29 March 2021 – GoPuff Secures $1.15bn in Round Including SoftBank

The Big Ones

On-demand consumer product delivery service GoPuff has experienced some major league growth of late, and has secured $1.15bn from investors including SoftBank Vision Fund 1 in a round lifting its valuation from $3.9bn to $8.9bn. The $3.9bn valuation had been achieved just five months ago, in a $380m round that also featured Vision Fund 1.

We’re still seeing a good amount of reverse merger deals being agreed but one of the biggest in recent times has just been announced by content monetisation software provider IronSource. The Access Industries-backed company has agreed to join forces with special purpose acquisition company Thoma Bravo Advantage at an $11.1bn pro forma equity. IronSource’s valuation was reportedly not much larger than $1bn in its last round, less than 18 months ago.

Japan-based medical supplies vendor Medipal Holdings has partnered SBI Investment, an investment subsidiary of financial services firm SBI Holdings, to form a ¥10bn ($92m) corporate venture capital vehicle. Medipal Innovation Fund is intended to operate for 10 years and will mainly target domestic and international startups developing technologies strategically relevant to Medipal’s business lines.

Crossover Deal

Evidation Health, a US-based health data analysis provider, has picked up $153m in a series E round co-led by healthcare consortium Kaiser Permanente’s Group Trust. The round was co-led by Omers Growth Equity, a fund managed by pension fund Ontario Municipal Employees Retirement System, and included McKesson Ventures, the corporate venturing arm of medical supplies distributor McKesson, as well as venture capital firm B Capital Group. The round valued it at $1bn, according to Bloomberg. So far, so normal. Evidation’s technology platform, Achievement, records raw behaviour data such as speech and video from patients’ electronic devices and analyses it to provide insights on health and disease. But its origin is where it gets unusual: the company was founded in 2012 through a partnership between Stanford Health Care, the academic health system of Stanford University, and GE Ventures, a corporate venturing subsidiary of General Electric. It’s not a type of story we see often, but with now $259m in capital, the model is clearly working out for Evidation.

Deals

Dataminr has closed a $475m funding round that hiked its valuation to $4.1bn. The company, which counts Credit Suisse Next Investors as an earlier backer, provides software that pools information from a range of public sources to detect events and track trends in real time, and will put the proceeds from the round into international customer acquisition.

China-based CasiCloud provides production automation software for the aerospace industry, and has secured $404m in funding, becoming the latest automation technology provider to raise big money, in the wake of several robotic process automation-focused companies over the past year. Its earlier investors include China Aerospace Science and Industry Corporation but the latest round was co-led by China Merchants Capital, ICBC Capital and Shenzhen Capital.

Sports memorabilia retailer Fanatics has pulled in $320m through a round that doubled its valuation to $12.8bn in the space of seven months. SoftBank is also among Fanatics’ investors, as is Alibaba, and the latest round included Major League Baseball, Fidelity Investments, Franklin Templeton, Neuberger Berman, Silver Lake and Thrive Capital. It came as the company undertakes a growth push centred on China.

Crypto wallet and exchange operator Blockchain.com is growing even faster, and has secured $300m in series C funding at a $5.2bn valuation, roughly five weeks after a $120m series B round valuing it at $3bn. GV and Access Industries were among the participants in the latter round, with GV having been an investor in the company since 2017.

Airwallex is the creator of a cloud software platform that helps businesses expand globally by coordinating finance activities across multiple currencies. It has raised $100m from investors including ANZ Bank’s ANZi Ventures vehicle to increase its series D round to $300m. The extension represents the third tranche of the round, with Tencent and Salesforce Ventures among the earlier backers. Airwallex is now valued at $2.6bn.

If grocery delivery services like Instacart have experienced considerable growth during the coronavirus pandemic, Germany-based Gorillas almost makes that growth look lazy. The company was founded less than a year ago but has just secured $290m in a series B round featuring Tencent that valued it above $1bn. That makes Gorillas, by its reckoning, the quickest European startup ever to exceed a $1bn valuation. And its service is currently available in just 13 European cities.

