26m, its full pre-emptive allocation, and now owns a 14.5% undiluted stake in Oxford Nanopore. The spinout is now valued at $3.4bn. Founded in 2005, Oxford Nanopore has developed a DNA and RNA sequencing technology that provides real-time analytics. The technology is fully scalable from hand-held devices for use in the field through to benchtop products and population-scale platforms. The spinout is seeking an initial public offering on the London Stock Exchange in the second half of the year and reportedly hired book-running managers last month.

Deals

US-based freelancer business software provider HoneyBook secured $155m in series D funding from investors including Citi Ventures. Durable Capital Partners led the round, which also featured 01 Advisors, Battery Ventures, Norwest Venture Partners, OurCrowd, Tiger Global Management and Zeev Ventures. It valued the company above $1bn, according to TechCrunch.

Bitso, a Mexico-based cryptocurrency exchange operator backed by corporates Coinbase, Monex and Ripple, has received $250m in series C funding at a $2.2bn valuation. Hedge fund manager Tiger Global Management and investment manager Coatue Management co-led the round, which included Paradigm, Bond, Valor Capital Group, QED Investors, Pantera Capital and Kaszek Ventures.

China-based heart disease therapy developer Valgen Medtech has secured a nine-digit dollar amount in series B funding from investors including corporates Venus Medtech and China Life. The round was co-led by DCP and Sequoia Capital China and included China Life’s Healthcare Fund Venus Medtech, Ascendum Capital, Lake Bleu Capital and Qiming Venture Partners.

Funds

New York-listed pharmacy chain CVS Health has set up a $100m fund which will targeting digital health technology. CVS Health Ventures formalises a corporate venturing strategy that has resulted in investments in more than 20 startups through the CVS and Aetna businesses, CVS having acquired life insurance provider Aetna in 2018 for $69bn. Current CVS Health investments include Unite Us, the developer a technology platform that connects healthcare and social services providers, and LumiraDx, which has created a point-of-care diagnostic platform.

The universities of Birmingham, Dundee, Edinburgh and Nottingham have joined forces with drug discovery firm Evotec and pharmaceutical firm Bristol-Myers Squibb to launch BeLab1407 Equipped with $20m, BeLab1407 is the latest addition to Evotec’s international network of early-stage academic collaborations called Bridge – an acronym for Biomedical Research, Innovation and Development Generation Efficiency. It will focus on drug discovery. Listeners of our Talking Tech Transfer podcast will already know that Adam Stoten, chief operating officer at tech transfer office Oxford University Innovation, spearheaded the initiative and last month revealed exclusively to me on that podcast that he was joining Evotec to expand the roster of partnerships further. You can find the Talking Tech Transfer podcast on GlobalUniversityVenturing.com – our latest guest is Jason Whitney of IU Ventures – or on Apple Podcasts, Spotify or wherever you download your podcasts from.

Exits

Financial management software producer Bill.com agreed to purchase payment management platform developer Divvy in a $2.5bn transaction enabling digital payment processor PayPal and electronics wholesaler Hanaco to exit. Divvy’s software platform allows businesses to efficiently track spending on expenses and corporate cards in real time while setting flexible limits. The deal will allow Bill.com to offer business customers accounts payable, accounts receivable and corporate card spend management options from a single place. The deal will consist of $625m of cash and the rest in Bill.com shares. It comes four months after Divvy secured $165m in series D funding from investors including PayPal subsidiary PayPal Ventures and Hanaco at a $1.6bn valuation.

Digital currency-focused financial services provider Galaxy Digital Holdings agreed to purchase BitGo, a US-based cryptocurrency wallet developer backed by bitcoin mining technology producer BitFury, for about $1.2bn in cash and stock. The deal will consist of $265m in cash and 38.8 million Galaxy Digital shares, which closed at $28.47 each on Wednesday – the day of the announcement. BitGo’s shareholders will own about 10% Galaxy Digital on a pro forma basis.

AEye, a US-based lidar system developer that counts several corporates among its investors, has amended its reverse transaction agreement with a SPAC called CF Finance Acquisition Corp III. The deal will now value AEye at $1.52bn pre-money, down from the $1.9bn valuation set when the deal was agreed in February this year. The merged business will take CF Finance Acquisition Corp III’s listing on the Nasdaq Capital Market.

