09 November 2020 – Ant Group’s IPO Suspended by Regulators

The Big Ones

Law firm Orrick Herrington and Sutcliffe’s recent investments in Priori Legal and term sheet data analysis provider Aumni, coinciding with Latham & Watkins and Clifford Chance’s joint investment in legal tech platform Reynen Court’s recent $4.5m round, reflect the strategic interest in so-called legaltech startups.

The $30m Hypertherm Ventures fund is targeting early-stage deals in advanced manufacturing, which is a difficult place to back with limited capital and an awareness of the lengthy time horizons required.

As Car and Driver magazine noted, the electric vehicle market is challenged as few consumers are interested, they are expensive compared to petrol or diesel cars, and traditional car companies have struggled to develop appealing brands, leaving the way for Tesla and other startups out of China such as Nio to try and take advantage. But the future seems to lie in that direction given a predicted 21.1% compound annual growth rate over the next decade. As a result, Polestar, a Sino-Swedish electric car brand jointly owned by Volvo Car Group and its parent company Geely, is in talks to raise $500m from investors at a $6bn valuation, according to Bloomberg.

It is always fun as the end of year creeps up to think about the technologies that will disrupt or transform the world over the next few decades, and Adrien Book’s selectionbelow covers a number of general and specific purpose technologies. The meatless meat one is definitely catching people’s attention currently, given the post-flotation performance of Beyond Meat among others, as identified in March’s special report on agtech. The wider focus, however, is “how to replace the grocery store,” according to venture capitalists such as Andrew Ive, founder at Big Idea Ventures with Tom Mastrobuoni, former partner at meat supplier Tyson’s corporate venturing unit.

The European Union has more than halved its planned investment in the continent’s best entrepreneurs after budget cuts wiped at least €6bn ($6.8bn) off its European Innovation Council (EIC).Stéphane Ouaki, head of unit for the directorate general of research and innovation at the European Commission, in a panel at the Not Optional – Making Europe the Most Entrepreneurial Continent event on Friday, said the funding for the EIC would come in at €3.5-4bn for the seven-year Horizon Europe budgetary period from 2021 to 2027.

Funds

Fleury and Sabin combine to set up venture firm

CCCU establishes Emerging Ventures

Kuzmenkov sets up Perspective Ventures

Holtzbrinck helps HV Capital to $625m fund

Fountain Healthcare Partners finishes third fund

E14 Fund sparks bid for $80m successor

Exits

Ant Group, the Alibaba financial services spinoff that was set to go public on Thursday in a dual offering that would have been the largest flotation ever. I say was, because regulators have sensationally stepped in to suspend the offering due to concerns about Ant’s listing qualifications or disclosure requirements. For that to take place two days before an IPO is almost unheard of but for it to do so with a $34.3bn dual offering at a projected $313bn valuation seems momentous. It could be related to recent critical comments by chairman Jack Ma, but it’s also a big red flag to Chinese tech companies looking at Hong Kong or Shanghai’s Star Exchange as viable alternatives to the US markets.

China-based wealth management and peer-to-peer lending platform Lufax has floated on the New York Stock Exchange in one of the year’s largest initial public offerings, raising $2.36bn at a valuation just short of $33bn. Insurance group Ping An spun off Lufax and still owns a 39% stake, and the company’s other investors include Bank of China, Cofco, SBI, JP Morgan, UBS, Goldman Sachs, Macquarie Group and UOB. It had previously secured about $3bn across three rounds pre-IPO.

Speaking of on-demand services that have blossomed in recent months during the coronavirus pandemic, beverage delivery service Flaschenpost has seen its monthly sales zoom past $30m, across just 23 German cities, and has thus warranted a $1.16bn acquisition by packaged food producer Dr Oetker. The transaction will allow Vorwerk’s corporate venture capital arm, Vorwerk Ventures, to exit the company less than three years after taking part in a $24m round.

