19 July 2021 – SoftBank serves Yanolja with $1.7bn

Big ones

SoftBank’s Vision Fund 2 supplied $1.7bn in funding for South Korea-based travel and accommodation services provider Yanolja. It was valued at $1bn in a $180m series D round in mid-2019 backed by Booking Holdings and GIC. It had received $53.2m from SkyLake Investment two years earlier and $8.5m from Partners Investment in 2015.

Softbank plans to invest an additional $5bn in the Latin American region. The corporate formed a $5bn investment vehicle targeting the region in early 2019, and the prospective funding, which would double the allocation to $10bn, may be used to create a new SoftBank Latin America Fund or expand the size of the first. SoftBank also intends to expand the range of Latin America-based companies it targets to include seed and series A-stage startups as well as publicly-listed companies. Chief operating officer Marcelo Claure, who launched the first fund, will continue to lead its Latin America-based operations.

One97 Communications, the India-based owner of payments platform Paytm backed by corporates Alibaba, Ant Financial, SoftBank and MediaTek, filed to go public on the Securities and Exchange Board of India. The company intends to raise up to Rs 16.6bn ($2.2bn) in an initial public offering which would entail it issuing $1.1bn in new shares while its shareholders will divest the same amount. Selling shareholders in the IPO will include founder and CEO Vijay Shekhar Sharma, Alibaba and Ant Group, Elevation Capital, SAIF Partners India and Berkshire Hathaway.

Crossover

US-based gene-editing technology developer Prime Medicine emerged from stealth with $315m of series A and B funding to commercialise research conducted at the Broad Institute. The company raised $115m in a series A round backed by GV, Arch Venture Partners, Newpath Partners and F-Prime Capital. Prime Medicine concurrently unveiled a $200m series B round featuring all the series A investors in addition to Casdin Capital, Cormorant Asset Management, Moore Strategic Ventures, PSP Investments, Redmile Group, Samsara BioCapital, funds and accounts advised by T Rowe Price, and unspecified life science investment funds. The startup is using gene-editing technology to advance a number of drug discovery programmes targeted at areas such as the liver, eye, ex-vivo hematopoietic stem cell and neuro-muscular indications.

Deals

UK-based financial services app developer Revolut secured $800m yesterday in a series E round that included SoftBank’s Vision Fund 2. The corporate was joined by hedge fund manager Tiger Global Management and the funding was raised at a $33bn valuation.

China-based smart car technology manufacturer Banma Technologies has secured up to ¥3bn ($465m) in funding from investors including Alibaba and SAIC Motor. Yunfeng Capital and CMG-SDIC Capital also contributed to the round, which followed a $233m series A round in 2018 led by CMG-SDIC and backed by Yunfeng Capital and Shangqi Capital, a vehicle for SAIC Motor subsidiary SAIC Capital.

Netskope, a US-based networking and security software provider backed by computing technology provider Dell, closed a $300m funding round at a $7.5bn post-money valuation. The round was led by investment firm Iconiq Growth and also featured Sequoia Capital’s Global Equities unit alongside Lightspeed Venture Partners, Accel, Base Partners, Sapphire Ventures, Geodesic Capital and unnamed existing investors.

Ascension Ventures, an investment fund representing 13 healthcare providers in the United States, contributed to a $260m series D round for US-based medical device developer Imperative Care. D1 Capital Partners led the round, which included Bain Capital’s Life Sciences subsidiary as well as HealthCor Investments, Innovatus Capital Partners, Ally Bridge Group, Delos Capital, Rock Springs Capital and Amed Ventures.

Denmark-based challenger bank Lunar secured €210m ($249m) in a series D round co-led by Tencent, Heartland and Kinnevik. Chr Augustinus Fabrikker, Fuel Ventures, Greyhound Capital, IDC Ventures, MW&L Capital Partners, Seed Capital, Socii Capital and private investor Peter Mühlmann filled out the participants in the round.

Funds

Japan-based semiconductor manufacturer Rohm launched a ¥5bn ($45.4m) corporate venture capital fund that will be overseen by its group chief technology officer. The vehicle will identify ideas and technologies with the potential to solve social issues and create growth opportunities for Rohm over the next decade, including semiconductor materials, decarbonisation technology and in-vehicle and industrial equipment-related chip applications. Rohm will also make limited partner commitments to other VC funds through the unit, which is slated to operate over a 10-year period. It had previously collaborated with universities and startups to develop semiconductor technologies.

Exits

SES, a Singapore-headquartered lithium-metal battery developer spun out of Massachusetts Institute of Technology and backed by GM, Applied Materials, SAIC Motor and SK Group, agreed to a reverse merger with Ivanhoe Capital Acquisition Corp. The merged business will be valued at $3.6bn in the transaction and will take up Ivanhoe Capital Acquisition Corp’s listing on the New York Stock Exchange, acquired through a $276m initial public offering earlier this month. The deal will be supported by a $200m private placement featuring carmakers GM, Hyundai, Kia, Geely, SAIC Motor, Foxconn, Koch Strategic Platforms and LG Technology Ventures.

Zomato, an India-based food delivery service backed by Ant Group, Info Edge and Delivery Hero, listed on the National Stock Exchange of India and the BSE in a dual listing. The offering valued the company at up to $8.6bn. The company intended to raise approximately $1.25bn through the initial public offering, which involves it issuing about $1.2bn in new shares. Classified listings operator Info Edge is selling $50m of shares. The offering was oversubscribed 55-fold as of the time of recording on Friday afternoon UK time.

Bullish, a US-based digital asset services provider backed by blockchain software provider Block.one, has agreed a reverse merger with Far Peak Acquisition Corporation. The deal will give Bullish the listing on New York Stock Exchange taken by Far Peak through a $550m initial public offering in December 2020. EFM Asset Management is anchoring a $300m private investment in public equity deal supporting the transaction that includes funds and accounts managed by BlackRock in addition to Cryptology Asset Group and Galaxy Digital, at a $9bn pro forma equity valuation.

MobiKwik, an India-based online payments service that counts Cisco, GMO, American Express, Bajaj Finance, MediaTek, Net1 and New Delhi Television among its investors, filed for a Rs 19bn ($255m) initial public offering on the Securities and Exchange Board of India. The offering will involve the company issuing approximately $201m of new shares while its existing shareholders will sell up to $54m.

US-based biologics delivery technology developer Rani Therapeutics has filed to raise up to $100m in an initial public offering that would allow Alphabet, GeneScience, AstraZeneca, Shire, Novartis, Ping An, KPC and Stevanato to exit. Rani is developing a capsule called the RaniPill, which would allow for biologics to be delivered orally to patients, instead of through subcutaneous or IV injection.The IPO proceeds have been earmarked for research and development and the advancement of Rani’s product pipeline, as well as growing its manufacturing capabilities and paying back a $1.3m Paycheck Protection Program loan taken out in April 2020.

People

Sacha Mann has been appointed a senior partner at Takeda Ventures. Her LinkedIn profile describes Mann as being in “stealth” at the unit from June 2020 to February 2021. Mann had previously been a venture partner at healthcare-focused VC firm Zoic Capital from 2018 to 2020. Inventages Venture Capital, a VC firm formed with the support of packaged food producer Nestlé, hired her as a principal in 2009 and she was promoted to venture partner in 2016 before leaving the following year.

12 July 2021 – Wise Floats on London Stock Exchange with $12bn Valuation

The Big Ones

Pine Labs, an India-based digital payment technology provider backed by PayPal and Mastercard, secured over $600m in funding. Kotak Mahindra Bank and investment and Fidelity supplied the cash together with IIFL AMC’s Late-Stage Tech Fund, Ishana, Tree Line, funds managed by BlackRock and a fund advised by Neuberger Berman Investment Advisers.

