GCV Analytics tracked 159 deals backed by corporate venturers in November, worth an estimated total of $4.01bn. The US was home to companies raising the majority of those rounds (78), while China and the UK ranked second and third with 27 and 10 deals respectively. As usual, the largest deals took place in China.
The total number of deals was the same in November as in October. September recorded a peak for the year at 176, after low figures through the summer. Over the past two months, the deal count appears to have plateaued. In terms of total capital raised in those deals, there was a slight increase – from $3.93bn in October to $4.01bn in November, in spite of there being no deals above $1bn.
Compared with the same month a year ago, the deal count is relatively similar, with slightly more deals in November this year than last year – 159 against 157. The difference in the total capital raised, however, is more notable – $4.84n in November 2015 compared with $4.01bn this year.
The leading corporate investors by number of deals were technology research and media group International Data Group, cloud computing enterprise software developer Salesforce, telecoms and internet group SoftBank and internet company Tencent.
In terms of involvement in the largest registered rounds, the top five were headed up by China-based corporations – Hengxing Group, Yuyue Group, Legend Holdings, China Life and Ping An Insurance. In fact the majority of the largest deals for November took place in China.
Deals
Enterprises in the IT, health, services and consumer sectors raised the largest number of deals involving corporate investors through November. The most active investors were in the financial services, IT and media sectors, as illustrated by the heatmap.
China-based internet and technology company LeEco secured $600m in capital from corporates including fashion brand Heilan Hom and conglomerate Yihua Group. The round was also supported by plastic pipe manufacturer Hengxing Group, medical device maker Yuyue Group and pharmaceutical firm Luye Pharma Group. The money is to go to LeEco Global and its driverless car subsidiary LeSee, though the precise ratio was not disclosed. Founded in 2004, LeEco operates a range of subsidiaries that focus on technologies such as virtual reality, cloud computing, smart bicycles, televisions and smartphones. It has raised at least $3.15bn for its various subsidiaries to date.
China-based drug developer Innovent Biologics raised $260m in a series D round that featured corporates such as Legend Capital, an investment arm of conglomerate Legend Holdings, insurance providers China Life Investment Holding, Taikang Insurance and Ping An Insurance. The round, led by an unnamed fund of Chinese government-owned firm State Development and Investment Corporation, also featured Temasek, an investment arm of the Singapore government, and Hillhouse Capital. Founded in 2011, Innovent Biologics develops a range of therapies, including 12 candidates focused on oncology, immunity and cardiovascular diseases.
Yiguo.com, a China-based operator of an e-commerce platform for fresh food, raised $200m in a series C-plus round led by appliance distributor Suning Commerce Group. E-commerce group Alibaba and Yunfeng Capital, the private equity firm founded by Alibaba chairman Jack Ma, also took part in the round, as did unnamed additional investors. Founded in 2005, Yiguo provides fresh food to customers in 310 Chinese cities and operates an extensive range of cold-chain logistics facilities.
JBH Jubao Interconnection Technology, an online financial services spinout of China-based conglomerate HNA Group, raised $200m in a series A round led by private equity firm RRJ Capital, Asian Venture Capital Journal reported. The round included financial services provider Henan Xinrongji Financial Holding and additional undisclosed China-based investors. JBH was formed by HNA in May 2014 and provides high-yield investment products to customers through an online platform.
France-based internet-of-things (IoT) technology provider Sigfox announced it was set to close a €150m ($160m) series E round, featuring a host of corporate investors. Oil and gas company Total, conglomerate Tamer and Salesforce Ventures, the corporate venturing subsidiary of Salesforce, are participating as new investors alongside Alto Invest, Swen Capital Partners and angel investor Henri Seydoux. Aliad and Intel Capital, the venturing arms of Air Liquide and semiconductor producer Intel respectively, returned for the round, as did existing backers Idinvest Partners, Ixo Private Equity, Elliott Capital Management and BPIfrance. Founded in 2011, Sigfox is developing an international network that allows IoT devices to connect to the cloud.
US-based mobile payment technology provider Stripe raised $150m in a series D round, including conglomerate Alphabet. Alphabet, which invested through Capital G, formerly Google Capital, co-led the round alongside venture capital firm General Catalyst. VC firm Sequoia Capital and other existing backers also took part. Founded in 2010, Stripe runs a payment processing platform for e-commerce merchants, taking a cut in each transaction. The company also offers related tools, such as fraud prevention technology.