Freshly, the healthy meal kit service, has been acquired by Nestlé in a $950m deal that could stretch to $1.5bn once earnout payments have been taken into account. Nestlé led the company’s last round three years ago, when it raised $77m to take its total funding to $107m. Meal subscription services have come good during the coronavirus pandemic, and Freshly said it is now shipping a million meals a week in the US.

Ocado to pick up Kindred in $262m deal – Robotic picker provider Kindred Systems is set to be bought in a $262m cash transaction that will hand exits to Tencent and GV.

Intel integrates Stanford-backed SigOpt – Intel is set to buy Stanford University-backed machine learning optimisation business SigOpt, which had raised at least $8.6m in funding.

Merck & Co has agreed to pay $2.75bn in cash to acquire cancer drug developer VelosBio, handing exits to corporate venturing units Takeda Ventures and Chiesi Ventures. VelosBio had raised a touch over $200m prior to the acquisition, the brunt of which came in a Takeda-backed series B round in July. It also took part in Johnson & Johnson’s JLabs accelerator in early 2018.

Elsewhere in oncology, JW Therapeutics has scored a big exit for WuXi AppTec and Juno Therapeutics, the pharmaceutical companies that co-founded it four years ago, by floating in a $300m initial public offering in Hong Kong. They owned a combined stake sized at over 40% in JW pre-IPO having also participated in its $90m series A round in early 2018 and a $100m series B just three months ago.

TikTok owner ByteDance is among the most valuable VC-backed private companies in the world but its biggest rival in China, Kuaishou, isn’t far behind, and it looks like it’s going to be first to go public. Kuaishou has filed for an initial public offering on the Hong Kong Stock Exchange and recent reports suggested it would look to net up to $5bn at a valuation of about $50bn. The company’s backers include Tencent, which invested $2bn to lead its last round in late 2019, and Baidu.

Russian e-commerce platform Ozon has confirmed it has filed for an initial public offering on the Nasdaq Global Select Market that financial market sources told Reuters could generate up to $500m in proceeds. Sources told the Wall Street Journal last month the company would seek a $3bn to $5bn valuation in the IPO, and conglomerate Sistema, its largest shareholder, owns a stake sized above 45% once unconverted debt is taken into account.

Russian online streaming service Ivi has reportedly hired banks to organise an initial public offering slated to take place in the United States next year. The company’s investors include media company Prof-Media, which participated in a $40m round in 2012, as well as Baring Vostok, Tiger Global Management, Frontier Venture, RTP Global, Russian-Direct Investment Fund, Mubadala Investment Company, Flashpoint VC and Winter Capital.

Aeva is only three years old but the lidar-on-chip technology developer is set to list on the New York Stock Exchange through a reverse merger with special purpose acquisition company InterPrivate Acquisition Corp. The transaction will value the merged business at $2.1bn and it will benefit from $120m in PIPE financing from investors including carmaker Porsche, which had already invested a ‘significant’ amount in Aeva last December.

Upstart undertakes $100m filing – Rakuten, Alphabet and Progressive are in line for exits after the automated lending service filed to go public yesterday.

SQZ Bio squeezes on to NYSE – The AIG, Illumina, Alphabet and Orient Life-backed cell therapy developer priced its shares at the bottom of their range to raise $70.6m.

Deals

Reef Technology, 18 months ago it was ParkJockey, the owner of an app that allowed drivers to book parking spaces, but now, having rebranded to Reef Technology, it is focusing on converting underused space to hubs for on-demand services. It has also raised $700m from investors including SoftBank Vision Fund along with a $300m real estate fund. Given its target areas of cloud kitchens, on-demand healthcare, vertical farming and e-commerce logistics have all seen huge growth this year, you can see why.

CAR T-cell therapies are one of the fastest growing segments of the pharmaceutical space, and the latest cancer immunotherapy developer to close a sizeable round is Carsgen Therapeutics, which has bagged $186m in series C funding from investors including Lilly Asia Ventures. The round was led by private equity firm Loyal Valley Capital and the proceeds will support clinical trials for its oncology drug candidates in Asia, the US and Europe.

