Lots of money changed hands during November
As 2020 nears its end, a number of trends have emerged over the past 11 months.
The widespread emergence of special-purpose acquisition companies (SPACs), also known as blank-check companies, remained a phenomenon in November. Initial public offerings by SPACs raised approximately $3.83 billion during the month. Many more millions of dollars are awaiting companies that have recently filed for IPOs.
Mega-rounds of private funding, also known as supergiant rounds, were still in significant volumes for the month. In addition to a handful of investments for $1 billion or more, there were approximately 50 rounds of $100 million and up.
Crunchbase reports that there have been 539 supergiant rounds in 2020, as of mid-November, with a total of almost $142 billion. That compares with $140 billion for all of 2019, and $180 billion in 2018.
Crunchbase also notes that liberal amounts of funding are common in “blue states,” where Democrats dominate the politics, and much less so in “red states,” where the Republicans rule.
Another trend is wider acceptance of debt financing and lines of credit for startups, instead of private equity funding and venture capital.
In this stressful year of the worldwide coronavirus pandemic, mental health startups are in vogue, TechCrunch’s Extra Crunch reports. Behance founder Scott Belsky writes that getting a startup off the ground is good preparation for the pandemic’s economic conditions.
Sequoia Capital, one of the oldest companies in venture capital, is looking toward technology startups in Europe for new opportunities. That doesn’t mean the venerable firm is ignoring startups in the States; it has invested in Airbnb, Apple, Atari, Cisco Systems, DoorDash, Dropbox, FireEye, Google, LinkedIn, Nvidia, Oracle, Palo Alto Networks, Stripe, YouTube, and Zoom Video Communications, among many other startups.
Singapore-based The-Wolfpack is the new and younger generation of venture capitalists. Two of the founders worked at GroupM, WPP’s global media investment management company.
London-based XTX Ventures isn’t just a fan of artificial intelligence/machine learning startups — it uses machine learning technology to help guide investment decisions, as its parent company, XTX Markets, employs machine learning for automated trading on a daily basis.
Initial Public Offerings
Here’s a short digest of November’s IPOs, aside from SPAC offerings.
Maravai LifeSciences raised $1.6 billion in its IPO.
Sotera Health raised $1.1 billion in its IPO.
Ozon Holdings raised $990 million in its IPO.
Yatsen Holding raised $617 million in its IPO.
JW Therapeutics raised $300 million in its IPO.
Olema Pharma raised $209 million in its IPO.
NeoGames raised $82 million in its IPO.
More IPOs are on the way, with Airbnb and DoorDash expected to be among the big tech offerings in December. Airbnb plans to list on Nasdaq as ABNB, while DoorDash plans to list on the New York Stock Exchange as DASH.
Other potential IPOs before the new year include Affirm Holdings, C3.ai, Roblox, and ContextLogic, doing business as Wish.
London-based Arrival, a developer of electric commercial vehicles, agreed to a reverse merger with publicly held CIIG Merger Corp. (Nasdaq: CIIC), valuing the company at $5.4 billion, including a $400 million private investment in public equity (PIPE) from Fidelity Management & Research, Wellington Management, and BNP Paribas. Arrival had raised $230 million from investors including BlackRock, Hyundai Motor, Kia Motors, and UPS.
Aeva of Mountain View, Calif., a developer of LiDAR sensors for autonomous vehicles, agreed to go public via a reverse merger with publicly traded InterPrivate Acquisition Corp. (NYSE: IPV), valuing the company at $2.1 billion or more. Aeva had raised more than $100 million from such investors as Lux Capital, Audi, Porsche Automobil Holding, and Canaan Partners.
Electric Last Mile Solutions of Auburn Hills, Mich., a developer of electric vehicles, plans to go public through a reverse merger with publicly held Forum Merger II (Nasdaq: FMCI), Bloomberg News reports.
Microvast of Stafford, Texas, a manufacturer of electric batteries, plans to go public through a reverse merger with publicly traded Tuscan Holdings Corp. (Nasdaq: THCB), valuing the company at around $2 billion.
San Diego-based Nuuve, a developer of EV-to-power-grid projects, agreed to go public via a reverse merger with publicly held Newborn Acquisition Corp. (Nasdaq: NBAC).
