22 June 2020 – DoorDash Raises $400m in Late Stage Round

Big Stories

Slowly, then suddenly change happens

This past week’s online roundtable for the Reinhard Mohn Prize 2020*, Fostering Innovation, Unlocking Potential, hosted by the Bertelsmann Stiftung (Foundation), saw luminaries from politics, business, civil society and science under Chatham House rule discuss which innovation policies and frameworks are now needed to facilitate economic prosperity and societal progress in the future and strengthen our crisis resilience.

Underpinning the discussion was new research published by the Bertelsmann Foundation in a report titled “World class patents in cutting-edge technologies: The innovation power of East Asia, North America and Europe”. Out of the 58 technology areas covered, with the top 10% classed as world class in each field, the US and China in particular are setting a much faster pace in key digital technologies, such as artificial intelligence, blockchain, quantum computing and big data, the report said.

Governments need to cure old habits of control

The traditional way to think of supporting entrepreneurs has been to look at their five primary needs: access to capital, finding customers, product and service development, hiring people and, eventually, an exit.

Increasingly, however, a sixth factor is coming into play: navigating big government.

From a reflexive position across much of the Anglo-Saxon world of privatisation and letting markets decide, since the days of Ronald Reagan and Margaret Thatcher, has come a counterblast from the East suggesting that industrial strategies, state bailouts and national champions are important.

This week, German government-owned development bank KfW agreed to invest €300m ($339m) in CureVac, the local developer of messenger RNA (mRNA)-based drugs whose technology could also influence development of a vaccine for Covid-19.

The transaction will give KfW a stake sized at about 23% and it comes after CureVacagreed a $90m loan from the European Investment Bank in March this year, when it announced it would concentrate efforts on developing a coronavirus vaccine, following press reports that the American government had tried to invest with a view to relocating the company and its products to the US.

Deals

DoorDash has raised $400m in a late-stage round that increased its valuation from $13bn last November to $16bn post-money. The online food delivery service has now secured a total of some $2.5bn in equity funding from investors including SoftBank and is still in line to go public having confidentially filed for an IPO in February. Durable Capital Partners led the round, which included Fidelity and T. Rowe Price.

Volkswagen invested $100m in solid-state battery developer QuantumScape two years ago and is increasing that commitment by up to $200m as the companies seek to strengthen their existing partnership. They are planning to set up a pilot facility to test out the industrial-scale manufacturing of QuantumScape batteries for use in Volkswagen’s electric vehicles, as the carmaker looks forward to upgrading from lithium-ion battery power.

Orca Bio organises $192m series D

C4 Therapeutics has closed a $150m series B round alongside $20m in venture debt, with the cash coming from new investors and largely undisclosed existing backers that could include Novartis, Roche and Kraft Group. The small molecule therapy developer launched in 2016 with $73m in a series A round that included all three corporates, and it plans to have four candidates in clinical trials by the end of 2022.

Corporates chip in as BYD Semiconductor gets $113m

GreenLight filters through $102m

Pagaya has built an AI software platform that utilises machine learning and data analysis to manage assets for institutional investors. It has also received $102m in a series D round featuring Clal Insurance and subsidiaries of Aflac, Bank Hapoalim and Siam Commercial Bank. The company, which has about $1.6bn under management, plans to now move into additional asset classes, particularly those related to fixed income.

University

4DMT materialises $75m series C round

Bit Bio whips up series A funding

Proprio picks up $23m

Exits

There have been a few significantly upsized IPOs of late, especially in the healthcare sector, but Avidity Biosciences has perhaps pulled off the biggest jump of all. Avidity, which is developing drugs for muscle diseases, raised $259m when it went public on Friday, floating above its range after increasing the number of shares by a whopping 44%. The company, whose investors include Eli Lilly, Brace Pharma Capital, ST Pharm and Takeda Ventures, then saw its shares rise 58% on their first day of trading. Despite ongoing uncertainty in the markets, it seems like tech companies are still in a prime position to IPO.

