18 January 2021 – GV Returns for EQRx’s $500m Series B

The Big Ones

EQRx formally launched a year ago with $200m from investors including GV and Nextech, and all its series A investors have now returned for a $500m series B round. The startup is collaborating with stakeholders including pharmaceutical companies to develop more affordable medicines, with late-stage cancer drugs a particular focus. It is also part of an increasingly diverse portfolio of early-stage life sciences companies in GV’s portfolio.

Mobile network operator Orange is the latest corporate to spin off its venture capital unit with a healthy addition to its funding allocation. Orange Ventures will henceforth operate as an independent entity, and has received $426m in capital from its former parent company in addition to the portfolio of its predecessor, Orange Digital Ventures. That portfolio includes Monzo, Raisin and Actility.

Qualcomm Technologies has agreed to buy silicon chip technology developer Nuvia for $1.4bn less than two years after it was founded. Nuvia had raised $293m across two rounds pre-acquisition, both of which included Dell’s corporate venturing subsidiary, Dell Technologies Capital. It could well be an early marker of some of the M&A activity that will spring up as 5G technology begins to get a real foothold in the mainstream.

Dice Molecules, a US-based biopharmaceutical spinout of Stanford University, has closed an $80m series C round featuring spinout-focused investment firm Osage University Partners. RA Capital Management led the round, which also attracted Sanofi Ventures and Alexandria Venture Investments on behalf of pharmaceutical firm Sanofi and real estate investment trust Alexandria Real Estate Equities. Founded in 2014, Dice Molecules has developed a drug discovery platform leveraging technology dubbed DNA-encoded library, which it hopes will make it possible to target a range of conditions with oral treatments rather than requiring injections. Its lead asset is aimed at psoriasis, and the company has been collaborating with Sanofi since 2016.

Deals

WeWork aside, Vision Fund’s biggest failure was perceived as OneWeb, the satellite internet operator that declared bankruptcy early last year after SoftBank had pumped some $2bn into the company. However, Bharti Enterprises joined the UK government to buy it for $1bn in the resulting auction, and now SoftBank is back, putting in $350m of a $400m investment expected to help OneWeb complete its initial satellite constellation. It will come out with a 30% stake, and the other $50m was put up by another pre-bankruptcy investor.

Online fitness was earmarked as one of the big growth sectors in our 2021 preview, and the first company in the space to raise big money this year is Keep, which has bagged $360m in series F funding at a valuation of about $2bn. SoftBank Vision Fund led the livestreamed fitness class provider’s latest round, which also featured existing backers Tencent and Bertelsmann Asia Investments.

Autonomous driving software developer WeRide raised $200m in series B funding from bus manufacturer Yutong Group last month and it has now added $110m to close the round at $310m. The round comes after earlier funding provided by investors including Nvidia GPU Ventures, SenseTime, Johnson Electric and Alliance Ventures.

Digital lending software provider Blend has closed a $300m series G round that doubled its valuation to $3.3bn in just five months, which is very impressive. The round was co-led by Tiger Global and Coatue, though no mention of existing corporate backer Salesforce.

Blend isn’t the only fintech developer to have experienced a huge jump in valuation last week. Cross-border payment platform developer Rapyd has also received $300m, in a series D round also led by Coatue. The series D boosted the valuation of Rapyd, which counts Stripe as an earlier investor, to $2.5bn post-money, more than double that of a year ago.

Tessera Therapeutics is the latest in a series of life sciences startups that have raised nine-figure amounts for their first external rounds, having pulled in $230m for its gene writing technology, which aims to prevent disease by rewriting the genome. The series B round was co-led by SoftBank Vision Fund 2, which may itself be looking to get more involved in the sector.

Elsewhere in China, employee management software provider WorkTrans has announced over $190m in funding, $140m coming in a Tencent-backed series D round. The round was disclosed together with a $50.5m series C round and it increased WorkTrans’ overall funding to approximately $236m. It will support further development of the company’s HR management product, which makes use of deep learning and cloud computing technology.

SoftBank’s $5bn Latin America fund has given it a sizeable foothold on the continent, and it has co-led a $190m round for one of its portfolio companies, furnishing and home decor marketplace MadeiraMadeira. The corporate also led MadeiraMadeira’s last round, in which it secured $110m, and the funding is set to fund the expansion of the company’s brick-and-mortar footprint and a prospective range of own-brand products.

GV was among the participants in a $160m funding round for distributed database technology provider Cockroach Labs that valued it at $2bn. The Alphabet subsidiary has been a Cockroach investor since its $6.3m series A round in 2015 and has been along for every round since, as the company has hiked its total funding to $355m.

Exits

It seems amazing now that just a year ago it looked like the losses suffered by SoftBank’s Vision Fund could have severely impacted its corporate parent as a whole. There have been few bigger winners from the boom in the public markets and VC spaces, and its next exit could be from Auto1. The online car dealership has announced it plans to launch an initial public offering in Frankfurt that could raise some $1.2bn alongside a private placement. Vision Fund invested $565m in Auto1 at a $3.56bn valuation in 2018 and it’s going to be interesting to see how that valuation compares to the company’s market cap when it does float.

Dynamic window producer View announced plans for a reverse merger in November that would be boosted by $300m in PIPE financing. That amount is set to be boosted to $500m after Singaporean sovereign wealth fund GIC committed a further $200m, adding to some $1.8bn in earlier debt and equity financing. That capital was provided by investors including SoftBank Vision Fund 1, Corning and Seagate.

