28 March 2022 – Hub Cyber Security organises $1.28bn reverse merger

Hub Cyber Security organises $1.28bn reverse merger

Israel-based cybersecurity technology provider Hub Cyber Security agreed to a reverse merger worth $1.28bn that will allow insurance group Axa to exit

Yuga Labs pulls in $450m

Yuga Labs, the US-based creator of non-fungible token collection Bored Ape Yacht Club, secured $450m in a seed round at a post-money valuation of $4bn.

Ramp climbs to $750m round

Ramp, a US-based provider of a corporate card for controlling spending, raised $750m in debt and equity financing from investors including digital payment technology provider Stripe.

Astronomer lands $213m in series C funding

US-based data analytics software provider Astronomer secured $213m in series C funding from investors including Salesforce Ventures.

Nio Capital drives to $400m second vehicle

Nio Capital, the China-based venture capital firm co-formed by electric vehicle (EV) manufacturer Nio, closed its second vehicle at about $400m.

Stellantis launches venture unit with $331m

Automotive manufacturer Stellantis has launched a $331m corporate venture capital vehicle, to invest in technology that could be applied to the automotive and mobility sectors.

OfBusiness spins off Oxyzo with $200m

Oxyzo Financial Services, the smart financing spinoff of India-headquartered material procurement and financing services provider OfBusiness, secured $200m in series A round.

Qualcomm crosses off $100m XR fund

US-headquartered semiconductor technology producer Qualcomm unveiled an investment vehicle that will provide up to $100m in funding for developers of metaverse technology.

Alphabet sends Sandbox AQ independent

Internet and technology group Alphabet is spinning off its quantum technology subsidiary, Sandbox AQ, with a nine-figure amount of funding.

Nexo executes $150m fund launch

UK-based cryptocurrency asset manager Nexo, formed a $150m corporate venture capital and M&A arm dubbed Nexo Ventures.

Slack Fund slides in $100m third fund

Slack Fund, the strategic investment vehicle formed by US-headquartered enterprise communication app developer Slack, has launched its third fund with $100m in capital.


“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

28 January 2019 – Stanford StartX Fund Comes to an End

The big 3

For all the talk about the big numbers of 2018 – Global Corporate Venturing tracked 2,775 deals worth an estimated total of $180bn, the details of which you can find in the January issue out and the World of Corporate Venturing annual review published at the GCVI Summit at the end of the month – the headline increase in CVC units masks continued evolution in units and structures.

GE Ventures has become one of the most prominent figures in the corporate venture capital space since being formed in 2013, but its parent company is reportedly looking to divest the unit as part of a large-scale restructuring effort that has already claimed its transportation subsidiary and could shortly include GE Healthcare.

Big deal: Stanford-StartX Fund reaches the end

Insurance group Axa formed its corporate venturing unit, then known as Axa Strategic Partners, in 2015 and it has now boosted its early-stage investing by putting $150m into a second early-stage fund that will provide up to $6m per deal.

And startups founded by women or minorities are still having a tough time getting capital. Enterprise software producer SAP is the latest corporate to try and change that, unveiling its No Boundaries initiative that will invest 40% of the existing SAP.io Fund in startups led by underrepresented entrepreneurs.

Other big news sees a sweep of large deals continuing. Go-Jek is one on the up. The ride hailing platform, Grab’s main rival in Southeast Asia, has raised $920m from existing investors that include Google, JD.com and Tencent for the first close of a round with a $2bn target.

Still, getting financial and hopefully strategic benefits remains the game. Reports earlier this week suggested Viacom was set to acquire online television streaming platform Pluto TV for up to $500m. The final price has proven to be a more realistic $340m, but it will still give a healthy exit to a round of investors including Sky, ProSiebenSat.1, UTA, Universal Music Group, Samsung Scripps and Windsor Media.