Komodo Health, the developer of a healthcare tracking software platform, has meanwhile raised $220m at a $3.3bn valuation, in its series E round only two months after notching up $44m in series D funding. The series D round included long-term corporate investor McKesson Ventures, and it has now secured a total of $314m in just 14 months.

Funds

Japan-based financial services firm Juroku Bank has formed a venture capital unit dubbed Nobunaga Capital Village and a startup accelerator called Juroku Bank Accelerator 2021. Nobunaga Capital Village will be launched in April 2021 with ¥4.5bn ($41.2m) of capital across two vehicles, and will target developers of financial technology and local economy revitalisation projects, focusing on the Chūbu region where the bank is headquartered.

Exits

Supply chain finance provider Linklogis has filed for an initial public offering on the Hong Kong Stock Exchange and set terms that will see it raise $1.06bn if it floats at the top of its range. Bertelsmann Asia Investments, Tencent, GLP, Skyworth and Standard Chartered are all among the company’s investors, and the offering will be anchored by $365m from institutional investors including BlackRock and Fidelity.

Another Chinese company, online Q+A platform developer Zhihu, is going public in the US today in a $523m initial public offering that scores exits for Kuaishou, Tencent, Baidu, Sogou and Sunshine Insurance. The company priced the shares at the foot of the IPO’s range, but it will be buoyed by a $250m private placement being provided by Tencent and fellow corporates Alibaba, JD.com and Lilith Games.

Olo has closed its initial public offering at approximately $518m after the underwriters took up the option to buy an additional $67.5m shares. The PayPal-backed restaurant ordering software provider floated above its range on the New York Stock Exchange last week and its share price subsequently increased by upwards of 20%.

Online automotive marketplace ACV Auctions raised $5m for a series A round five years ago, and now it’s gone public in an initial public offering sized at about $416m. The SoftBank-backed company priced its shares above an already increased range, and the price rose again yesterday, giving ACV a market cap around the $4.8bn mark at close of trading.

Rockley Photonics, a silicon photonic chipmaker that counts Applied Materials and Hengtong Optic-Electric among its investors, is set to list through a reverse takeover with special purpose acquisition company SC Health Corp at a $1.2bn post-merger valuation. Medtronic is among the investors supplying $150m in PIPE financing to support the deal, announced as Rockley prepares to commercially launch its unique sensing platform.

Autonomous truck developer TuSimple is still pre-revenue but has filed for an initial public offering in the United States. The China-based company has raised roughly $650m in funding and its investors include corporates Sina, Navistar, Traton, Nvidia, Mando, UPS, Goodyear, Union Pacific, CN, Kroger and US Xpress. Media reports in August 2020 suggested it could target a valuation of up to $7bn in the IPO.


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

27 January 2020 – Tokopedia Approaches Close of $1.5bn Round

The Big Ones

Tokopedia is already one of the biggest companies to have emerged from Southeast Asia’s increasingly vibrant startup scene, but it is reportedly approaching the close of a $1.5bn round that would include existing investors SoftBank and Alibaba. The round is set to value the e-commerce marketplace at $8bn to $9bn and be led by a $500m investment from Singapore’s Temasek.

UCloud is one of several Chinese companies to have gone public in recent days (for some more, look below), raising $284m in an initial public offering on the Shanghai Stock Exchange’s Star Market. The cloud services provider counts Bertelsmann Asia Investments among its backers and reportedly landed on Star Market because it allows a dual-class share structure for listed companies, meaning founders can retain substantial voting rights post-IPO.

There have been cases of some prominent corporate investors putting together dedicated impact or diversity-focused funds in recent years but it seems as if this might be a trend that’s picking up steam. Citi and Nestlé have both made steps to join in, Citi putting up $150m for a vehicle called Citi Impact Fund which is tasked with backing companies with a positive impact on society, while Nestlé has earmarked approximately $258m for a fund that will invest in startups operating in the sustainable packaging space.

In crossover news, Skylo Technologies, a Stanford spinout, has emerged from stealth with $116m, $103m of which was recently raised in a series B round led by SoftBank. Stanford spinout Skylo has developed an internet-of-things system designed to work in remote areas while utilising off-the-shelf cellular network components in order to offer a more affordable service.