VIPThink pipes in $180m – New Oriental returned for the educational product developer’s series C round, which was led by SoftBank Vision Fund 2.

Digital signature technology provider eSign can perhaps be seen as China’s DocuSign, but it’s in an area where social distancing has necessarily led to increased use, and the company has raised $150m in series D funding. Its last round had been led by Ant Group, though the corporate (which let’s face it, has other things to deal with right now) was not listed as a participant in the latest round.

Conductor orchestrates $150m in funding – Viking Global led a $150m round for the Visa-backed banking software provider that will go to product development and international growth.

GetYourGuide discovers $133m – SoftBank Vision Fund returned in a convertible note round that pushed the total raised by the tourism experience booking service to some $788m.

Ronglian rings up $125m – New Oriental Industrial Fund helped Ronglian (aka Yuntongxun) close a series F round it claimed was the largest yet for a Chinese cloud communication technology producer.

Indonesian online marketplace Bukalapak has pulled in $100m from investors including Microsoft and Emtek at a valuation between $2.5bn and $3bn, according to Bloomberg. The company is reportedly targeting a total of $200m in the round, which comes after it closed an Emtek-backed series F round at a $2.5bn valuation in October.

University

ColdQuanta unpacks $32m series A – CU Boulder-founded quantum technology developer ColdQuanta has attracted series A funding to follow a $16.8m seed round closed two years ago.

Shoulder Innovations hoists up $21.6m – The series C funding will help Western Michigan portfolio company Shoulder Innovations build on the launch of its flagship shoulder replacement product.

Sense Bio pinpoints CIC for $50m round – Cambridge Innovation Capital has backed a round sized at up to $50m for disease testing kit producer Sense Biodetection, which has now raised more than $64m altogether.


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

14 September 2020 – Online Education Company Byju Raising $500m

The Big Ones

Online education has firmly established itself as the key sector in India’s startup space, and Byju’s has effectively confirmed that, raising an amount reported by TechCrunch to be $500m. Byju’s, which is backed by Tencent, Naspers and Times Internet, was valued at $10.8bn post-money in the round, which came in the wake of it adding an extraordinary 20 million users since the start of the Covid-19 lockdown. That means the company has almost trebled its valuation inside two years.

Saudi Aramco has a market cap of some $1.8 trillion but is looking to explore diversification into other areas besides oil and gas (perhaps not surprisingly given the direction of oil prices this year). To that end, it has formed a $1bn fund called Prosperity 7 Ventures that is tasked with investing in innovative technologies like AI, 5G, robotics, blockchain and the internet of things. It will join the company’s Saudi Aramco Energy Ventures unit as well as its Wa’ed Ventures vehicle.

Illumina spinoff Grail has filed for what may be one of this year’s biggest healthtech IPOs. The cancer diagnostics technology developer has set a $100m placeholder target for the offering but has raised $1.9bn in venture funding from investors including Johnson & Johnson, WuXi AppTec, Tencent, Amazon, Varian, Memorial Sloan Kettering Cancer Center, Bristol-Myers Squibb, McKesson, Celgene, Alphabet and Merck & Co. It was valued at a reported $3.2bn back in 2018, prior to its last round.

X-over: Recursion, a University of Utah spinout, is using digital technologies such as automation and machine learning to develop drugs for various diseases and has built up a 30-strong drug pipeline, four of which have reached the clinical trials stage. It has also secured $239m in a series D round led by a $50m investment from Leaps by Bayer. The unit’s parent company, Bayer, has also formed a strategic partnership with Recursion, which was valued at about $1.2bn post-money.

Deals

Industrial technology has not been among the winners during the coronavirus lockdown, but advanced materials producer Zymergen has nevertheless snagged $300m in a series D round led by investment manager Bailie Gifford. The company, which has developed a bio-based polyimide film called Hyaline, has now raised a total of $874m in funding, its earlier backers including SoftBank Vision Fund and Hanwha Asset Management.