Lightning eMotors of Loveland, Colo. (formerly known as Lightning Systems), a developer of electric fleet vehicles, plans to go public through a reverse merger with publicly traded GigCapital3 (Nasdaq: GIK), valuing the company at a range from $700 million to $1 billion. BP Ventures and other backers invested about $27 million in Lightning eMotors.
Metromile of Tempe, Ariz., which offers auto insurance on a pay-per-mile basis, agreed to go public via a reverse merger with publicly held INSU Acquisition Corp. II (Nasdaq: INAQ), valuing the company at $956 million, including a $160 million PIPE by Social Capital. Metromile had raised $285 million in venture funding from New Enterprise Associates, Hudson Structured, Intact Ventures, Tokio Marine, Index Ventures, and Mark Cuban.
Butterfly Network of Guilford, Conn., which provides medical imaging systems, will go public via a reverse merger with publicly held Longview Acquisition (NYSE: LGVW), valuing the enterprise at $1.5 billion. The deal includes a $175 million PIPE from Fidelity, Glenview, Ridgeback, Tenet Healthcare, UPMC, and Wellington Management. Butterfly had raised $390 million in venture funding from Fidelity, Fosun Pharma, the Bill & Melinda Gates Foundation, and JPMorgan Chase CEO Jamie Dimon.
New York-based Perella Weinberg Partners, an investment bank, plans to go public via a reverse merger with a SPAC, valuing the company at more than $1 billion, Reuters reports.
AvePoint of Jersey City, N.J., will go public through a reverse merger with publicly held Apex Technology Acquisition Corp. (Nasdaq: APXT), valuing the provider of Microsoft SharePoint management software at about $2 billion. Goldman Sachs and TPG Sixth Street Partners are investors in AvePoint.
While rumors swirled about fundings with nine or 10 figures in progress, at breathtaking valuations, such as Stripe and Discord, there were many large rounds in November.
China’s Manbang Group, a truck-hailing company, raised $1.7 billion from the SoftBank Vision Fund, Sequoia Capital China, Permira, Fidelity, GGV Capital, Hillhouse Capital, Lightspeed China Partners, Tencent Holdings, and YF Capital.
Saudi Arabia’s Public Investment Fund invested $1.3 billion in Reliance Retail of India, taking an equity stake of 2.04%.
Alibaba Group and Richemont agreed to invest $1.1 billion in London-based Farfetch, an e-commerce marketplace for independent boutiques. Farfetch is publicly traded on the NYSE as FTCH. The companies are forming a worldwide partnership for luxury brands, with enhanced access to the China market.
Onex Group and GIC are leading a consortium of investors putting $1 billion into Bermuda-based Convex Group, an insurer and reinsurer specializing in complex risks.
An investor group led by Qatar Investment Authority and Caisse de dépôt et placement du Québec invested $800 million in Inigo, a Lloyd’s of London insurer.
Mubadala Investment of Abu Dhabi led an investment of $700 million in REEF Technology, joined by the SoftBank Vision Fund, Oaktree Capital, UBS Asset Management, and Target Global. Formerly known as ParkJockey, Miami-based REEF manages parking garages and lots, while also redeveloping parking properties for a variety of other uses, such as cloud kitchens and stores. Partnering with Oaktree, REEF established a $300 million fund to acquire strategic real estate assets.
Nuro of Mountain View, Calif., raised $500 million in Series C funding led by T. Rowe Price Group and joined by Fidelity and Baillie Gifford, valuing the company at $5 billion. Nuro is developing autonomous delivery vehicles and has raised a total of $1.5 billion in private funding, according to Crunchbase.
Los Angeles-based Relativity Space, a developer of 3D printers for making rockets and a provider of satellite launch services, is receiving $500 million in Series D funding led by Tiger Global Management and including new investors Fidelity, Baillie Gifford, ICONIQ Capital, General Catalyst, XN, Senator Investment Group, and Elad Gil, along with existing investors BOND, Tribe Capital, K5 Global, 3L, Playground Global, Mark Cuban, Spencer Rascoff, and Allen & Company, among other investors, valuing the company at more than $2 billion. Relativity has raised a total of $685.7 million in private funding.