Deals

GoPuff has not been a big name on the startup scene despite reports that it had raised money at a $1bn valuation in late 2018, but the snack delivery service received $750m six months ago, in a round led by SoftBank Vision Fund, it has emerged.

Berkshire Grey, a US-based robotic fulfilment systems developer, may have come out of stealth 13 months ago but when it came to funding, the company has continued to fly under the radar. That’s now changed, to a degree, with a $263m series B round led by SoftBank.

Two weeks ago, a regulatory filing told us that Mastercard-backed AvidXchange had secured $130m in fresh funding from two unnamed investors, but it looks like the company was much further ahead in discussions: it’s actually raised $260m in funding – though it’s only revealed TPG Sixth Street Partners as an investor. Notably, AvidXchange has been around much longer than most companies we come across in the daily newsletter, having been founded in 2000 and already clocking 5,500 clients for its automated invoicing and payment processing platform.

Doing even better when it comes to a large customerbase is AppsFlyer, a marketing platform that serves more than 12,000 brands including many well-known companies, such as eBay, Macy’s and HBO. That alone was likely reason enough for Deutsche Telekom Capital

The meat alternatives sector is one that’s really picking up pace on the funding side, though most of the capital has so far gone to plant-based meat substitute developers. However, Memphis Meats is pursuing meat that is grown directly from cells and has raised $161m in a series B round co-led by SoftBank.

Qonto has raised almost as much, $115m, in a series C round it claims is the largest ever for a French fintech company. Tencent co-led the round with DST Global, and the business banking platform developer is seeking a full European licence while boosting its staff numbers from 200 to 300.

Electric scooter and bike rental service Bounce has secured $105m in series D funding from investors including Qualcomm Ventures at a valuation that sits around the $500m mark.

Goldman Sachs has invested in cloud cybersecurity platform developer Sysdig as part of a $70m series E round that increased its overall funding to more than $200m. US-headquartered Sysdig disclosed the round, which was led by venture firm Insight Partners, on the same day as the launch of a dedicated Japanese subsidiary that comes in the wake of offices opening in Spain and Italy.

Elsewhere in Asia, LivSpace has lifted its latest funding round to $60m as it moves towards the close of a round reportedly expected to reach $90m to $100m next month. The interior design services marketplace reportedly boasts Ikea franchisee Ingka as an investor, the company having invested an amount between $10m and $15m in the company last May that looks as if it could have been part of the ongoing round.

Funds

MassMutual Ventures, US-based insurance firm MassMutual’s corporate venture capital arm, has launched a $100m Southeast Asia fund, bringing the unit’s overall capital under management to $350m. Founded in 2014, MassMutual Ventures invests in areas such as fintech, digital health, cybersecurity and enterprise software.

Exits

Uber divested several regional services prior to going public, through mergers with local operators that gave them sizeable stakes in the buyers. Now it looks to be repeating the trick with its Uber Eats food delivery business. The company has sold its Indian Uber Eats operation to food listings and ordering platform Zomato in a transaction that gave it a 10% stake. Considering Zomato is raising money at a reported $3bn valuation, that isn’t a bad chunk of change.

Revolution Medicines, a US-based cancer treatment exploiting research from multiple universities, has filed for a $100m initial public offering on the Nasdaq Global Market. Revolution was established by biotech company builder Third Rock Ventures and co-founded by Martin Burke from University of Illinois at Urbana-Champaign, Michael Fischbach from Stanford University and Kevan Shokat from University of California, Berkeley. Sanofi is also in line for an exit here, as the pharma company obtained series B shares in Revolution Medicines when the latter acquired US-based genomic medicine developer Warp Drive Bio, which was co-founded by Sanofi, in an all-share deal in 2018.

E-commerce firm Mercari has agreed to pay an undisclosed amount to acquire Origami, the developer of QR code-based mobile payment app that will be integrated into the Merpay platform Mercari launched in 2017. Origami had raised $88m in funding and typically for a Japanese company, it had a substantial amount of corporate backers including SoftBank, KDDI, Nihon Unisys, Mitsui Sumitomo Card Company, Union Pay International, JCB, Credit Saison and several banks.


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