UK-based cross-border wire transfer service Wise floated on the London Stock Exchange on Wednesday in a direct listing, allowing conglomerate Mitsui to sell its shares to the public. The company’s shares closed at £8.88 a share on their first day of trading, giving it a valuation of nearly £8.8bn ($12bn). It had been seeking a valuation between $6bn and $7bn before the listing, a source familiar with the matter told the Wall Street Journal.

US-listed advertising technology provider The Trade Desk unveiled a venture capital subsidiary called TD7 to fund technology startups focused on the concept of an open, transparent and competitive internet. Founded in 2009, The Trade Desk operates an online platform through which ad buyers can create and manage digital advertising campaigns across a variety of channels including social media, mobile and television.

Crossover

Muna Therapeutics, a Denmark-based developer of treatments for neurodegenerative diseases, closed a $73m series A round backed by VIB and its venture capital affiliate V-Bio Ventures. Novo, Sofinnova Partners, Droia Ventures and LSP Dementia co-led the round, with additional participation from Sanofi Ventures, Polaris Partners and Polaris Innovation Fund. Muna Therapeutics is focused on neurodegenerative diseases for which no cure is currently available and for which palliative care is scarce. Notably, Muna is actually the result of two spinouts that both launched only last year. The first, also called Muna, was spun out of Aarhus University with the support of Novo Seeds and later attracted a minority investment from contract research and discovery company Axxam. The second, K5 Therapeutics, was based on research at VIB and KU Leuven, with investments from VIB and Droia Ventures.

Deals

JD.com has led a $300m funding round for China-based cross-border e-commerce platform KK Group at a $3bn valuation. Citic Securities, CMC Capital Partners, Harvest Fund Management, Hongtai Capital, Ince Capital and New Horizon Capital filled out the round according to 36Kr, which contacted KK Group to verify the deal but has not received confirmation.

SoftBank’s Vision Fund 2 and Eldridge Industries co-led a $235m funding round for Israel-based image recognition technology provider AnyVision. Undisclosed existing investors also backed the round. Amit Lubovsky, director at SoftBank Investment Advisers, which manages Vision Fund 2, has been appointed to AnyVision’s board of directors. AnyVision produces image recognition systems which leverage artificial intelligence to identify people through video footage.

Outbrain, a US-based online content discovery platform that counts quantitative trading firm Susquehanna International Group and publisher Gruner + Jahr as shareholders, raised $200m from investment manager Baupost Group on Tuesday. The company filed for an initial public offering on the Nasdaq Global Select Market late last month. It had been on track to merge with peer Taboola in an $850m deal agreed in October 2019, before the plans were scrapped in September the following year.

Hong Kong-based blockchain-powered game publisher Animoca Brands has closed a funding round sized at almost $139m having secured a $50m second tranche featuring Coinbase, Razer, Samsung and Scopely. The round included Blue Pool Capital, Gobi Partners, Korea Investment Partners, Liberty City Ventures and Token Bay Capital, and the capital was raised at a $1bn pre-money valuation. The initial $88.9m close took place in May this year and featured the Fintech Investment Fund run by HashKey, the blockchain-focused fund affiliated with auto component producer Wanxiang, as well as crypto trading platform developer Huobi, Octava, Kingsway Capital, RIT Capital Partners, AppWorks Fund and LCV Fund.

Funds

Artpark, an India-based non-profit commercialisation firm, is launching a $100m fund for robotics companies. Artpark was established in 2020 by the Indian Institute of Science and AI Foundry, with seed funding from the Indian government’s Department of Science of Technology and the government of Karnataka. It aims to bring together all ecosystem players – academia, industry, government and entrepreneurs – to drive artificial intelligence and robotics technologies that can improve quality of life.

Exits

Circle, a US-based blockchain payment platform developer, agreed to a reverse merger with special purpose acquisition company Concord Acquisition Corp. The combined business will be valued at $4.5bn through the deal and will pick up Concord’s listing on the New York Stock Exchange, which it acquired in a $276m initial public offering in December 2020. Circle’s existing shareholders will retain approximately 86% of the merged company’s shares. The merger is supported by $415m PIPE financing from investors including Fidelity and Marshall Wace, Adage Capital Management and Third Point as well as accounts advised by Ark Investment Management.

Heliogen, the US-based renewable energy technology developer backed by ArcelorMittal and Edison International, agreed to a reverse merger with special purpose acquisition company Athena Technology Acquisition Corp. The combined business will be valued at $2bn and will retain Athena’s listing on the New York Stock Exchange, taken when Athena raised $250m in an initial public offering in March this year. The deal will include a $165m PIPE transaction backed by XCarb Innovation Fund, the corporate venturing vehicle for ArcelorMittal, as well as investment bank Morgan Stanley’s Counterpoint Global unit, Salient Partners and Saba Capital.

SentinelOne, a US-based cybersecurity software provider that counts Qualcomm and consumer Samsung as investors, has closed its initial public offering at over $1.4bn. The company issued 35 million shares in an upsized offering on the New York Stock Exchange a week ago, priced at $35 each. The underwriters bought a further 5.25 million.

Kakao Pay, a South Korea-based mobile payment service backed by financial services provider Ant Group, is raising between ₩1.6 trillion and ₩1.7 trillion ($1.4bn to $1.5bn) in its initial public offering. The IPO is set to take place on the Korea Exchange on August 12 this year, and will involve the company issuing 17 million new shares priced at approximately $55.60 to $84.70 each. Formed by internet group Kakao in 2014, Kakao Pay Corp was spun off in April 2017, two months after it received $200m in funding from Ant Group (then called Ant Financial).

Xometry, the US-based manufacturing services marketplace backed by BMW, Robert Bosch and Dell, closed its initial public offering at almost $348m. The company raised an initial $302m the week before last when it priced 6.9 million class A shares at $44 each.

Nextdoor, the US-based social network operator that counts Comcast, Alphabet and Axel Springer as investors, agreed a reverse merger with special purpose acquisition company Khosla Ventures Acquisition Co II. The deal will give the merged business a pro forma equity valuation of approximately $4.3bn and involve it taking the listing on the Nasdaq Capital Market acquired by Khosla Ventures Acquisition Co II in a $400m initial public offering in March this year. The transaction will be boosted by a $270m PIPE financing featuring funds and accounts advised by T Rowe Price in addition to Baron Capital Group, Dragoneer, Soroban Capital, Ion Asset Management, Tiger Global Management, Hedosophia, accounts advised by Ark Invest, Nextdoor CEO Sarah Friar and affiliates of Khosla Ventures.

Planet Labs, the US-based orbital data provider backed by O’Reilly, agreed a reverse takeover with special purpose acquisition company DMY Technology Group IV. The deal will be supported by $200m in PIPE financing led by funds and accounts managed by BlackRock and backed by Koch Strategic Platforms – part of chemical and industrial group Koch – as well as Google and Time Ventures. The PIPE values the company at $2.8bn post-transaction, and it will inherit the New York Stock Exchange listing taken by DMY Technology Group IV in a $300m initial public offering in March this year.


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

05 July 2021 – CMR Surgical Raises $600m in Round Led by SoftBank’s Vision Fund 2

The Big Ones

SoftBank’s Vision Fund 2 co-led a $600m series D round for UK-based surgical robotics technology developer CMR Surgical with healthcare investment group Ally Bridge, while Cambridge Innovation Capital, the patient capital fund formed with the support of University of Cambridge, also participated. GE Healthcare, a subsidiary of power and industrial technology conglomerate General Electric, also took part in the round, which valued the company at $3bn, as did internet group Tencent. RPMI Railpen and Chimera filled out the consortium together with existing backers including LGT and its Lightrock affiliate, Watrium, and PFM Health Sciences.