Kangua canters to $149m IPO

One of the larger tech companies still to make that leap is data miner Palantir, which has raised $1.9bn in funding from investors including Relx and which is reportedly readying a confidential IPO filing with a view to floating in September. Big data analysis provider Palantir has followed a $50m investment by Fujitsu with $500m from its partner in a Japanese joint venture.

Forma Therapeutics looks to be the next life sciences company to step up to the public markets, having set the range for an IPO that would net $212m if it floats at the top of that range. And some of its investors have been waiting longer than most for an exit. Novartis first invested in the cancer and haematologic disease therapy developer in 2009, with Eli Lilly following soon after. Both received a dividend early last year, and if Forma replicates the recent success of other drug developers they could be in for a bumper return.

Repare reaches public markets with $220m

Blued bids for $50m in US IPO

Proteus Digital produces bankruptcy filing


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

15 June 2020 – Zuoyebang in Talks to Raise up to $800m in Coronavirus Boost

Big Ones

Online student answer and livestreamed education provider Zuoyebang was spun off by Baidu and has since received $585m in venture funding. Like many online education platforms however, it has seen a big uptick in business during China’s coronavirus lockdown, and is in talks to raise between $600m and $800m. The round would reportedly value Zuoyebangat $6.5bn pre-money, more than doubling the valuation at which it last raised money two years ago.

Novo has agreed to acquire Corvidia, developer of a phase 2b-stage treatment for chronic kidney disease, for an initial $725m that could potentially rise to $2.1bn if every milestone is reached post-purchase. That’s a hefty chunk of change, not least since Corvidia had disclosed just $86m in funding (not including a seed investment by VC firm Sofinnova Partners). Investors set to exit it include AstraZeneca and Fresenius Medical Care.

US-based social media company Facebook has begun setting up a corporate venture capital unit, Axios reported yesterday, citing a job listing posted by the firm. The prospective employee will be head of investments at Facebook’s New Product Experimentation (NPE) subsidiary, which it formed to launch consumer-focused apps. The post has since been deleted but it stated: “In this role, you will manage a multimillion-dollar fund that invests in leading private companies alongside top venture capital firms and angel investors. You will develop investment and impact theses, lead the execution of new investments and support existing portfolio companies as needed.” The fund will be partially managed by Shabih Rizvi, who spent two years as founding partner at internet technology provider Google’s artificial intelligence fund, Gradient Ventures, before moving to a business development role at Google in April 2019. A source familiar with the plans told Axios that Facebook is pursuing investments as a method of keeping track with emerging technologies, rather than operating what they termed as a general purpose fund. It will make small investments in early-stage companies.

In crossover news, it’s an exit this time. Fusion Pharmaceuticals, a Canada-based cancer radiopharmaceuticals developer spun out of McMaster University, has filed for a $100m initial public offering on the Nasdaq Global Market. The spinout’s lead asset is undergoing phase 1 studies in an injected form for advanced, refractory solid tumours. Fusion said in its prospectus it had been forced to pause further recruitment as the pandemic led to clinical trial sites to be closed. It has administered the drug to 12 patients to date, out of a planned 30. Fusion most recently secured nearly $112m in a series B round closed this month featuring Fight Against Cancer Innovation Trust, a commercialisation unit backed by Ontario Institute for Cancer Research and the province of Ontario, oncology technology provider Varian Medical Systems, Johnson & Johnson Innovation, and others. Varian and Johnson & Johnson Innovation – JJDC had already backed a $46m series A in 2017.

Deals

Many over the years have questioned the business model of grocery delivery app Instacart but the coronavirus stay-in-place restrictions have vindicated it somewhat and it has been hiring like crazy in recent months to meet demand. It has also now raised more money, taking in $225m through a round co-led by DST Global and General Catalyst that hiked its valuation from about $7.9bn to $13.7bn. Its earlier investors include Comcast, American Express and Whole Foods, the latter since consumed by Amazon.

