Monday, April 22, 2019
VC Deals Only: Starbucks challenger Luckin’s fundraising spree co...
VC Deals Only: Starbucks challenger Luckin’s fundraising spree co...: By Rita Liao Coffee startup Luckin is continuing its fundraising spree as it sets its sights on becoming an alternative to Starbucks in Ch...
Starbucks challenger Luckin’s fundraising spree continues with $150M investment
By Rita Liao
Coffee startup Luckin is continuing its fundraising spree as it sets its sights on becoming an alternative to Starbucks in China.
The year-and-a-half-old company announced on Thursday that it closed a Series B-plus raise totaling $150 million. The fresh proceeds valued Luckin at $2.9 billion post-money, up from $2.2 billion just four months ago.
While many question Luckin’s cash-fueled expansion, Blackrock, which owns a 6.58 percent stake in Starbucks, showed its confidence in the Chinese startup by pumping $125 million into Luckin’s new round through its private equity fund.
With that, the New York-based investment firm has its bet on two contrasting models for China’s coffee consumption. While Starbucks zeroes in on the brick-and-mortar experience, Luckin is a network of last-mile coffee delivery centers, plus places for people to pick up orders and sit down, targeting busy white-collar workers.
In a move that would amp up its battle with Luckin, Starbucks teamed up with Alibaba’s food delivery unit Ele.me last August to put hot and cold drinks in people’s hands.
Luckin did not disclose how it will spend the fresh capital infusion, but the pace at which it’s raising suggests the startup is in dire need of cash. The new round arrived less than a year after it secured a $200 million Series A in July and another $200 million from a Series B in December.
Indeed, Luckin founder Qian Zhiya, a former executive at auto rental firm Car Inc., confessed the company burned through $150 million within just six months from launching. A big chunk of money had gone to shelling out deep discounts for consumers, while the coffee challenger’s offline expansion was just as cash-intensive.
As of late, Luckin has opened 2,000 outlets, consisting of small prep kitchens, pickup stations and cafes in 22 Chinese cities, up from 1,700 locations reached in December. That gives Luckin less than eight months to fulfill its ambition of becoming the “biggest coffee chain in China by the number of outlets run and cups sold.” The goal is to top 4,500 outlets by the end of 2019.
Starbucks, which made its foray into China 20 years ago, has also been aggressively putting up storefronts. It currently runs 3,600 stores across 150 cities in China, up from 3,300 last May.
When it comes to actual people using the service, Starbucks still enjoys a huge lead. The Luckin app that allows one to order and pay had 650,000 unique downloads in March, data from research firm iResearch shows. Starbucks’ app is more than four times its size, with 2.81 million unique downloads from the same period.
Other investors that joined in on Luckin’s latest round include existing backers such as Singapore’s sovereign wealth fund GIC, Chinese government-controlled China International Capital Corporation, Dazheng Capital and Joy Capital, whose founding partner Liu Erhai sits on Luckin’s board.
Source. Techcrunch, Rita Liao, April 17, 2019
Coffee startup Luckin is continuing its fundraising spree as it sets its sights on becoming an alternative to Starbucks in China.
The year-and-a-half-old company announced on Thursday that it closed a Series B-plus raise totaling $150 million. The fresh proceeds valued Luckin at $2.9 billion post-money, up from $2.2 billion just four months ago.
While many question Luckin’s cash-fueled expansion, Blackrock, which owns a 6.58 percent stake in Starbucks, showed its confidence in the Chinese startup by pumping $125 million into Luckin’s new round through its private equity fund.
With that, the New York-based investment firm has its bet on two contrasting models for China’s coffee consumption. While Starbucks zeroes in on the brick-and-mortar experience, Luckin is a network of last-mile coffee delivery centers, plus places for people to pick up orders and sit down, targeting busy white-collar workers.
In a move that would amp up its battle with Luckin, Starbucks teamed up with Alibaba’s food delivery unit Ele.me last August to put hot and cold drinks in people’s hands.
Luckin did not disclose how it will spend the fresh capital infusion, but the pace at which it’s raising suggests the startup is in dire need of cash. The new round arrived less than a year after it secured a $200 million Series A in July and another $200 million from a Series B in December.