BMW i Ventures, the US-based venture capital firm formed by Germany’s automotive manufacturer BMW, launched a $300m fund that will focus on sustainability. BMW i Ventures has accumulated a portfolio of some 50 companies including Chargepoint, the vehicle charging network set to list at a $2.4bn valuation, and manufacturing services marketplace Xometry, which floated in a $302m IPO this past week. The latest vehicle will operate alongside the unit’s $500m first fund and will target early and mid-stage companies concentrating on sustainability, transportation, manufacturing and supply chain technologies.

Didi Global, the China-based ride hailing service backed by SoftBank, Alibaba, China Life, Tencent, Apple, Booking Holdings, Ping An, eHi and Sina Weibo, went public in a $4.44bn initial public offering. The company increased the amount of shares in the offering from 288 million American Depositary Shares, with four ADSs equalling one class A share, to approximately 317 million. They were priced at the top of the IPO’s $13 to $14 range and it floated on the New York Stock Exchange.

Duolingo, the US-based language learning app developer spun out of Carnegie Mellon University, has filed for an initial public offering yesterday that would enable Alphabet to exit. The offering is slated to take place on the Nasdaq Global Select Market and the company has set a $100m placeholder target. The company had raised a total of $183m as of November 2020, when it secured $35m from Durable Capital Partners and General Atlantic at $2.4bn valuation, with Union Square Ventures (USV) selling shares through the deal.

Deals

UK-based low earth orbit satellite technology developer OneWeb secured $500m from Bharti Enterprises, which exercised a call option from a shareholder’s agreement to increase its stake to 38.6%. OneWeb is developing a constellation of 650 low earth orbit satellites through which it intends to offer global broadband connectivity. The company had filed for bankruptcy in March 2020 after failing to secure new funding in the wake of the covid-19 pandemic. Bharti and the UK government then bought OneWeb’s assets for $1bn in July that year. The UK government’s investment was reportedly motivated by a desire to build a competitor to the global positioning system Galileo, created by the EU and to which the country has lost access following its decision to abandon the union. OneWeb’s satellites would be in too low an orbit to enable such functionality, however.

SoftBank led a $415m series C round for Kitopi, the United Arab Emirates-headquartered provider of a cloud kitchen software platform, through its Vision Fund 2. Diversified conglomerate Dogus Group also took part in the round, along with B Riley Financial, Chimera Investment, DisruptAD, Next Play Capital and Nordstar. The cash was secured at a valuation above $1bn.

Olive, a US-based healthcare management software producer backed by internet and technology group Alphabet, completed a $400m funding round yesterday valuing it at $4bn. The round was led by Vista Equity Partners and also featured Base10 Partners’ Advancement Initiative. It took the overall funding raised by the company to $902m.

Zipline, a US-based medical consumables logistics service backed by Alphabet, secured $250m from investors including Fidelity, Baillie Gifford, Emerging Capital Partners, Intercorp, Katalyst Ventures, Reinvent Capital and Temasek. The cash was secured at a $2.75bn valuation.

US-based corporate wellbeing services provider Gympass raised $220m from investors including SoftBank today at a $2.2bn valuation. General Atlantic, Kaszek, Moore Strategic Ventures and Valor Capital Group also participated in the round. Founded in Brazil, Gympass operates wellness programmes on behalf of corporate clients, offering access to gyms, personal trainers, meditation classes and therapists, and said it had signed up more than 1,000 new corporate customers during the pandemic.

Goat Group, a US-based streetwear marketplace operator backed by Foot Locker, has secured $195m in a series F round that valued it at $3.7bn. Hedge fund manager Park West Asset Management led the round, which included Ulysses Management, Franklin Templeton and Adage Capital Management, and funds and accounts advised by T Rowe Price Associates.

Funds

US-based enterprise software supplier Infragistics has formed a $50m corporate venture capital vehicle dubbed Infragistics Innovation Fund and Lab. The fund will target intrapreneurs from within the organisation who are developing innovation technologies related to Infragistics’ user interface and user experience (UX) design software products.

Exits

SentinelOne, a US-based cybersecurity technology producer backed by Qualcomm and Samsung, has raised more than $1.22bn today in an upsized initial public offering. The IPO consists of 35 million shares issued on the New York Stock Exchange, increased from an initial allocation of 32 million, priced at $35.00 each, above its $31 to $32 range. Existing SentinelOne investors Tiger Global Management, Insight Partners, Third Point Ventures and Sequoia Capital agreed to acquire $50m more shares through a concurrent private placement. The IPO price values it at approximately $8.92bn.

US-based security screening technology producer Clear Secure went public in a $409m initial public offering representing exits for Delta Air Lines, United Airlines, Union Square Hospitality Group and Liberty Media. The company issued 13.2 million class A shares on the New York Stock Exchange priced at $31.00 each, above the IPO’s $27 to $30 range. The shares closed at $40 on their first day of trading.

InnoVid, a US-based video marketing technology provider backed by Cisco and Deutsche Telekom, has agreed a reverse takeover at an implied valuation of roughly $1.3bn. The company is joining forces with SPAC Ion Acquisition Corp 2, which floated on the New York Stock Exchange (NYSE) in a $253m initial public offering in January 2021. Phoenix Insurance and Fidelity Management and Research are co-leading a $150m PIPE financing in connection with the deal that includes Baron Capital Group, Vintage and funds affiliated with Ion.

MissFresh, a China-based online grocery retailer backed by Lenovo and Tencent, raised $273m in an initial public offering on the Nasdaq Global Select Market. The company priced 21 million American depositary shares, each representing three ordinary shares, at $13 each, at the low end of the $13-$16 range it had set last week. They opened at $10.65 and closed at $9.66 at the end of its first day of trading, giving it a market capitalisation of roughly $2.5bn.

US-based online trading platform developer Robinhood filed for an initial public offering that would score exits for Alphabet and Roc Nation. Founded in 2013, Robinhood runs Robinhood Financial, an online platform where users can buy and sell stocks without a minimum investment level, in addition to Robinhood Crypto, which allows them to do the same with cryptocurrencies. The company has set a $100m placeholder target for the offering, and sources familiar with its plans told the Financial Times it is targeting a $40bn valuation.


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

21 June 2021 – Waymo Drives $2.5bn Investment

The Big Ones

Waymo, the autonomous driving technology developer spun off by Alphabet, has raised $2.5bn in funding from investors including its former parent company. AutoNation and Magna International also took part in the round, as did group Fidelity Management & Research, Mubadala, Temasek, Andreessen Horowitz, Canada Pension Plan Investment Board, Perry Creek Capital, Silver Lake, Tiger Global Management and funds and accounts advised by T Rowe Price. The company reportedly closed its first external funding round at $3.2bn in July 2020, at a $30bn valuation, having pulled in $750m from investors including Fidelity, Perry Creek Capital and funds and accounts advised by T Rowe Price two months earlier. Alphabet, Magna, AutoNation, Silver Lake, Canada Pension Plan Investment Board, Mubadala Investment Company and Andreessen Horowitz had supplied $2.25bn for Waymo in March the same year.

US-based venture capital firm G2 Venture Partners (G2VP) has closed its Fund II at $500m with commitments from Shell, Mitsui, Daimler and ABB Switzerland. The McKnight Foundation and John Doerr, chairman of VC firm Kleiner Perkins, reportedly also committed to the fund. Shell contributed through its corporate venturing arm, Shell Ventures. It was also a limited partner in G2VP’s inaugural fund, which was sized at $350m. G2VP was founded in 2017 as a spinoff from Kleiner Perkins’ Green Growth fund. It focuses on companies developing emerging technologies that could accelerate sustainable transformation in traditional industries.