Although it also delivers groceries, DoorDash’s focus is on on-demand food delivery from restaurants, and it is reportedly seeking hundreds of millions of dollars in a forthcoming round set to value it at more than $15bn pre-money. Like Instacart, which faced strike action over safety precautions a few months back, Verizon-backed DoorDash has also encountered scrutiny over business practices that allegedly include taking tip money intended for staff and fees some restaurants see as exorbitant. But it doesn’t seem to have had an effect yet.

The coronavirus lockdowns have given a big shot in the arm to companies operating in the online grocery industry, be it Instacart or Tongcheng Life, a China-based spinoff of travel services provider LY.com that operates a group buying service focused on fresh produce. The company has just raised $200m in a series C round led by social video platform Joyy that included Bertelsmann Asia Investments and Legend Capital, both of which took part in its $100m series B nine months ago.

Unacademy is among the online learning platforms to have seen activity shoot up as students have to stay home, and it is reportedly seeking up to $150m in funding to cover expansion. It raised $110m from investors including Facebook as recently as February but is said to be looking to double its $510m post-money valuation for the next round. The possible investors include Tencent, which has built a stable of edtech portfolio companies in its home country of China.

The uptick in e-commerce activity also has a knock-on effect for surrounding technologies. Anti-fraud software provider NS8 has completed a $123m series A round co-led by Axa Venture Partners and will allocate the funding to international expansion and product development. That’s a big haul for a series A and it comes after a year when NS8 quadrupled the size of its team from 50 to 200.

DNAnexus, the Stanford University spinout that has built a healthcare data software platform, has meanwhile raised $100m from investors including GV and Regeneron Pharmaceuticals. The round boosted the total raised by DNAnexus to more than $270m, its earlier investors including Microsoft and WuXi NextCode.

Cue Health specialises in molecular testing devices for both home and professional use, and has pulled in $100m through a series C round featuring Johnson & Johnson Innovation – JJDC. The company has now raised at least $169m altogether, and JJDC participated in the latest round having contributed to its 2018 round alongside another corporate VC unit, Dentsu Ventures.

Contract biopharmaceutical development and manufacturing services provider MabPlex has raised approximately $70.7m in series B funding from investors including Sunshine Insurance Group. The round, co-led by DT Capital Partners and Huajin Capital, comes in the wake of $59.1m in a series A round closed early last year.

Nano-X Imaging, developer of an advanced body scanner that is smaller and cheaper than established alternatives, has added $20m from SK Telecom to a series B round that now stands at $51m. The telecommunications firm had already put up $5m for the round before joining investors including Foxconn and Fujifilm in a $26m tranche in January.

Funds

Theodorus, the university venture arm of Université libre de Bruxelles (ULB), has increased the size of its fourth fund to €42m ($47.3m) following commitments from pension fund manager Caisse de dépôt et placement du Québec (CDPQ) and Belgian government-owned investment firm SFPI-FPIM. CDPQ supplied $3.9m through investment fund TFAQ2019, managed by Teralys Capital, while SFPI-FPIM injected $560,000, adding to a $5m it had already provided previously. Theordous IV will invest $18m in Canada-based and another $29.3m in Belgium-based spinouts over the next five years, aiming to bridge the two countries’ ecosystems. It will provide between $563,000 and $3.4m per spinout, targeting a 20-strong portfolio.

Exits

Cancer treatment developer Legend Biotech floated just over a week ago and has already closed the offering having raised about $487m. It was spun off by Genscript Biotech, which bought a further $23m of shares in the offering which have increased in value by more than 70% since the flotation. Legend’s other investors include Lilly Asia Ventures and Johnson & Johnson Innovation – JJDC.

Conventional wisdom said just a couple of months back that pursuing an initial public offering in the wake of the massive market drops in the spring would be futile, but several life sciences companies have proven otherwise, in many cases floating at the top or above their range, and now online car retail platform Vroom has followed suit. The AutoNation-backed company has gone public in a $468m IPO, having increased the number of shares and floating above an upscaled range. The offering may well reach $538m before it formally closes.