Action Network, a US-based sports betting news provider backed by over-the-top media company The Chernin Group, has agreed to a $240m acquisition by sports betting media group Better Collective. Founded in 2017, Action Network provides news and analysis on betting across multiple sports. Its offering also includes podcasts, data, educational resources and betting tools. The company will continue to operate under the Action Network brand as a separate business unit under Better Collective following the close of the deal.

Day One Biopharmaceuticals, a US-based cancer drug developer which counts conglomerate Access Industries and pharmaceutical firm Takeda as investors, has filed to raise $100m in an initial public offering. Founded in 2018, Day One was incubated by venture capital firm Canaan and is developing drug treatments for cancer patients of all ages, with an initial focus on children. The company’s lead product candidate is being developed to treat progressive low-grade glioma, a common type of brain tumour diagnosed in children.

China-based audio streaming platform developer Ximalaya has filed for an initial public offering in the United States that would give internet and gaming group Tencent the chance to exit. Ximalaya operates an online podcasting platform with some 250 million monthly active users. The company has set a placeholder target of $100m and is set to float on the New York Stock Exchange.


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

Leadership Series: Ellen Ehrenpreis (Orrick)

We have teamed up with 500 Startups’ CVC Insider Series, where top CVC practitioners offer advice and best practices regarding common challenges encountered within corporate venturing. Featured this week is an interview with Ellen Ehrenpreis of Orrick and Nicolas Sauvage of TDK Ventures.


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

03 May 2021 – Messagebird Adds $800m to Series C Round

The Big Ones

Netherlands-based customer service software provider Messagebird has added $800m to a series C round featuring Bonnier, expanding it to $1bn. Bonnier joined Eurazeo, Tiger Global Management, BlackRock, Owl Rock, Glynn Capital, LGT Lightstone, Longbow, Mousse Partners, NewView Capital, Accel, Atomico and Y Combinator in the extension, which was made up of 70% equity financing and 30% debt. Spark Capital led the round’s $200m first close in October 2020 at a $3bn valuation, investing alongside Glynn Capital, LGT Lightstone, Longbow, Mousse Partners, Accel, Atomico, Y Combinator and New View Capital. MessageBird had raised a total of $100m prior to this round. The company revealed it has channelled $600m of the extension into acquiring SparkPost, the US-based creator of an email optimisation software platform it claims oversees some 4.5 trillion emails a year on behalf of its customers.

Main Sequence Ventures, the Australia-based venture capital firm founded by Commonwealth Scientific Research Organisation (CSIRO), has secured A$250m ($194m) for its second fund from LPs including Lockheed Martin, Temasek, HostPlus, Horizons Ventures and unspecified family offices and individual investors. Main Sequence was founded in 2017 to manage CSIRO Innovation Fund 1, an investment vehicle established by CSIRO and the Australian federal government. The firm specialises in commercialising academic research and investing in spinouts. It focuses on deep tech solving one of six key objectives – feeding 10 billion people, population-scale healthcare, industrial productivity, accessing space, enabling next-generation computing and decarbonisation. Decarbonisation technologies is an added focus with Fund II and partner Martin Duursma will lead on this effort. I previously interviewed another partner of Main Sequence, Mike Zimmerman, late last year and I highly recommend you seek out our other podcast, Talking Tech Transfer, on your favourite app or on GlobalUniversityVenturing.com to listen to that episode (and all the others, we have close to 30 interviews with thought leaders in university innovation from all over the world, including our most recent with Sara Wallin, the CEO of Chalmers Ventures, the number one-ranked incubator in the Nordics).

UiPath, the robotic process automation software producer that counts Alphabet and Tencent as investors, closed its initial public offering at almost $1.54bn just over a week ago (April 23). The company issued 9.4 million shares priced at $56 each, above the $52 to $54 range for the offering, while investors including CapitalG sold nearly 14.5 million more shares. The extra stock bumped the number issued by UiPath to 13 million and the move came after UiPath’s shares rose significantly post-IPO. They are, as of the time of recording on Friday afternoon UK time, trading at $73.50 on the New York Stock Exchange.