Social media company Weibo Corporation invested $120m in Yixia Tech, the China-based owner of short video platform Miaopai, China Money Network reported. This is part of a round reportedly of $500m. Miaopai is a short video publishing and sharing app, which operates similarly to US-based platform Vine but with added features.
China-based supply chain services firm DS365 Technology raised RMB700m ($102m) in series B funding from investors including financial services conglomerate China UCF. The round was led by Everbright ReinFore, the private equity arm of asset management firm Everbright Financial Holding Asset Management. Founded in 2014, DS365 offers supply chain management technology that enables fast-moving consumer goods, transaction platforms and logistics services for convenience and community stores.
China-based online second-hand car retailer Souche.com raised $100m in series C funding from Ant Financial and chauffeured car service Ucar. Founded in 2012, Souche operates an online marketplace for new and used cars, and offers a range of services for automotive dealers, including software, finance, certification, transaction and marketing.
China-based online used car auction platform Tiantianpaiche secured $100m in a series C round featuring corporates Tencent, automotive e-commerce portal Bitauto, SoftBank and trading and technology firm SIG. Founded in 2014, Tiantianpaiche connects used car buyers and sellers through online auctions. The company’s platform hosts more than 4 million users trading a total of about 10,000 used cars a month.
Exits
GCV Analytics tracked only 12 exits involving corporate venturers over November. Unsurprisingly, almost all of took place in the US. The total number of exits is a significant drop compared with the two preceding months – 19 in October and 22 in September. The total estimated exited capital amounted to $3.12bn, compared with $3.88bn the previous month.
Beverage producer Dr Pepper Snapple agreed to acquire US-based antioxidant-infused beverage maker and portfolio company Bai Brands for $1.7bn. Founded in 2007, Bai manufactures canned and bottled fruit-flavoured drinks under the Bai and Bai Bubbles brands. The drinks are infused with antioxidants derived from the pulp of the coffee fruit.
US-based hardware conglomerate General Electric (GE) was the champion among corporate acquirers for November, with three strategic acquisitions. GE Digital, one of its subsidiaries, agreed a $915m acquisition of US-based field service management software provider ServiceMax, giving exits to GE’s venturing arm GE Ventures, Salesforce, investing through Salesforce Ventures, and service management software producer PTC. ServiceMax supplies mobile and cloud-focused field service management software for industrial businesses that install, maintain and repair machines.
GE Digital also acquired US-based machine learning technology developer Wise.io for an undisclosed amount, giving an exit to virtualisation software provider Citrix. Founded in 2012, Wise.io develops software that automates and organises customer support through machine learning. The company had graduated from Citrix Accelerator in 2013 and raised $2.5m in a 2014 round led by VC firm Voyager Capital.
General Electric also acquired another company, previously-backed by its GE Ventures subsidiary – Canada-based data intelligence technology developer Bit Stew Systems. GE did not disclose the price but the Globe and Mail reported the transaction to be worth $153m. Founded in 2009, Bit Stew has developed technology that collects data in complex industrial systems through sensors in connected devices. The approach enables users to predict areas that will require maintenance.
Fast food retailer Yum China Holdings entered talks to acquire Daojia, a China-based online food ordering platform backed by e-commerce firm JD.com, for up to $200m, Reuters reported. Founded in 2010, Daojia operates an online food ordering and delivery platform that encompasses a network of more than 6,000 restaurants across 10 Chinese cities. Yum China split from its parent company, US-based Yum Brands, earlier this month and acts as its Chinese franchisee for brands including Kentucky Fried Chicken, Pizza Hut and Taco Bell.
Atopix Therapeutics, a UK-based clinical-stage biotechnology company backed by pharmaceutical firm GlaxoSmithKline, is to be acquired by pharmaceutical firm Chiesi Farmaceutici in a deal potentially worth more than €75m ($80m). Founded in 2012, Atopix is a spinout of Oxagen, itself spun out of Oxford University in 1997. Atopix’s lead drug candidate OC459 is a treatment for people with asthma who have persistent airway eosinophilia.
Corporates EDF and Eren recorded an exit from India-based renewable energy developer Acme Cleantech Solutions in a Rs5bn ($73m) investment by conglomerate Piramal Group. Acme has built about 600MW of solar power plants in India. It has another 400MW of projects in construction and has secured power purchase agreements for a further 500MW. It aims to have a 1GW portfolio in operation by the end of the 2016-17 financial year.