TPG Capital and the Canada Pension Plan Investment Board (CPP Investments) are investing an additional $500 million in Viking Cruises.
Blackstone Tactical Opportunities and ClearSky are investing $400 million in publicly held FireEye (Nasdaq: FEYE), the cybersecurity firm in Milpitas, Calif. The company turned around part of that money to acquire Respond Software, a cybersecurity investigation automation startup, for about $186 million in cash and stock.
Torchy’s Tacos of Austin, Texas, raised $400 million in growth funding led by General Atlantic, its majority shareholder, and joined by D1 Capital Partners, T. Rowe Price, Lone Pine Capital, and XN. The taco restaurant chain has 83 locations in seven states, expanding beyond its original base in the Lone Star State.
Hippo Enterprises of Palo Alto, Calif., received $350 million in new funding from Mitsui Sumitomo Insurance Co. The home insurance startup in July raised $150 million in Series E funding, valuing the company at about $1.5 billion at that time.
Other mega-round fundings of the month: DataRobot, $270 million; PingCap, $270 million; SentinelOne, $267 million; Starling, £200 million (about $266 million); Pharmapacks, $250 million; TIER Mobility, $250 million; AppsFlyer, $210 million; Ambrx, $200 million; Better.com, $200 million; Cars24, $200 million; D3 Bio, $200 million; Klaviyo; $200 million; Codemao, about $198 million; CARSgen Therapeutics, $186 million; VIPThink, $180 million; Heyday, $175 million; Zhangyue Technology, $170 million; Conductor, $150 million; Gojek, $150 million; Vimeo, $150 million; Waterdrop, $150 million; Current, $131 million; Cato Networks, $130 million; Prometheus Biosciences, $130 million; ATAI Life Sciences, $125 million; Forter, $125 million; Hopin, $125 million; Cytek Biosciences, $120 million; Inceptio Technology, $120 million; SellerX, €100 million (nearly $120 million); Addepar, $117 million; Satispay, €93 million (about $111 million); Strava, $110 million; Xpressbees, $110 million; Carbon Health, $100 million; Chainalysis, $100 million; Kredivo, $100 million; Menlo Security, $100 million; MindTickle, $100 million; Udemy, $100 million; and Zeus Health, $100 million.
Mergers & Acquisitions
At the very end of November, S&P Global agreed to acquire IHS Markit for $44 billion, including $4.8 billion in debt, in a stock-swap transaction. S&P Global shareholders would own about two-thirds of the merged company once the transaction closes during the second half of 2021. The companies compete in economic and financial data, including specific market research and forecasting. It is the largest deal of this year, to date.
Salesforce has agreed to acquire Slack Technologies for $27.7 billion in cash and stock.
Huawei Technologies, the embattled Chinese manufacturer of networking equipment and smartphones, reportedly plans to sell its Honor business unit, which makes the company’s budget-brand phones, for around $15.2 billion in cash to an investor group led by Digital China Group, a distributor of handsets, and the municipal government of Shenzhen, where Huawei makes its headquarters.
NextEra Energy agreed to acquire Evergy, a power utility, for $15 billion in stock.
PNC Financial agreed to acquire the U.S. business of BBVA, a Spanish financial company, for $11.6 billion in cash.
Nexi, the largest payments company in Italy, agreed to acquire Denmark-based Nets for €7.8 billion (including €1.8 billion in debt) in stock. The purchase price works out to about $9.3 billion in U.S. dollars.
Intact Financial and Tryg agreed to acquire RSA Insurance Group for £7.2 billion (nearly $9.6 billion).
Stonepeak Infrastructure Partners agreed to acquire Astound Broadband, a U.S. cable operator with more than 1 million customers, for $8.1 billion, including $4.5 billion in debt.
The Home Depot agreed to acquire HD Supply Holdings for about $8 billion in cash. Home Depot spun off HD Supply to private equity firms in 2007 for $10.3 billion, with HD Supply going public in 2013.
The U.S. Department of Justice seeks to block Visa’s proposed $5.3 billion acquisition of Plaid, an infrastructure provider for financial systems.
Mars, Inc. agreed to acquire KIND North America, the developer and manufacturer of Kind snack bars, for an estimated $5 billion. Mars became a minority shareholder in KIND three years ago.