The Vroom offering, together with that of business data provider ZoomInfo, is set to open the floodgates in the IPO markets. Even Airbnb – which has been hit harder than almost anyone in recent months – is reportedly considering moving forward with its flotation, but Lemonade is significantly ahead. The digital insurance provider, valued at $2bn+ as of April, has filed for an offering with a $100m placeholder target that will almost certainly rise. It has received about $480m in funding from investors including SoftBank, Allianz, XL Innovate and GV since being founded.

One of the larger upcoming IPOs will be Snowflake, a cloud data software provider backed by Salesforce Ventures and Capital One Ventures that has reportedly filed confidentially to go public. Snowflake has pulled in some $1.3bn in funding and was valued at $12.4bn when it last raised money, in February. To put things in perspective, the FT reports that bankers have told the company it could float at valuation between $15bn and $20bn.


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

02 March 2020 – Grab Raises $856m from Mitsubishi UFJ Financial Group

The Big Ones

There may be fewer rounds being closed but ride hailing continues to be a money magnet, with Grab raising $856m from Mitsubishi UFJ Financial Group – which invested $706m – and TIS, both investing through newly struck partnership deals that will centre on the joint development of payment and financial services technology. There may be a bigger deal in the pipeline too, with reports stating Grab has been in talks with key rival Gojek over a merger that could value the combined company at $23bn.

Southeast Asia has been one of the fastest growing areas of the world for corporate VC funds. One of the relatively early participants was state-owned telecommunications operator Telkom Indonesia, which launched unit MDI Ventures in 2016 with $100m, and which has rapidly expanded since. MDI Ventures is targeting $300m to $500m for its second fund, according to comments made by a government minister this week, and that amount would represent a big step forward in terms of capital. Probably justifiably, given the recent emergence of unicorns like Grab, Gojek and Tokopedia.

CapitalG, the growth equity subsidiary of Alphabet is in line for a healthy exit, as media reports suggest tax software provider Intuit is set to buy credit management platform Credit Karma in a $7bn cash-and-stock deal. CapitalG first invested in Credit Karma at a valuation of less than $1bn in 2014, and the company was valued at $3.5bn in its last funding round the following year.

And in crossover news (of which there was actually a lot last week and we’ll get to more of them in a minute), we have another exit. University of Pennsylvania-linked Passage Bio went public on Friday in a $216m IPO in which it is floating at the top of its range ($18 a pop), after increasing the number of shares by more than 60% (from 7.4 million to 12 million shares). The genetic medicine developer only officially launched a year ago (though it was incorporated in 2017) but had pulled in $226m across two rounds, from investors including corporate vehicles Access Biotechnology and Lilly Asia Ventures. It’s also allocated 1.8 million shares to a greenshoe option (also up from 1.5 million) and if stock goes the way everyone wants it to, it likely won’t be too long before underwriters jump on that chance.

Deals

One of the more interesting corporate investor/portfolio company combinations in recent times is the tendency for carmakers to invest nine-figure sums in autonomous driving software developers in order to get a foothold in an area of technology thought by many to be the future of the industry. The latest is Toyota, which has already backed several ride hailing companies and which just provided $400m for robotaxi system developer Pony.ai as part of a $462m round.

Graphcore, an artificial intelligence processor developer that traces its roots back to University of Bristol (it’s a spinout of Bristol spinout Xmos), has added $150m to a series D round that now stands at $350m, valuing the company at $1.95bn. The $200m first tranche included BMW i Ventures, Robert Bosch Venture Capital, Dell Technologies Capital, Microsoft and Samsung, though none were explicitly identified as being among the existing backers that joined Baillie Gifford, M&G Investments, Mayfair Equity Partners and Merian Chrysalis in the second close.

GV and Intel Capital have both contributed to a $250m series C round for SambaNova Systems, an AI computing platform developer co-founded by Stanford University faculty, that will fuel the enhancement of its technology. GV co-led SambaNova’s series A round while Intel Capital led its $150m series B last year, and the increasing ubiquity of AI combined with the move to more complex areas like edge computing mean we’re likely to see the company continue to move up the fundraising levels in the coming years.

