14 February 2022 – D-Wave Agrees to $1.6bn Reverse Merger

D-Wave agrees to $1.6bn reverse merger

D-Wave Systems, a Canada-based quantum computing technology developer backed by IT equipment producer NEC, agreed to a $1.6bn reverse merger with special purpose acquisition company DPCM Capital.

Flexport receives $935m funding haul

Logistics services platform developer Flexport raised $935m in a series E round featuring internet and telecommunications group SoftBank’s Vision Fund and e-commerce software provider Shopify at a post-money valuation of $8bn.

WNBA makes $75m funding shot

US-based professional women’s basketball league WNBA raised $75m from investors including sports apparel brand Nike, helping expand funding for a sport where coverage and sponsorship are lacking.

Scandit captures $150m in series D round

Data capture technology developer Scandit closed a $150m series D round featuring Alphabet, Sony, Swisscom and Schneider Electric.

Polygon picks up $450m

Polygon, an India-based blockchain scaling technology developer, secured $450m through a private token sale featuring SoftBank, blockchain entertainment product developer Animoca Brands and quantitative trading firm Alameda Research.

Qredo to scale with $80m

Qredo, a UK-based provider of decentralised digital asset management technology, completed an $80m series A round featuring cryptocurrency exchange Coinbase and blockchain technology developers Terraform Labs and Ava Labs.

Infinity Ventures Crypto closes $70m fund

Animoca Brands and payments services provider Circle have backed Taiwan-based venture capital firm Infinity Ventures Crypto (IVC)’s maiden fund, which closed with $70m in commitments.

Intel introduces $1bn semiconductor technology fund

Intel Capital, the corporate venturing arm of chipmaker Intel, launched a $1bn investment vehicle with its semiconductor fabrication business, Intel Foundry Services (IFS).

GBA Fund progresses towards $257m close

Greater Bay Area Fund (GBA Fund), an investment vehicle formed by e-commerce firm Alibaba’s Entrepreneurs Fund (AEF), is set to close at about $257m by mid-2022.

NGP Capital nets $400m from Nokia

Smartphone manufacturer Nokia has provided $400m in capital for the latest fund closed by NGP Capital, the US-based venture capital firm that it had spun off.

UTokyo IPC achieves $221m close

University of Tokyo Innovation Platform (UTokyo IPC), the venture capital arm of University of Tokyo, announced the final close of its second fund at $221m with backing from several corporate LPs.


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

20 December 2021 – Anchorage Digital Holds Down $350m Series D Funding

Anchorage Digital holds down $350m series D funding

Cryptocurrency assets platform provider Anchorage Digital raised $350m in a series D round featuring quantitative trading firm Alameda Research, cryptocurrency exchange Kraken and investment banking firm Goldman Sachs as institutional’ investors are set to move further into the crypto space.

Claroty clutches $400m series E

Energy management system provider Schneider Electric and internet group SoftBank have co-led a $400m series E round for US-based cybersecurity provider for Internet of Things networks Claroty, through their respective subsidiaries SE Ventures and Vision Fund 2.

Svolt swerves to $943m in series B-plus funding

Svolt Energy Technology, a battery technology developer spun out of carmaker Great Wall Motor, has closed a $943m series B-plus round featuring corporates including Laser equipment maker Han’s Laser Technology and car light producer Changzhou Xingyu Automotive Lighting Systems.

Airtable raises $735m series F

Low-code workplace collaboration software provider Airtable raised $735m in series F funding at a pre-money valuation of $11bn with backing from Salesforce Ventures.

Flink flies to $750m series B

Food delivery service DoorDash led $750m in a series B round that raised equity and debt for Germany-based grocery ordering app operator Flink, the latest in a wave of companies moving into corporate venturing in the food services sector.

Clikalia snaps up $518m

Spain-headquartered property transaction tool provider Clikalia has received $518m from investors including Mouro Capital, the venture capital firm formed and sponsored by financial services firm Santander, representing one of the largest funding rounds in Spain.

