15 March 2021 – $1.9bn for Cold Chain Services Provider Lineage Logistics

The Big Ones

One element of retail that has emerged unscathed from the covid-19 pandemic is food, and Lineage Logistics is among the biggest cold chain services providers in the world, offering temperature-controlled delivery and storage. It has also raised $1.9bn from investors including property developer Oxford Properties and several real estate investment firms. The equity funding was secured together with a $2.8bn revolving credit facility and term loan.

As the Dow hits record highs the IPO market shows no sign of slowing, and increasing numbers of international tech companies are flowing to US markets. South Korea-headquartered online marketplace Coupang is the latest to take that option and is floating on the New York Stock Exchange in a $4.55bn offering, the year’s biggest so far. SoftBank Vision Fund owned more than 39% of its class A shares pre-IPO, having committed a total of $3bn in funding.

AstraZeneca formed the $1bn Healthcare Industrial Fund in partnership with China International Capital Corporation in late 2019, and now the pharmaceutical firm is teaming up with the investment bank’s CICC Capital unit to establish a $338m vehicle called Wuxi AstraZeneca CICC Investment. AstraZeneca already runs a life science incubator in the Chinese city of Wuxi, and the fund will invest in areas such as innovative therapeutics, medical devices, diagnostics technology and AI healthcare technology.

Crossover

IonQ, a US-based quantum computing technology developer exploiting University of Maryland and Duke University research, has agreed to list through a reverse takeover. The company is merging with a SPAC called dMY Technology Group, which had floated on the New York Stock Exchange in a $275m IPO in November 2020. The combined business will have a pro forma implied valuation of $2bn and the transaction will be supported by $350m in PIPE financing from investors including Hyundai Motor Company, its Kia subsidiary and GV, among others. IonQ has created a 32-qubit quantum computer it claims is the world’s most powerful quantum system. It had disclosed a total of $77m in funding as of a $55m round co-led by consumer electronics producer Samsung’s Catalyst Fund in late 2019, when Osage University Partners also invested (do check out our sister podcast Talking Tech Transfer, which you can find on GlobalUniversityVenturing.com, for an interview with Osage’s Kirsten Leute about more on their investment strategy).

Deals

China-based e-commerce group JD.com has spun off several subsidiaries in recent years covering areas such as finance, healthcare and logistics. Now its infrastructure investment arm, JD Property, has agreed to raise $700m in a series A round co-led by Warburg Pincus and Hillhouse Capital, according to its 2020 end-of-year results. The other investors were not disclosed but it has partnered sovereign wealth funds GIC and Mubadala on infrastructure funds.

Starling Bank is the latest digital bank to pull in a nine-figure amount of funding, taking $377m in a series D round valuing it above $1.5bn pre-money. Starling, which counts JTC Group among its investors, is one of several well-funded neobanks to spring up in the UK in recent years, including Revolut and Monzo, though the sector is still a long way away from proving profitable, and despite the current fintech boom, it’s going to be interesting to see if they can maintain their growth.

Crypto asset manager BlockFi has completed a $350m series D round valuing it at $3bn, with Hudson River Trading and Susquehanna Government Products among the participants. Its existing investors include Akuna Capital, SoFi and corporate venturing vehicles Consensys Ventures, CMT Digital, Recruit Strategic Partners and SCB 10X.

Valo Health is less than two years old but has just closed an upsized series B round at $300m following a $110m investment by Koch Disruptive Technologies. Valo is one of a new wave of startups allocating machine learning to the drug development process, a wave increasingly looking like it could become the dominant force in the early-stage pharmaceutical sector. It is initially targeting cancer and neurodegenerative and cardiovascular diseases.

Snyk has secured $300m in a series E round consisting of primary and secondary investments, with GV, Atlassian Ventures and Salesforce Ventures all contributing. The app cybersecurity technology provider said it has now raised $470m in primary funding altogether, and the round valued it at $4.7bn post-money. That’s a 47-times increase from the valuation at which GV first invested.