A sector that hasn’t done brilliantly – for understandable reasons – is ride hailing, but that impact has been somewhat mitigated by the fact several companies in that space have seen their food delivery businesses pick up. Southeast Asia’s Grab will hypothetically see an uptick in its digital financial services arm, Grab Financial Group, and the subsidiary is reportedly in advanced talks with investors including insurers AIA and Prudential to raise $300m to $500m at a valuation of roughly $2bn. That funding would support an expansion into wealth management and the possible securing of an online banking licence.

Melio, developer of an online payment management platform for businesses, revealed today it has collected a total of $144m in funding since 2018, most recently netting $80m in a series C round last month. It hasn’t provided precise details but did say its backers include American Express Ventures. Amex’s corporate venturing unit has quietly been racking up some big exits over the last two or three years, most notably from Plaid, iZettle and Bill.com, showing that CVC investing can bag some nice returns alongside strategic interests.

AnyVision, an image and facial recognition software provider that counts Qualcomm Ventures and Robert Bosch among its backers, has pulled in $43m in funding from unnamed investors. The deal comes just over a year after its $74m series A round and roughly four months after Microsoft subsidiary M12, a participant in that round, announced it was divesting its stake due to doubts about the ethics of the use of facial recognition technology by governments.

Funds

Thursday/Friday were a heady 24 hours for corporate fund announcements (which included the Saudi Aramco vehicle we talked about earlier). And Toyota Research Institute – Advanced Development has launched an $800m growth-stage fund called Woven Capital that will back Toyota AI Ventures portfolio companies as they grow, in addition to backing external venture funds. Companies backed by the early-stage vehicle that have raised big rounds of late include personal aircraft developer Joby Aviation, driver safety technology provider Nauto and electric bus producer Proterra.

Santander has had a good degree of success since launching its Santander Innoventures unit with $100m in 2014, snagging big exits from iZettle and Kabbage while accessing technology from several portfolio companies. It has now spun off the unit into an autonomously managed fund dubbed Mouro Capital and doubled its capital allocation again from $200m to $400m. It will make initial investments of about $15m at early and growth stage.

Exits

KAR Auction Services has agreed to acquire BacklotCars, the owner of an online dealer-to-dealer automotive marketplace, for $425m, enabling Renren to exit. BacklotCars had raised roughly $50m pre-acquisition. Renren has pulled back from corporate venturing almost completely since 2017, but it’s going to be interesting to see if it can pull some more big exits out of its existing portfolio.

Fabless semiconductor maker 3Peak is set to bag $339m in its IPO, on the red-hot Shanghai Star Exchange. The Huawei-backed company is simply the latest to choose the Star Exchange to go public, the market having benefited from regulations introduced by US exchanges to combat what was perceived as unsatisfactory accounting practices by Chinese companies. It will also jointly host what may be the biggest IPO ever, when Ant Financial floats later this year.

Progress has bought software deployment automation platform Chef in another nine-figure acquisition deal, paying $220m in cash for the company. Chef had received a total of $105m in funding, most recently securing $40m in a 2015 series E round that included Citi Ventures and Hewlett Packard Ventures, which passed its stake in the company on to Hewlett Packard Pathfinder.

Emphysema treatment device developer Pulmonx has filed for an $86.3m offering that would provide exits to Boston Scientific and Posco Bioventures. The former is Pulmonx’s largest investor, the owner of a stake that tops 30%.

Episerver has signed an agreement to purchase Optimizely, a web optimisation software producer that has raised roughly $200m from backers including Accenture Ventures, GV, Citi Ventures and Salesforce Ventures. The size of the deal has not been disclosed but it will consist of a mixture of cash and shares. It comes less than two months after Optimizely revealed it had cut staff numbers by about 15% in the wake of impact from Covid-19.


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

17 June 2019 – GE Ventures to Sell its Portfolio

A fascinating feature for you courtesy of Tony Askew, co-founder and partner of REV Venture Partners, who spoke with Global Corporate Venturing about how the media industry has evolved since the corporate venturing unit was launched in 2000. Insights provided by Askew included how its co-investments with In-Q-Tel have helped the unit, while he also explained the group’s aim was to stay three to seven years ahead of everyone else.

