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

21 May 2018 – NewTV Raises $800m in Funding

Deals

Last week’s Big Deal on Global Corporate Venturing looked at a reported $800m in funding raised by NewTV, a stealthy video content producer formed by entertainment mogul Jeffrey Katzenberg that has secured corporates such as 21st Century Fox and Warner Bros as investors.

Reports earlier this year suggested Chinese smart car developer Byton was looking to raise $300m to $400m for its series B round at a $1.2bn valuation.

JD Logistics, the logistics provider spun off by Chinese e-commerce firm JD.com, has invested $306m in ESR Cayman as part of a strategic partnership agreement.

Tanium, an enterprise cybersecurity software provider backed by Citi Ventures, has received $175m from TPG Growth at a valuation of about $5bn, up from the $3.75bn at which it last raised funding a year ago.

Cryptofinance company Circle has secured $110m in a series E round led by new strategic investor Bitmain, at a reported valuation near to $3bn. Bitmain invested as part of an agreement that will involve it supporting USDC, a stablecoin currency Circle is releasing.

Unisound, a Chinese company developing AI technology for use in internet-of-things products, has raised $100m in a round led by China Electronics Health Fund, a corporate venturing subsidiary of telecoms equipment maker China Electronics Corporation Data.

Carousell, the Asia Pacific-focused owner of an e-commerce app for second-hand items, has received $85m in a series C round co-led by Rakuten Ventures and EDBI, the investment arm of state-owned Singapore Economic Development Board. Rakuten has been an investor in Carousell since its 2013 seed round, and also led its $35m series B.

Ansun Biopharma has also secured $85m, in a series A round co-led by corporate venturing units Sinopharm Healthcare Fund and Lilly Asia Ventures, both of which are also taking board seats.

FogPharma, which is developing miniprotein treatments for diseases including cancer, has closed a $66m series B round that included Nan Fung Group, GV and WuXi AppTec Corporate Ventures.

Funds

SoftBank still hasn’t officially closed its first Vision Fund, but is reportedly already in discussions with potential investors for a second Vision Fund that would also be sized at about $100bn, and which would source capital from a wider range of investors.

Southeast Asia has been a notable growth area in terms of VC funding over the past year or two, but it isn’t just foreign investors taking part. Siam Commercial Bank has doubled the size of Digital Ventures, the corporate venturing fund it set up in 2016, to $100m, making it the largest VC fund in Thailand according to the bank. It will also move away from its core fund-of-funds strategy toward more direct investments in startups.

Exits

Japanese e-commerce app Mercari has had a circuitous route to the public markets, but it’s finally succeeded in filing for a $1.1bn IPO in its home country, at a projected valuation of $3.3bn.

M17 Entertainment, formed by the merger or Paktor and 17 Media almost 18 months ago, has filed for its own IPO in the US.

Home furnishings e-commerce platform Home24 has filed for an offering in Frankfurt that is set to raise up to $235m.

Enough about IPOs though – despite the recent boom, the public markets aren’t the only exit route for investors. Case in point: PayPal has agreed to acquire mobile payment technology provider iZettle for $2.2bn in cash, days after Glassdoor was also bought for a billion-dollar sum.


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

27 February 2017 – Westpac Supplies A$100m to Reinventure for Disruptive FinTech and Much More

Deals

SoFi is reportedly close to completing a $500m funding round backed by existing investor SoftBank.

Speaking of SoftBank, editor-in-chief James Mawson has taken a deep look at its $3.3bn acquisition of Fortress Investment Group a week ago.

Internet group Baidu has invested $300m in iQiyi, an online video streaming platform in which it is majority shareholder, as part of a convertible note round sized at $1.53bn, that will support the company’s subscription service.

Indian e-commerce company Flipkart could be in line for a $1.5bn round of its own, having reportedly entered talks with a host of investors including Microsoft, Tencent, eBay, PayPal and Alphabet.

