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| Hey Insiders, Today's newsletter covers: - 📊 Arm's upcoming IPO shares priced between $47-$51 per share
- 🇨🇳 China witnesses a 25% QoQ surge in VC funding in Q2
- 🏥 Pitango's healthcare-focused $175M fund
If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Karan
p/karan-chafekar | |
| 1 | | British chip design company Arm Holdings Ltd. is looking to raise as much as $4.87B at its upcoming IPO, per an SEC filing seen by Bloomberg. The company is offering 95.5 million American depositary shares, priced between $47 and $51 per share. The top end of the price range will give Arm a valuation of $54.5B, much lower than SoftBank's initially expected valuation range of between $60B and $75B. More: - The valuation is also lower than the $64B figure from SoftBank's recent transaction in which it bought the remaining 25% stake held by its Vision Fund.
- SoftBank will retain a 90% stake in the firm after the IPO listing.
- Arm's most notable customers, including Apple, Nvidia, Advanced Micro Devices, Alphabet's Google, Intel, MediaTek, TSMC, Synopsys, and Cadence, have expressed interest in acquiring shares worth nearly $735M.
Zoom out: - Even at the lower end of the spectrum, Arm's IPO will likely be the largest so far this year, beating Johnson & Johnson spinoff Kenvue's $4.37B listing.
Q: Will Arm be successful in raising the targeted amount at its upcoming IPO listing? Join the conversation here. |     | |
| 2 | | China defied the global VC funding pullback trend and ended Q2 2023 with $11.5B in venture capital, up 25% QoQ from the previous quarter's figure of $9.2B. 
What the numbers say: VC funding deployed in Chinese startups in Q2 was 7% higher than the $10.8B deployed in Q2 last year. While the quarterly tally was higher, the half-yearly figures of $20.8B were 13% and 17% lower than H2 2022's and H1 2022's tally, respectively. What happened: Per Crunchbase, the second quarter's slight surge was due to fast-fashion startup Shein's $2B funding round from May. Without Shein's mega fundraiser, the total would have been in line with the previous quarter's figures. Shein's funding round also helped increase the late-stage funding total by 60% from $3.6B in Q1 to $5.8B in Q2. Why it matters: The slight funding surge comes amidst rising pressures on Chinese tech companies. U.S. investors are curbing their capital deployment in Chinese startups in light of the executive order signed by President Joe Biden. Additionally, local VCs are unable to realize the returns on investments due to stalled exit opportunities in the IPO and M&A markets. | | | |
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| 3 | | Israeli VC firm Pitango secured $175M from investors to back local healthcare startups. The firm intends to invest in 15 seed to growth-stage digital health, medical device, personalized medicine, biotech, diagnostics, life sciences, and data infrastructure startups. More: - Initial check size will range from $2M to $7M, with the check value increasing to $8M to $15M for late-stage startups.
- Pitango has already backed clinical trial simulation startup QuantHealth.ai and women's health disease detection startup Nevia Bio.
- The fund is Pitango's second healthcare-focused fund after the debut fund of $150M in 2019.
- Pitango has over $3B in assets under management.
Zoom out: - VC funding for Israeli health tech and life sciences startups declined by 13% to $2.8B in 2022.
- Digital health and biotech startups nabbed 78% of the capital within the sector.
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| 4 | | British VC firm Air Street Capital secured $121M in capital commitments toward its second fund. The firm intends to invest in early-stage "AI-first" startups, which solo investor Nathan Benaich defines as "If you rip out the AI component of the product, it doesn't work." Air Street Capital is specifically interested in AI-driven drug discovery startups. More: - The fund was backed by Spotify CEO Daniel Ek and Google top executive Jeff Dean.
- Air Street Capital previously backed data analytics and semiconductor startups across the U.S. and Europe.
- With the second fund, the firm has already backed Profluent, a startup using generative AI to design proteins.
- In addition, the fund has backed an undisclosed German robotics startup and a European defense tech company.
Zoom out: - Investors are investing heavily in the AI-powered drug discovery sector.
- Notable investments in the domain so far this year include Genesis Therapeutics' $200M round led by Andreessen Horowitz and Recursion Pharmaceuticals' $50M round from BlackRock and Nvidia Corp.
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| 5 | | British VC firm Connect Ventures secured $80M from investors at the first close of its fourth fund. The firm will invest between $150,000 and $2.5M in pre-seed and seed-stage B2B SaaS, fintech, consumer, healthcare, and Web3 startups. More: - Connect Ventures has already invested in Stitch, Faks, Carter, Embedd, Dust, Sprinque, Ourspace, IterationX, and Plain through the new fund.
- The new fund is backed by Top Tier Capital, British Patient Capital, De Agostini, Big Society Capital, and Molten Ventures.
- Notable startups in the Connect Ventures portfolio include Typeform, TrueLayer, Lifebit, Oyster, and Kheiron.
- Last year, Typeform hit a valuation of $900M at its $135M Series C funding round.
- The firm is led by co-founders and managing partners Sitar Teli and Pietro Bezza, general partner Rory Stirling, and operating partner Katy Turner.
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| 6 | | Today's Funding: Biotech - Biopharmaceutical company Apollo Therapeutics closed its Series C funding round at $226.5M. Patient Square Capital led the fundraiser with backing from M&G plc, Rock Spring Capital, and two undisclosed U.S. public pension plans.
- Tentarix Biotherapeutics, a biotech startup developing multi-functional conditional protein therapeutics, raised $35M in Series B funding. Amplitude Ventures led the round, with Gilead Sciences, Versant Ventures, and Samsara BioCapital in participation.
Blockchain - Andreessen Horowitz led a $54M funding into blockchain-powered intellectual property (IP) ownership platform Story Protocol. The funding round saw participation from Hashed, Endeavor, Samsung Next, TPG Capital's founder David Bonderman, and Paris Hilton's 11:11 media.
Digital Infrastructure - Digital in-memory computing solutions maker d-Matrix bagged $110M in Series B funding led by Temasek.
E-commerce - E-commerce software developer Shop Circle closed its Series A funding round at $120M. 645 Ventures and 3VC led the round, with additional backing from QED Investors, NfX, and i80 Group.
Enterprise software - Corporate IT software management automation platform Josys secured $93M in Series B funding. Global Brian led the round with backing from Globis Capital Partners.
Transportation - British automotive holographic technology company Envisics closed its Series C funding round at $100M. The funding was provided by M&G Investments, Van Tuyl Companies, Hyundai Mobis, InMotion Ventures, GM Ventures, and others.
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- Southeast Asia-based early-stage VC firm 500 Global secured $143M in capital commitments toward its latest funds. $100M of the capital is earmarked for early-stage investments, with the remaining sum set aside for a growth-stage fund. The firm intends to back rural digitization, healthcare, and food security-focused startups across the Southeast Asian nations of Malaysia, the Philippines, Vietnam, Thailand, Singapore, and Indonesia.
- Former Global Founders Capital Partner Alex McIsaac launched his own VC firm, Northside Ventures. The firm has raised a $6.25M fund from investors against a target of $15M to back pre-seed stage North American startups.
- Fintech startup Arc launched its venture debt offering today.
- French VC firm Founders Future secured $80M (€75M) from limited partners at the first close of its two new funds, Founders Future II and Founders Future Expansion. The firm expects to reach a final close of the two funds at $162M (€150M).
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Term of the Day Cost of goods sold (COGS): COGS refers to the direct costs of producing or acquiring the goods that a company sells to its customers. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
INSIDE VENTURE CAPITAL LEADERBOARD (7 DAYS) |
 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Aaron Crutchfield | |
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