Salesforce Ventures also took part in a $170m series C round for Flutterwave, the developer of a cross-border payment platform, valuing it above $1bn. It’s the latest sign of an ongoing surge in fintech, and the company’s earlier backers include Mastercard, Visa and FIS. It will allocate the funding to product development and customer acquisition.

Funds

Ascension Ventures was set up by health system Ascension two decades ago and now the venture capital firm has closed its fifth fund with $285m in capital supplied by 13 healthcare providers: Ascension itself, as well as AdventHealth, Carle Foundation, CentraCare, Children’s Medical Center of Dallas, Intermountain Healthcare, Novant Health, OhioHealth, OSF HealthCare, Luminis Health, Sentara Healthcare and Texas Health Resources. There is also an unnamed health system among the LPs. Ascension Ventures has invested in nearly 80 companies to date and now has more than $1bn in assets under management.

Exits

Game development platform operator Roblox has executed a direct listing on the New York Stock Exchange that gave Tencent and Warner Music Group (WMG) the chance to sell shares. The direct listing model means there wasn’t an official price for the shares, but the NYSE has issued a guidance price of $45 each, the same price at which Roblox secured $520m in a WMG-backed round in January valuing it at $29.5bn, a sevenfold increase in under a year. As we’re recording this on Friday afternoon UK time, shares are trading at $69.51, which is a slight drop on the $73.90 peak they’d briefly reached on Thursday.

Hippo Enterprises, the online home insurance provider backed by Comcast, Lennar, MS&AD, Munich Re and Standard Industries, is the latest company to seek the Spac route, agreeing to a reverse merger with Reinvent Technology Partners Z. Lennar is among the investors to put $550m of PIPE financing into Hippo, which will come out with $1.2bn in capital once the deal closes. It will list on NYSE and is expected to have a valuation of $5bn, and the money should help Hippo reach its goal of being available for 95% of the US population by the end of the year.

Olo has developed software that helps restaurants manage online orders, and has moved into profit in the past year as a string of US chains have used its platform to deal with increased online orders during the Covid-19 pandemic. The PayPal-backed company seems to have chosen the right time to go public, and has set terms for an initial public offering that will net $324m if it floats at the top of its range. It’s worth mentioning too that Olo has disclosed less than $65m of primary funding pre-IPO.

Coursera, the online education provider spun out of Stanford University and backed by Caltech, University of Pennsylvania, Seek Group, Laureate Education and Times Internet, is going for the traditional IPO exit instead. The spinout is yet to set any terms, having put the customary $100m placeholder figure into its draft prospectus, but it has collected some $443m in funding to date. None of the corporates or universities own more than 5% ahead of the offering and instead Coursera’s largest shareholder is NEA with an 18.3% stake.

Axonius, developer of a cybersecurity asset management platform, has only just achieved unicorn status, raising $100m last week at a $1.2bn valuation. That has proven the ticket for YL Ventures, a venture firm that has been an investor since seed stage, to divest a $270m stake to buyers including the Deutsche Telekom-backed DTCP. Axonius had raised nearly $200m in primary funding without taking any corporate investment.


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

08 March 2021 – Klarna Raises $1bn

The Big Ones

E-commerce instalment finance provider Klarna is riding the fintech wave, having raised $1bn in financing from undisclosed new and existing investors in a round that almost tripled its valuation from $10.7bn to $31bn. Visa, Ant Group, Bonnier, Commonwealth Bank of Australia and Bestseller Group are among the company’s existing backers, and the funding came just six months after Klarna’s previous round.

Singapore-headquartered mobile game, e-commerce and financial services group Sea went public in an $884m initial public offering four years ago, and has decided to allocate $1bn to a corporate venturing vehicle called Sea Capital to boost its ecosystem. The formation of Sea Capital was fuelled by the company’s acquisition of investment manager Composite Capital Management, whose founder David Ma will run the unit on Sea’s behalf.

