07 October 2019 – We Co Pulls IPO

We Co, otherwise known as WeWork, formally pulled its initial public offering last week, putting a cap on what will go down as one of the most disastrous attempts to go public in recent memory. So what does that mean for corporate venturers? Is the co-working space still viable? Is it still worth betting on visionary founders? And what about SoftBank? If those are questions you’d like answers to, do check out GCV news editor Robert Lavine’s analysis on GlobalCorporateVenturing.com

Big Ones

Udaan, the Indian operator of an e-commerce platform that links small businesses to large traders and wholesalers, has raised $585m in series D funding from investors including Tencent and Citi Ventures to take its total equity financing to $870m in under three years.

Online content and advertising platforms Taboola and Outbrain operate in a relatively similar space and have elected to join forces, with Taboola buying the latter for $250m in cash, and $600m in stock equating to a 30% stake in what will be a $2bn company.

Oxford Sciences Innovation (OSI), the university venture fund for University of Oxford, has added China-based telecommunications equipment and services provider Huawei as a limited partner. Huawei is believed to have bought 4.1 million shares over the past year through a Netherlands-based subsidiary called Huawei Technologies Cooeperatief, taking its stake in OSI to about 0.7%. Huawei has never been listed on OSI’s website as a backer. The deal was concluded in late 2018 before University of Oxford blocked the firm’s philanthropic donations due to fears over its influence in the UK technology space.

Deals

IronSource has confirmed a $400m+ investment by private equity firm CVC Capital Partners at a 10-figure valuation. The content monetisation and engagement platform developer raised $105m in a 2015 series A round featuring Access Industries at an apparently similar valuation, though Calcalist reported earlier this week that its shareholders regularly receive sizeable dividends, which would largely offset any flatlining in company value.

Electric scooter and bike rental service Bird has raised $275m at a $2.75bn post-money valuation, in a series D round co-led by Sequoia Capital and pension fund manager CDPQ.

Rapyd has already raised $100m, through a series C round featuring Stripe that valued the digital payment software producer at almost $1bn.

Tenaya Therapeutics, a US-based developer of treatments for heart disease, completed a $92m series B round on Thursday featuring GV, a corporate venturing subsidiary of internet and technology group Alphabet. The round was led by healthcare investment firm Casdin Capital and included Column Group and a range of undisclosed new and existing shareholders.

Adicet Bio is meanwhile working on cancer treatments that will utilise gamma delta T cells, and has completed an $80m series B round that took its total funding to $131m.

US-based vaccine developer Icosavax emerged from stealth on Thursday with $51m of series A funding from investors including Sanofi Ventures, the corporate venturing arm of pharmaceutical firm Sanofi. Qiming Venture Partners USA led the round, which was also backed by NanoDimension, Adams Street Partners and undisclosed existing investors.

Funds

Non-profit health system Advocate Aurora Health and Wisconsin Alumni Research Foundation (Warf), the commercialisation arm of University of Wisconsin-Madison, have become a limited partner in a $75m healthcare-focused fund raised by venture capital firm Venture Investors.

Exits

It’s been a rough ride recently for companies trying to go public: Peloton’s shares have crashed every day since going public and that’s before we get to the disaster that’s been We Company’s struggles. But that isn’t stopping others from chasing the dream and Progyny has filed for a $100m offering on Nasdaq that would provide exits to SR One and Merck Group

36Kr will be hoping its own IPO goes better. The China-based startup media and services company has filed to go public in the US and has set an initial target of $100m. Its investors include Alibaba affiliate Ant Financial and media group Nikkei, and it will be hoping it doesn’t fall foul of reported plans by Nasdaq – the operator of the market on which it intends to float – to tighten regulations for smaller IPOs by Chinese companies which have sometimes chiefly sold shares to investors linked to their executives. With only two named underwriters in the 36Kr IPO, that could be a factor.

Harvard University spinout Beam Therapeutics has filed for its own $100m IPO, which will follow roughly $225m in funding raised across two rounds. The genomic medicine developer’s shareholders include GV and Editas Medicine, the latter having acquired a stake through a licensing agreement last year.

4D Molecular Therapeutics has filed for a $100m initial public offering that will fund the progress of gene therapies for conditions such as Fabry disease and cystic fibrosis. It has raised at least $108m, $90m of which came in a 2018 series B round that included Pfizer Ventures and Chiesi Ventures.

MIT and Harvard spinout Frequency Therapeutics has gone public in an $84m initial public offering that represents a bit of a downgrade on its expectations, the company floating at the bottom of its range and cutting the number of shares in the IPO.