SenseTime postpones IPO plans

A week after setting a $767m target for its IPO, SenseTime, a China-based AI system producer backed by corporates Alibaba, Qualcomm, SoftBank, Suning and Dalian Wanda, has paused its plans to go public in Hong Kong after being blacklisted in the United States last Friday.

Zoom, Cisco back Mio in $8.7m series A

US-based cross-platform chat interoperability provider Mio secured $8.7m in series A funding co-led by video conferencing platform operator Zoom and computing and IT group Cisco, the latter through its strategic investment arm Cisco Investments.

Deutsche Telekom helps Everphone raise $200m

Telecommunications firm Deutsche Telekom participated in a $200m financing round for electronic device services provider Everphone.

SoftBank spends big in Latin America

Internet and telecommunications group SoftBank had a big week in Latin America – specifically, in Brazil – where it invested in multiple nine-figure rounds, including into e-commerce marketplace Olist, consumer credit platform Open Co and corporate catering services provider ezCater.

Hulic builds corporate venturing vehicle

Japan-headquartered property developer Hulic launched a corporate venturing subsidiary called Hulic Startup late last month, forming a $17.6m vehicle.


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

02 March 2020 – Grab Raises $856m from Mitsubishi UFJ Financial Group

The Big Ones

There may be fewer rounds being closed but ride hailing continues to be a money magnet, with Grab raising $856m from Mitsubishi UFJ Financial Group – which invested $706m – and TIS, both investing through newly struck partnership deals that will centre on the joint development of payment and financial services technology. There may be a bigger deal in the pipeline too, with reports stating Grab has been in talks with key rival Gojek over a merger that could value the combined company at $23bn.

Southeast Asia has been one of the fastest growing areas of the world for corporate VC funds. One of the relatively early participants was state-owned telecommunications operator Telkom Indonesia, which launched unit MDI Ventures in 2016 with $100m, and which has rapidly expanded since. MDI Ventures is targeting $300m to $500m for its second fund, according to comments made by a government minister this week, and that amount would represent a big step forward in terms of capital. Probably justifiably, given the recent emergence of unicorns like Grab, Gojek and Tokopedia.

CapitalG, the growth equity subsidiary of Alphabet is in line for a healthy exit, as media reports suggest tax software provider Intuit is set to buy credit management platform Credit Karma in a $7bn cash-and-stock deal. CapitalG first invested in Credit Karma at a valuation of less than $1bn in 2014, and the company was valued at $3.5bn in its last funding round the following year.

And in crossover news (of which there was actually a lot last week and we’ll get to more of them in a minute), we have another exit. University of Pennsylvania-linked Passage Bio went public on Friday in a $216m IPO in which it is floating at the top of its range ($18 a pop), after increasing the number of shares by more than 60% (from 7.4 million to 12 million shares). The genetic medicine developer only officially launched a year ago (though it was incorporated in 2017) but had pulled in $226m across two rounds, from investors including corporate vehicles Access Biotechnology and Lilly Asia Ventures. It’s also allocated 1.8 million shares to a greenshoe option (also up from 1.5 million) and if stock goes the way everyone wants it to, it likely won’t be too long before underwriters jump on that chance.

Deals

One of the more interesting corporate investor/portfolio company combinations in recent times is the tendency for carmakers to invest nine-figure sums in autonomous driving software developers in order to get a foothold in an area of technology thought by many to be the future of the industry. The latest is Toyota, which has already backed several ride hailing companies and which just provided $400m for robotaxi system developer Pony.ai as part of a $462m round.

Graphcore, an artificial intelligence processor developer that traces its roots back to University of Bristol (it’s a spinout of Bristol spinout Xmos), has added $150m to a series D round that now stands at $350m, valuing the company at $1.95bn. The $200m first tranche included BMW i Ventures, Robert Bosch Venture Capital, Dell Technologies Capital, Microsoft and Samsung, though none were explicitly identified as being among the existing backers that joined Baillie Gifford, M&G Investments, Mayfair Equity Partners and Merian Chrysalis in the second close.

