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

03 July 2017 – The Political Environment and Investment

Funds

Cloudflare, an internet technology provider with its own security products, has launched its own $100m fund.

Cybersecurity technology producer Trend Micro has inserted an initial $100m into a newly formed corporate venturing unit that will target disruptive sectors such as the internet-of-things, which its parent company believes will be the next technology mega wave.

Corporates boost Cathay Innovation fund to $320m

Capnamic Ventures, a VC firm that focuses on startups in German speaking regions, has reached the final close of its latest fund, having raised $130m. The fund’s limited partners include Cisco, which announced a $500m German investment drive early last year, as well as AXA Germany, Rheinische Post Media Group and Sparkassen Group.

Applied Ventures joins KVIC for $40m Korea fund

University

Technion institutes $200m fund

Imec expands with $136m fund

Government

BioGeneration begets $75m fund

Horizon approaches $150m fund

Exits

ProSiebenSat.1 sells media-for-equity assets

Online insurance provider ZhongAn has reportedly filed for a $1.5bn IPO in Hong Kong that will allow the company’s co-founders Ping An, Tencent and Alibaba affiliate Ant Financial to exit.

Best Inc, one of several logistics and supply chain services providers to have sprung up in the wake of China’s e-commerce boom, has filed for a $750m IPO in the US.

Takeda subsidiary Millennium Pharmaceuticals and Pfizer have both scored exits in a $75m IPO by Mersana Therapeutics, a developer of antibody drug conjugates that will fight cancer.

Deals

Alibaba paid $1bn for a majority stake in Southeast Asian e-commerce marketplace Lazada last year, and now it’s pumped in another $1bn to take its stake to 83%, giving full exits to backers including Tesco and Rocket Internet, both of which also sold shares in the 2016 deal.

Sources confirmed to Bloomberg over the weekend that Houzz, the Comcast-backed operator of a social image platform for house decoration ideas, has closed a $400m round that valued it at $4bn.

Dynamic glass developer View has doubled its series G round to $200m, $70m of the money coming from BlackRock.

Siemens has joined the participants in electric vehicle charging network ChargePoint’s series G round, which has now closed at $125m.

Naspers reveals $71m Flipkart investment

Brazilian mobile commerce platform Movile has raised $53m in a round that included longtime investor Naspers, which had put up a big part of the $135m the company had raised between 2014 and 2016.

GPU-equipped database developer Kinetica has secured $50m in funding from investors including Citi Ventures, taking its equity financing to $63m in a little over a year.

Government

IDS diagnoses $60m investment

University

Diffblue enters series A spectrum


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