Oscar Health has gone public in an upsized $1.44bn initial public offering, with the shares priced comfortably above the range it had set for the IPO. The digital health insurer had raised nearly $1.7bn from investors including Alphabet and Ping An pre-IPO, and if the underwriters take up the chance to buy more shares through the over-allotment option the offering could reach roughly the same size.

Crossover

Century Therapeutics, a US-based immuno-oncology therapy developer based on research at Harvard and Stanford universities, has completed a $160m series C round led by Casdin Capital. Leaps by Bayer, the corporate venturing arm of pharmaceutical and chemical group Bayer, also contributed to the round, as did financial services and investment group Fidelity Management and Research and sovereign wealth fund Qatar Investment Authority. Venture capital firm Versant Ventures, which incubated the startup based on Harvard and Stanford work, also took part in the round, as did a host of others. Century is working on drugs using induced pluripotent stem cell (iPSC) technology, which is derived from adult human cells, to develop haematologic and solid tumour cancer treatments.

Deals

Virtual events platform Hopin may have had the fastest immediate growth of any startup in recent times, having just closed its fourth round in 13 months, securing $400m from investors including Salesforce Ventures at a $5.65bn valuation. That figure is near triple the $2.15bn valuation at which it last raised money, in a November series B round that also featured Salesforce Ventures. Its earlier backers include fellow corporate venturing units Slack Fund and Amaranthine Fun.

Instacart has had one of the biggest years in memory for a private VC-backed company, and has now received $265m from existing investors at a $39bn post-money valuation. That’s more than double the $17.7bn at which the Comcast, American Express and Amazon-backed grocery delivery service last raised money, five months ago, and nearly three times that at which it closed the previous round, last July.

A lot of retail has moved online in recent months, and fashion resale platform developer Vestiaire Collective is among the beneficiaries. The company has just received $215m from investors including the Advance Publications-owned Condé Nast and luxury goods producer Kering, which acquired a 5% stake through the transaction. The capital will go to enhancing the company’s technology and data activities.

Humana and Echo Health Ventures have contributed to a $200m series D round for home healthcare provider DispatchHealth that valued it at $1.7bn. DispatchHealth operates in a sector that has seen increased growth in recent months as the coronavirus pandemic has led to home care becoming a more urgent option. The round pushed the company’s overall funding to $417m, its earlier investors including Optum Ventures as well as Echo Health Ventures and Humana.

Last-mile delivery service SiCepat Ekspres has bagged $170m in a series B round that included Telkom Indonesia’s MDI Ventures subsidiary. The round’s December first close valued SiCepat at approximately $736m and its existing backers include Barito Pacific’s Barito Teknologi vehicle in addition to Tokopedia.

Funds

Legend Capital was spun off by Legend Holdings as an independent venture firm but is still backed by its ex-parent. It is also one of the largest VC investors in China, and has launched its sixth renminbi-denominated fund with a target exceeding $1.5bn. It had raised $500m for the close of its most recent dollar fund, LC Fund VIII, late last year.

Crypto.com is joining the likes of fellow digital currency-focused companies Coinbase, Binance and Ripple by forming a corporate venturing unit, Crypto.com Capital, with $200m for it to spend. The unit will invest up to $3m to lead seed rounds and up to $10m for series As, and is targeting crypto technology developers. It is helmed by Crypto.com co-founder and head of corporate development Bobby Bao.

US-based insurance firm Massachusetts Mutual Life Insurance Company has established a $50m investment vehicle called MM Catalyst Fund that will fund companies with diverse founders in its home state of Massachusetts. The capital allocation partly consists of a $25m fund dubbed MMCF Growth which will provide equity and debt financing for Massachusetts-based businesses with black founders, owners or managers. The other half of the funding will go to MMCF Tech, a fund which will provide equity funding for technology developers based in Massachusetts but outside of state capital Boston.