SpaceX is gearing up for another funding round, having raised more than $1.2bn since December 2018 across three different rounds. No word on whether those rounds included existing investor Google, but the new round is reportedly set to be sized at about $250m at a valuation of roughly $36bn. Its overall funding so far stands at around $3.4bn.

Karius has developed a liquid biopsy test that draws blood in order to discover information on disease by crunching data on microbial cell-free DNA found in the samples. It has also secured $165m in a series B round led by SoftBank’s second Vision Fund, which seems to well and truly be up and running (albeit still only with cash from SoftBank itself).

Despite being around some 15 years and racking up 115 monthly active users, Roblox has kept a relatively low profile in the startup scene, though that may be changing with news of a $150m series G round featuring Tencent. The company has created an online platform that allows users to develop virtual worlds and MMO games that others can play, and is reportedly now valued at $4bn. It’s also launching a secondary offering for up to $350m of common and primary shares.

Another company focusing on creativity (of a sort) is Uncorq, developer of a no-code platform enabling users to create software applications without coding. It’s added $51m to a series D round now totalling $131m, and CapitalG, which co-led the first tranche in October, led the extension. The cash will be used for recruitment and expanding the company’s partnerships along with its live event schedule.

JD.id, the Indonesian spinoff of e-commerce group JD.com launched in 2015 with private equity firm Provident Capital, is also valued at more than $1bn, a source has told Indonesian tech news portal Daily Social. The company has yet to confirm the identity of any external investors but rumours suggest they could include another Indonesian unicorn, Gojek. To square the circle, both JD.com and Provident invested in a $1bn round for Gojek early last year.

Funds

Energy management and automation technology producer Schneider Electric has supplied $10m for Israel-based venture capital firm Grove Ventures’ $120m second fund. The oversubscribed fund, Grove II, was closed a week ago without the firm identifying any limited partners, though its described them as institutional and strategic investors as well as industry leaders.

US-based, real estate-focused venture capital firm Fifth Wall closed a $100m fund on Wednesday that includes several property developers as limited partners. Commercial real estate provider Cushman & Wakefield is an LP, as are real estate investment trusts Macerich, Acadia Realty Trust and Nuveen Real Estate, the latter a subsidiary of asset manager TIAA Investments.

Japan-based venture capital firm I-Nest Capital has closed its first fund at ¥6.6bn ($61m) having secured commitments from backers including corporates Power Solutions and NTT Docomo. IT services firm Power Solutions and mobile network operator NTT Docomo were joined by financial services firm Mizuho Bank and Fuji Startup Ventures, a corporate venturing vehicle for media company Fuji TV. The limited partners were filled out by Mizuho Securities Principal Investment, which represents investment bank Mizuho Securities, and the Japanese government’s Organization for Small & Medium Enterprises and Regional Innovation.

Exits

Salesforce has agreed to acquire CRM app developer Vlocity, a portfolio company of its Salesforce Ventures unit, in a $1.33bn all-cash deal. Vlocity had raised $163m from an investor base that also included Accenture and New York Life, and the transaction marks the fifth M&A exit for Salesforce Ventures this year, following Simplus, Evariant, Quid and LevelEleven.

Food delivery has been one of the better funded portions of the mobile commerce market, perhaps second only to ride hailing, and DoorDash’s investors look like they may be in for a lucrative exit. The company has confidentially filed for an IPO, three months after closing its series G round at $700m, at a $13bn valuation.

It isn’t a conventional M&A corporate exit but Takeda is buying coeliac disease drug developer PvP Biologics three years after paying $35m for an option to fully acquire the University of Washington spinout once it had advanced its lead product candidate to a certain stage. The size of the deal could eventually reach $330m if PvP reaches every development and regulatory milestone and, its drug will join Takeda’s own celiac disease candidate in the corporate’s product pipeline.


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

27 May 2019 – Age of Turbulence

Thanks to everyone who came to the Global Corporate Venturing Symposium this past week.

We are entering an “age of turbulence” – the theme for this month’s GCV Symposium at London’s County Hall. Whether caused by eventual economic downturn, protectionism or regulatory concerns over the impact of technology-led disruption, the headwinds for those providing innovation capital to entrepreneurs are only likely to increase.

