Fintech companies have been on a tear lately.
Just last week, Revolut raised $500 million in funding at a $5.5 billion valuation—three times the valuation of its last fundraising round in 2018. Jumo, a South Africa-based financial services startup, also raised $55 million in fresh capital from Goldman Sachs, Odey Asset Management and LeapFrog Investments. And Starling Bank raised £60 million ($77.8 million) in funding.
Today, Public, a New York-based commission-free stock trading app,raised $15 million in funding.Accel and Greycroft co-led the round, and were joined by investors including Dreamers VC and Advancit Capital.
And Monzo and Monese are reportedly both in talks to raise up to £100 million ($129 million).
As early-stage investor Howard Lindzon explained, a multiplier of “fresh” fintech money is being unleashed on a world that will push valuations even higher. Nearly half of all capital raised by fintech startups was concentrated in 83 mega-rounds (those sized $100 million or more). According to CB Insights, 2019 was a record year for mega-rounds across the globe.
It’s a crowded, competitive market, and people have speculated that we’re in a fintech bubble. But I think there’s more room to grow. More and more fintech companies are catering to emerging markets like South America, Africa, Australia and Southeast Asia, which all topped their annual highs last year.
Curious to hear what you guys think about the fintech boom. Will valuations continue to swell or will we see a burst in the near future? Reply to this email with your comments, and they might be included in a future issue of Term Sheet.
FEMALE FOUNDER FUNDING: 2019 was a net positive year for female founders. The share of VC dollars that flowed into startups founded by a woman or a group of women crept up over 2019, hitting $3.54 billion, or 2.7% of total investment. Buuuuuuut…then you put that number in context and realize that SoftBank poured at least $5 billion just into one company: WeWork. That’s roughly $1.5 billion more than the total VC investment in all female-founded companies during the same period. Read more at Fortune.
Polina Marinova
Twitter: @polina_marinova
Email: polina.marinova@fortune.com
VENTURE DEALS
- Spinny, an India-based online platform for selling used cars, raised $43.7 million in funding. Fundamentum Partnership led the round, and was joined by investors including General Catalyst Partners, KB Financial Group, Accel, SAIF Partners and Alteria Capital.
- AudioTelligence, a Cambridge, Mass.-based startup that develops a software that pre-processes the sound, raised $8.5 million in Series A funding. Octopus Ventures led the round, and was joined by investors including Cambridge Innovation Capital, Cambridge Enterprise, and CEDAR Audio.
- WhereIsMyTransport, a London-based developer of an urban transportation and journey planner mobile app, raised $7.5 million in Series A funding from Google, Liil Ventures, Nedbank, and Toyota Tsusho Corporation.
- Run The World, a Mountain View, Calif.-based online events company, raised $4.3 million in funding. Investors include Andreessen Horowitz, GSR Ventures, Pear Ventures, 122 West Ventures, and Unanimous Capital.
HEALTH & LIFE SCIENCES
- Xilio Therapeutics, a Waltham, Mass.-based company developing potent, tumor-selective immuno-oncology therapies for patients with cancer, raised $100.5 million Series B funding. Takeda Ventures, Inc. led the round, and was joined by investors including SV Health Investors, MRL Ventures Fund, RiverVest Venture Partners, Bay City Capital, Solasta Ventures, M Ventures, Ipsen Ventures, F-Prime Capital and Atlas Venture.
- Primmune Therapeutics, a San Diego-based biotechnology company, raised $7 million in seed funding. Investors include CAM Capital, Charlie McDermott, BioBrit, and BioRock Ventures.
PRIVATE EQUITY DEALS
- Sverica Capital Management made an investment in Cytracom, an Allen, Texas-based provider of cloud-based unified communications software and solutions. Financial terms weren't disclosed.
- Palladium Equity Partners acquired ALC Schools and Red Rock Technology to form a combined entity that will provide alternative transportation solutions to school districts in the United States, from American Logistics. Financial terms weren't disclosed.
OTHER DEALS
- Gilead Sciences (Nasdaq: GILD) agreed to acquire Forty Seven, Inc. (Nasdaq: FTSV) for $95.50 per share in cash.
IPOs
- Social Capital Hedosophia, a Palo Alto-based partnership co-founded by the team that brought Virgin Galactic public, filed to raise $300 million and $600 million for its second and third blank check companies respectively. The latter fund is seeking a tech acquisition likely outside the U.S. Read more about II and III.
- Procore Technologies, a Carpinteria, Calif.-based maker of cloud-based construction management software, filed for an $100 million IPO. It posted $289.2 million in revenue and losses of $83.1 million in 2019. ICONIQ (44.3% pre-offering) and Bessemer (14.9%) back the firm. It plans to list on the NYSE as “PCOR.” Read more.
- Accolade, a Seattle-based maker of an employee healthcare benefits management platform, filed for an $100 million IPO. It posted revenue of $94.8 million and losses of $56.5 million in the year ending Feb. 29 2020. Accretive Associates, Andreessen Horowitz, and Carrick Capital back the firm. and It plans to list on the Nasdaq as “ACCD.” Read more.
- Pulmonx, a Redwood City, Calif.-based maker of minimally invasive treatments for emphysema, filed for an $86 million IPO. It posted $32.6 million in revenue and losses of $20.7 million in 2019. Boston Scientific Corporation (30.1% pre-offering), KPCB Holdings (7.7%), and Latterell Venture Partners (7.3%) back the firm. It plans to list on the Nasdaq as “LUNG.” Read more.
- ORIC Pharmaceuticals, a South San Francisco-based Phase 1 biotech developing molecule therapies for cancer, filed for an $86 million IPO. It has yet to post a revenue and posted losses of $27 million in 2019. The Column Group (22% pre-offering), Topspin Fund (16%), and OrbiMed (12%) back the firm. It plans to list on the Nasdaq as “ORIC.” Read more.
EXITS
- BMC, a KKR portfolio company, agreed to purchase Compuware, a Detroit, Mich.-based provider of mainframe application development, delivery, and support solutions, from Thoma Bravo.
- Odyssey Investment Partners acquired NSi Industries, a Huntersville, N.C.-based manufacturer of electrical products, from Blue Sea Capital LLC. Financial terms of the transaction were not disclosed.
FIRMS + FUNDS
- BV Investment Partners, a Boston-based private equity firm, raised $1.1 billion for its new fund, BV Investment Partners Fund X.