Marqeta, a US-based card-issuing platform developer backed by CommerzBank, CreditEase, Visa and Mastercard, has closed its initial public offering at approximately $1.41bn. The company raised an initial $1.22bn in the offering last week, issuing 45.5 million class A shares on the Nasdaq Global Select Market priced at $27 each. Its shares are currently (that’s Friday afternoon UK time) for $29.43 each, and the underwriters have taken up the option to buy more than 6.8 million more shares. The IPO followed over $526m in funding for the company.

This isn’t a crossover (although there actually were several worth more than $100m last week – check our websites for more on those), but this one’s too interesting to skip just because there aren’t any CVCs. Celonis, a Germany-based business process analytics software spinout of Technical University of Munich (TUM), has raised $1bn in a series D round co-led by Durable Capital Partners and funds and accounts advised by T Rowe Price Associates. What makes this one special isn’t so much the size of the round (as impressive as that is, obviously) but that it valued Celonis at $11bn post-money, making it Germany’s first decacorn. Celonis has now raised nearly $1.37bn in funding altogether. The spinout fetched a $2.5bn valuation when it raised $290m in a series C round led by Arena Holdings, and – almost as notable as being the first decacorn in the country – Celonis also became TUM’s first unicorn when it closed a $50m series B round backed by Accel and 83North in June 2018. How’s that for a European success story?

Deals

China-based semiconductor technology developer Horizon Robotics has raised $1.5bn in series C7 funding from electronic parts manufacturer BOE Technology and chipmaker Will Semiconductor. The round was secured at a $5bn valuation, and it came after a $300m series C6 round at an unspecified time that included Legend Capital, Huangpu River Capital and unnamed others.

Byju’s, an India-based online learning portal backed by Bennett Coleman & Co, Naspers and Tencent, has secured Rs 25bn ($340m) in funding. UBS Group, Blackstone, Abu Dhabi government-backed ADQ and Phoenix Rising–Beacon Holdings as well as Eric Yuan all took part in the round. The cash injection is part of a $1.5bn round Byju’s began raising in April this year, sources privy to the matter told the Economic Times, and it valued the company at $16.5bn post-money.

US-based graph technology provider Neo4J received $325m in a series F round featuring GV. Private equity firm Eurazeo led the round at a valuation exceeding $2bn, and DTCP, the investment firm backed by Deutsche Telekom, also took part, as did One Peak, Creandum, Greenbridge Partners and Lightrock. The company was founded in 2007 as Neo Technology and has now raised $515m.

ApplyBoard, the Canada-based international student facilitation service that counts educational services firm Educational Testing Service (ETS) as an investor, has confirmed a C$375m ($308m) series D round. Ontario Teachers’ Pension Plan Board led the round through its Teachers’ Innovation Platform, and it included investment and financial services group Fidelity in addition to BDC, Harmonic Growth Partners, Index Ventures, Garage Capital and Blue Cloud Ventures. The company’s confirmation came in the wake of media reports a week earlier suggesting it had raised $230m in the round, which it said this week valued it at $3.2bn post-money.

Chehaoduo, the China-based automotive e-commerce marketplace backed by SoftBank, Tencent and Shougang, has closed a $300m funding round valuing it at $10bn. H Capital led the round, which also featured Sequoia Capital China, IDG Capital and Chehaoduo founder and CEO Yang Haoyong. The company’s overall equity funding now stands at about $3.8bn. It was spun off by online classified listings operator Ganji in 2015.

Thumbtack, the US-headquartered operator of a home renovation services marketplace, has raised $275m from investors including CapitalG, the growth equity arm of Alphabet. Sovereign wealth fund Qatar Investment Authority led the round, which also featured Blackstone’s Alternative Asset Management subsidiary, G Squared, Baillie Gifford, Founders Circle Capital, Sequoia Capital and Tiger Global Management. The round valued the company at $3.2bn. The latest round boosted the company’s overall funding to $697m.

Yaoshibang, the China-based operator of a supply chain platform for the pharmaceutical industry, has raised $270m in funding from investors including internet group Baidu. Zhejiang Pearl River Investment Management, Green Pine Capital Partners and Guangzhou City Construction Investment’s SF Fund also participated in the round, along with unnamed insurance firms and sovereign wealth funds. It was facilitated by China Renaissance.

Funds

Flagship Pioneering, a US-based biotechnology venture studio that regularly taps into university research to build companies such as Moderna, has raised another $2.23bn for its Fund VII from new and existing limited partners, bringing the vehicle to $3.37bn. It reopened the fund to additional capital in April this year but didn’t identify the LPs. Flagship now has $14.1bn in assets under management and is operating with an aggregate capital pool of $6.7bn. It has launched more than 100 ventures since its founding, with a current portfolio of 41 companies.

Exits

UK-based clean aircraft developer Vertical Aerospace has agreed to a reverse takeover with special purpose acquisition company Broadstone Acquisition Corp that will be backed by American Airlines, Avolon, Honeywell, Rolls-Royce, Standard Industries’ 40 North vehicle and Microsoft’s M12 unit. The merged business will be valued at $2.2bn and will take up the listing on the New York Stock secured by Broadstone through a $300m initial public offering in September 2020.

Kanzhun, a China-based online job portal operator backed by internet group Tencent and insurance firm Sunshine Life, has floated in a $912m initial public offering on the Nasdaq Global Select Market. The company issued 48 million American depositary shares, each representing two ordinary shares, priced at the top of the IPO’s $17 to $19 range. As we’re recording this on Friday afternoon UK time, shares are going for $38.

Monday.com, the US-based software development platform operator that now counts Salesforce and Zoom as investors, has closed its initial public offering at $631m. The corporates each purchased $75m of shares in a private placement alongside the offering, which involved Monday issuing an initial 3.7 million shares on the Nasdaq Global Select Market a week ago priced at $155 each. The underwriters subsequently took up the option to buy another 370,000 shares to close the offering. As we’re recording this on Friday afternoon UK time, shares are priced at $230.96.

Lyell Immunopharma, a US-based immunotherapy developer which counts GlaxoSmithKline (GSK) and Celgene as investors, has raised $425m in its initial public offering. The company issued 25 million shares on the Nasdaq Global Market at a price of $17 each, the mid-point of the offering’s $16 to $18 range. Its shares closed at $16.89 at the end of the first day. Lyell had raised $834m across just three rounds since it was founded in 2018. GSK has walked away with a 12.5% stake post-IPO, while Celgene’s retained 4.5%.

Verve Therapeutics, a US-based cardiovascular disease therapy developer advancing Broad Institute and University of Pennsylvania research, has gone public in a $267m initial public offering representing exits Alphabet and Novo. The offering consists of just over 14 million shares issued on the Nasdaq Global Select Market, increased from 11.8 million and priced at $19.00 each, above the $16 to $18 range set for the offering. The IPO price valued the company at approximately $876m.

Wise, the UK-based operator of a cross-border capital transfer service, plans to launch a direct listing that would give conglomerate Mitsui a chance to sell its shares. The company plans to list on the London Stock Exchange. Formerly known as TransferWise, Wise runs an online platform that allows users to send money internationally without paying exorbitant fees typically associated with international bank transfers. Wise last raised primary funding in 2017 but was valued at $5bn in a $319m secondary share sale in July 2020.


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

14 June 2021 – Cambridge Launches Deeptech Labs

The Big Ones

1

There is a lot happening in Cambridge, England. The university might have passed its 800th anniversary earlier in this century but the basics of its operating model to bring the smartest people in the world together to solve its hardest challenges remains intact.

The latest advances include the launch and first cohort for Deeptech Labs (DTL), a new post-seed accelerator aimed at deep technology startups, Honeywell’s quantum computing division’s merger and up to $300m investment in Cambridge Quantum Computing and the potential acquisition of local tech champion Arm by US-based artificial intelligence (AI) chip maker Nvidia following the blow-out flotation of cybersecurity champion Darktrace.