And more interesting crossover news this week in the form of an exit: Vaccitech, a UK-based vaccine developer spun out of University of Oxford, priced its shares at $17 to raise more than $110m in its debut on the Nasdaq Global Market. Founded in 2016, Vaccitech initially aimed to develop a universal flu vaccine but the technology’s arguably most fundamental impact to date has been the creation of the covid-19 vaccine now deployed by pharmaceutical firm AstraZeneca. Vaccitech’s pipeline now features assets targeting chronic hepatitis B infection, HPV, prostate cancer, non-small cell lung cancer, shingles and Mers. OSI is the largest shareholder ahead of the offering, with a 29.5% stake, which will be diluted to 23.9%. GV will come out with 5%, Tencent (4.2%) and Gilead Science is also a shareholder but held less than 5% ahead of the offering.

Deals

Eutelsat Communications has agreed to invest $550m in UK-based satellite internet technology developer One Web, in return for a stake sized at about 24%. OneWeb is building a 648-satellite constellation intended to provide broadband coverage to remote areas from low orbit. The initial system is expected to be operational by the end of this year and Eutelsat’s capital will take it most of the way towards its funding goal. The company had raised a total of $3.4bn from investors including SoftBank Vision Fund, Bharti Enterprises and Hughes Network Systems before filing for bankruptcy in March 2020. Bharti subsequently joined the UK government to buy OneWeb’s assets for $1bn in July the same year. SoftBank paid $350m for a 30% stake in the resurrected company in January 2021 while Hughes invested $50m.

US-based blockchain infrastructure technology developer Paxos has received $300m in a series D round featuring PayPal Ventures. Venture capital firm Oak HC/FT led the round, which included Declaration Partners, Mithril Capital, Senator Investment Group, Liberty City Ventures and WestCap. The company has secured more than $535m since it was founded in 2012 and the round valued it at $2.4bn post-money.

Two entities owned by Tencent have provided $225m for India-based social network operator ShareChat as part of its $502m series E round. The round was led by Tiger Global Management earlier this month and also featured venture capital firm Lightspeed Venture Partners as well as Snap, the owner of messaging app Snapchat. Tencent provided almost half the capital in the form of convertible debt, from Netherlands-registered vehicles Zennis Capital and Hlodyn. Should the debt be converted into equity, they would own a 19.7% stake in ShareChat. Tencent would be unable to invest in the company directly due to strict rules governing the acquisition of stakes in Indian companies by Chinese entities. The same rules have allowed ShareChat to grow without competing against companies such as the China-based TikTok.

Rocket Lawyer, a US-based digital legal services provider backed by Alphabet, Relx and Editions Lefebvre Sarrut, has received $223m in financing. The round was led by Vista Credit Partners, a subsidiary of investment firm Vista Equity Partners, but it has not revealed the identity of the other participants. The company’s last funding came in 2016 when legal publisher Editions Lefebvre Sarrut invested an undisclosed amount as part of a joint venture to launch a Rocket Lawyer Europe entity.

US-based cybersecurity software provider Sysdig has secured $188m in a series F round featuring Siemens’s Next47. Founded in 2013, Sysdig provides a software tool that helps cloud operators run their services securely, preventing and responding to threats and vulnerabilities in a timely manner. The series F was raised at a $1.19bn valuation and lifted the company’s total funding to $394m.

India-headquartered home services marketplace Urban Company has raised $188m in a series F round led by Prosus at a $2bn valuation. The round was filled out by DF International – possibly a vehicle for Dragoneer Investment Group – and Wellington Management, lifting the company’s overall funding to more than $370m.

US-based gas management technology provider Crusoe Energy Systems has completed a $128m series B round featuring Exor, Coinbase Ventures and DRW Venture Capital. The equity funding was raised alongside a $40m project financing facility from growth financing provider Upper90.

US-based cancer therapy developer Boundless Bio completed a $105m series B round that included Alexandria Venture Investments. Boundless is working on a pipeline of precision cancer drugs designed to target the extrachromosomal DNA of aggressive cancers. The latest round follows a $46.4m series A in September 2019 that was also backed by Alexandria Venture Investments.

BigID, a US-based data protection software developer backed by Comcast, Salesforce and SAP, has added $30m from private equity firm Advent International to a series D round now standing at $100m. The deal came after the company secured $70m in a first tranche co-led by Salesforce Ventures and Tiger Global Management in December 2020. Glynn Capital, Bessemer Venture Partners, Scale Venture Partners and Boldstart Ventures also took part in the first close. The extension increased BigID’s funding to over $246m and valued it at $1.3bn.

