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VC Daily: Indian startups could benefit from the remoteness of China

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Good day. India is one of the countries that will benefit most from China’s recent crackdown on its tech companies, venture capital executives say, as investors frightened by Beijing’s stocks may seek to redirect investment to his neighbour.

Historically, investing in India has been compared unfavorably to doing so in China, said Sumant Mandal, co-founder and managing partner of venture capital firm March Capital. That sentiment could shift in India’s favor, especially after the country recently introduced new rules that made it more attractive to foreign investment, such as a measure eases requirements for companies to go public.

Two recent Indian deals involving venture-backed startups show what the country can offer investors. The payments platform IndiaIdeas.com Ltd., which does business as BillDesk, has agreed to be sold to Dutch tech company Prosus NV for $ 4.7 billion, while car dealership used CarTrade Tech Ltd. was valued at around $ 1 billion when it went public. last month.

March Capital, a venture capital firm based in Santa Monica, Calif., Was an early backer for the two companies and is expected to generate nearly $ 1 billion in returns on various funds from the two investments, Mr Mandal said. March has approximately $ 1 billion in assets under management.

One of the potential challenges facing investors in India is rising valuations as local investment firms compete with large US venture capital firms for the best deals. “Two years ago I would have said there was a discount in India. Not anymore,” Mandal said.

And now for the news …

Top news

Frantic offers. Businesses around the world have embarked on an unprecedented wave of transactions this year, emerging from the depths of the pandemic as they seek to strengthen themselves and address vulnerabilities it has exposed, reports the Wall Street Journal. Simultaneously, buyout companies and blank check companies have been rolling out hundreds of billions of dollars at a breakneck pace. In the first eight months of 2021, companies announced mergers and acquisitions worth more than $ 1.8 trillion in the United States and more than $ 3.6 trillion globally, according to the Dealogic data provider. Both numbers are the highest at this point in a year since at least 1995, when Dealogic began keeping records. Transactions are on track to surpass their record set in 2015.

$ 95 billion

Approximate value of new chip manufacturing facilities that Intel Corp. plans to build in Europe. (WSJ)

Bain Capital supports the Cotopaxi outdoor equipment brand

Cotopaxi, a brand of outdoor equipment and clothing that donates 1% of its income to the fight against poverty, has raised new capital which it hopes will help it develop its activities and its charitable impact. , reports Laura Kreutzer of WSJ Pro. Bain Capital Double Impact, a Boston-based unit of Bain Capital that seeks to generate social and environmental benefits as well as financial returns, has made an investment of approximately $ 45 million in the company, according to people with knowledge of the company. case. Bain has invested in the Salt Lake City-based company, whose legal name is Global Uprising PBC, from its second impact fund, which closed with $ 800 million last year.

Tech industry seeks bigger role in defense

Tech industry leaders are pushing the Pentagon to embrace commercially developed technologies on a large scale to counter the rise of China, a move that could transform the military and the multibillion-dollar defense contract industry, reports the WSJ. The Pentagon has long led the way in the development of advanced technologies that have found their way into civilian applications, such as GPS and the Internet. This balance has changed, according to technology leaders and others. They argue that the private sector has more talent and larger research budgets than the government – and more advanced capabilities in artificial intelligence and cloud computing – as the military increasingly relies on technology. .

Industry News

Funds

Climate technology organization Elemental Excelerator is launching Earthshot Ventures, a climate change venture capital fund, with an initial close of $ 60 million. Sponsors include Emerson Collective, McKinley Alaska, Microsoft, Employees’ Retirement System of Hawaii, Stafford Capital Partners, John Doerr and Tom Steyer.

Exits

Small business software provider Ageras Group has acquired invoicing software developer Zervant for an undisclosed amount. Ageras, based in Philadelphia, is backed by Investcorp Technology Partners, Rabo Frontier Ventures and Lugard Road Capital. Helsinki-based Zervant was backed by investors such as Northzone, NFT Ventures and Conor Venture Partners.

Capillary Technologies, a provider of customer loyalty and engagement services, has acquired customer experience company Persuade for an undisclosed amount. Based in Singapore, Capillary is backed by Warburg Pincus, Sequoia Capital, Avataar Ventures and Filter Capital.

New money

Factorial, a Barcelona-based HR software startup, closed an $ 80 million Series B round. Tiger Global Management led the funding, which included participation from CRV, Creandum and others.

ShopUp, a Bangladesh-based B2B commerce platform for small businesses, has secured a Series B investment of $ 75 million. Valar Ventures led the round, which included backing from VEON Ventures, Prosus Ventures, Flourish Ventures and Sequoia Capital India.

Point Card, a San Francisco-based provider of a Gen Y and Gen Z debit card, made a Series B round of $ 46.5 million. Valar Ventures led the investment, which included contributions from Breyer Capital, Y Combinator Continuity and Human Capital.

Cohere, a Toronto-based provider of natural language processing models, has secured $ 40 million in Series A funding. Index Ventures led the round, which included participation from Section 32, Radical Ventures and others. Mike Volpi, Partner at Index Ventures, will join the company’s board of directors.

aPriori Technologies, a digital manufacturing software developer based in Concord, Mass., has secured $ 30 million in Series D funding. Co-led by Bruce Clarke of PBJ Capital and Gaurav Tewari of Omega Venture Partners, the investment brings the valuation of the company to 280 million dollars.

Tritium Holdings, an Australian developer of DC fast-charging technology for electric vehicles, has secured an Australian $ 40 million ($ 29.6 million) investment from Cigna Investments Inc.

DataChat Inc., a Madison, Wisconsin-based business data analytics provider, landed a $ 25 million Series A round. Redline Capital and Anthos Capital led the investment, in which Celesta Capital and Nepenthe Capital participated.

Vowel Inc., a video conferencing tool, has raised $ 13.5 million in Series A funding led by Lobby Capital.

Ryd, a German startup offering a unique digital payment service for drivers, has raised an investment of 10 million euros ($ 11.8 million) from bp ventures. Managing Partner Daniela Proske will join Ryd’s Board of Directors.

Zebedee Inc., a virtual worlds payment service provider based in Hoboken, New Jersey, has won an $ 11.5 million Series A funding round led by Lakestar. New investors including Initial Capital, New Form Capital and TVP also participated in the financing, as well as existing backers Collab + Currency, Cadenza Capital and Fulgur Ventures.

Novi Connect, a San Francisco-based B2B marketplace focused on personal care, beauty and home goods, has secured $ 10.3 million in new funding from investors such as Greylock and Defy Partners.

GoKwik, an India-based ecommerce activation startup, has raised $ 5.5 million in pre-series A funding. Lead investor Matrix Partners has been joined by RTP Global in the round.

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Toyota to spend $ 9 billion on electric car battery factories

Apple’s new iPhone set to be unveiled at September 14 event

Around the web

Here’s why SoftBank just invested in the metaverse (Protocol)

 

(END) Dow Jones Newswires

September 08, 2021 09:51 ET (13:51 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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