Indeed, Luckin founder Qian Zhiya, a former executive at auto rental firm Car Inc., confessed the company burned through $150 million within just six months from launching. A big chunk of money had gone to shelling out deep discounts for consumers, while the coffee challenger’s offline expansion was just as cash-intensive.
As of late, Luckin has opened 2,000 outlets, consisting of small prep kitchens, pickup stations and cafes in 22 Chinese cities, up from 1,700 locations reached in December. That gives Luckin less than eight months to fulfill its ambition of becoming the “biggest coffee chain in China by the number of outlets run and cups sold.” The goal is to top 4,500 outlets by the end of 2019.
Starbucks, which made its foray into China 20 years ago, has also been aggressively putting up storefronts. It currently runs 3,600 stores across 150 cities in China, up from 3,300 last May.
When it comes to actual people using the service, Starbucks still enjoys a huge lead. The Luckin app that allows one to order and pay had 650,000 unique downloads in March, data from research firm iResearch shows. Starbucks’ app is more than four times its size, with 2.81 million unique downloads from the same period.
Other investors that joined in on Luckin’s latest round include existing backers such as Singapore’s sovereign wealth fund GIC, Chinese government-controlled China International Capital Corporation, Dazheng Capital and Joy Capital, whose founding partner Liu Erhai sits on Luckin’s board.
Source. Techcrunch, Rita Liao, April 17, 2019
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Are you a Canadian startup that needs to grow or scale? Give us a call! One of our representatives would love to explain how we vertically design, and then systematically layer each of our communication platforms to effectively reach niche target audiences for our clients. WC offers a unique synergistic approach to effectively communicate our client's message to their target audience.
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Serving Vancouver, Montreal, Toronto, Waterloo, Ottawa, and Halifax.
"We partner with Canadian startups to help them
grow, scale & compete on the international stage"
Sunday, April 21, 2019
VC Deals Only: Lendified Secures $15M in Funding
VC Deals Only: Lendified Secures $15M in Funding: Lendified Holdings, Inc., a Toronto, Canada-based financial technology company, closed a $15m funding round. Backers included CI Financial...
Lendified Secures $15M in Funding
Lendified Holdings, Inc., a Toronto, Canada-based financial technology company, closed a $15m funding round.
Backers included CI Financial Corp., Windsor Private Capital Limited Partnership, FirePower Capital, Glenn Murphy, the founder of FIS Holdings and former CEO of Gap Inc. and Shoppers Drug Mart.
The company intends to use the funds to continue to expand operations.
Launched in 2015 and led by Kevin Clark, President, and led by Troy Wright, CEO, Lendified offers online loans to small businesses across Canada and a SaaS credit platform to financial institutions across North America (used by credit unions, community banks, and other financial services companies) featuring tools for managing cash flow, and advanced credit adjudication software to financial service providers across North America.
Through its lending business, the company offers loans up to $150k for terms up to two years.
Its advanced underwriting process is powered by Judi, its credit adjudication platform which enables users to assess, price, and monitor credit risk, and in-turn provide the best possible services to customers.
Source. FinSMEs, Staff, April 18, 2019
This post was brought to you by Woewoda Communications, your partner in the private equity and startup markets; offering strategic communications, public relations & investor relation services to VCs, PEs, Angels, Endowments/Trusts, Family Offices, and Startups involved in ICT, IoT, blockchain, life sciences, healthcare, agribusiness, clean energy, fintech, AI and robotics.
Backers included CI Financial Corp., Windsor Private Capital Limited Partnership, FirePower Capital, Glenn Murphy, the founder of FIS Holdings and former CEO of Gap Inc. and Shoppers Drug Mart.
The company intends to use the funds to continue to expand operations.
Launched in 2015 and led by Kevin Clark, President, and led by Troy Wright, CEO, Lendified offers online loans to small businesses across Canada and a SaaS credit platform to financial institutions across North America (used by credit unions, community banks, and other financial services companies) featuring tools for managing cash flow, and advanced credit adjudication software to financial service providers across North America.
Through its lending business, the company offers loans up to $150k for terms up to two years.