DTL is backed by Arm and the University of Cambridge as well as venture capital firm Cambridge Innovation Capital (CIC, the “unicorn factory” at the heart of the city), its chairman Ewan Kirk (founder of hedge fund Cantab Capital Partners), and local industrial conglomerate Marshall’s corporate angel fund, Martlet Capital.

Its inaugural cohort that runs to a demo day on 18 June it has made investments in five machine learning and data science companies: AutoFill, BKwai, Circuit Mind, Contilio and Mindtech.

Zara Riahi, CEO and co-founder of Contilio, said “We are building the world’s first 3D AI analytics platform used by global construction companies and asset owners. To accelerate the next phase of our growth, we were looking for a scaling partner that understood deeptech and had access to the best advisers, deeptech investors, and global operators. The people who have been in the trenches. We are delighted to have found an amazing one in Deeptech Labs.”

These startups receive £350,000 (about $500,000) and a structured three-month development programme, including mentors from Arm, CSR, Imagination Technologies, Analysis, Active Hotels, Arieso, Blinkx, Cloudamize, Focal Point, Riverlane and Ubisense. Its second cohort will start in September and include a delegation of investors from the GCV Symposium being held on 3-4 November.

Miles Kirby, CEO of DTL, who has also been inventor and holder of more than 30 patents and former founder of Allianz-backed AV8 Ventures as well as European managing director of Qualcomm Ventures, said: “This ambitious, new 13-week seed to series A programme is designed to enable deeptech startups to leverage the best minds in this space.”

Andrew Williamson, the managing partner at CIC, added: “Cambridge is one of the best places in the world to build a deeptech business, with access to best-in-class talents, exceptional intellectual property, and experienced entrepreneurs and investors. Deeptech Labs enables a new generation of entrepreneurs to access this ecosystem. As a cofounder, CIC has been delighted to support Miles and his team in shaping the vision. This is a very high quality first cohort and we look forward to working with them in the future and supporting their growth.”

Adam Bastin, vice-president of corporate development at Arm, said: “From Arm’s earliest days in a barn just outside the city, to its position as a global technology leader headquartered here today, Cambridge has remained a critical hub of talent, creativity and innovation. In co-founding Deeptech Labs, we are pleased to support the next generation of game-changing technology companies by helping them to access the world-class Cambridge technology ecosystem.”

2

Tim Haines, managing partner of Abingworth, a biotech venture-capital firm, in the latest Economist said we were in “the golden age of diagnostics”.

What that really seems to mean it is faster and easier than ever before for groups such as Roche and Merck to test and design treatments using genetics and epigenetics. This is leading to more personalised care rather than blockbuster drugs applicable to the masses.

The model works if the insights derived and results delivered can be more profitable, which likely means targeting rich people’s problems and delivering their longevity escape velocity where their life expectancy increases by more than a year for each year they live.

Severin Schwan, Roche’s seventh CEO in 125 years, in an interview with the Economist talked about the “insights” business as a third pillar for Roche—as big, if not bigger, than diagnostics and pharma.

Beyond the social inequality and impact on social services, it also opens up healthcare to consumer-facing technology companies.

As the Economist noted, Roche’s insights business was effectively formed through its acquisitions of Foundation Medicine, a gene-sequencing company that can identify cancers from DNA in blood samples, and Flatiron Health, a specialist in cancer-related health records that generates data on patients from the real world, supplementing clinical trials. Roche valued Flatiron at $2.15bn in its 2018 purchase and closed out the purchaseof the remaining minority shares in Foundation the same year at a $5.3bn valuation.

Both Foundation and Flatiron were backed by GV, formerly known as Google Ventures and a corporate venturing unit for US-listed Alphabet.

GV has made much of its name and returns over the past decade from a string of life sciences and healthcare deals and exits but Carole Nuechterlein, head of Roche Venture Fund at the drugs group’s headquarters in Switzerland, takes much of the credit for the handling of these deals.

Roche had been shareholder in both Flatiron and Foundation before taking control but leaving much autonomy with both groups.

This is the model Roche followed with its $47bn purchase of Genentech back in 2009. As probably the founding biotech – a then-young VC firm in Kleiner Perkins had its partner Bob Swanson close a seed deal over a beer with lead scientist Herb Boyer – Genentech listed in 1980 before eventually falling to Roche and bringing its blockbuster drugs to the Swiss group for greater distribution and up to $21bn in annual sales a decade later.

Now celebrating 20 years running Roche Ventures, Nuechterlein – a prior GCV Powerlist award winner – has seen it all before.

But never at such scale. It is actually a golden age for healthcare not just diagnostics as the century for biology is now firmly underway.

The next GCV Powerlist will be announced on 21 July thanks to partner Dentons as part of the GCV Digital Forum and my thanks to the Global Healthcare Council for its work on the latest quarterly report out next week.

Fund

Alibaba Cloud floats $1bn investment scheme

Fortune VC smiles on $858m first close

Asset manager Alantra has reached the first close at more than €80m ($97m) for its Klima Energy Transition Fund including commitments from Enagás, a Spain-based gas grid operator.

Uncle Nearest drinks to $50m investment vehicle

Coupa creates $50m corporate venturing fund

Recorded Future, a US-based threat intelligence company previously backed by corporate venturing unit REV Venture Partners over the past six years, has set up a $20m fund for early-stage startups.

Recorded Future’s Intelligence Fund will back seed and series A rounds, with its first deals including SecurityTrails and Gemini Advisory.

United Airlines, a US-based flight operator, has started its corporate venturing unit.
United Airlines Ventures will focus on sustainability concepts that support the company’s goal of net-zero emissions by 2050, as well as other travel-related startups.

Michael Leskinen, United’s vice-president of corporate development and investor relations, will oversee the venture unit as president and incorporate its initial investments in Archer Aviation, Clear and Fulcrum BioEnergy.

Rapyd, a UK-based payments company that earlier in the year closed a $300m round, has set up a corporate venturing unit to invest in early-stage fintech startups.

Rapyd Ventures said its first investment would be in the seed round for Gotrade, a fractional stock trading platform that enables users in over 150 countries to invest in US shares.

Exit

Didi begins IPO proceedings in the US

MissFresh to pay visit to public markets

Monday.com meets Salesforce and Zoom amid $574m IPO

Wallbox opens to $1.5bn reverse merger

1stdibs dives into $115m IPO

Ciox and Datavant converge in $7bn deal

Sinch sets out $1.3bn MessageMedia acquisition

Dave banks on $4bn reverse merger

One Medical eyes $2.1bn Iora acquisition

Marqeta gets to market in $1.2bn IPO

Dingdong Maicai bids for public markets spot

Clear makes space for initial public offering

Babylon agrees $4.2bn reverse merger

Xometry looks to assemble IPO
CVRx looks to pump $75m out of IPO

University

Metacon makes Helbio its own

Deals

Northvolt plugs into $2.75bn

Nubank cashes $750m in series G extension

Klarna claws in $639m

Chubby Bear gets its paws on $400m

Investors entrust Trulioo with $394m

Ledger leaps to $380m series C

Hesai gets handed $300m

ApplyBoard recruits investors for $230m round

Dingdang gets $220m funding delivery

Eightfold AI employs SoftBank for $220m series E

Scalable Capital secures $183m

Monogram Health identifies Humana for $160m round

Verbit eyes public listing amid $157m series D

LetsGetChecked executes $150m series D

Lilly helps inject $108m into Synthekine

MatchMove meets $100m funding

Embroker embraces $100m series C

EcoFlow stores $100m in series B round


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

07 June 2021 – Wefox Completes $650m Series C

The Big Ones

Germany-based digital insurance provider Wefox completed a $650m series C round that included online lending platform developer Creditease and Salesforce Ventures. The round was led by Target Global and included Omers Ventures, Gsquared, Merian and its Jupiter subsidiary, Horizons Ventures, Eurazeo, Mubadala, Speedinvest, LGT, Alma Mundi Ventures, Victory Park Capital, GR Capital, Mountain Partners, Seedcamp, Sound Ventures, Partners Group and FinTLV. Wefox previously closed a $235m series B round in 2019 that included CreditEase and electronics producer Samsung’s Catalyst Fund.