Mobike has been operating its bike rental network less than a year but has already raised well over $400m, $300m of which has come this year.

Having made investments in India-based Paytm and Thailand-based Ascend Money in the past few months, Chinese financial services provider Ant Financial is moving into Korea.

China-based mobile game publisher Shinezone Network has secured $58m in series B funding that will be used to build out its international distribution and homegrown incubator activities.

Chinese peer-to-peer car sharing platform Atzuche has secured $58m in a series C round that included existing backers Hearst Media and China Pacific Insurance.

Cloud services provider Rackspace has spun out Mailgun, the email automation tools provider it acquired in 2012.

Media group Bennett, Coleman & Co has invested $38.8m in India-based e-commerce firm Flipkart, providing both capital and advertising services.

GV-backed microfinance provider Tala has raised $30m in an IVP-led series B round that took its overall funding to $44m.

Anxin Doctor, the developer of an app that connects users to medical specialists such as paediatricians, gynaecologists and obstetrics doctors, has raised $28m in funding.

On GlobalGovernmentVenturing.com, IDS Medical Systems Group, an Indonesia-based medical device supplier, is set to receive up to $60m from International Finance Corporation (IFC), the private sector-focused arm of multilateral financial institution World Bank, DealStreetAsia wrote yesterday.

We’ve also had a nice cross-over piece of news from Finland, where TactoTek, a three-dimensional moulded plastic electronics manufacturer, has increased its total funding to more than $20m following a round that featured Faurecia Ventures, the investment arm of automotive parts maker Faurecia.

And another cross-over: on GlobalUniversityVenturing.com, C3Nano, a spinout of Stanford University that produces conductive inks and films for bendable touch sensors, closed a $15m series D round co-led by GSR Ventures, conglomerate Nissha Printing and diversified holding group Xinjiang Guoli Minsheng Equity Investment.

Funds

Artificial intelligence was one of the cutting edge technologies on the menu when Samsung launched its $150m Next fund last month, but reports coming out of Korea suggest the company is considering the formation of a $1bn fund that will focus exclusively on AI.

Meituan-Dianping, the Chinese local services operator formed by a $15bn merger in late 2015, is set to join rivals in the online services sector by forming a dedicated corporate venturing fund, for which it aims to raise approximately $435m.

Project A, a Germany-based venture capital firm, closed a €140m ($148m) early-stage fund today with a cornerstone investment from the European Investment Fund (EIF), the EU-owned financing agency.

BioMedPartners, a Switzerland-based healthcare-focused venture capital firm, has achieved the first close of its BioMedInvest III fund at SFr75m ($75m) with a cornerstone investment from the European Investment Fund (EIF).

The biggest fund on GGV came from Singapore, where Heliconia Capital Management, a wholly-owned investment subsidiary of Singapore’s sovereign wealth fund Temasek, has announced a S$600m ($422m) fund.

EduGrowth, a non-profit platform founded by Deakin University, La Trobe University, Monash University, Charles Sturt University and Griffith University as well as education company Navitas, has launched an accelerator, that will put A$50,000 into participating startups in return for 6% equity stake.

Exits

Zawatt, a Japan-based operator of an online auction platform, is set to be acquired by marketplace app provider Mercari today (that is February 27, for those of you listening to this later in the week).

Zhenai, a China-based online dating platform backed by internet company IAC, is planning a listing via a reverse merger with aircraft parts manufacturer DEA General Aviation, China Money Network has reported.

US-based software integration technology provider MuleSoft has filed to raise $100m in an initial public offering that will give exits to networking technology producer Cisco and enterprise software firms Salesforce.com and ServiceNow.

Here’s some rather depressing news for investors: Groupon has revealed in a securities filing that it paid the grand total of zero for corporate-backed competitor Living Social when it acquired the company in October 2016.

On GlobalUniversityVenturing.com meanwhile, Wrapidity, an artificial intelligence (AI) spinout of Oxford University, was acquired by data science company Meltwater.