Funds

China-based IoT technology producer Tuya has formed a $400m strategic investment fund with Hillhouse Capital. Tuya’s platform enables businesses to access hardware development tools, cloud services and smart business development software in order to build their connected services. The company floated in the US last month in a $915m initial public offering in which affiliates of Hillhouse Capital had expressed interest in buying $100m of shares.

Exits

JD Logistics, the logistics services subsidiary of China-headquartered e-commerce firm JD.com, received approval for an initial public offering expected to net it between $3bn and $4bn, according to people familiar with the matter. A source told DealStreetAsia in February this year JD.com would seek a $40bn valuation for the IPO. Launched in 2017, JD Logistics provides delivery and warehousing services to online merchants, the latter through a network of about 900 warehouses across China. It is also looking to automate part of its offering through the use of driverless delivery vehicles. JD.com owns 79.1% of the spinoff and shareholders also include Tencent and China Life.

Tata Group has secured regulatory approval to acquire a majority stake in India-based online grocer BigBasket, with e-commerce group Alibaba set to exit. The deal was agreed in February and is set to be conducted by the corporate’s Tata Digital subsidiary, which will pay a reported $1.2bn for a 64.3% stake in BigBasket, valuing it at nearly $1.87bn. Tata Digital will make a primary investment of $200m to $250m with the rest to come through secondary share sales which will likely involve Alibaba divesting a 29.6% stake – for roughly $550m – and investment firm Artis a 16.5% stake.

India-based food delivery service Zomato has filed for an Rs 82.5bn ($1.1bn) initial public offering, with Info Edge set to sell $100m of shares. The company is planning a dual offering on the National Stock Exchange of India and the BSE and is considering raising a further $200m through a private placement prior to the IPO. Zomato generated $186m in income in the last nine months of 2020, making a loss of $92.7m. The offering will come in the wake of roughly $1.45bn of funding, the most recent of which involved Zomato raising $250m in February this year at a $5.4bn valuation.


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

Leadership Series: Jaclyn Kossmann (Applied Ventures)

We have teamed up with 500 Startups’ CVC Insider Series, where top CVC practitioners offer advice and best practices regarding common challenges encountered within corporate venturing. Featured this week is an interview with Jaclyn Kossmann of Applied Ventures and Nicolas Sauvage of TDK Ventures.


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

26 April 2021 – UK National Grid Commits Further $150m to its Silicon Valley-based Corporate Venture and Innovation Group

The Big Ones

1

In November, this column said, if demotivated, “talented people will quickly cut the cord”.

This was in response to US-listed cable group Comcast’s decision to limit its successful corporate venturing unit, as GCV reported at the time.

Almost six months on and the team has broken up as feared. And the unit, which was founded in 1999 and which has more than 120 portfolio companies, has announced investments in just two companies since November when it co-led a $38m round for Zapata Computing.

Amy Banse, managing director and head of funds for Comcast Ventures, announced in September last year she would be retiring, while managing director David Zilberman left shortly afterwards to join venture capital firm Norwest Venture Partners.

Of the other managing directors, Sam Landman is now co-founder and general partner at venture capital fund Mastry while Dinesh Moorjani has left to return to angel investing and his portfolio of board seats, such as Zoox, and Rick Prostko has become managing director for North America at Ontario Teachers’​ Pension Plan’s innovation platform.

Others who appeared to have cut their ties with Comcast directly are Gil Beyda, whose LinkedIn page states he has stopped being a managing director at Comcast and returned to a managing partner position at Genacast Ventures, and Daniel Gulati, who became the founding partner at Forecast Fund in May 2020 and whose LinkedIn profile reveals he left Comcast last year. Comcast, however, effectively retained their talents, as a spokesperson said Forecast Fund was set up within Comcast Ventures while Genacast was established with Comcast support.

The upshot is that only Andrew Cleland is left directly as an MD at Comcast Ventures, though other experienced people within the group include Sam Schwartz, executive vice-president and chief business development officer for Comcast.

A similar but smaller exodus has occurred at the principal level. Chris Hill departed in December to become a strategic adviser at Retina AI, Andre Iguodala left his venture partner role at Comcast’s Catalyst fund and Morgan Polotan joined B Capital Group as a principal.

This has left Sheena Jindal, Min-Sik Jun and Adam Spivack as principals and the operations team, such as Arjun Kapur and Madura Wijewardena, under managing director and chief financial officer Kim Armor.