Toyota has committed another $300m in capital to its corporate venturing unit, also rebranding it from Toyota AI Ventures to Toyota Ventures. Toyota AI Ventures had been launched under the auspices of the company’s Toyota Research Institute in 2017 with $100m in capital. Toyota subsequently provided a further $100m for its Fund II in late 2019. The capital will be divided evenly between two funds: Toyota Ventures Climate Fund will concentrate on developers of innovative technologies to promote carbon neutrality, such as renewable energy and hydrogen production. Meanwhile, Toyota Ventures Frontier Fund will invest in developers of technology in areas like artificial intelligence, cloud computing, autonomy, mobility, robotics, smart cities, digital health, advanced materials, energy and fintech.

E-commerce marketplace Etsy agreed to acquire Depop, the UK-based social commerce platform developer backed by consultancy group Lumar, for over $1.62bn. Depop operates a mobile platform with 30 million registered users – 90% of whom are under 26 – who can buy and sell second-hand and new fashion items in addition to offering styling services. It generated $70m in revenue in 2020. The deal comes after roughly $100m in funding for Depop since it was founded in 2011, $62m coming from General Atlantic, HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures, TempoCap and Sebastian Siemiatkowski in a 2019 series C round.

Crossover

FlixMobility, the Germany-headquartered public transport provider that counts UVC Partners – the VC firm linked to TU Munich’s tech transfer office UnternehmerTUM – and automotive manufacturer Daimler as investors, raised over $650m in debt and series G equity yesterday at a $3bn valuation. Investment firm Canyon Partners joined existing investors including General Atlantic, Permira, TCV, HV Capital, Blackrock, Baillie Gifford and Silver Lake in the round. FlixMobility runs an inter-city bus service called FlixBus which spans most of Europe and parts of the United States, and which promises efficient onboard wifi and an easy-to-use online ticketing system.

Deals

US-based blockchain payment platform developer Circle has closed a $440m round that included cryptocurrency exchange FTX, reportedly the largest round so far for a crypto-focused company. Financial services and investment groups Fidelity and Digital Currency Group also took part in the round, as did Atlas Merchant Capital, Breyer Capital, Intersection Fintech Ventures, Marshall Wace, Pillar VC, Valor Capital Group, Willett Advisors and Michael J Price and Friends.

UK-based pet insurance provider Bought By Many has secured $350m in series D funding from investors including Munich Re Ventures. The round was led by investment firm EQT through its EQT Growth subsidiary, and it also featured venture capital firm Octopus Ventures. The capital was raised at a $2bn valuation pre-money.

Delhivery, an India-based, corporate-backed shipping service, has raised Rs20.1bn ($277m) in a series H round led by financial services and investment group Fidelity. Gamnat, Chimera Investments and Pacific Horizon Trust filled out the round, and the cash was secured ahead of an initial public offering slated to take place in 2022. Two people familiar with the matter told the Times of India in March this year it is expected to value the company at $3bn. The round took the company’s overall funding to $1.1bn.

Urban Company, the India-based developer of a professional services ordering platform, has closed a $255m series F round co-led by Prosus Ventures, Dragoneer Investment Group and Wellington Management. It was filled out by Steadview Capital, Tiger Global and Vy Capital, and valued Urban Company at $2.1bn. The round consisted of a $188m primary transaction revealed last month and a secondary sale of roughly $67m of shares by unnamed individuals and early backers.

US-based sales analysis software provider Gong received $250m in a series E round featuring Salesforce Ventures at a $7.25bn valuation. Franklin Templeton led the round, which included Coatue Management, Sequoia Capital, Thrive Capital and Tiger Global Management. The company has raised $584m since it was founded in 2015.

Prosus co-led a $240m series A round for Germany-based grocery delivery service Flink. The round was co-led with venture capital firm Bond and Abu Dhabi state-owned investment vehicle Mubadala Capital. A source told TechCrunch it valued the startup below $1bn.

Exabeam, a US-based cybersecurity software developer which counts networking technology provider Cisco as an investor, collected $200m in series F funding at a $2.4bn valuation. Alternative asset manager Blue Owl Capital led the round through its Owl Rock subsidiary and was joined by Acrew Capital, Lightspeed Venture Partners and Norwest Venture Partners. Exabeam has raised at least $390m of funding to date.

US-based sales technology developer Outreach closed a $200m series G round featuring Salesforce Ventures at a $4.4bn valuation. Premji Invest and Steadfast Capital Ventures co-led the round, which included DFJ Growth, Lone Pine Capital, Mayfield Fund, Sands Capital, Sequoia Capital Global Equities, Tiger Global Management, Trinity Ventures and Vista Public Strategies. Outreach said it has now raised $489m since it was founded in 2014.

Funds

V-Capital, the corporate venture capital arm of China-based cigarette packaging materials producer Huaxi Holding, reached a RMB1.5bn ($235m) first close for its latest fund. Local government-backed funds and corporations have committed capital as limited partners, as have new and returning other investors. The vehicle will target developers of healthcare, telecommunications, cultural services, semiconductors, IT, smart manufacturing and new energy technologies across China. V-Capital now has about $3bn under management.

Exits

Centessa Pharmaceutical, a UK-based pharmaceutical conglomerate formed through a ten-way merger involving spinouts from various universities, has gone public in a $330m initial public offering on the Nasdaq Global Select Market. Founded in October 2020 as a holding group, Centessa subsequently acquired multiple biotech developers in January 2021 – including spinouts from University of Cambridge, University of Toronto Mississauga, the universities of Dortmund and Cologne, and one spinoff from biopharmaceutical group Sosei Heptares. Vida Ventures and Janus Henderson Investors co-led a $250m series A round at the time of the official launch in February.


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

31 May 2021 – Perch Raises $755m in Record-breaking Series A

The Big Ones

US-headquartered e-commerce holding company Perch completed a $775m series A round led by SoftBank’s Vision Fund 2. The round also featured venture capital firm Spark Capital and alternative investment manager Victory Park Capital. It is the largest series A yet to be closed by a US-based company, according to Perch.

JD Logistics, the logistics offshoot of China-headquartered e-commerce group JD.com, floated on the Hong Kong Stock Exchange in a HK$24.6bn ($3.2bn) initial public offering. The offering consisted of approximately 609 million shares priced at HK$40.36 each, towards the lower end of the range. They opened at HK$46.05 on Friday morning and closed at HK$41.70. JD.com’s stake in the spinoff was diluted from 79.1% to 64.4% in the offering. It had raised $2.5bn from investors including internet and gaming group Tencent and insurance firm China Life in 2018.

Legend Capital, a China-based venture capital offshoot of conglomerate Legend Holdings, has closed a healthcare technology-focused vehicle dubbed LC Healthcare Continued Fund I at $270m. Accounts managed by alternative investment manager Hamilton Lane and private equity firm Coller Capital co-led the transaction, with participation from unnamed institutional investors. The capital was secured through secondary financing, which was carried out alongside a transfer of healthcare portfolios of two vintage funds. The new vehicle intends to supply cash flow, help boost financial returns for existing shareholders and provide follow-on funding for portfolio companies.