Funds

Menlo Ventures hires Qualcomm’s Haghighi

Deals

Genetic disease drug developer BridgeBio has received $299m in funding from investors including AIG that will be used to move a 15-strong pipeline of assets forward.

Desktop Metal has confirmed recent reports that it was raising new funding by confirming it has closed a $160m round led by Koch Disruptive Technologies, the then undisclosed large industrial company featured in those reports.

FirstCry was reported last week to be in the process of securing $400m from SoftBank, but now the company has revealed the round will be raised over two tranches – with a first $150m investment closed – and that the cash is actually coming from the Vision Fund rather than the corporate directly.

LinkedIn-backed data streaming platform developer Confluent has secured $125m in a series D round that valued it at $2.5bn. The round increased Confluent’s total funding to $206m and was led by Seqouia Capital, the venture firm that also led its series C two years ago.

AutoAI was unveiled by mapping technology provider Navinfo late last year to further develop smart in-car technology created by the firm’s subsidiaries.

Andela recruits GV for $100m series D

SoftBank Vision Fund has made a $100m investment in Globality, the operator of a platform where businesses can source service providers, that valued the company at nearly $1bn, a source told the WSJ.

Sunmi shines with Ant Financial investment

University

Minervax finds verve with $5m

Nexiot checks in series B funding

CIC makes cut in Imagen series B

Exits

Beleaguered Blippar finds a buyer

Avedro heads to public markets


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

7 March 2016 – Google Capital, Alphabet, Magic Leap, Snapchat, Mercari, AXA, Slack, Souqcom, Vertex, Purdue University, Oregon State University and more

Deals

We tracked 132 deals in the month. While this would be the lowest month for deal activity since September 2014, it is not much below activity in many of the months during the last year and a half, while it is significantly above most months in 2014 as well as prior years. We also typically track some deals after a month ends.

The most active corporate during the month was holding company Alphabet, which invests through its two venturing units Google Capital and GV, which matches trends in recent years, where it has regularly been one of the most active investors.

The most active corporate partner among venture firms was Arch Venture Partners, which invested alongside US-based healthcare company Johnson and Johnson, US-based asset manager Fidelity, China-based healthcare company Wuxi Pharmatech, real estate company Alexandria, and healthcare company Pfizer.

The largest deal in February was the $793.5m series C round raised by US-based augmented reality technology developer Magic Leap, in a deal led by e-commerce firm Alibaba.

The biggest exit of the month was the sale of Ravello Systems, the US-based virtualisation software developer, which was sold to Oracle for $500m. Ravello had raised $54m in venture funding, including $28m in a January 2015 series C round co-led by Qualcomm and SanDisk’s corporate venturing units: Qualcomm Ventures and SanDisk Ventures.

Snapchat, backed by Tencent, Alibaba and Yahoo, boosted its series F round to more than $710m and its overall funding to more than $1.3bn with $175m from Fidelity.

Mercari rises with $75m round.

AXA invested €75m in e-commerce holding vehicle Africa Internet Group last month and the round has now been boosted to €300m ($326m) with commitments from MTN, Rocket Internet and Goldmn Sachs.

Messaging platform Slack has so far raised $340m from investors including GV but is now seeking an additional $150m in the wake of it ramping up staff numbers and launching a TV advertising campaign.

Influitive, the creator of an advocacy marketing platform, raised about $30m in July and has now attracted new funding to take its NTT Docomo-backed series B round to almost $39m. The capital helped to support the acqui-hire of scheduling app developer Ironark Software.

Souq.com has shown that e-commerce growth in Asia isn’t restricted to the usual suspects of China, India and Southeast Asia, raising more than $270m at a reported $1bn+ valuation.

Electronic component manufacturer Murata Manufacturing Company led a $19m series B round for US-based power conversion semiconductor developer Arctic Sand Technologies, a spinout of MIT. more

People moves

Ben Brabyn, former COO of UK Trade and Investment (UKTI) Innovation Gateway, has been appointed head of UK-based technology accelerator Level39.