Comcast’s spokesman said by email: “Comcast Ventures was just repositioned to be within the strategic development group at Comcast Cable and continues to operate as a fund and as Comcast Ventures. It just went from one department to another. We issued a statement on this and here is what we said which has not changed: ‘Comcast Ventures has been a valuable innovation pipeline, providing insight into adjacent industries and investment opportunities.

‘We are aligning our approach to venture investing more closely with our business units and repositioning Comcast Ventures and its fund under the strategic business development team at Comcast Cable.

‘Our business development teams across the company continue to invest in new technology and businesses, which we believe will yield more strategic opportunities and benefits for Comcast and the companies in which we invest. We will continue to support our existing portfolio companies through investment and strategic partnership.’”

Comcast has aligned its corporate venturing activities – it also runs Sky Ventures in the UK under James McClurg and Mike Martin, and NBCUniversal’s growth team under Don Mathis – around its broader entrepreneurial activities, which include Danielle Cohn’s Lift Labs accelerator, now on its fourth cohort managed by Techstars.

Since its launch, 32 companies from around the world have completed the Lift Labs accelerator programme and 75% have secured pilots or agreements with a division or business unit of Comcast NBCUniversal.

Another insider left at one of the corporate venturing divisions of Comcast privately said they were also looking at their governance and compensation, and whether to leave.

Comcast had been a top quartile venture investor – the enterprise value of Gulati’s portfolio alone while at Comcast Ventures was more than $4bn, he said – but has to now rebuild just as the parent’s strategy has to.

Comcast had risen to the status of a Fortune 50 company in the past generation by riding the wave of pay television in the US. But this peaked in 2012 with 90% of people subscribing to one bundle or another.

Now, cable’s cords are being cut and the range of options people have to consume media has grown.

At a time when the cable and media industry is undergoing disruption, therefore, having fresh eyes and direction for Comcast Ventures might yet end up a blessing if it brings a growth mindset and new resources. The alternative is a narrow focus on trying to protect a cash cow slowly being undermined in the way print media has been by the internet.

2

UK-listed utility National Grid has committed a further $150m to its Silicon Valley-based corporate venture and innovation group.

It is smart timing beyond being so-called Earth week – a series of events around the world focused on climate and sustainability, including GCV’s Earth Day webinar on carbon capture and hydrogen on 22nd.

National Grid is sponsor of the United Nations’ COP26 climate conference – the biggest convening of global environmental policy and industry leaders since the 2015 Paris Agreement – expected in early November in the UK and will include the 10th GCV Symposium gala dinner at St Paul’s cathedral.

Since its launch less than three years ago, National Grid Partners (NGP) has put $227m into 29 startups at the intersection of energy and information technology.

Now, the rest of the world is catching up to the opportunities in the field, including tech company Apple’s $200m committed last week to the Restore Fund for carbon removal through forestry innovation, and so National Grid is committing more to its pace of investment.

Its most recent deals include $7.5m invested into seed-stage, US-based companies Pathr, a spatial intelligence platform to generate anonymous location data in real time as people work around buildings, and AccuKnox, a Stanford Research Institute spinout whose KubeArmor technology provides a kubernetes platform for security, compliance and governance in public and private clouds.

Lisa Lambert, chief technology and innovation officer of National Grid and the founder and president of NGP as well as chairwoman of the Global Energy Council, said: “Earth Week is a perfect time to announce this vote of confidence from our senior leadership.

“We are investing in and deploying technologies across National Grid’s networks to enhance resilience and reliability, while more easily integrating renewable energy.”

Funds

Zoom rushes to create $100m Apps Fund

CyberAgent spies third domestic fund

Exits

UiPath reaches public markets

Zymergen produces $500m initial public offering

NeuroPace nets $102m in IPO

Confluent chooses confidential IPO filing

Oatly to milk public markets for capital

Waterdrop runs down to $100m IPO plans

Gyroscope gees itself up for US IPO

SimilarWeb sets out IPO filing

Talaris tries out public markets

SmartRent houses $2.2bn reverse merger

Makesense agrees to PolicyBazaar merger

Affirm comes back to buy Returnly

Deals

Byju’s bolts down billion-dollar round

Adagio Therapeutics picks up pace with $336m

ActiveCampaign activates $240m series C round

Alan amasses $223m in series D funding

Razorpay cleaves $160m in series E round

Druva draws in $147m

SES seeks out corporates to raise $139m

NextData inputs $135m series D

MatHem shops for $131m

Digital Asset arranges $120m series D

TechMet takes in $120m

Classy clasps $118m

BlaBlaCar drives through $115m round

Tamara takes in $110m through series A round

Solegreen kicks in $104m for Kuubix

C2i Genomics detects $100m


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

Leadership Series: Jason Miles (Volvo VFS)