GlobalWafers is in talks with Siltronic, a German supplier of silicon wafers for the semiconductor industry, about an acquisition valued at €3.75 billion (about $4.5 billion). The proposed purchase would make Taiwan-based GlobalWafers the third largest wafer vendor in the world.
Traton, the publicly held commercial truck business of Volkswagen, agreed to acquire Navistar for about $3.7 billion. The VW unit previously held an equity stake of 16.9% in the American truck manufacturer.
Baidu will pay $3.6 billion in cash to purchase the Chinese video live-streaming unit of JOYY.
American Tower agreed to acquire InSite Wireless for $3.5 billion, including debt.
Twilio completed its acquisition of San Francisco-based Segment, a provider of cloud customer data infrastructure, for $3.2 billion in stock.
Among other big deals: Palo Alto Networks is buying San Francisco-based Expanse, a provider of information technology operations management software, for $800 million in cash and stock, plus another $130 million in retention equity awards for Expanse’s employees. Autodesk bought Spacemaker for $240 million in cash and stock. Spotify is buying Megaphone for $235 million. NerdWallet purchased Fundera. IBM is buying TrueQua Enterprises and Instana. Intel acquired Cnvrg.io. Hyundai Motor is reportedly negotiating to buy Boston Dynamics, the robotics company, from SoftBank, the current owner. Cisco Systems agreed to acquire the assets of Banzai Cloud. Splunk bought Flowmill.
Artificial Intelligence/Machine Learning
Boston-based DataRobot raised $270 million in Series F funding led by Altimeter Capital and joined by T. Rowe Price, BlackRock, Silver Lake Partners, NEA, and Tiger Global, valuing the enterprise artificial intelligence platform company at more than $2.7 billion. Founded in 2012, the startup has raised a total of $700.6 million in private funding, per Crunchbase. DataRobot could go public in the near future.
Abacus.AI of San Francisco received $22 million in Series B funding led by Coatue Management and joined by Decibel Ventures and Index Ventures. The developer of AI modules was founded in 2019 and has raised a total of $40.3 million in private funding.
Chooch Intelligence Technologies, doing business as Chooch.ai, raised $20 million in Series A funding led by Vickers Venture Partners, with participation by 212, Streamlined Ventures, Alumni Ventures Group, and Waterman Ventures. The San Francisco-based enterprise computer vision startup was founded in 2015 and has raised a total of $25.8 million in private funding. It offers an AI platform that can discern whether construction workers are wearing hard hats and safety vests.
BeyondMinds of Tel Aviv, Israel, and New York received $15 million in Series A funding led by Grove Ventures and Marius Nacht, the co-founder of Check Point Software Technologies. The provider of enterprise AI software was founded in 2018 and took in seed funding.
Paris-based GrAI Matter Labs raised $14 million in new funding led by iBionext, among other existing investors, and including Bpifrance, a new investor. The startup is developing ultra-low-power neuromorphic computing technology, utilizing AI. The company was established in 2016 and has raised a total of $29 million in private funding.
Seldon Technologies of the United Kingdom received £7.1 million (about $9.45 million) in Series A funding co-led by AlbionVC and Cambridge Innovation Capital with participation by existing investors Amadeus Capital Partners and Global Brain, among other investors. The developer of a machine learning deployment platform was founded in 2014 and has raised a total of $13.7 million in private funding.
Miami-based Cast AI Group raised $7.7 million in seed funding from TA Ventures, DNX, Florida Founders, and other investors. The startup offers a multi-cloud platform enabling users to deploy, manage, and optimize Kubernetes clusters across multiple public clouds, such as Amazon Web Services, Google Cloud, and Microsoft Azure. The startup was founded in 2019.
Altana AI of New York received $7 million in seed funding led by Amadeus Capital Partners and joined by Schematic Ventures, AlleyCorp, and Working Capital. The startup offers the Altana Atlas, a federated data platform for global commerce. It was founded in 2018 and is also known as Altana Trade.
Berlin-based Hasty raised $3.7 million in seed funding led by Shasta Ventures and joined by Coparion and iRobot Ventures. Founded in 2019, the startup provides annotation tools for vision AI.
