15 November 2021 – Rivian Motors to $11.9bn IPO

Rivian motors to $11.9bn IPO

US-based electric truck developer Rivian went public on the Nasdaq Global Select Market in an $11.9bn IPO that marked the exits for corporates Amazon, Ford, Cox Enterprises, Sumitomo and Abdul Latif Jameel.

Paytm puts together $2.5bn IPO

One97 Communications, the owner of payments service Paytm, is set to raise $2.5bn in its IPO.

Nykaa nabs $721m in initial public offering

FSN E-Commerce Ventures, the corporate-backed operator of fashion e-commerce platform Nykaa – an online beauty, personal and pet care product marketplace that also offers its goods through more than 80 brick-and-mortar retail partners across India – secured more than $721m in its initial public offering.

PharmEasy fishes for $842m in IPO

API Holdings the corporate-backed owner of India-based digital drugstore operator PharmEasy, filed for an IPO equal to $842m on the Securities and Exchange Board of India.

DoorDash orders up $8.1bn Wolt acquisition

Online food ordering service DoorDash agreed to acquire Wolt, a Finland-based food and consumer delivery service that counts internet group Prosus as an investor, in a €7bn ($8.1bn) all-share deal.

GoTo gets $1.3bn in pre-IPO funding

GoTo Group, the Indonesia-based company formed by the merger of e-commerce marketplace Tokopedia and ride hailing service Gojek, reportedly secured over $1.3bn from investors including Google and Tencent as it prepares to go public at a valuation of up to $30bn.

Xiaohongshu sells corporates on $500m round

China-based social commerce app developer Xiaohongshu has reportedly raised $500m from investors including internet group Tencent and e-commerce firm Alibaba.

Lime scoots to $523m in financing

US-based urban mobility service Lime – which provides electric scooter and bicycle rental services in 120 cities worldwide – has raised $523m in convertible debt and term loan financing from investors including ride hailing service Uber.

FTX, Solana and Lightspeed launch $100m fund

Cryptocurrency exchange FTX and US-headquartered public blockchain platform developer Solana’s corporate venturing unit, Solana Ventures, have launched a $100m gaming fund with venture capital firm Lightspeed Venture Partners.

Cadenza catches investors for $50m crypto fund

US-based venture capital firm Cadenza Ventures has raised $50m for an early-stage cryptocurrency-focused vehicle anchored by mutual fund manager VanEck Associates.

Emerson establishes $100m investment fund

Emerson, a US-headquartered producer of manufacturing automation technology, has launched a $100m corporate venturing vehicle called Emerson Ventures, with plans to deploy that capital over the next five years.


“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

23 March 2020 – Fox Agrees to Buy Tubi for $440m in Cash

The Big Ones

When SoftBank emerged with a $9.5bn rescue package for beleaguered workspace provider WeWork in October, $3bn of the amount had been earmarked for a tender that would have involved it buying shares from existing investors and shareholders – likely including hotel chain Jin Jiang International and Legend Capital. However, the company has sent a letter to the shareholders stating that it believes regulatory probes into the WeWork business frees it from that obligation. It’s an interesting approach, but considering SoftBank’s influence at the company even before its IPO attempt, one that may be hard to follow through with.

Speaking of everyone’s favourite corporate. SoftBank’s efforts to raise capital for a second Vision Fund have been largely unsuccessful so far, but it is reportedly seeking $10bn, including $5bn from external backers, to shore up portfolio companies in the face of the Covid-19 pandemic, and maybe acquire rivals struggling with the same issues. Some of the portfolio companies set to be affected include Uber, WeWork, Didi Chuxing and Oyo, though others such as Slack, Paytm and DoorDash could find their business models strengthened by the virus and related social distancing.

Fox has agreed to buy online streaming service Tubi for $440m in cash, allowing MGM and Lionsgate to exit. Both contributed to Tubi’s $6m series A round, part of the $31m in funding it had disclosed prior to the acquisition. Fox should still have a big chunk of the Disney money it got from the 21st Century Fox purchase so it won’t be a surprise to see some more big acquisitions from it coming up soon.

In crossover news, Circle Pharma, a US-based oncology therapeutics spinout of UC San Francisco and UC Santa Cruz, has secured $45m in a series B round backed by UC Berkeley’s investment vehicle, Berkeley Catalyst Fund. Healthcare-focused venture capital fund Column Group led the round, which also included pharmaceutical firm ShangPharma, Nextech Invest and LifeForce Capital. Circle began operations when pharmaceutical firm Pfizer and Mission Bay Capital supplied an undisclosed amount of seed funding in 2014. ShangPharma added an undisclosed sum to the round in mid-2016.

Deals

Despite recent reports it was set to merge with key competitor Grab, ride hailing platform Gojek has raised $1.2bn in funding, reportedly bringing its series F round to nearly $3bn. The round already included Tencent, JD.com, Google, AIA, Mitsubishi, Visa, Siam Commercial Bank and Astra International, but no word yet on the identities of the new investors.