We have teamed up with 500 Startups’ CVC Insider Series, where top CVC practitioners offer advice and best practices regarding common challenges encountered within corporate venturing. Featured this week is an interview with Jason Miles of Volvo VFS and Nicolas Sauvage of TDK Ventures.


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

19 April 2021 – Coinbase Lists on Nasdaq

The Big Ones

1

Spend enough time in venture and you can see the transformation in startups and the economy almost as if time has speeded up.

GCV’s first article on Coinbase, eight years ago to the day, described it as “a digital wallet for Bitcoin transactions”, which “had raised $600,000 from accelerator Y Combinator and publisher International Data Group’s corporate venturing unit IDG Ventures.

“Bitcoin was set up without central bank backing but with a predetermined limit of 21 million available to be issued from its software and has seen fluctuations in its value from $9 in January to $200 on 9 April 2013 and back down to $150 a day later.”

Now, Bitcoin’s price is $63,063.90 and investors have valued Coinbase at $75.9bn after its debut on Nasdaq stock exchange on Wednesday.

The Financial Times described it as “the first listing of a major cryptocurrency exchange and a moment of validation for the digital asset class some 12 years after the creation of bitcoin”. After a direct listing of Coinbase shares – rather than the more traditional initial public offering which raises new capital – the price fell to $328 from an opening price of $381 to give a market capitalisation of $85.8bn, including options and other kinds of stock-based awards.

However, after early support from CVCs, such as IDG and USAA’s Victor Pascucci and Jon Cholak, Coinbase cashed in with a $75m series C round in 2015 including from BBVA, NYSE and NTT and not looked back. Coinbase’s big investors include venture capital firms Andreessen Horowitz, Ribbit Capital and Union Square Ventures.

Coinbase’s financial fortunes have surged with the cryptocurrency markets, producing a nine-fold jump in revenues to an estimated $1.8bn in the first quarter, translating to about $1.1bn in adjusted earnings before interest, tax, depreciation and amortisation, the FT said.

But while still primarily a business-to-consumer exchange for people to buy and sell bitcoin and ethereum based on the blockchain, financial services firms are more interested in the underlying technology than its value as a monetary store or gold equivalent.

Jay Powell, chair of the Federal Reserve, said: “No one is using them for payments, for example, like the dollar. It’s a little bit like gold . . . Human beings have given gold this special value that it doesn’t have from an industrial standpoint, but nonetheless for thousands of years they’ve done that. Bitcoin is much more like that.”

Behind the scenes, however, and the big asset managers and financial groups are working on pragmatic implementations of blockchain and crypto as platform or infrastructure to trade, price, settle and be the custodians. From there, products to deploy and engage on alternative assets and how even venture capital is affected can flow.

Similar riches are now being reaped from early investments in other emerging fields created in the past two decades.

2

Tuesday’s daily leader looked at the $25bn of cash returned from Naspers/Prosus selling four percentage points of its holding in Tencent over the past few years.

Netherlands-listed technology investor Prosus, formed out of the corporate venturing assets collected by South Africa-listed media group Naspers, has sold 2% of China-based gaming and social media group Tencent for $14.7bn.

This is the world’s largest-ever block trade – 191.89 million shares for HK$114.1bn – but leaves Prosus still holding 28.9% of Tencent, according to newswire Reuters.

The block trade – or the usually private, single trade of a large amount of securities – surpassed the previous record set in 2018 when Naspers also sold 2% of Tencent for $9.8bn, Refinitiv data showed. Its remaining stake is worth about $200bn, from an original $31m corporate venturing deal struck 20 years ago.

Bob van Dijk, CEO at Prosus, said: “The proceeds of the sale will increase our financial flexibility, enabling us to invest in the significant growth potential we see across the group, as well as in our own stock.”

Prosus, which also invests in online food delivery platforms, classified marketplaces and digital payments businesses, has built up its warchest for new and existing investments given the rapid scaling up of the innovation capital ecosystem at the later stage.