Michael Fernandes has left Malaysian sovereign wealth fund Khazanah Nasional to become a partner and co-head of South and Southeast Asian operations at Leapfrog Investments. At Khazanah Nasional, he was manager of the healthcare portfolio, valued at $7bn on the Singapore stock exchange.

Monika Gierszewska has been appointed as director of incubator SetSquared’s Bristol branch. SetSquared is a collaboration between the universities of Bristol, Bath, Exeter, Southampton and Surrey. (more)

Funds

Vertex Venture Holdings, the wholly-owned investment arm of Singapore government’s state fund Temasek, has held the final close of its Vertex Ventures Israel fund at $150m. The fund had a target of $100m.

InnovFin, a joint initiative of EIF and EIB, has signed a deal to provide $100m to LeumiTech to support Israel-based businesses.

Purdue University has set up a $10m seed-stage fund to build on its successes from last year, when Purdue created a total of 40 new businesses, incl. 25 spinouts. The fund will be jointly managed by the university’s startup accelerator, Purdue Foundry, and the University Development Office.

Oregon State University launches fund with Rogue Venture Partners that is expected to raise between $10m and $20m and will invest in companies within the state. OSU will provide a fifth of the capital.


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

15 February 2016 – Chinese new year, fintech investor BBVA, Innogy Venture Capital, triple French biotech fund, Unicef, Shanghai reimburses venture capital firms and more

Funds

Financial services provider BBVA has been a notable fintech investor since early 2013 when it formed a $100m fund that has since backed companies including DocuSign, Taulia and Prosper. The bank has now elected to upgrade its participation, committing another $150m and spinning out its investments into a new VC firm called Propel Venture Partners. Propel is already operational in San Francisco and is actively recruiting for a London office.

RWE’s Innogy Venture Capital may have been quiet of late but that doesn’t mean the utility has given up on corporate venturing. Chief executive Peter Terium reiterated its commitment to innovation on Friday and revealed plans for another investment unit which will be sized at $145m.

In addition to that fund, RWE is also set to invest $15m in a so far unnamed greentech-focused venture capital fund.

France triples its biotech fund.

Unicef’s $9m Innovation Fund opens for expressions of interest from entrepreneurs, inventors and companies with working prototypes of open source technology that can improve the lives of vulnerable children.

The government of Shanghai’s plans to compensate venture capital firms that fail to make back their initial investment in startups has drawn criticism.

Investments

Uber has targeted $2.1bn in new equity funding at a jawdropping $62.5bn valuation in spite of a fundraising climate generally agreed to be cooling. Today it came a step closer, raising $200m from investment firm LetterOne, which joins a range of backers including corporates Alphabet, Baidu, Times Group, Ping An and China Life Insurance.

One of the biggest areas for VC funding last year was India’s e-commerce sector, and One97 Communications was one of the biggest recipients, securing $680m from Alibaba and Ant Financial. One97 is now looking to raise another $400m by the end of June to fund the spinning out of its flagship brand, Paytm, into a separate mobile banking and payment company.

A possible partnership with e-commerce marketplace Flipkart could also be on the cards. Africa Internet Group (AIG), the collection of African businesses overseen by Rocket Internet that is also backed by telecom companies MTN and Millicom, has welcomed a new backer. AXA paid $83m for an 8% stake in AIG as part of a strategic partnership that will allow it to sell insurance products through AIG’s companies, and in particular e-commerce marketplace Jumia.

Cambridge University breaks its own seed funding record for the third year in a row, investing $5.5m last year.

Exits

Proteostasis raised $50m (see below) while AveXis secured $95m, floating in the middle of its $19 to $21 range. AveXis, which is backed by Roche’s corporate venturing fund, will use the proceeds to steer its lead candidate, a gene therapy treatment for spinal muscular atrophy, through phase 1 trials.

Good analysis recommendation: Bruce Booth at Life Sci VC 

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