San Francisco-based Catachi Co., doing business as Compliance.ai, received $3 million in Series A funding led by Cota Capital. The startup was founded in 2014 and has raised a total of $10 million in private funding. Compliance.ai helps financial compliance professionals keep up with regulations. It works with asset management firms, banks, and insurance companies.
Automotive & Mobility
Berlin-based TIER Mobility raised $250 million in Series C funding led by the SoftBank Vision Fund 2 and joined by Mubadala Capital, Northzone, Goodwater Capital, White Star Capital, Novator, and RTP Global, valuing the electric scooter rental startup at nearly $1 billion. TIER was founded in 2018 and has raised a total of $381 million in private funding, according to Crunchbase.
Indonesia’s Gojek, a ride-hailing service, received $150 million in convertible note financing by Telkomsel, the local telecommunications company. Founded in 2010, Gojek (legal name: PT Aplikasi Karya Anak Bangsa) has raised a total of $5 billion in private funding. It has diversified into car rentals, food delivery, a video-streaming platform, logistics, and acquiring fintech startups. The company launched its “Super App” in 2015.
Envoy Technologies of Culver City, Calif., raised $11 million in Series A funding co-led by Shell Ventures and Building Ventures, with participation by DENSO, Goodyear Ventures, GroundBreak Ventures, and the Los Angeles Cleantech Incubator Impact Fund. The company touts “mobility as an amenity” for the commercial real estate market. It also took in a $70 million credit facility from Macquarie Group. The company was founded in 2016 and has a total of $82.5 million in debt and equity funding.
The U.K.’s Marshmallow raised $30 million in Series A funding from Outrun Ventures and other investors, valuing the car insurance startup at about $310 million. The company, founded in 2019, uses algorithmics and analytics to assess the risks of insuring drivers. Marshmallow has raised a total of $31.2 million in private funding.
San Francisco-based Getaround received $25 million in a venture loan facility from Horizon Technology Finance. The startup offers a peer-to-peer car-sharing marketplace. Founded in 2011, the company has raised a total of $568 million in debt and equity funding. It rents out privately-owned cars in Europe and the U.S.
Signal Automotive of Los Angeles raised $20 million in venture funding led by Kayne Partners. The company provides a wholesale auto platform, using AI and data to optimize wholesale dealer trades. The company was founded in 2017.
Tucson, Ariz.-based Lunewave received $7 million in Series A funding from Proeza Ventures, Blue 9 Capital, Tsingyuan Ventures, and Intact Ventures. The startup is developing radar technology for autonomous vehicles. Lunewave was founded in 2017 and has raised a total of $12.5 million in private funding.
Ride Vision, an Israeli developer of AI-based safety systems to prevent motorcycle crashes, raised $7 million in Series A funding led by OurCrowd and joined by YL Ventures, Metagal, and Mobilon Ventures. The company was founded in 2018 and has raised a total of $10 million in private funding.
Ireland’s Provizio received $6.2 million in seed funding from Bobby Hambrick (the founder of Autonomous Stuff), the founders of Movidius (now owned by Intel), the European Innovation Council, and ACT Venture Capital. Founded in 2019, the startup provides AI and sensors to help prevent automotive accidents.
Nigeria’s Autochek received $3.4 million in pre-seed funding co-led by TLcom Capital and 4DX Ventures. The startup offers an auto sales and services platform.
Sentinel Labs of Mountain View, Calif., doing business as SentinelOne, raised $267 million in Series F funding led by Tiger Global and joined by Sequoia Capital Global Equities and existing investors Insight Partners, Third Point Ventures, and Qualcomm Ventures, valuing the startup at $3.1 billion. The company, founded in 2013, offers an autonomous cybersecurity platform for endpoint protection. SentinelOne has raised a total of $696.5 million in private funding, according to Crunchbase.
Tel Aviv-based Cato Networks received $130 million in Series E funding led by Lightspeed Venture Partners and joined by Coatue, Greylock Partners, Aspect Ventures, Singtel Innov8, and Cato co-founder and CEO Shlomo Kramer, valuing the company at more than $1 billion. Cato offers a cloud-based secure access service edge platform. The startup was founded in 2015 and has raised a total of $332 million in private funding.