Global venture capital investments hit $125bn in the first quarter, the first time the figure has surpassed $100bn in a quarter, according to data published by Crunchbase, even though deal volumes held relatively stable.

The opportunity for social network or “platform economy” companies to dominate across sectors or verticals remains, especially as Tencent peer Alibaba’s share price rose on Monday after it was able to have the term written into law.

This is particularly the case as finance becomes embedded into media. As James Thorne, a venture capital reporter at PitchBook, noted at the weekend, Angela Strange, general partner at VC firm Andreessen Horowitz (A16Z), made the case in 2019 that most people would be working in financial services soon, even if we don’t change jobs, as finance becomes embedded into software.

At that point, media and content becomes the differentiator, which is why A16Z calls itself a media company that monetizes through venture capital.

In his annual letter last week, Jamie Dimon, CEO at bank JPMorgan Chase, said: “Fintech’s ability to merge social media, use data smartly and integrate with other platforms rapidly (often without the disadvantages of being an actual bank) will help these companies win significant market share.”
And this helps explain why even in a world where media advertising is dominated by Facebook and Google that there remains so much attention and focus on social media and networks.

3

Things are heating up in Italy’s media landscape as a microcosm of wider changes in the sports and gaming ecosystem. The country’s main phone operator, TIM, has returned as a “long-term investor in venture capital” through the anchor commitment to a €100m UV T-Growth fund managed independently by United Ventures, while Nerio Alessandri, founder and executive chairman of Italy-listed fitness equipment supplier Technogym, has launched Wellness Ventures.

UV T-Growth, managed by Fabio Pirovano and Damiano Coletti, targets a wide swathe of digital innovation, including gaming. Similarly, Wellness is targeting digital projects in general but in particular in sports and fitness.
There are plenty of opportunities in sports and gaming in the digital age. Online gambling and advertising, electronic as well as physical sports and gaming and unbundling of viewers from cable or television packages are coalescing to create plenty of disruption.

The latest being Amazon, which acquired Twitch for in-game streaming and chats, paying $11bn for exclusive rights to stream Thursday night National Football League games on its Prime service.
There are now dozens of VC funds targeting games, which is a far bigger market than films. Most recently, the Games Fund has raised $50m for a game-focused venture capital fund to invest in early-stage games in both Europe and the US, according to VentureBeat.

Maria Kochmola and Ilya Eremeev started the fund having both previously worked at Russia-listed internet group Mail.ru’s My.Games division, which started a game fund called MGVC, VentureBeat said. Kochmola was the investment director at MGVC since its inception in 2017, and she led more than 35 investments (with six exits).

Deals

Cruise increases latest round to $2.75bn

Epic picks out investors for $1bn round

SambaNova rams through $676m series D

Polestar attracts $550m

SoftBank finds Better option for $500m investment

Groq locks up $300m series C

Fiture fits in $300m series B

Astranis ascends with $250m series C

Bukalapak escalates funding with $234m

Tempo works out $220m series C

Signifyd secures $205m in series E round

Clearcover coasts to $200m series D

Repertoire Immune Medicines gets $189m result

Degreed delivers $153m series D

ZJS Express zooms to $153m series B

Jaguar Gene Therapy roars to $139m

Tend drills into $125m series C

Arcellx amasses $115m in series C round

CeQur secures $115m in series C5

StoneWise stocks up with $100m

Gaussian Robotics sweeps up $100m

Hack the Box cracks $10.6m round

Funds

Axa accelerates to $295m close for second growth vehicle

Amazon shows Indian ambitions with $250m fund

TDK to deploy $150m through second fund

Exits

Grab takes reverse merger option

Tango Therapeutics arranges reverse merger

TuSimple delivers $1.35bn initial public offering

Alkami appears on public markets

MissFresh looks to deliver $1bn IPO

Brii brightens up with IPO plans

Darktrace discloses IPO plans

Vaccitech shoots for US IPO

Artiva activates $100m IPO plans

Anjuke advances to IPO stage

Hologic hoists in Mobidiag

Keyfactor turns to PrimeKey for merger

University

Schroders shifts Carrick stake at discount


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

Leadership Series: The State of The Fintech Market in 2021 (GCV Digital Forum)

An audio version of the ‘Fintech Findings: The State of The Fintech Market in 2021’ session from our GCV Digital Forum in January 2021.


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