Its advanced underwriting process is powered by Judi, its credit adjudication platform which enables users to assess, price, and monitor credit risk, and in-turn provide the best possible services to customers.
Source. FinSMEs, Staff, April 18, 2019
***
This post was brought to you by Woewoda Communications, your partner in the private equity and startup markets; offering strategic communications, public relations & investor relation services to VCs, PEs, Angels, Endowments/Trusts, Family Offices, and Startups involved in ICT, IoT, blockchain, life sciences, healthcare, agribusiness, clean energy, fintech, AI and robotics.
Need to grow or scale? Give us a call! One of our representatives would love to explain how we vertically design, and then systematically layer each of our communication platforms to effectively reach niche target audiences for our clients. WC offers a unique synergistic approach to effectively communicate our client's message to their target audience.
Saturday, April 20, 2019
VC Deals Only: Weekend Edition. Hulu valued at $15B. Buys back AT...
VC Deals Only: Weekend Edition. Hulu valued at $15B. Buys back AT...: Issue. April 20, 2019 VC Deals Lyric, a platform for folks who struggle to decide between a hotel and an Airbnb, has today announced the...
Weekend Edition. Hulu valued at $15B. Buys back AT&T's minority stake
Issue. April 20, 2019
VC Deals
Lyric, a platform for folks who struggle to decide between a hotel and an Airbnb, has today announced the close a $160 million financing round (an even combination of debt and equity). Airbnb led the equity financing. More
Amenity Analytics, a New York-based startup developing what it describes as a “text-mining” AI platform for enterprise, today announced that it’s raised $18 million in series B financing led by Starr Companies, with participation from Allstate, Intel Capital, and State of Mind Ventures. It brings the company’s total raised to around $25.6 million. More
ABK Biomedical, Inc., a Halifax, Nova Scotia, Canada-based medical device company dedicated to the research, development and commercialization of innovative embolic therapies, raised $30m in Series B funding. The round was co-led by F-Prime Capital and Varian Medical Systems. More
Seattle-based medical device company Bardy Diagnostics today announced a $35.5 million funding round led by River Cities Capital Fund. The company makes the Carnation Ambulatory Monitor (CAM), which is a small, lightweight heart monitor that can detect arrhythmia. More
Buckzy Payments Inc., a Toronto, CA-based fintech company, closed a $1.75m seed funding round. The round was led by Mistral Venture Partners joined by New York based Revel Partners. The company intends to use the funds to scale its real-time global payments network. More
IPOs
Pinterest priced shares of its stock, “PINS,” above its anticipated range on Wednesday evening, CNBC reports. The company will sell 75 million shares of Class A common stock at $19 apiece in an offering that will attract $1.4 billion in new capital for the visual search engine. More
Sponsor
This post was brought to you by Woewoda Communications, your partner in the private equity and startup markets; offering strategic communications, public relations & investor relation services to VCs, PEs, Angels, Endowments/Trusts, Family Offices, and Startups involved in ICT, IoT, blockchain, life sciences, healthcare, agribusiness, clean energy, fintech, AI and robotics.
Need to grow or scale? Give us a call! One of our representatives would love to explain how we vertically design, and then systematically layer each of our communication platforms to effectively reach niche target audiences for our clients. WC offers a unique synergistic approach to effectively communicate our client's message to their target audience.