New York-based Forter raised $125 million in Series E funding led by Bessemer Venture Partners, Felix Capital, and Itai Tsiddon, with participation from Sequoia Capital, Scale Venture Partners, NewView Capital, March Capital Partners, and Commerce Ventures, valuing the company at more than $1.3 billion. The startup specializes in detecting and combating fraud in e-commerce. Forter was established in 2013 and has raised a total of $225 million in private funding.
Menlo Security of Mountain View, Calif., received $100 million in Series E funding led by Vista Equity Partners and joined by Neuberger Berman funds, General Catalyst, JP Morgan, American Express Ventures, HSBC, Osage University Partners, and other existing investors, at an $800 million valuation. The startup provides a secure web gateway. Menlo Security was founded in 2012 and has raised a total of $260.5 million in private funding.
San Francisco-based Abnormal Security raised $50 million in Series B funding led by Menlo Ventures and joined by existing investor Greylock, valuing the startup at more than $500 million. The company provides e-mail cybersecurity, protecting customers from targeted e-mail attacks. Abnormal was founded in 2018 by two former Twitter employees and has raised a total of $74 million in private funding.
Atlanta-based Flock Group, doing business as Flock Safety, received $47 million in Series C funding led by Meritech Capital Partners and joined by Julia and Kevin Hartz (Eventbrite), Zac Bookman (OpenGov), and existing investors Initialized Capital, Axon, Bedrock Capital, Matrix Partners, Founders Fund, and Y Combinator. The startup provides local surveillance systems, using machine learning technology to detect and deter non-violent crime. Flock Safety was founded in 2017 and has raised a total of $80.6 million in private funding.
Isovalent of Mountain View, Calif., raised $29 million in Series A funding led by Andreessen Horowitz and Google, with participation by Cisco Investments. The startup, also known as Covalent IO, just came out of stealth mode and launched its Cilium Enterprise product, providing cloud-native networking and security. Isovalent was founded in 2017.
Madrid-based Smart Protection received €10 million (nearly $12 million) in Series B funding co-led by Knight Capital and Swanlaab Venture Factory, with participation from CDTI, Nauta Capital, JME Ventures, Bankinter, Big Sur Ventures, and Telefónica. The Spanish startup specializes in protecting brands from online counterfeiting. Smart Protection was founded in 2015 and has raised more than €20 million (about $24 million) in private funding.
DefenseStorm of Alpharetta, Ga., raised $12 million in Series B funding led by Georgian Partners and joined by TTV Capital. The startup is a network security company providing a cloud-based cybersecurity management platform. DefenseStorm also raised $7 million in growth funding from CIBC Innovation Banking. The company was established in 2014 and has raised a total of $47 million in private funding.
San Diego-based Ubiq Security received $6.4 million in seed funding led by Okapi Venture Capital, and joined by TenOneTen Ventures, Cove Fund, DLA Piper Venture, Volta Global, and Alexandria Venture Investments. The startup uses application programming interfaces to simplify data protection. Ubiq was founded in 2019.
San Francisco-based Carbon Health Technologies raised $100 million in Series C funding led by Dragoneer Investment Group and joined by existing investors Brookfield Technology Partners, Data Collective VC, and Builders VC. The virtual health-care provider will be opening 100 pop-up clinics for COVID-19 testing across the U.S. in 20 markets, and preparing to offer vaccinations for the coronavirus, once those vaccines are available. The startup was established in 2015 and has raised a total of $172.5 million in private funding, per Crunchbase.
KKR & Co. is investing $100 million to create Zeus Health, which will offer a medical device platform. Duke Rohlen, a veteran of the medical device business, is involved in the new venture; the former CEO of Spirox earlier collaborated with KKR in 2017 to form Ajax Health, which sold its EpiX Therapeutics business to Medtronic in 2019. Zeus Health is based in Menlo Park, Calif. KKR is funding the startup through its Health Care Strategic Growth Fund. The private equity firm has invested about $14 billion in the health-care sector since 2004, it was said.
Medable of Palo Alto, Calif., received $91 million in Series C funding led by Sapphire Ventures and joined by GSR Ventures, PPD Inc., and Streamlined Ventures. The developer of clinical trial management software was founded in 2015 and has raised a total of $124.6 million in private funding.