Deals

Parvus Therapeutics lands $800m in Genentech deal

DoorDash has had one of the fastest growth spurts in memory and has just raised $600mfrom investors including SoftBank Vision Fund, in a round that boosted its valuation from $7.1bn to $12.6bn in just three months.

Baidu and Citic Bank have jointly invested some $576m in AIBank, but the online financial services provider is now seeking up to $1bn in external funding that it expects to raise in the coming months.

Back in the outside world, payment card processing service Marqeta has secured $260m in series E funding at a valuation of almost $2bn, a huge jump from the reported $545m valuation it achieved when last raising funds nearly a year ago.

Mafengwo’s core product is an online travel reviews and information platform, but it has added a range of travel services to its offering including hotel room and tour booking.

Gilead Sciences was among the participants in a $120m series B round for cell therapy developer AlloVir that was led by Fidelity Management and Research.

Drug development software producer Schrödinger has raised another $25m to take its latest round to $110m.

Digital identity verification and management platform developer Auth0 has meanwhile secured $103m at a valuation of more than $1bn.

Unit DX marks $25.5m in portfolio funding

Funds

Salesforce Ventures launched its fifth Trailblazer fund earlier and the fourth with an international focus. Europe Trailblazer Fund is equipped with $125m of capital and it comes after the unit committed a total of $250m to Trailblazer vehicles in Canada, Australia and Japan over the past year.

UnityPoint Health, the owner of 32 hospitals and home care services, has formed a strategic investment arm called UnityPoint Health Ventures Innovation Fund, and has provided it with $100m in capital.

Corporates coax third MD Start to close

PSL Innovation Fund reaches $72.3m

Exits

Bicycle Therapeutics rides into public markets

Just Bio to jump to Evotec

Vidyo enters Enghouse in $40m acquisition

Cross-border financial transfer platform TransferWise has also overseen a jump in valuation, to $3.5bn, through a $292m secondary transaction.


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

25 February 2019 – LPs Express Concern in SoftBank Vision Fund

Big stories

Reports earlier in the week claimed some of the LPs in SoftBank Vision Fund have concerns about its centralised decision making and the high prices it has paid in its investments, but that doesn’t mean it’s slowing down. Vision Fund has led a $1bn round for shipping marketplace Flexport at a $3.2bn valuation, investing alongside backers including SF Express, the round taking its total funding to more than $1.3bn.

Allianz’s digital investment arm, Allianz X, has made roughly 15 investments but that portfolio, which includes unicorns Go-Jek and N26, has been enough to help convince it to boost the unit’s capital reserves from €430m to €1bn (which equates to more than $1.1bn). Other factors would be the way in which Allianz X informs its parent’s ongoing move toward a digital business model, and the side deals and joint ventures it has sealed with portfolio companies.

On the IPO front, Pinterest has reportedly filed confidentially for an initial public offering it expects will take place at a valuation in excess of $12bn. The Rakuten-backed social media platform has beefed up revenue significantly in recent years, boosting advertising while also ramping up its commerce options. It will form part of a coterie of decacorns (that’s a valuation of $10bn+) set to float in 2019.

Deals

Reports the week before last stating that Amazon and GM were set to invest in electric truck developer Rivian Automotive at a 10-figure valuation, and those reports have turned out to be half right. Amazon has led a $700m round for Rivian that also featured existing backers likely to include corporates Abdul Latif Jameel and Sumitomo, but GM is yet to make its move, though the carmaker reportedly remains in talks over either an investment or a collaboration agreement.

Vision Fund has also invested in last-mile consumer goods delivery service DoorDash, as part of a $400m series F round that valued it at $7.1bn.

On-demand logistics service provider Lalamove has meanwhile secured $300m in a series D round that valued it at more than $1bn.

In another part of the logistics sector, SoftBank Vision Fund has led a $200m series D round for on-demand personal storage service Clutter at a $600m valuation and is taking a board set in the process.

Online property transaction platform OpenDoor is seeking its own nine-figure round, and is reportedly after $200m that will be raised at a $3.7bn valuation.