Exits

Okta has agreed to acquire Auth0, a developer of application identity management technology, in an all-share deal that will value it at $6.5bn. That’s more than triple the valuation at which Auth0 last raised funding, in a July 2020 series F round led by Salesforce Ventures and backed by fellow corporate venturing vehicles DTCP and Telstra Ventures. Auth0 has secured a total of $333m since it was founded, from an investor base that also includes NTT Docomo Ventures.

Digital real estate brokerage Compass has meanwhile filed for a $500m initial public offering that could allow SoftBank and Advance Publications to exit. SoftBank Vision Fund is the company’s largest investor, with a 34.8% stake, having put up $250m for a $344m round Compass closed early last year at a reported $6.4bn valuation. Its earlier backers include media group Advance Publications and it has secured about $1.5bn in funding in total.

Manbang Group, the trucking services provider also known as Full Truck Alliance, was valued at almost $12bn in November when it raised $1.7bn in a round co-led by SoftBank Vision Fund. Now, the China-based company has confidentially filed to go public in the United States, with Tencent, Alphabet unit CapitalG and Baidu Capital also in line to exit. It’s going to be interesting to see if the election of Joe Biden, a less China-hostile president, will see a rebound from Chinese companies to US markets.

Doma, the real estate transaction software provider formerly known as States Title, has agreed to list through a reverse merger with special purpose acquisition company Capitol Investment Corp V at a $3bn enterprise value. The deal is supported by a $300m PIPE financing featuring SoftBank and property developer Lennar, the latter an existing investor in Doma. Its other backers include Assurant, Scor and HSCM Bermuda, all of which took part in its $120m series C round in May 2020.

Harvard University spinout Moderna has been one of the biggest success stories not just for spinouts but for corporate venture capital too in the last year, its share price rising sixfold on the strength of it being one of the first pharmaceutical companies to get a covid-19 vaccine approved. One of its pre-IPO investors was AstraZeneca, which provided $140m in equity funding and which has sold its stake for a price likely to have topped $1bn. That’s quite a return, and one that will support plans announced by the corporate in late 2019 to launch a $1bn fund.


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

16 October 2017 – Ola Raises $1.1bn in Tencent-led Round

Deals

Ola confirmed today it has raised $1.1bn in a round led by Tencent, which invested $400m according to recent reports.

Tujia, the online accommodation marketplace often referred to as China’s Airbnb, has secured $300m in a round co-led by Ctrip that valued it at more than $1.5bn.

SoftBank Vision Fund has done more than anyone to ramp up venture capital investment to new levels this year, and it’s far from finished. The fund has led a $164m round for Mapbox, a provider of location and mapping technology for app developers, taking the company’s overall funding to nearly $230m.

Freight shipping management platform Flexport, has confirmed it has closed a $110m series C round that valued it at $910m post-money.

App development seems to be a hot area for SoftBank right now. The firm has also led Petuum’s $93m series B round, investing through an undisclosed subsidiary.

Music royalty collection service Kobalt has added $14m of funding from investors including the Bill Maris-headed Section 32 to take its series D round to $89m.

On Global Government Venturing, the biggest deal was a $100m funding round for Bill.com, a US-based payment processing network already backed by payment services firm American Express, which raised the cash in a round co-led by Singaporean state-owned firm Temasek and financial services firm JPMorgan Chase.

Funds

China-based educational services provider New Oriental Education and Technology has launched a $300m+ fund to invest in early-stage edtech startups, along with a $1.5bn fund that will focus on growth equity and M&A deals, according to local media reports.

Japan-headquartered mobile game developer Akatsuki was founded in 2010 and went public last year, and now it’s elected to join the corporate venturing space with the formation of a $50m fund that will target entertainment technology startups.

Cambridge Enterprise, the tech transfer office of University of Cambridge, has partnered business school unit Cambridge Social Ventures to launch a £100,000 ($132,000) seed impact fund.

On GlobalGovernmentVenturing.com, we’ve also had quite a few new funds, so let’s look at a couple of the bigger ones.

