14 October 2019 – Oyo in $1.5bn Series F Round

The Big Ones

Short-term accommodation platform Oyo is reportedly in the process of raising $1.5bn in series F funding at a $10bn valuation. Existing investor SoftBank is also set to take part in the round but the big news is that Oyo co-founder and CEO Ritesh Agarwal plans to put up a whopping $700m of the cash. Given that the only collateral Agarwal could likely put forward to get that kind of financing is his existing stake in Oyo, that obviously raises all kinds of questions, not least with the increased scrutiny around founder behaviour right now.

The IPO market appears to be slowing down, what with We Company and Postmates both withdrawing their initial public offerings, and immuno-oncology drug developer BioNTech – a spinout of Johannes Gutenberg University of Mainz – hasn’t done brilliantly either. It went public in a $150m IPO that involved it floating at the bottom of its range while also cutting the number of shares. Despite that, Pfizer, Eli Lilly and Sanofi – all development partners – will score exits through the offering.

Ginkgo Bioworks – itself an MIT spinout – has already spun out two companies, Joyn Bio and Motif Foodworks, which have raised decent sums of money, but now the custom microbe developer has formed a $350m vehicle specifically to fund other spinouts.

Deals

Chime is one of a string of digital banks that have sprung up in recent years and claims to be the fastest growing, increasing the number of accounts it oversees from 3 million in March to 5 million in September.

Zomato is locked in a battle with Swiggy for domination of India’s food delivery market, and just like Tencent-backed Swiggy, it has a major Chinese corporate providing cash. Ant Financial has invested more than $400m in Zomato and is reportedly in line to participate in a $600m round that would value it at up to $4bn.

Chinese tutoring platform VIPKid has confirmed it has raised money in a Tencent-led series E round, without confirming the size of that round. Recent media reports could give some clues on that front however, with $500m being put forward as an upper target and Tencent’s contribution placed around the $150m mark.

Lilium, a flying car developer spun out of Technical University of Munich, is also fundraising and is in talks with Tencent over a round that will reportedly be sized at $400m to $500m. Tencent contributed to Germany-based Lilium’s last round, a $90m series B, two years ago but the new funding will follow its unveiling of a working prototype of its vehicle in May.

Next Insurance has received $250m from Munich Re in the form of series C funding that will help the workplace insurance platform grow its business in the US. The round valued Next at more than $1bn and the deal increased Munich Re’s stake in the company to 27.5%.

It’s been a while since we last heard from Benlai, but the China-based grocery e-commerce has been busy expanding its service to hundreds of additional cities since its last round – a combined $117m series C and C+ from investors including Joyoung – in 2016.

SparkCognition has meanwhile collected $100m in a series C round backed by returning investor Boeing HorizonX and new investor Hearst Ventures, as well as 14 others (including Malcom Turnbull – yes, the former prime minister of Australia).

Arcellx is working on immune cell therapies to treat cancer, and has captured $85m in a series B round that included LG Technology Ventures and existing backers Novo, SR One and Takeda Ventures.

Funds

Petroleum supplier Petronas hasn’t been a significant venture capital investor yet but it appears to be making plans to change that. The corporate intends to pump up to $350m into a unit called Petronas Corporate Venture Capital that will fund companies developing tech in areas such as advanced materials, specialty chemicals and energy. It had already launched a $250m investment vehicle known as Piva in January.

Exits

GV made a hefty chunk of change by divesting part of its stake in Uber to a SoftBank-led consortium in late 2017 at a $48bn valuation, but CEO David Krane has disclosed that it may sell the rest once the post-IPO lock-up period expires next month.

Praktikertjänst-backed Aprea Therapeutics went public last week, picking up $85m in proceeds after pricing shares in the middle of the range at $15. It looks like the company may have underestimated the market, as shares shot up to $20.50 on the first day of trading and have continued to trade above the IPO price.

Vir Biotechnology is the latest company not to meet its IPO expectations, floating at the bottom of its range, but still raising $143m. SoftBank Vision Fund is the second largest shareholder of immunology therapy developer Vir, having pumped in at least $180m over two rounds.


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

26 February 2018 – EasyHome Raises Over $2bn

Deals

Chinese furniture and home improvement retail chain EasyHome has raised just over $2bn in a round in which Alibaba invested approximately $860m in return for a 15% stake.

Uber could acquire what sources told CNBC would be a sizeable stake in Southeast Asian counterpart Grab through a deal that will involve Grab taking on its local business.

Procept BioRobotics, the developer of an aquablation treatment for a prostate condition called benign prostatic hyperplasia, has secured $118m in a round led by Viking Global Investors.

Harry’s has been one of the two biggest players in the razor blade subscription market, along with Dollar Shave Club, and the Grace Beauty-backed company has raised $112m in a round that will precede an expansion of the business model into areas like personal care items for both sexes as well as baby products and household goods.

Kallyope, a US-based company developing drugs that focus on the gut-brain axis, received $66m in a series B round featuring Illumina Ventures, the corporate venturing subsidiary of genomics technology producer Illumina.

AI data analytics platform SparkCognition has added $24m from investors including corporate venturing units Invenergy Future Fund and CME Ventures to close its series B round at $56.5m.

Glossier, a US-based skincare and beauty product company backed by talent agency William Morris Endeavor (WME), raised $52m in a series C round yesterday co-led by VC firms IVP and Index Ventures.

Financial services provider Power Financial has invested another $51m in robo-advisor operator WealthSimple, taking its total commitment to $165m according to the latter.

Smart glasses developer OrCam has received $30.4m in funding from investors including Clal Insurance at a reported valuation of about $1bn. OrCam, which counts Intel Capital as an earlier investor, is said to be prepping an IPO for 2019 and will aim to raise one more substantial round of funding before then, having so far secured a total of $130m according to Reuters.

On GUV, Liquidia Technologies, a US-based biopharmaceutical spinout from University of North Carolina at Chapel Hill, has raised $25.5m in funding.

Funds

SoftBank Vision Fund has already secured some $40bn from Middle Eastern sovereign wealth funds PIF and Mubadala Investment Company, and now the CEO of Bahraini sovereign wealth fund Mumtalakat has confirmed it too is in talks to invest.

Cove Fund, a family of seed-stage venture capital funds that invests in companies affiliated with University of California (UC) System, has raised more than $12m for its second fund. The figure represents a first close for Cove Fund II, with a regulatory filing indicating a $15m target size.

Switzerland-headquartered biotechnology and chemicals supplier Lonza Group has formed a corporate venturing fund in partnership with US-based venture capital firm Prolog Ventures.

Exits

Flatiron Health agreed to an acquisition by investor Roche in mid-February that will involve the latter paying $1.9bn for the company’s outstanding shares, and much of the attention has understandably been on Roche.

And talking of GV’s recent spate of life sciences exits, it looks like the next one will be Arcus Biosciences. Immuno-oncology therapy developer Arcus has filed for a $100m initial public offering, having previously raised some $227m in VC funding.

Social media company Momo agreed today to acquire China-based social engagement platform Tantan for about $760m, allowing media group Bertelsmann and social network operator YY to exit.

Faceu, the developer of an augmented reality app that allows effects to be overlaid on photos or videos in real time, has reportedly been acquired by mobile news platform Toutiao for $300m.

Enterprise cloud security technology provider Zscaler had raised $148m in funding from investors including the Dell-owned EMC and Alphabet unit CapitalG, and has now filed to raise up to $100m in an initial public offering.


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