Crossover

Oatly, the Sweden-based oat milk producer based on research at Lund University and backed by talent and entertainment agency Roc Nation, has floated on the Nasdaq Global Select Market in a $1.43bn initial public offering. The company issued almost 84.4 million shares priced at $17 each, at the top of the IPO’s $15 to $17 range. Oatly provides oat milk and other oat-derived food products traditionally made from cow’s milk, including ice cream, coffee, yoghurt, cream, spread and custard. The company most recently raised $200m in a July 2020 round led by investment management firm Blackstone that included Roc Nation and Rabo Corporate Investments, a corporate venturing vehicle for agriculture-focused banking group Rabobank.

Deals

Noom, the US-based creator of an online platform that guides healthy behaviour, secured approximately $540m in a series F round featuring Novo and Samsung Ventures. Silver Lake led the round, which included Oak HC/FT, Temasek, Sequoia Capital and RRE Ventures. It valued the company at $3.7bn, according to Bloomberg.

US-based website analytics platform developer ContentSquare closed a $500m series E round led by SoftBank’s Vision Fund 2 at a $2.8bn valuation. Bpifrance, Canaan, Eurazeo, Highland Europe, KKR and funds and accounts managed by BlackRock filled out the equity investors, while Sapiance Capital supplied debt financing. ContentSquare has secured approximately $810m in funding in total.

US-based vertical farming technology developer Bowery Farming raised $300m in series C funding from investors including GV. Fidelity Management & Research led the round, which included Amplo, General Catalyst, GGV Capital, Groupe Artémis, Gaingels, Temasek and private investors José Andrés, Lewis Hamilton, Chris Paul, Natalie Portman and Justin Timberlake. The round valued Bowery at $2.3bn and brought its overall funding to $472m.

Ivi, a Russia-based digital streaming platform backed by media group Prof-Media, raised $250m in a series D round led by financial services firm VTB. Invest AG, an investment subsidiary of Raiffeisenlandesbank Oberösterreich, also took part in the round, as did Baring Vostok, Flashpoint Venture Capital, Millhouse and Russian Direct Investment Fund. VTB will be the company’s largest shareholder after the deal, while representatives of Baring Vostok, Flashpoint and RTP Global will all join its board of directors.

US-based banking software provider Zeta hiked its valuation to $1.45bn with a $250m investment by SoftBank’s Vision Fund 2, which was joined in the round by food services and facility management provider Sodexo, though Zeta did not reveal how much the latter invested.

China-based freight management software provider For-U has raised $200m in series E funding from investors including Legend Capital, the venture capital firm formed by conglomerate Legend Holdings. Insurer China Life’s Investment Management subsidiary, China Structural Reform Fund, Greater Bay Area Homeland Investments, China Merchants Sino-BLR Capital Management, China Merchants Capital, Parantoux Capital and Matrix Partners China also took part in the round.

SoftBank’s Vision Fund 2 provided $175m in funding for South Korea-based intelligent education software provider Riiid. Riiid has developed AI technology used to personalise education and will utilise the cash to enhance that technology. It is also looking to build out R&D and data labelling hubs across the US, Canada and Ghana.

Funds

IP Group, the UK-based commercialisation firm, unveiled a joint venture called IPG-CEL China Ventures with asset manager China Everbright that will raise a fund sized up to RMB1.5bn ($235m). The fund is expected to achieve a first close of $77m this year, before growing to its target size within the next three years. It will exclusively invest in joint ventures and subsidiaries of overseas companies incorporated in China. It will deploy no less than 40% of its capital to IP Group portfolio companies looking to establish a presence in the People’s Republic.

Exits

China-based trucking services provider Full Truck Alliance filed for a $1.5bn initial public offering that would enable Baidu, Tencent, Alphabet and SoftBank to exit. Also known as Manbang Group, Full Truck Alliance runs an online platform where businesses can book space for freight delivery in trucks across a network of some 2.8 million drivers.

Flywire, a US-based payment software provider that counts Goldman Sachs among its backers, went public in a $251m initial public offering. The company upsized the size of the offering from 8.7 million to 10.44 million shares and priced them at $24 each, at the top of the $22 to $24 range it had set. The shares opened at $34 each on their first day of trading on the Nasdaq Global Select Market, although at the time of recording on Friday afternoon UK time, they’re down to $32.36.

China-based online recruitment platform developer Kanzhun filed for an initial public offering in the United States that will give corporates Tencent and Sunshine Life the chance to exit. Kanzhun runs an online platform called Boss Zhipin with almost 25 million monthly active users that utilises artificial intelligence to link jobseekers to prospective employers. It almost doubled revenue year on year to $295m in 2020, though its net loss rose 87% to $144m in the same period.


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

24 May 2021 – Goldman Sachs Invests $20m in British Anti-money Laundering Company ComplyAdvantage

The Big Ones

1

Delighted the May issue of GCV is now out covering the media sector, a special report on AI, Israel as the innovative region, extracts from Global University Venturing and Global Impact Venturing sister titles and all the monthly data from GCV Analytics.

From the editorial:

The innovation ecosystem we find ourselves in arguably has its roots with Charles Babbage, a University of Cambridge mathematician, perhaps best-known as the inventor of computers.

His work, however, also led to the creation of the Penny Post, where (eventually) a letter could be sent anywhere in the British Empire for one penny.

The Penny Post, therefore, predates Metcalfe’s Law, which postulates the value of a network is proportional to the square of the number of users it connects.

Joseph Schumpeter’s ideas of creative destruction had innovation at its core. Ideas rather than accumulation of capital drive long-term growth. Advances in one area lead to more ideas across multiple industries.

Bring both Metcalfe and Schumpeter’s ideas together thanks to a boom in internet connectivity and computing power along with abundant, almost limitless, capital and the potential to tackle almost any challenge beckons.

2

Next month’s issue targets the healthcare sector.

The covid-19 pandemic has been regarded as the long-awaited start of the “biological century”. The rapid response to developing vaccines to the disease and the use of novel methods, such as messenger RNA, to do so has created optimism the same speed and execution is possible for a host of other viruses and more broadly to effectively create the longevity escape velocity – where people’s life expectancy increases by more than a year for each year they live.

But research and startups is just part of the challenge in a geopolitical world with concern about sovereignty of supply and requirements for manufacturing bases as well as requirements to carry our large-scale trials.

The UK plans to build on the recovery trial, which uncovered two treatments for covid-19, by streamlining research and embedding it in the health service and through fast regulation.

UK-based venture capital firm Abingworth this month raised $582m for its second clinical co-development fund.

Abingworth has previously invested through its co-development portfolio companies, Avillion and SFJ Pharmaceuticals, which both finance and facilitate clinical trials, taking on all of the clinical and regulatory risk in return for a pre-agreed return if the drug is approved.

When Abingworth first got into clinical co-development back in 2009, it primarily worked with pharma companies who only paid out if the project was successful, by which time the cost of the deal could be amortized over the sales of the product.

The market has since expanded to cover biotechs, which want to reduce the dilutive impact if they had to go out and raise the money on the public market. And there are plenty more of them.

The Financial Times noted Magdalen College was selling a 40% stake in the Oxford Science Park “after a surge of investor interest in the fast-growing life sciences sector increased the site’s value almost seven-fold in five years”.

As sole owner of the park since 2016, Magdalen has invested in new labs and research space on the site and gained planning consent for a new 165,000 square foot development to support its more than 100 businesses based there, including Vaccitech, which raised $111m from an initial public offering on the Nasdaq stock exchange in April.

Last year British firms raised £1.4bn ($2bn) of venture capital, the Economist said, which was more than anywhere else in Europe but less than the American hubs, Massachusetts (£4.7bn) and San Francisco (£4.5bn).

But the parallels between the UK and US are growing.

A few years ago, Seth Harrison, an American venture capitalist at Apple Tree Partners, was looking to open an office in Europe. The choice came down to Britain or Switzerland, he told the Economist. “I got quite acquainted with the whole UK biotech scene.