Arvelle Therapeutics initially revealed it had spun off from Axovant with more than $100m in funding, but the lead investor in the series A round, LSP, has revealed it was $180m in size.

Retailer Clas Ohlson paid $26m for a 10% stake in Sweden-based online grocer MatHem in 2017 and may have already scored an exit. Investment firm Kinnevik has invested $42.5m in the company while also acquiring $53.5m of shares from existing shareholders through a secondary deal.

Funds

Abu Dhabi’s investment vehicle, Mubadala, provided $15bn for SoftBank’s Vision Fund in 2017 and now it looks like the corporate has exchanged the favour, so to speak.

It’s not quite a fund, but universities in Maryland have supported a potential $16m state government program intended to spur local innovation in the cybersecurity and the life sciences sectors.

Another one that isn’t quite a fund but worth mentioning: Mars Innovation, the commercialisation firm focused on the Toronto cluster, has hired three lobbyists with StrategyCorp to lobby the federal government about “tens of millions of funding”.

Exits

Ucommune has emerged as WeWork’s key competitor, particularly in Asia, and has reportedly hired banks to prepare an initial public offering slated to take place in New York that is expected to value it at about $3bn.

Slack launched its Slack Fund in 2015 and it looks like it’s set to potentially make its first exit, after Palo Alto Networks agreed to acquire cybersecurity orchestration platform developer Demisto for $560m in a cash-and-stock deal that will also enable fellow CVC Wipro Ventures to exit.

SoYoung investors are set for a different kind of exit, after the Chinese cosmetic surgery booking and reviews platform filed confidentially to raise up to $300m in an initial public offering in the US.


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

20 August 2018 – Podcast and Radio Streaming Service Ximalaya Secures $580m

Deals

With much of the western VC industry seemingly on summer holiday (and frankly, who can blame them?), it’s up to China to pick up the slack in corporate venturing. Ximalaya, the operator of a streaming platform for radio shows and podcasts, has secured $580m in a Tencent-backed round that reportedly valued it at about $3.5bn post-money.

Pfizer has provided an undisclosed amount of equity funding for immunotherapy developer Biontech as part of a collaboration agreement that could reach $425m if it reaches every milestone.

Alphabet has paid about $375m for a stake of around 10% in health insurance provider Oscar Health, which will put the funding toward beefing up its existing team.

TZero, a blockchain lending technology developer spun off from listed e-commerce firm Overstock, is raising up to $270m from GSR Capital, which is set to acquire an 18% stake in the company.

DoorDash, a last-mile delivery service for restaurants, appears to be one of the success stories of 2018. The company was valued at $1.4bn post-money when it raised $535m in a SoftBank-led round in March, but has now raised another $250m at a whopping $4bn valuation just five months later.

Orchard Therapeutics, which is working on gene therapies for rare diseases based on research at University College London, has secured $150m in a series C round that included Sphera Global and corporate venturing unit Medison Ventures.

Exabeam, a cybersecurity information and event management software provider, has raised $50m in series D cash from backers including Cisco Investments.

Funds

E-commerce firm JD.com has begun taking a more active part in corporate venturing in the past year or two, backing the likes of Traveloka, Dada-JD Daojia, Aihuishou and Go-Jek at growth stage alongside post-IPO investments in companies such as Secoo and VIPshop.

Educational services firm New Oriental Education and Technology has put together a $220m fund that will invest between $3m and $15m in early-stage education-focused startups in China.

Exits

Electric vehicle developer Nio recently began shipping its first commercial vehicle, and now it’s filed for a $1.8bn initial public offering in the US.

Babytree, the social parenting community that has branched out into e-commerce, is looking to raise between $800m and $1bn in its Hong Kong IPO, sources have told Reuters, adding that it is seeking a valuation between $3bn and $5bn in the offering.

Weidai, which runs a lending service that uses borrowers’ vehicles as collateral, has filed for a $100m IPO in the US that could give exits to corporate investors Hakim Unique, Shanda and Dong Yi Ri Sheng Home Decoration.