Funds

WTW to broker corporate venturing deals

Third Rock counts $770m for fifth fund

Invengo invigorates $145m IoT fund

Crane crowns $90m close for first fund

Wavemaker drifts to $60m close for third fund

Exits

Salesforce processes $15.7bn Tableau acquisition

CrowdStrike is going public today after pricing a $612m IPO that represents a huge jump up from less than two weeks ago, when it was slated to float in an offering that would have raised $378m at its mid-point.

Merck & Co has agreed to acquire Tilos Therapeutics, which is developing antibodies to treat cancer, fibrosis and autoimmune diseases, in a deal that could potentially reach $773m once milestone payments are factored in.

That isn’t the only heavy-duty M&A exit to be agreed in the last day or so. H&R Block isbuying accounting software producer Wave Financial for $405m in cash.

Avi networks its way to VMWare acquisition

Barefoot takes next step with Intel purchase

Cvent goes DoubleDutch in acquisition deal

Deals

Short-term accommodation booking platform Oyo has reportedly begun talks with new and existing investors over a $1bn round that would value it at $10bn.

SoftBank’s recently launched $5bn Innovation Fund that focuses on Latin America has entered discussions with Brazil-based digital bank Nubank to lead a funding round that could reach up to $1bn and value the company at $8bn to $10bn – up from a previous reported valuation of $4bn, achieved when the fintech developer collected $180m from Tencent in October 2018.

SoftBank works out $300m Gympass investment

ADC Therapeutics adjusts series E to $276m

South Korea-based Yanolja also operates a short-term hotel business, refitting venues such as love hotels for a millennial user base seeking good quality accommodation on a budget. It has raised $180m in a series D round at a valuation of more than $1bn, with travel booking platform Booking Holdings joining Singapore’s GIC to supply the cash.

Innoviz has boosted a series C round that includes Harel Insurance and Phoenix Insurance from $132m to $170m, the extra funding coming from undisclosed investors.

Symphony plays on with $165m

Shuidi ships in $145m

Thumbtack, the US-based local services listing platform, has collected $120m in series H funding from unnamed investors – reportedly at a flat valuation of $1.3bn.

ShareChat in talks for $100m funding round

Dishangtie parks $100m in series B round

Vectra collects $100m in series E round

Infarm harvests $100m series B round


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

8 February 2016 – Munce retires, Jasper exit, Sesame Street, Pierre Fabre and more…

Big news – people moves

Claudia Fan Munce’s retirement as managing director of IBM’s Venture Capital Group, following other high-profile departures such as Nagraj Kashyap and Arvind Sodhani over the past year.

Tom Hockaday leaving Isis.

Exits

Jasper (Singtel and Temasek) after Gilt last month.

Rocket Internet has sold its food ordering sites in Europe, Mexia and Brazil to Just Eat, a London-based competitor, for $140 million.

IPOs

China-based, Merck & Co-backed immuno-oncology drug developer BeiGene floated on Nasdaq yesterday in a $158m IPO, the same day as genome editing company Editas Medicine.

Editas is also trading up, and it wouldn’t be a surprise to see several more IPOs before the end of February.

But doubt it’ll be UBER, despite Fred Wilson’s demands as a non-shareholder.

Fundraising

Sesame Street’s new fund

Pierre Fabre, the 2nd largest French independent pharmaceutical group, have launched Pierre Fabre Fund for Innovation.

Two weeks ago, GlaxoSmithKline and Johnson & Johnson were among the founders of the UK-based Apollo Therapeutics Fund, and they’ve teamed up again as limited partners in the $230m first fund closed by Medicxis Ventures, a life sciences-focused firm spun out of venture firm Index Ventures. GSK and Johnson & Johnson were previously LPs in Medicxis’ predecessor, the first life sciences fund raised by Index, in 2012.
Plus debuts slow, although Luma has two intel capital veterans.

Kuwait potentially throwing $100bn at its sovereign wealth fund.