“The fantastic research ferment that occurs in the Golden Triangle. You know, the London, Cambridge, Oxford area… And I just said: ‘Wow, this reminds me of Cambridge, Massachusetts, 25 years ago.’”

To learn more about the golden triangle, our sister publication will start its review of the three university-led ecosystems, starting with Imperial College, London, in July before discussion and interaction at the GCV Symposium in November.

Medical devices and diagnostics has often been regarded as the underloved part of the healthcare venture market compared with biotech and pharma, with relatively few deals and limited exit options.

This has changed. Last year’s near-doubling in corporate venturing deal values to more than $5bn has continued this year. Most recently, this week Germany-based Smart4Diagnostics

(S4DX) raised €5m ($6m) in its series A round, including local medical technology manufacturer Sarstedt and the EIC Fund, established in 2020 by the European Commission for direct equity investment in breakthrough technologies.

The startup has developed the “digital human blood sample fingerprint”, a data-picture of all quality aspects for human blood samples from collection to arrival in the lab.

As Hans Maria Heyn, CEO and co-founder of S4DX, said: “As many as three in four medical decisions are based on diagnostic results – often blood samples. Currently, this process is being managed manually which can lead to errors and can cause many issues including slow diagnosis, repeated tests on the patient, and wasted resources.”

The covid-19 disease has focused more attention on diagnosis and whether treatment can be done remotely from hospitals. But the take-off in attention to medical devices and dianostics started beforehand with the flotation then purchase of Merck-backed Livongo, a digital diabetes management platform, which had its initial public offering in 2019 and was acquired by Teladoc for $18.5bn last year.

Livongo had been incubated by venture capital firm 7wireVentures, which has just closed its second venture fund at $150m with limited partners including health plans Florida Blue and Cigna, hospitals and health systems Atlantic Health, Wellforce, Rush University Medical Center, Memorial Hermann Health System and Spectrum Health and large employers Boeing, according to Fierce Biotech.

Similarly, E-merge Capital Partners is raising its debut fund focused on early-stage medical device companies and technologies coming out the Evolve MedTech Venture Studio.

The fund, led by managing partners Brad Klos and John Xitco, is focused primarily on class II medical devices in cardiovascular and orthopedics.

Others are also trying to use strategic ties to add value. Private equity firm Revival Healthcare Capital has closed its second fund at $500m. Revival said it would invest where a corporate strategic partner will have a structural option or right to acquire the company in the future.

Rick Anderson, chairman and managing director at Revival, said: “Consolidation has made it increasingly difficult for medtech leaders to move the needle on growth.”

Lauren Forshey, Revival president and another MD, added: “By removing the guess work and gamesmanship that often defines the relationship and instead aligning goals at the outset, target companies benefit from increased focus, speed, and capital efficiency in driving towards milestones they know they will get rewarded for.”

And the goal remains to gain scale. Venture-backed digital health company Ro has agreed to acquire Modern Fertility, a US-based provider of at-home fertility tests for women, for a reported at least $225m according to Fierce Biotech.

Ro started out four years ago selling erectile dysfunction medication and hair loss supplements to men but after raising $876m has been acquiring other startups, including Workpath to move into the home-based healthcare market.

The next Global Healthcare Council quarterly report published next month will cover the transformation of hospitals with remote care and diagnostics – insights and feedback welcome to jmawson@mawsonia.com.

3

Back in the day, money laundering used to be a relatively simple affair. Take a bag of cash to a casino, “lose” 10% to 20% and walk away with the bulk in cleaned money.

Digitalisation and global capital flows has made the scale bigger – now the laundering is more likely to be by swapping a so-called cold wallet of bitcoin or other cyptocurrency on a USB flash drive – but this also creates opportunities for entrepreneurs.

Investment bank Goldman Sachs has just invested $20m in British anti-money laundering (AML) company ComplyAdvantage.

Charlie Delingpole, founder and chief executive of ComplyAdvantage, told the Financial Times he was optimistic that it would be a precursor to a deeper partnership with the Wall Street bank. “It was more about the partnership and the brand and what they can give us as a firm than the money per se, given we are very well capitalised as it stands.”

There is more attention on finance as the sector reaps the unprecedented growth in money supply as treasuries grapple with the economic impact of the covid-19 disease.

But as Vinay Solanki, head of Channel 4 Ventures, referenced in last night’s GCV Analytics webinar on the media sector, effectively all consumer-facing businesses can create opportunities to become financial service providers – even if they are not all going to be as successful as China-based gaming group Tencent, whose first quarter results saw ballooning revenues and  the fair value of its investments in listed companies at Rmb1.4tn at the end of March, up from Rmb410bn at the same time last year.

This transformation can be done through bolting on the right payment apps, such as Stripe, but it also means the need to know your customer for AML and anti-fraud purposes will become more vital.

This could in turn put pressure on the incumbent financial services corporations to take a leaf out of Goldman Sachs and CVC progenitor, Fidelity, and engage more whole-heartedly in backing startups.

We are delighted, therefore, to be setting up the Global Financial Council, to be chaired by Jacqueline LeSage Krause, founder and managing general partner of Munich Re Ventures, a multi-fund corporate venture capital investing platform for Munich Re Group, the world’s largest reinsurance company that effectively can touch all parts of finance and business.

Do reach out to join the wider group and your insights.

4

The merger of corporate venture-backed Gojek and Tokopedia, Indonesia’s two biggest startups, has focused attention on the global success story happening in southeast Asia.

The merged company, to be called GoTo, will create a food delivery, ride-hailing and ecommerce group preparing for a $40bn public listing in Indonesia and potentially in the US this year, sources told the Financial Times.

SoftBank and Tencent are respective investors in Tokopedia and Gojek, which has also raised $300m from Telkomsel earlier this month.

The merger announcement came weeks after Singapore-headquartered Grab, which offers delivery, ride-hailing and financial services, announced a record $40bn merger with a special purpose acquisition company (Spac), while the Tencent-backed Sea Group, the parent company of Shopee and gaming unit Garena, set up a $1bn corporate venturing unit in March.

GoTo counts more than 100m monthly active users on its platforms and a total group gross transaction value of more than $22bn in 2020, according to the FT.

But already the region’s leaders are planning the next series of disruptive startups to emerge.

This month, the Economic Development Board (EDB) of Singapore, a government agency helping investors in the island state, started a pilot program, the Corporate Venture Launchpad, to support large and established companies to venture into new areas of growth beyond their core business. EDB has allocated S$10m ($7.5m) in funding for the one-year program which has partnered with four venture studios:

  • BCG Digital Ventures,
  • FutureLabs,
  • Leap by McKinsey, and
  • Rainmaking.

Singapore already has about 40 venture studios for corporations, such as Procter & Gamble, Bosch and Schneider Electric. Participating corporates through the Launchpad can receive 50% co-funding for qualifying costs, such as for manpower and other fees (capped at $377,000) and potential follow-on co-investment support by EDB New Ventures.

Deals

Beta lines up $368m

Back Market sells investors on $335m series D

Pine Labs picks investors for $285m

Extend grows its funding by $260m

Investors pump $250m into Pipe

Figure fits $200m into series D

Factory14 opens with $200m

Good Meat dishes up $170m round

Formlabs fashions $150m series E

Sunbit shines in $130m series D

Loom looks to investors for $130m

Hummingbird takes off with $125m series C

Asapp picks up $120m series C

Numab nabs Novo in $110m series C

Goldbelly fills up on funding

DST drives to $100m series C

University

Vedere Bio II sees light in $77m series A

ThinkCyte contemplates $26m in funding

Axelspace accelerates to series C

Funds

UTEC hits first close for fifth fund

One Capital 1 hits $147m close

Ulu ushers in $138m for Fund III

White Star closes $50m fund

7wireVentures sources corporate for fund close

Pi Labs lands Embassy Group commitment


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

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

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