08 June 2020 – GCV Digital Forum Roundup

GCV Digital Forum Roundup

Thank you to the team and all who have worked their socks off for the first GCV Digital Forum, and also the sponsors, speakers and attendees who have made it such a success. The platform will stay open for 30 days.

It was exciting to hear the industry on the GCV Leadership Society Advisory Board chaired by Young Sohn from Samsung this week share their perspectives on how communities can come closer together through these trials and create more diverse and inclusive investing environments – Samsung NEXT will share its playbook for this at the Forum and beyond.

The GCV Digital Forum has had 600 attendees from across the time zones, creating a unique network and sharing of insights yesterday and today.

Exits

Covid-19 does not seem to have done much to dampen investors’ spirits outside a few key areas and if anything, it’s accelerated what was beginning to become a comparatively stagnant M&A market. One of the biggest beneficiaries has been Intel Capital, which has already recorded exits from portfolio companies including Nysansa, CloudGenix and Moovit this year, and which is now set to exit Spot, a developer of cloud workload management software. The reported price tag is $450m, following $52m in VC funding, which looks to me like a decent return.

Thoma Bravo to execute $100m Exostar acquisition

Fibrosis drug developer Pliant Therapeutics has become the latest life sciences company to launch a successful IPO, floating at the top of its range to raise $144m after increasing the number of shares in the offering by 50%. It also represents an immediate return for Novartis Institutes for BioMedical Research, which bought $10m of shares in the flotation only to see Pliant’s share price shoot up some 50% post-IPO.

Branding Engineer gets IPO plans on track

Canada-based Repare Therapeutics is the latest drug developer to file for an initial public offering, and the precision oncology-focused company is targeting $100m in a Nasdaq IPO. The filing came just days after it raised $15m in equity funding from Bristol Myers Squibb as part of a research collaboration deal, and Repare’s existing investors also include Celgene Switzerland, a participant in its 2017 series A round.

Vroom sets $319m target for IPO

China’s stock markets look set to benefit from increasingly stringent rules in the US, and one of the country’s latest companies to file for an initial public offering is Shenzhen Yanmade Technology. It provides industrial testing equipment for flexible printed circuits and its investors include Legend Capital, which was spun off by Legend Holdings. Yanmade is looking to raise up to $98.8m and it plans to float on the Shanghai Stock Exchange’s Star Market.

Deals

On-demand ride provider Didi Chuxing has raised more than $500m for an autonomous driving subsidiary, in a round led by SoftBank’s second Vision Fund. The spinoff is the outcome of four years of driverless vehicle research from Didi and it has approval to test the technology on roads across three Chinese cities as well as California. Vision Fund was already one of Didi’s key investors, and it took part in a $150m round for the company’s bicycle rental spinoff in April.

Varo Money is one of several digital banks to spring up in the past few years, but it intends to be the first to secure a national bank charter in the United States. It has also closed a $241m series D round featuring automotive insurance specialist Progressive that hiked its overall funding to nearly $420m. Fintech has been one of the notable growth sectors in recent years, but if digital operators can start competing head to head with traditional banks we could see that growth accelerate quite quickly.

E-commerce marketplaces have been one of the more exciting investment areas in Southeast Asia in recent years, and Vietnam’s Tiki has so far been among the market’s winners. It has reportedly raised $130m in a round led by private equity firm Northstar Group, following earlier funding from the likes of CyberAgent, JD.com, Sumitomo and VNG. The company is also said to be in line for a merger with domestic competitor Sendo that would really set it up for the future.

Xiaolinggou plugs into series A round

Microbe processor Ginkgo Bioworks has increased its overall funding to nearly $790m in a $70m funding round that included strategic partner Illumina. The round also featured General Atlantic and Viking Global Investors – both of which backed a $350m vehicle called Ferment Consortium that was formed last October to invest in companies formed and spun off by Ginkgo.

University

Athira accepts $85m series B

Oxford encodes Base Genomics

Funds

Pfizer to augment VC investments with $500m

MassMutual amasses third $100m fund

No need to tell anyone that inclusion and support for black lives is on everyone’s lips right now, not least due to the recent reams of public dedications by different companies’ social media accounts. However, SoftBank is putting actual skin in the game by forming a $100m investment vehicle called the Opportunity Growth Fund specifically to back entrepreneurs and founders of colour. Not that it’s the first corporate to launch such an initiative: Comcast Ventures’ Catalyst Fund was formed in 2011 and Intel Capital put $125m into a Diversity Fund in 2015.

India-based classified listings operator Info Edge has had some success investing off its own balance sheet, particularly with Zomato and PolicyBazaar owner ETechAces, but not it’s looking to establish a dedicated corporate venturing vehicle. Info Edge Venture Fund has a $100m target, and the corporate is putting up almost half. The rest is set to come from external LPs, in what looks to be an increasingly popular model.

Real Tech goes local with latest fund


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

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

The Big Ones

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

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

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

Deals

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

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

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

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

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

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

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

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

Funds

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

Exits

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

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

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


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