New York-based Spring Care, doing business as Spring Health, raised $76 million in Series B funding led by Tiger Global and joined by new investors GingerBread Capital and Operator Partners, with participation by existing investors Northzone, Rethink Impact, the William K. Warren Foundation, Work-Bench, SemperVirens, Able Partners, True Capital, Kyle Lowry of the Toronto Raptors and Breanna Stewart of the Seattle Storm. The startup offers a platform to address the mental health of employees. Spring Health was established in the springtime of 2016 and has raised a total of $106 million in private funding.
AliveCor of Mountain View, Calif., received $65 million in Series E funding led by existing investors OMRON, Khosla Ventures, WP Global Partners, Qualcomm Ventures, and Bold Capital Partners. The startup offers remote cardiology platforms, approved by the Food and Drug Administration. The company was founded in 2010 and has raised a total of $153.4 million in private funding.
Eko Devices of Oakland, Calif., doing business as Eko Health, raised $65 million in Series C funding co-led by Highland Capital Partners and Questa Capital, with participation by Artis Ventures, DigiTx Partners, NTTVC, 3M Ventures, and other investors. The cardiopulmonary digital health company markets FDA-approved digital stethoscopes. Eko was founded in 2013 and has raised a total of $95.5 million in private funding.
Congenica of Cambridge, England, U.K., received $50 million in Series C funding co-led by Tencent Holdings and Legal & General, with the participation of existing investors Cambridge Innovation Capital and Downing Ventures, with Xeraya, Puhua Capital, and IDO Investments also participating. The digital health company analyzes complex genomic data. Congenica was established in 2013 and has raised a total of $82.4 million in private funding.
Well Health of Santa Barbara, Calif., raised $45 million in Series C funding led by Lead Edge Capital and joined by Martin Ventures and existing investors Jackson Square Ventures, Health Velocity Capital, Summation Health Ventures, Structure Capital, and Freestyle Capital. The patient communications startup, which has a smartphone application, was founded in 2015 and has 160 employees.
New York-based Kang Health, doing business as K Health, received $42 million in Series D funding led by Valor Equity Partners and joined by Marcy Venture Partners, Anthem, 14W, Mangrove Capital, Lerer Hippeau, and Primary Ventures. The startup provides a data-driven digital primary care system that uses AI to deliver personalized primary care, using the K smartphone application. K Health was founded in 2016 and has raised a total of $139.3 million in private funding.
GigCapital2, a blank-check company, is acquiring and merging Cloudbreak Health of Columbus, Ohio, and UpHealth of Marquette, Wis., into a digital health company valued at $1.35 billion. Founded in 2003, Cloudbreak had raised $25 million from Kayne Anderson and Columbia Partners Private Capital.
Kandou Bus of Lausanne, Vaud, Switzerland, raised $92.3 million in Series C funding led by Bessemer Venture Partners, joined by new investors Climb Ventures and Swiss Select Opportunities managed by Flexstone Partners. The fabless semiconductor company will use the money to complete the development of its Matterhorn chip, a USB-C retimer supporting the USB4 protocol. The funds also will go toward developing the startup’s Chord signaling technology and Glasswing ultra-short-reach serializer/deserializers intellectual property. Kandou was founded in 2011 and has raised a total of $132.8 million, per the company.
EdgeQ of Santa Clara, Calif., came out of stealth mode, receiving $51 million in private funding, including $38.5 million in Series A funding from Threshold Ventures (formerly DFJ), Fusion Fund, Yahoo! co-founder Jerry Yang (AME Cloud Ventures), and an unannounced strategic customer. The startup is developing 5G system-on-a-chip devices. EdgeQ was founded in 2018.
Iqm Quantum Computers of Espoo, Finland, raised €39 million (about $46.67 million) in new funding led by MIG Funds and joined by Tesi, OpenOcean, Maki.vc, Vito Ventures, Matadero QED, Vsquared, Salvia GmbH, Santo Venture Capital GmbH, and Tencent. The developer of quantum computers was founded in 2018 and has raised a total of €70.8 million (around $84.7 million) in private funding.