AI and imaging technology provider SenseTime has reportedly dropped plans for a Hong Kong IPO and is instead pursuing between $500m and $1bn in new funding. Its existing investors include Alibaba, Qualcomm, Suning and Dalian Wanda, and reports last year suggested its valuation could have reached $7.5bn. In any case, it’s possible a by-product of the coronavirus could be another push back in the IPO space leading to more late-stage rounds.

Plant-based meat product supplier Impossible Foods has raised $500m in series F funding and, in a sign of things to come, told Forbes it will use the money to offset expected difficulties caused by the ongoing coronavirus pandemic. The GV-backed company has reportedly now secured about $1.25bn in funding altogether, and the latest round was led by Mirae Asset Global Investments.

Digital currency technology developer Bakkt has secured $300m as it prepares to expand its crypto wallet to a more diversified crypto services app. The series B funding came from Microsoft unit M12, Naspers subsidiary PayU, Boston Consulting Group, CMT Digital and Intercontinental Exchange, the exchange operator that had spun off Bakkt in the first place.

Data streaming software provider Confluent is reportedly seeking $200m to $300m in a round that could double its valuation to $5bn. Its early investors include LinkedIn, which developed the open source Apache Kafka software on which the company relies. The funding would hypothetically be raised prior to an IPO taking place. Enterprise software has been one of the more resilient sectors of late, especially post-IPO, so that wouldn’t be a huge shock.

StackPath has secured $216m in a series B round co-led by corporates Juniper Networks and Cox Communications, following a $180m series A round revealed when it came out of stealth in 2016. Both leads took board seats at the edge computing technology developer, which plans to put the funding toward enhancing engineering and product development while commercialising its system.

Airwallex is meanwhile looking to raise $200m in a series D round set to be led by an as-yet unnamed financial services provider. The cross-border remittance service has so far secured just over $200m, with approximately half coming in a Tencent-led series C round a year ago that valued it at $1bn. The prospective round would be raised at a $1.5bn pre-money valuation.

Novo has participated in a $100m series G round for drug development software provider Tempus that valued it at $5bn post-money. The participants in the round had all previously contributed to the company’s last round, a $200m series F that closed in May 2019, the funding being raised at a $3.1bn valuation. It will use the series G proceeds to expand the range of conditions its technology serves.

Sigilon Therapeutics is developing bio-engineered cells to treat chronic illnesses without a patient’s immune system rejecting the treatment, and has completed an $80.3m series B round that lifted its overall funding to more than $195m. The round’s participants included Eli Lilly, already an equity investor as of a 2018 collaboration agreement that could potentially top $470m should all milestones be reached.

Engineered T cell therapy developer Eureka Therapeutics has bagged $45m in a series E round led by Lyell Immunopharma, which invested through a strategic partnership deal. Eureka has now raised approximately $134m altogether and will work with Lyell on solid tumour treatments, its own liver cancer candidate having entered phase 1/2 clinical trials.

Funds

Cryptocurrency exchange operator Binance has joined forces with its India-based subsidiary WazirX to launch a $50m fund that will invest in blockchain technology developers located in India. The Blockchain for India fund follows a decision by the country’s supreme court to allow financial services firms to take on blockchain companies as clients. As a result, cryptocurrency exchanges in the country are now also able to offer bank account transfers. Apart from providing funding, the vehicle will also look to incubate startups and support blockchain initiatives within universities.

Congruent Ventures, the venture capital firm anchored by University of California, is aiming to raise $125m for its second, sustainability-focused fund, according to a regulatory filing. The filing states Congruent Ventures II is still to raise capital. None of its potential limited partners have been identified. Founded in 2017, Congruent backs early-stage startups that advance sustainability objectives in areas such as urbanisation and mobility, clean energy, food and agriculture and industrial and supply chains. The first Congruent fund closed at $92m in 2018 with a $50m contribution from University of California’s Office of the Chief Investment Officer in addition to Prelude Ventures and undisclosed additional investors.

Exits

These are a different kind of exit, but Vietnam-based conglomerate Vingroup has shut down its corporate venturing unit, Vingroup Ventures. Founded in Ukraine in 1993, Vingroup moved into Vietnam in 2000 and has concentrated its activities in the country since then. Its main areas of interest include technology, manufacturing and a range of services in sectors including education, health and real estate. Vingroup established its CVC unit in late 2018 and had targeted $100m of investments across the globe according to its LinkedIn page, though it has failed to disclose a single deal in which it had participated.

DuPont Ventures, the corporate venturing subsidiary of chemicals producer DuPont, is set to close at the end of this month, according to a person familiar with the matter. Formed by DuPont in 2003, its investments have included deals for biofuel feedstock supplier NexSteppe, taste modification molecule developer Linguagen and ethernet services provider Actelis Networks. However, the unit has been relatively quiet of late, its last disclosed investment being its participation in a $75m round for Indiana University’s drone management software spinout PrecisionHawk in early 2018. DuPont Ventures’ closure comes as part of a restructuring that will involve the company’s larger corporate innovation activities being cut as part of a cost-saving process. The firm has not revealed whether it plans to divest the existing equity stakes held by its subsidiary.


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