Cryptocurrency services provider Bakkt was launched by financial exchange operator Intercontinental Exchange (ICE) in 2018 and less than three years on, it has agreed to a reverse merger set to value it at $2.1bn once the deal closes. It will also take an NYSE listing and $325m in PIPE financing from investors including ICE. It had raised more than $480m in venture funding from backers also including Microsoft unit M12, PayU and Boston Consulting Group.

Funds

Germany-listed food delivery service Delivery Hero has committed €50m ($61m) to set up an independently-managed, early-stage corporate venture capital firm called DX Ventures. DX Ventures will invest in sectors including on-demand services, food technology, sustainable innovation, artificial intelligence, financial technology and logistics. It will be led by managing director Duncan McIntyre.


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

07 October 2019 – We Co Pulls IPO

We Co, otherwise known as WeWork, formally pulled its initial public offering last week, putting a cap on what will go down as one of the most disastrous attempts to go public in recent memory. So what does that mean for corporate venturers? Is the co-working space still viable? Is it still worth betting on visionary founders? And what about SoftBank? If those are questions you’d like answers to, do check out GCV news editor Robert Lavine’s analysis on GlobalCorporateVenturing.com

Big Ones

Udaan, the Indian operator of an e-commerce platform that links small businesses to large traders and wholesalers, has raised $585m in series D funding from investors including Tencent and Citi Ventures to take its total equity financing to $870m in under three years.

Online content and advertising platforms Taboola and Outbrain operate in a relatively similar space and have elected to join forces, with Taboola buying the latter for $250m in cash, and $600m in stock equating to a 30% stake in what will be a $2bn company.

Oxford Sciences Innovation (OSI), the university venture fund for University of Oxford, has added China-based telecommunications equipment and services provider Huawei as a limited partner. Huawei is believed to have bought 4.1 million shares over the past year through a Netherlands-based subsidiary called Huawei Technologies Cooeperatief, taking its stake in OSI to about 0.7%. Huawei has never been listed on OSI’s website as a backer. The deal was concluded in late 2018 before University of Oxford blocked the firm’s philanthropic donations due to fears over its influence in the UK technology space.

Deals

IronSource has confirmed a $400m+ investment by private equity firm CVC Capital Partners at a 10-figure valuation. The content monetisation and engagement platform developer raised $105m in a 2015 series A round featuring Access Industries at an apparently similar valuation, though Calcalist reported earlier this week that its shareholders regularly receive sizeable dividends, which would largely offset any flatlining in company value.

Electric scooter and bike rental service Bird has raised $275m at a $2.75bn post-money valuation, in a series D round co-led by Sequoia Capital and pension fund manager CDPQ.

Rapyd has already raised $100m, through a series C round featuring Stripe that valued the digital payment software producer at almost $1bn.

Tenaya Therapeutics, a US-based developer of treatments for heart disease, completed a $92m series B round on Thursday featuring GV, a corporate venturing subsidiary of internet and technology group Alphabet. The round was led by healthcare investment firm Casdin Capital and included Column Group and a range of undisclosed new and existing shareholders.

Adicet Bio is meanwhile working on cancer treatments that will utilise gamma delta T cells, and has completed an $80m series B round that took its total funding to $131m.

US-based vaccine developer Icosavax emerged from stealth on Thursday with $51m of series A funding from investors including Sanofi Ventures, the corporate venturing arm of pharmaceutical firm Sanofi. Qiming Venture Partners USA led the round, which was also backed by NanoDimension, Adams Street Partners and undisclosed existing investors.

Funds

Non-profit health system Advocate Aurora Health and Wisconsin Alumni Research Foundation (Warf), the commercialisation arm of University of Wisconsin-Madison, have become a limited partner in a $75m healthcare-focused fund raised by venture capital firm Venture Investors.

Exits

It’s been a rough ride recently for companies trying to go public: Peloton’s shares have crashed every day since going public and that’s before we get to the disaster that’s been We Company’s struggles. But that isn’t stopping others from chasing the dream and Progyny has filed for a $100m offering on Nasdaq that would provide exits to SR One and Merck Group

36Kr will be hoping its own IPO goes better. The China-based startup media and services company has filed to go public in the US and has set an initial target of $100m. Its investors include Alibaba affiliate Ant Financial and media group Nikkei, and it will be hoping it doesn’t fall foul of reported plans by Nasdaq – the operator of the market on which it intends to float – to tighten regulations for smaller IPOs by Chinese companies which have sometimes chiefly sold shares to investors linked to their executives. With only two named underwriters in the 36Kr IPO, that could be a factor.

Harvard University spinout Beam Therapeutics has filed for its own $100m IPO, which will follow roughly $225m in funding raised across two rounds. The genomic medicine developer’s shareholders include GV and Editas Medicine, the latter having acquired a stake through a licensing agreement last year.

4D Molecular Therapeutics has filed for a $100m initial public offering that will fund the progress of gene therapies for conditions such as Fabry disease and cystic fibrosis. It has raised at least $108m, $90m of which came in a 2018 series B round that included Pfizer Ventures and Chiesi Ventures.

MIT and Harvard spinout Frequency Therapeutics has gone public in an $84m initial public offering that represents a bit of a downgrade on its expectations, the company floating at the bottom of its range and cutting the number of shares in the IPO.

Live streaming software and tools provider Streamlabs has also achieved its own exit, agreeing to an acquisition by Logitech International for up to $118m. The total’s split between an $89m upfront cash payment – slightly more than Streamlabs’ most recent post-money valuation of $80m – and $29m worth of stock dependent on it reaching significant revenue growth.

Aprea Therapeutics, a US-based cancer drug developer spun out of Karolinska Institute and backed by its investment Karolinska Development as well as healthcare provider Praktikertjänst, has raised $85m in an initial public offering on the Nasdaq Global Select Market.


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