Another developer of quantum computers, Boston-based Zapata Computing, received $38 million in Series B funding co-led by Comcast Ventures, Pitango Venture Capital, and Prelude Ventures, with participation by BASF Venture Capital, Robert Bosch Venture Capital, The Engine, Ahren Innovation Capital, Alumni Ventures Group, Honeywell Venture Capital, ITOCHU Corporation, and Merck Global Health Innovation Fund. The quantum computing platform startup was established in 2017 and has raised a total of $57.4 million in private funding, according to Crunchbase.
Ayar Labs of Santa Clara, Calif., raised $35 million in Series B funding co-led by Downing Ventures and BlueSky Capital, with participation by new investors Applied Ventures (the investment arm of Applied Materials), Castor Ventures, SGInnovate, and existing investors Founders Fund, GlobalFoundries, Intel Capital, Lockheed Martin Ventures, and Playground Global. The startup is developing optical interconnect technology to speed up computing and data processing, while making use of chiplets. Ayar was founded in 2015 and has raised a total of $64.5 million in private funding.
Ferroelectric Memory Company (FMC) of Dresden, Sachsen, Germany, received $20 million in Series B funding led by M Ventures and imec.xpand, with the participation of SK Hynix, Robert Bosch Venture Capital, TEL Venture Capital, and eCapital. Its ferroelectric memory technology is based on the use of hafnium oxide as a material and is touted for use in aerospace systems, automotive electronics, consumer electronics, the Internet of Things, medical systems, and security, along with ultra-low-power applications. A spinoff from TU Dresden and founded in 2016, the startup has raised a total of $25.4 million in private funding.
Odds and Ends
San Diego-based Ambrx raised $200 million in crossover financing from Fidelity, BlackRock, Cormorant Asset Management, HBM Healthcare Investments, Invus, Adage Capital Partners, and Suvretta Capital Management. The precision biologics startup, a Scripps Research spinout, was founded in 2003 and has raised a total of $347.9 million in private funding.
Shanghai-based D3 Bio received $200 million in Series A funding from Boyu Capital, Matrix Partners China, Sequoia Capital China, Temasek Holdings, and WuXi AppTec. The precision medicine startup was founded in 2014.
San Francisco-based Strava raised $110 million in Series F funding co-led by TCV and Sequoia Capital, with participation by new investor Dragoneer and existing investors Madrone Capital Partners, Jackson Square Ventures, and Go4it Capital. Founded in 2009, Strava provides a social platform for fitness, where runners and cyclists can compare their results in exercising.
Decibel Therapeutics, a Boston-based biotech firm, received $82 million in Series D funding led by OrbiMed and joined by new investors BlackRock, Casdin Capital, Janus Henderson, Samsara BioCapital, Surveyor Capital, and existing investors Foresite Capital, GV, S-Cubed Capital, Sobrato Capital, SR One, and Third Rock Ventures. The startup specializes in hearing loss and balance disorders. Decibel was started in 2015 and has raised a total of $189 million in private funding.
Ecolution kWh raised $3 million in seed funding from Brown Venture Group. The startup offers an energy storage system that can work as a “rolling micro-grid,” generating kinetic energy from the motion of vehicles, providing an alternative to diesel fuels for refrigeration on trucks and trains. The company has held talks with electric truck companies in China, Germany, Japan, and the U.S.
A quick compendium of fundraising by private equity and venture capital firms during the month of November: GTCR raised $7.5 billion; Centerbridge Partners is raising $6 billion; The Blackstone Group is raising $5 billion; Andreessen Horowitz raised $4.5 billion for two funds; LGT Capital Partners is raising $3.7 billion; Searchlight Capital Partners raised $3.4 billion; Charlesbank Capital Partners is raising $3.25 billion; Yunfeng Capital (also known as YF Capital) is raising $3 billion; STG Partners raised $2 billion; Committed Advisors raised €1.6 billion (about $1.9 billion); Polaris Capital is raising about $1.4 billion; Insight Partners is raising between $850 million and $1.25 billion; Qiming Venture Partners raised $1.2 billion; H.I.G. Capital raised €1.1 billion (about $1.3 billion); and Tenex Capital Management is raising $1 billion.