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

7 March 2016 – Google Capital, Alphabet, Magic Leap, Snapchat, Mercari, AXA, Slack, Souqcom, Vertex, Purdue University, Oregon State University and more

Deals

We tracked 132 deals in the month. While this would be the lowest month for deal activity since September 2014, it is not much below activity in many of the months during the last year and a half, while it is significantly above most months in 2014 as well as prior years. We also typically track some deals after a month ends.

The most active corporate during the month was holding company Alphabet, which invests through its two venturing units Google Capital and GV, which matches trends in recent years, where it has regularly been one of the most active investors.

The most active corporate partner among venture firms was Arch Venture Partners, which invested alongside US-based healthcare company Johnson and Johnson, US-based asset manager Fidelity, China-based healthcare company Wuxi Pharmatech, real estate company Alexandria, and healthcare company Pfizer.

The largest deal in February was the $793.5m series C round raised by US-based augmented reality technology developer Magic Leap, in a deal led by e-commerce firm Alibaba.

The biggest exit of the month was the sale of Ravello Systems, the US-based virtualisation software developer, which was sold to Oracle for $500m. Ravello had raised $54m in venture funding, including $28m in a January 2015 series C round co-led by Qualcomm and SanDisk’s corporate venturing units: Qualcomm Ventures and SanDisk Ventures.

Snapchat, backed by Tencent, Alibaba and Yahoo, boosted its series F round to more than $710m and its overall funding to more than $1.3bn with $175m from Fidelity.

Mercari rises with $75m round.

AXA invested €75m in e-commerce holding vehicle Africa Internet Group last month and the round has now been boosted to €300m ($326m) with commitments from MTN, Rocket Internet and Goldmn Sachs.

Messaging platform Slack has so far raised $340m from investors including GV but is now seeking an additional $150m in the wake of it ramping up staff numbers and launching a TV advertising campaign.

Influitive, the creator of an advocacy marketing platform, raised about $30m in July and has now attracted new funding to take its NTT Docomo-backed series B round to almost $39m. The capital helped to support the acqui-hire of scheduling app developer Ironark Software.

Souq.com has shown that e-commerce growth in Asia isn’t restricted to the usual suspects of China, India and Southeast Asia, raising more than $270m at a reported $1bn+ valuation.

Electronic component manufacturer Murata Manufacturing Company led a $19m series B round for US-based power conversion semiconductor developer Arctic Sand Technologies, a spinout of MIT. more

People moves

Ben Brabyn, former COO of UK Trade and Investment (UKTI) Innovation Gateway, has been appointed head of UK-based technology accelerator Level39.

Michael Fernandes has left Malaysian sovereign wealth fund Khazanah Nasional to become a partner and co-head of South and Southeast Asian operations at Leapfrog Investments. At Khazanah Nasional, he was manager of the healthcare portfolio, valued at $7bn on the Singapore stock exchange.

Monika Gierszewska has been appointed as director of incubator SetSquared’s Bristol branch. SetSquared is a collaboration between the universities of Bristol, Bath, Exeter, Southampton and Surrey. (more)

Funds

Vertex Venture Holdings, the wholly-owned investment arm of Singapore government’s state fund Temasek, has held the final close of its Vertex Ventures Israel fund at $150m. The fund had a target of $100m.

InnovFin, a joint initiative of EIF and EIB, has signed a deal to provide $100m to LeumiTech to support Israel-based businesses.

Purdue University has set up a $10m seed-stage fund to build on its successes from last year, when Purdue created a total of 40 new businesses, incl. 25 spinouts. The fund will be jointly managed by the university’s startup accelerator, Purdue Foundry, and the University Development Office.

Oregon State University launches fund with Rogue Venture Partners that is expected to raise between $10m and $20m and will invest in companies within the state. OSU will provide a fifth of the capital.


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