14 October 2019 – Oyo in $1.5bn Series F Round

The Big Ones

Short-term accommodation platform Oyo is reportedly in the process of raising $1.5bn in series F funding at a $10bn valuation. Existing investor SoftBank is also set to take part in the round but the big news is that Oyo co-founder and CEO Ritesh Agarwal plans to put up a whopping $700m of the cash. Given that the only collateral Agarwal could likely put forward to get that kind of financing is his existing stake in Oyo, that obviously raises all kinds of questions, not least with the increased scrutiny around founder behaviour right now.

The IPO market appears to be slowing down, what with We Company and Postmates both withdrawing their initial public offerings, and immuno-oncology drug developer BioNTech – a spinout of Johannes Gutenberg University of Mainz – hasn’t done brilliantly either. It went public in a $150m IPO that involved it floating at the bottom of its range while also cutting the number of shares. Despite that, Pfizer, Eli Lilly and Sanofi – all development partners – will score exits through the offering.

Ginkgo Bioworks – itself an MIT spinout – has already spun out two companies, Joyn Bio and Motif Foodworks, which have raised decent sums of money, but now the custom microbe developer has formed a $350m vehicle specifically to fund other spinouts.

Deals

Chime is one of a string of digital banks that have sprung up in recent years and claims to be the fastest growing, increasing the number of accounts it oversees from 3 million in March to 5 million in September.

Zomato is locked in a battle with Swiggy for domination of India’s food delivery market, and just like Tencent-backed Swiggy, it has a major Chinese corporate providing cash. Ant Financial has invested more than $400m in Zomato and is reportedly in line to participate in a $600m round that would value it at up to $4bn.

Chinese tutoring platform VIPKid has confirmed it has raised money in a Tencent-led series E round, without confirming the size of that round. Recent media reports could give some clues on that front however, with $500m being put forward as an upper target and Tencent’s contribution placed around the $150m mark.

Lilium, a flying car developer spun out of Technical University of Munich, is also fundraising and is in talks with Tencent over a round that will reportedly be sized at $400m to $500m. Tencent contributed to Germany-based Lilium’s last round, a $90m series B, two years ago but the new funding will follow its unveiling of a working prototype of its vehicle in May.

Next Insurance has received $250m from Munich Re in the form of series C funding that will help the workplace insurance platform grow its business in the US. The round valued Next at more than $1bn and the deal increased Munich Re’s stake in the company to 27.5%.

It’s been a while since we last heard from Benlai, but the China-based grocery e-commerce has been busy expanding its service to hundreds of additional cities since its last round – a combined $117m series C and C+ from investors including Joyoung – in 2016.

SparkCognition has meanwhile collected $100m in a series C round backed by returning investor Boeing HorizonX and new investor Hearst Ventures, as well as 14 others (including Malcom Turnbull – yes, the former prime minister of Australia).

Arcellx is working on immune cell therapies to treat cancer, and has captured $85m in a series B round that included LG Technology Ventures and existing backers Novo, SR One and Takeda Ventures.

Funds

Petroleum supplier Petronas hasn’t been a significant venture capital investor yet but it appears to be making plans to change that. The corporate intends to pump up to $350m into a unit called Petronas Corporate Venture Capital that will fund companies developing tech in areas such as advanced materials, specialty chemicals and energy. It had already launched a $250m investment vehicle known as Piva in January.

Exits

GV made a hefty chunk of change by divesting part of its stake in Uber to a SoftBank-led consortium in late 2017 at a $48bn valuation, but CEO David Krane has disclosed that it may sell the rest once the post-IPO lock-up period expires next month.

Praktikertjänst-backed Aprea Therapeutics went public last week, picking up $85m in proceeds after pricing shares in the middle of the range at $15. It looks like the company may have underestimated the market, as shares shot up to $20.50 on the first day of trading and have continued to trade above the IPO price.

Vir Biotechnology is the latest company not to meet its IPO expectations, floating at the bottom of its range, but still raising $143m. SoftBank Vision Fund is the second largest shareholder of immunology therapy developer Vir, having pumped in at least $180m over two rounds.


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

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