On GUV, Sensyne Health, a UK-based healthcare technology developer partially based on research at University of Oxford, raised £60m ($76m) in its initial public offering on Tuesday and began trading on Aim on Friday.

And Quethera, a UK-based glaucoma therapy developer spun out from University of Cambridge, has been acquired by pharmaceutical firm Astellas Pharma for up to $108m in cash and contingent commitments.

And a nice exit for corporate, university and government venturing entities was Millendo Therapeutics, a US-based endocrine disease drug spinout of University of Michigan, which agreed to a reverse merger with US-listed fertility treatment provider OvaScience.


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

12 March 2018 – Magic Leap Increases Series D to $963m

Deals

In last week’s Big Deal on GCV, news editor Robert Lavine looked at DoorDash, which just got its first corporate investment in a $535m series D round led by SoftBank, almost doubling its valuation in roughly two years.

Augmented reality technology developer Magic Leap has to be one of the most well-funded companies to have never released a product. It has increased its series D round to $963m with $461m from investors including Saudi Arabia’s Public Investment Fund, which put up $400m, and Axel Springer Digital Ventures.

Elsewhere in online entertainment, game livestreaming has been one of the biggest growth areas in the past year or two, as more companies look to follow Twitch’s lead. China-based Douyu, which has some 30 million daily active users, has secured $630m from Tencent, which has backed it since a $100m series B round two years ago.

Internet company Tencent has agreed to provide approximately $462m in series B funding for Huya, a China-based live game streaming spinout from social media platform Huya.

BBVA has led a $207m round for Atom Bank, the UK-based creator of a mobile-only bank with no physical branches.

Zomato has confirmed reports last month stating that Alibaba’s financial services affiliate Ant Financial had invested $200m.

Credit assessment technology provider Wecash has closed a $160m series D round that was co-led by e-commerce firm Sea and a subsidiary of financial services firm Orix.

UiPath, a developer of software bots that automate mundane enterprise tasks, has raised $135m from investors including CapitalG in a series B round that valued it at $1.1bn.

yKujiale, a China-based virtual reality platform for interior design, has raised $100m in a series D round that included Hearst Ventures, the corporate venturing arm of media group Hearst.

On GUV, TauRx Pharmaceuticals, a Singapore-based Alzheimer’s disease treatment developer spun out from University of Aberdeen, has revealed it secured $71m through a rights issue in October 2017.

Funds

Cisco Investments, the corporate venturing arm of networking equipment manufacturer Cisco, has committed an undisclosed amount to venture capital firm IDG Ventures India’s third fund.

Japan-headquartered automotive component maker Aisin Group launched a $50m US-based investment fund on Tuesday in partnership with venture capital firm Fenox Venture Capital. Fenox will manage the fund, with CEO Anis Uzzaman taking a general partner position.

On GUV, University of Montana has become the sole institutional limited partner (LP) in VC firm Next Frontier Capital’s second fund, a $38m vehicle that aims to support high-value Montana industries.

Exits

Kensho, an AI data platform based on research at Harvard University and MIT, has meanwhile agreed to an acquisition by one of its investors, S&P Global, for approximately $550m in cash and stock.

Blibli began life as a comics, anime and gaming-themed online community in China, but has grown rapidly off the back of an anime streaming platform that has licensed more titles than any other in the country.

Hua Medicine, a diabetes treatment developer backed by pharmaceutical company WuXi PharmaTech, also intends to raise upwards of $400m in an initial public offering.

Genetic disease therapy developer Homology Medicines has filed to raise up to $100m in an initial public offering that will support the progress of two drug candidates through preclinical trials.

Immuno-oncology drug developer Unum Therapeutics last raised funding in a $65m series B round in 2015, but it’s filed to raise up to $86.3m in an initial public offering.

Go-Jek is still in the process of raising funds for a round it expects to close at $1.5bn, at a $5bn valuation, but company president Andre Soelistyo has met with the Indonesia Stock Exchange to discuss a possible IPO.


“Funky Chunk” Kevin MacLeod (incompetech.com)
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