French state-owned investment bank Bpifrance has contributed an undisclosed sum to the €45m ($53.1m) first-close for France-based edtech VC fund Educapital. Children’s retailer IdKids has also backed the fund, as have business-to-business services provider Econocom, publishers Bayard and Hachette Livre, family-owned fund Education for the Many and a range of unnamed investors.

VC firm Wavemaker Partners closed its second Southeast Asia-focused fund today at $66m with contributions from Singapore state-owned investment firm Temasek.

Exits

Meal delivery service HelloFresh originally filed to go public in 2015, only to withdraw its IPO plans the a few weeks later. Now, however, HelloFresh has also confirmed recent reports, filing for an IPO that will raise approximately $355m if it floats at the top of its range.

Further along the IPO process is MongoDB, which has set terms for an offering that will net it $160m if it floats at the top of its range.

Singapore-based online services provider Sea has set the terms for a US IPO that will raise $695m if it floats at the top of its range (or $800m if the underwriters exercise their over-allotment option).

High-speed integrated circuit producer Aquantia has filed for an $86.3m initial public offering that follows about $195m of venture funding.

Spero Therapeutics, a US-based bacterial infection therapy developer backed by spinout-focused investment firm Osage University Partners has filed for an $86.3m initial public offering.


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

02 October 2017 – Roscosmos Establishes Space Ecosystem Fund

Deals

Chinese online services portal Meituan Dianping is reportedly nearing the close of a $3bn round featuring long-term investor Tencent that will value it at up to $30bn.

Alibaba has paid approximately $800m to hike its 47% stake in logistics affiliate Cainiao to 51%, as part of a $5bn investment drive to strengthen its logistics technology capabilities over the next five years.

Food ordering platform Deliveroo has secured $384m in a round co-led by Fidelity and T. Rowe Price set to be announced this week that will reportedly value it at $2bn.

Fosun-backed personal accounting platform Shenzhen Suishou Technology has secured $200m in a series C round led by private equity firm KKR’s newly formed Asian Fund III.

Ride hailing platform Didi Chuxing has invested $200m in Renrenche, the third largest second-hand car e-commerce marketplace in China by market share.

Qingting.fm, an online radio platform that reportedly counts Youku Tudou among its investors, has raised $151m in series E funding from undisclosed investors, according to AllChinaTech.

Pfizer has spun out a startup called SpringWorks Therapeutics to develop treatments for incurable conditions such as desmoid tumours and post-traumatic stress disorder based on therapies licensed from the corporate.

Letgo launched in 2015 as a mobile-focused competitor to Craigslist and eBay, and claims to be one of the fastest growing apps in the country. That growth is set to be fueled by $100m of new funding at a $1bn valuation from undisclosed existing investors.

Customer relationship management software provider ProsperWorks has received $53m in a series C round that took its overall funding to $87m, a sum CEO Jon Lee has claimed makes it the most well-funded CRM company founded in the past 10 years.

Treasury and finance management platform Kyriba has raised $45m in funding from investors including HSBC, the bank that backed its series C and D rounds, in 2015 and 2016 respectively.

We’ve already had the biggest deal on GGV – Cainiao – and on Global University Venturing, the biggest deal came from the UK. Autolus, a biopharmaceutical spinout from University College London (UCL), raised $80m in a series C round that included investment firm Woodford Investment Management. Syncona, backed by medical charities Wellcome Trust and Cancer Research UK, also participated in the round, as did Arix Bioscience, Cormorant Asset Management, Nextech Invest and a range of unnamed investors.

Funds

The Netherlands government-owned Dutch Investment Agency (NIA) and the EU-owned investment vehicle European Investment Fund (EIF) have committed €100m ($117.7m) to a fund targeted at growth-stage startups dubbed the Dutch Growth Co-Investment Program.

The Russian government-owned space agency Roscosmos has established a venture capital fund to commercialise inventions from the space ecosystem.

Exits

Sea, the Southeast Asian online services provider formerly known as Garena, has filed to raise up to $1bn in an initial public offering in the US.

Chinese online video streaming platform iQiyi is considering an initial public offering that will take place in the US early next year and has already started talking to banks, sources have told Bloomberg.