GV and Intel Capital have both contributed to a $250m series C round for SambaNova Systems, an AI computing platform developer co-founded by Stanford University faculty, that will fuel the enhancement of its technology. GV co-led SambaNova’s series A round while Intel Capital led its $150m series B last year, and the increasing ubiquity of AI combined with the move to more complex areas like edge computing mean we’re likely to see the company continue to move up the fundraising levels in the coming years.

SpaceX is gearing up for another funding round, having raised more than $1.2bn since December 2018 across three different rounds. No word on whether those rounds included existing investor Google, but the new round is reportedly set to be sized at about $250m at a valuation of roughly $36bn. Its overall funding so far stands at around $3.4bn.

Karius has developed a liquid biopsy test that draws blood in order to discover information on disease by crunching data on microbial cell-free DNA found in the samples. It has also secured $165m in a series B round led by SoftBank’s second Vision Fund, which seems to well and truly be up and running (albeit still only with cash from SoftBank itself).

Despite being around some 15 years and racking up 115 monthly active users, Roblox has kept a relatively low profile in the startup scene, though that may be changing with news of a $150m series G round featuring Tencent. The company has created an online platform that allows users to develop virtual worlds and MMO games that others can play, and is reportedly now valued at $4bn. It’s also launching a secondary offering for up to $350m of common and primary shares.

Another company focusing on creativity (of a sort) is Uncorq, developer of a no-code platform enabling users to create software applications without coding. It’s added $51m to a series D round now totalling $131m, and CapitalG, which co-led the first tranche in October, led the extension. The cash will be used for recruitment and expanding the company’s partnerships along with its live event schedule.

JD.id, the Indonesian spinoff of e-commerce group JD.com launched in 2015 with private equity firm Provident Capital, is also valued at more than $1bn, a source has told Indonesian tech news portal Daily Social. The company has yet to confirm the identity of any external investors but rumours suggest they could include another Indonesian unicorn, Gojek. To square the circle, both JD.com and Provident invested in a $1bn round for Gojek early last year.

Funds

Energy management and automation technology producer Schneider Electric has supplied $10m for Israel-based venture capital firm Grove Ventures’ $120m second fund. The oversubscribed fund, Grove II, was closed a week ago without the firm identifying any limited partners, though its described them as institutional and strategic investors as well as industry leaders.

US-based, real estate-focused venture capital firm Fifth Wall closed a $100m fund on Wednesday that includes several property developers as limited partners. Commercial real estate provider Cushman & Wakefield is an LP, as are real estate investment trusts Macerich, Acadia Realty Trust and Nuveen Real Estate, the latter a subsidiary of asset manager TIAA Investments.

Japan-based venture capital firm I-Nest Capital has closed its first fund at ¥6.6bn ($61m) having secured commitments from backers including corporates Power Solutions and NTT Docomo. IT services firm Power Solutions and mobile network operator NTT Docomo were joined by financial services firm Mizuho Bank and Fuji Startup Ventures, a corporate venturing vehicle for media company Fuji TV. The limited partners were filled out by Mizuho Securities Principal Investment, which represents investment bank Mizuho Securities, and the Japanese government’s Organization for Small & Medium Enterprises and Regional Innovation.

Exits

Salesforce has agreed to acquire CRM app developer Vlocity, a portfolio company of its Salesforce Ventures unit, in a $1.33bn all-cash deal. Vlocity had raised $163m from an investor base that also included Accenture and New York Life, and the transaction marks the fifth M&A exit for Salesforce Ventures this year, following Simplus, Evariant, Quid and LevelEleven.

Food delivery has been one of the better funded portions of the mobile commerce market, perhaps second only to ride hailing, and DoorDash’s investors look like they may be in for a lucrative exit. The company has confidentially filed for an IPO, three months after closing its series G round at $700m, at a $13bn valuation.

It isn’t a conventional M&A corporate exit but Takeda is buying coeliac disease drug developer PvP Biologics three years after paying $35m for an option to fully acquire the University of Washington spinout once it had advanced its lead product candidate to a certain stage. The size of the deal could eventually reach $330m if PvP reaches every development and regulatory milestone and, its drug will join Takeda’s own celiac disease candidate in the corporate’s product pipeline.


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