Live streaming software and tools provider Streamlabs has also achieved its own exit, agreeing to an acquisition by Logitech International for up to $118m. The total’s split between an $89m upfront cash payment – slightly more than Streamlabs’ most recent post-money valuation of $80m – and $29m worth of stock dependent on it reaching significant revenue growth.

Aprea Therapeutics, a US-based cancer drug developer spun out of Karolinska Institute and backed by its investment Karolinska Development as well as healthcare provider Praktikertjänst, has raised $85m in an initial public offering on the Nasdaq Global Select Market.


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

10 September 2018 – Used Vehicle Marketplace Souche Raises $578m

Deals

Used vehicle marketplace Souche has attracted $578m in series F capital from investors including Alibaba, Sunshine Insurance Group and CreditEase. The round has brought Souche’s total funding to more than $1.2bn, with Alibaba having also backed a $335m series E in November 2017 and Ant Financial having led a $100m series C in 2016.

Tencent has been an investor in MissFresh since its $10m series A round, and it has just co-led a $450m round for the online grocer that will fund the enhancement of the latter’s cold and supply chain resources and its smart retail technology.

Despite recent difficulties that have seen it significantly cut back on its international ambitions, bicycle rental platform Ofo is reportedly lining up hundreds of millions of dollars from investors including corporates Ant Financial and Didi Chuxing, both existing backers.

Fresh from setting up short-form video platform NewTV, media holding company WndrCo has led a $295m round for mobile VPN provider AnchorFree, its first for six years.

Colombia-based on-demand delivery services provider Rappi, backed by its peer Delivery Hero, has secured $200m from investors including DST Global, achieving unicorn status in the process.

IQiyi Sports, formed by iQiyi and Super Sports Media last month to control their respective sporting rights for streaming, has closed a $124m series A round that will be used to expand its offering.

Caffeine is developing what will be a smart broadcasting platform designed to be a more sociable version of livestreaming services like Twitch. 21st Century Fox is certainly interested and has pumped in $100m that will be divided between equity funding and support for a joint venture that will source high-grade content.

GreyOrange produces robotics systems for use in logistics, helping e-commerce orders to be picked out more quickly and efficiently. Mitsubishi and Flipkart have certainly taken notice, contributing to a $140m series C round that will help the Singapore-based company expand internationally. GreyOrange has now raised almost $180m altogether.

4D Molecular Therapeutics (4DMT), a US-based gene therapy spinout of UC Berkeley, has closed a $90m series B round featuring university venture fund Berkeley Catalyst Fund.

Funds

Saudi Aramco has run its own corporate venturing unit, Saudi Aramco Energy Ventures, since 2012 but sources have told the Wall Street Journal it is considering plans to put up to $1bn into a new fund that will make large-scale investments in technologies that complement its operations.

Insurance provider Aviva has put its weight behind the $129m Ahren Innovation Capital vehicle, a patient capital fund co-founded by eight scientists from the Cambridge, UK ecosystem.

Politecnico di Milano has unveiled a $70m university venture fund this week in partnership with venture capital firm 360 Capital Partners that will invest in the institution’s spinouts. Poli360 has attracted capital from Itatech, a $208m investment platform backed by the EU-owned European Investment Fund and Italian state-owned national promotional institution Cassa depositi e prestiti.

UC San Diego has unveiled the $65m Poseidon Innovation fund with the money coming from healthcare-focused investment firm Deerfield Management. Poseidon Innovation will push early-stage university drug research and follows similar initiatives that Deerfield launched with Vanderbilt, Johns Hopkins and Northwestern universities.

Exits

Reports of Meituan Dianping’s IPO plans surfaced last weekend, and now the local services platform has confirmed it plans to raise as much as $4.4bn at a valuation of up to $55bn – almost twice that at which it last raised funding in October.

Maoyan Weiying, the mobile ticketing platform backed by Tencent, Meituan Dianping and Enlight Media, is reportedly seeking up to $1bn in proceeds and has officially filed documents in Hong Kong.

Funding Circle, a UK-based peer-to-peer lender backed by Rocket Internet, unveiled plans to raise £300m ($385m) in an initial public offering.

Munich Re has acquired industrial internet-of-things technology provider Relayr, one of its existing portfolio companies, for $300m. The corporate bought the startup through its subsidiary Hartford Steam Boiler and Relayr will continue to operate as an independent business but with the added benefit of gaining access to Munich Re’s clientbase and expertise.

Thoma Bravo has agreed to buy a majority stake in CRM automation software provider Apttus for an undisclosed sum, in one of those uncommon cases of a private equity firm acquiring a VC-backed company.

Softgarden, a Germany-based human resources software spinout of Saarland University has been acquired by investment management company Investcorp Technology Partners for an undisclosed sum.


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