SAP has paid a reported $350m to acquire customer identity management software provider Gigya and will incorporate the company into its SAP Hybrid offering.

Roku has priced a $219m IPO in which Sky Ventures will sell some $9.4m of shares, and is set to float on the the Nasdaq Global Select Market tomorrow.

Nexon has paid $80m for a 65% stake in Korea-based cryptocurrency exchange Korbit, ironically at the exact point when the Korean government has banned initial coin offerings.


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

29 May 2017 – Home Fitness Service Peloton Raises $325m and Much More

Deals

Alibaba and Ant Financial are reportedly set to lead a $1bn round for food ordering platform Ele.me that will value it at up to $6bn.

Peloton, the home fitness service that combines a high-tech exercise bike with a subscription-based service that makes it feel like you’re in a live class (within reason obviously, though who would bet against VR being integrated into Peloton’s offering in the near future?), has raised $325m in a series E round featuring Comcast NBCUniversal.

Livestreaming has become one of the fastest growing parts of the media sector, not least in China where Panda TV has raised $140m in a series B round led by brokerage firm Industrial Securities.

R3, a consortium formed by a few dozen financial services operators to develop and commercialise blockchain technology for the industry, has secured $107m in the first two tranches of a series A round that includes Intel Capital, Ping An and Temasek, the sovereign wealth fund of Singapore, as well as around 40 banks.

In other news, Chinese mobile communication app developer Chubao has raised $100m in a series D round that included Susquehanna International Group, which has been an investor in the company since 2011.

Huya, the livestreaming subsidiary of online video streaming platform YY, has spun out with $75m of series A funding led by Ping An Insurance.

UrWork was founded only two years ago but it could yet turn out to be the Didi Chuxing of the co-working sector.

We’ve also had a few nice triple helix deals in the past week, such as Symic Bio, a biopharmaceutical spinout of Purdue University, that has completed a $30m series B round backed by all its existing investors, including Purdue Foundry Investment Fund, a vehicle backed by Purdue University focused on the institution’s spinouts.

Funds

The big news is that SoftBank has finally announced the first close of its Vision Fund, having raised an immense $93bn in capital.

WuXi Healthcare Ventures, the corporate venturing arm of WuXi PharmaTech, has agreed to merge with VC firm Frontline BioVentures to form a healthcare-focused investment firm called 6 Dimensions Capital that will have some $800m of assets under management.

Saudi Telecom formed strategic VC firm STC Ventures in 2011 to invest in the IT, telecommunications and media sectors, but as times change so do the requirements for corporate venturing, and the firm has elected to commit $500m to a new fund named STV that will back more advanced digital technologies.

Gree Ventures, the corporate venturing arm of social media and gaming company Gree, has closed its second fund at $67m.

We didn’t see any big fund launches on GUV, and while there were some on GGV, the most interesting news here was that the European Investment Fund has started pulling out of the UK following the country’s decision to abandon the EU.

Exits

Flipkart’s acquisition of rival Snapdeal is getting closer with news that SoftBank has bought out the shares of various other Snapdeal board members to clear the way for the deal.

Delivery Hero raised more than $420m from Naspers earlier this month at a reported $3.1bn valuation, but sources have told Reuters it is planning to launch an IPO in the next few weeks that could value it at up to €4bn ($4.5bn).

Sea, the Singapore-registered online services platform that recently rebranded from Garena with a $550m funding round, has confidentially filed for an IPO in the US that will give exits to corporate investors Tencent, JG Summit and Uni-President Enterprises, according to Bloomberg.

Bioverativ has agreed to acquire True North Therapeutics for $400m upfront with up to $425m in milestone payments to come.

On GUV, news emerged on Tuesday that commercialisation firm IP Group had made a bid for Touchstone Innovations, its peer that was spun out of Imperial College London. Touchstone rebuffed the offer, though a majority of its shareholders (some of which also own IP Group stakes) are pushing for the takeover.


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