LiveRamp® (NYSE: RAMP), the identity platform powering exceptional experiences, today announced the acquisition of Faktor to enable streamlined consent management across the open web. This deal represents a big win for the entire ecosystem and reinforces LiveRamp's strategic focus on privacy and data stewardship. More
Stripe, the Silicon Valley company founded by Limerick-born brothers John and Patrick Collison, has acquired Irish start-up Touchtech Payments for an undisclosed sum. Touchtech is a Dublin-based software company that provides advanced strong customer authentication (SCA) technology for financial institutions. More
Buy Backs
Hulu has paid $1.43 billion to buy back AT&T’s minority stake in the streaming video company. The companies announced Monday that the transaction valued Hulu at $15 billion. As a result, AT&T’s 9.5 percent stake in Hulu was worth $1.43 billion. More
New Funds
It’s often said that the dramatic fall of crypto prices last year ushered in a new era for technology-focused startups in the blockchain space, and the same argument can be made for the venture capitalists who fund them. Proof of Capital is the latest fund to emerge after it officially announced a maiden $50 million fund today. More
Exits
Salesforce announced today it’s buying another company built on its platform. This time it’s MapAnything, which, as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls. The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal. More
VC Deals
Lyric, a platform for folks who struggle to decide between a hotel and an Airbnb, has today announced the close a $160 million financing round (an even combination of debt and equity). Airbnb led the equity financing. More
Amenity Analytics, a New York-based startup developing what it describes as a “text-mining” AI platform for enterprise, today announced that it’s raised $18 million in series B financing led by Starr Companies, with participation from Allstate, Intel Capital, and State of Mind Ventures. It brings the company’s total raised to around $25.6 million. More
ABK Biomedical, Inc., a Halifax, Nova Scotia, Canada-based medical device company dedicated to the research, development and commercialization of innovative embolic therapies, raised $30m in Series B funding. The round was co-led by F-Prime Capital and Varian Medical Systems. More
Seattle-based medical device company Bardy Diagnostics today announced a $35.5 million funding round led by River Cities Capital Fund. The company makes the Carnation Ambulatory Monitor (CAM), which is a small, lightweight heart monitor that can detect arrhythmia. More
Buckzy Payments Inc., a Toronto, CA-based fintech company, closed a $1.75m seed funding round. The round was led by Mistral Venture Partners joined by New York based Revel Partners. The company intends to use the funds to scale its real-time global payments network. More
IPOs
Pinterest priced shares of its stock, “PINS,” above its anticipated range on Wednesday evening, CNBC reports. The company will sell 75 million shares of Class A common stock at $19 apiece in an offering that will attract $1.4 billion in new capital for the visual search engine. More
Sponsor
This post was brought to you by Woewoda Communications, your partner in the private equity and startup markets; offering strategic communications, public relations & investor relation services to VCs, PEs, Angels, Endowments/Trusts, Family Offices, and Startups involved in ICT, IoT, blockchain, life sciences, healthcare, agribusiness, clean energy, fintech, AI and robotics.
Need to grow or scale? Give us a call! One of our representatives would love to explain how we vertically design, and then systematically layer each of our communication platforms to effectively reach niche target audiences for our clients. WC offers a unique synergistic approach to effectively communicate our client's message to their target audience.
Acquisitions
Butterfly, a Los Angeles-based private equity firm specializing in the food sector, today announced that it has signed a definitive agreement to acquire Bolthouse Farms from Campbell Soup Company (NYSE:CPB) for $510 million in cash, subject to customary purchase price adjustments. More
Stripe, the Silicon Valley company founded by Limerick-born brothers John and Patrick Collison, has acquired Irish start-up Touchtech Payments for an undisclosed sum. Touchtech is a Dublin-based software company that provides advanced strong customer authentication (SCA) technology for financial institutions. More
Hulu has paid $1.43 billion to buy back AT&T’s minority stake in the streaming video company. The companies announced Monday that the transaction valued Hulu at $15 billion. As a result, AT&T’s 9.5 percent stake in Hulu was worth $1.43 billion. More
It’s often said that the dramatic fall of crypto prices last year ushered in a new era for technology-focused startups in the blockchain space, and the same argument can be made for the venture capitalists who fund them. Proof of Capital is the latest fund to emerge after it officially announced a maiden $50 million fund today. More
Exits
Salesforce announced today it’s buying another company built on its platform. This time it’s MapAnything, which, as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls. The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal. More
Tech News
Alexa. Cortana. Google Assistant. Bixby. Siri. Hundreds of millions of people use voice assistants developed by Amazon, Microsoft, Google, Samsung, and Apple every day, and that number is growing all the time. More
Events
Events
Startupfest Montreal 2019, July 9 -12. An invent designed for founders, and investors. Network and connect in one of Canada's most beautiful cities. More
Friday, April 19, 2019
VC Deals Only: Super raises $20M to fix the home services and rep...
VC Deals Only: Super raises $20M to fix the home services and rep...: By Ingrid Lunden Home owners in the U.S. spend upwards of $300 billion annually on home repairs and maintenance — a huge sum that often co...
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