PitchBook News - Walmart joins race for TikTok

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The Daily Pitch: VC

August 28, 2020

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Today's Top Stories

SEC expands direct listing options on NYSE as IPO alternatives abound

(Michael M. Santiago/Getty Images)

Private companies now have yet another avenue to go public, as the NYSE has gained approval from the SEC that allows companies to raise funds while pursuing a direct listing. Earlier this week, the Nasdaq proposed similar changes to its direct listing rules.

The actions land against a backdrop of businesses opting to forgo traditional IPOs. Tech unicorns like Asana and Palantir are pursuing direct listings, while a number of businesses have recently made their debuts by conducting mergers with blank-check companies:

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Walmart joins race for TikTok, CEO Kevin Mayer announces resignation

Walmart has teamed up with Microsoft to acquire TikTok's US operations. (Scott Olson/Getty Images)

Reports emerged Thursday that Walmart has joined the growing list of companies interested in TikTok, teaming up with Microsoft in its pursuit of the popular video app's business in the US, Canada, Australia and New Zealand. Walmart and Microsoft's joint effort would rival that of Oracle, which may reportedly partner with General Atlantic and Sequoia on securing a potential TikTok deal. An agreement ranging from $20 billion to $30 billion could be announced by TikTok in the coming days, according to CNBC.

TikTok CEO Kevin Mayer also announced that he's resigning after just three months on the job, reportedly citing corporate structural changes related to TikTok's impending sale of its US operations, which would affect the global scope of Mayer's role.

Walmart is particularly interested in TikTok's integration of ecommerce and advertising, but wasn't clear about how it would use the video app, according to reports. The retailer had also attempted to work with SoftBank on a TikTok bid, but was met with pushback from the US government because the proposed deal did not include a cloud technology component, according to CNBC.

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Delivery Hero picks up grocery delivery startup in $360M deal

(Kathrin Ziegler/Getty Images)

Delivery Hero has agreed to buy Dubai-based online grocery delivery business InstaShop at a $360 million valuation. The deal will expand the German food delivery group's presence in the Middle East and North Africa. Delivery Hero will pay an initial $270 million, with an additional $90 million based on InstaShop meeting certain growth targets.

Founded in 2015, InstaShop currently operates in the UAE, Lebanon, Egypt, Bahrain and Qatar. The company had more than 500,000 active users in the first half of the year and has an annualized gross merchandise volume of $300 million. InstaShop has received funding from investors including VentureFriends and Jabbar, which focuses on the MENA region.

Delivery Hero has seen its shares more than double in price over the past year. Its revenue was up 93.7% year-over-year at €1.1 billion (about $1.3 billion) in H1 2020. Gross profit in the same period declined slightly to €167.2 million from €168.3 million a year ago, due to the impact of lockdowns.

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Recommended Reads

TikTok founder Zhang Yiming always imagined that he might build the world's next great tech company. But not this way. [The Wall Street Journal]

To many, Dustin Moskovitz has always been known best as Mark Zuckerberg's old roommate. Now, as his latest company prepares to go public, it's finally time for his turn in the spotlight. [Forbes]

As the coronavirus spread in workplaces across the US, employees at major companies including Amazon, McDonald's and Target say their bosses told them to keep quiet. [Bloomberg]

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Quick Takes


	The Daily Benchmark
	2013 Vintage Global Secondaries Funds
	VC Deals
	Warby Parker hits $3B valuation
	Immunotherapy startup snags $55M
	Restream books $50M
	Iceland's Grid picks up $12M Series A
	Exits & IPOs
	Xpeng pops in trading debut after $1.5B IPO
	Capital One captures travel platform Freebird
	Fundraising
	Chinese firm plans $275M fund

The Daily Benchmark

2013 Vintage Global Secondaries Funds

Median IRR

14.46%

Top Quartile IRR Hurdle Rate

17.46%

1.44x

Median TVPI

Select top performers

Industry Ventures Special Opportunities Fund II

Hollyport Secondary Opportunities Fund IV

NB Secondary Opportunities Fund III

*IRR: net of fees

17 Funds in Benchmark »

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VC Deals

Warby Parker hits $3B valuation

Online eyewear retailer Warby Parker has raised $245 million at a $3 billion valuation, according to TechCrunch. D1 Capital Partners, Durable Capital Partners, T. Rowe Price and Baillie Gifford participated in the funding, the report said. The New York-based company was valued at $1.75 billion in 2018, according to PitchBook data.

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Immunotherapy startup snags $55M

Bayer and Northpond Ventures have co-led a $55 million Series A for Triumvira Immunologics, which is developing cancer immunotherapies. Oceanpine Capital and Viva Biotech also participated in the funding. Founded in 2015 and based in Austin, Triumvira is working to engineer T-cells that attack cancers; it's also focused on treatments for hematological and solid tumors.

Additional Investors:

Bloom Burton & Co., C3i

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Restream books $50M

Restream has raised a $50 million Series A co-led by Sapphire Ventures and Insight Partners. Founded in 2015, the Austin-based company is a developer of tech that allows creators to broadcast live content simultaneously across more than 30 social media platforms. Restream was valued at $17.8 million in 2018, according to PitchBook data.

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Iceland's Grid picks up $12M Series A

Grid, the developer of a platform that turns spreadsheets into secure web documents, has raised a $12 million round led by NEA. BlueYard Capital, Slack Fund, Acequia Capital and others also participated. The startup was founded in 2018 and is based in Reykjavik.

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Exits & IPOs

Xpeng pops in trading debut after $1.5B IPO

Shares of Xpeng jumped about 41% in the Chinese electric vehicle maker's trading debut on the NYSE Thursday, closing at $21.22 each. The company raised $1.5 billion in its IPO after pricing the offering at $15 per share, above the expected $11 to $13 range. Xpeng also upsized the offering to 99.7 million American depositary shares from a planned 85 million.

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Capital One captures travel platform Freebird

Capital One has bought Freebird, the operator of a travel rebooking platform, with many of Freebird's employees joining the bank, according to Skift. Founded in 2015, the Cambridge, Mass.-based company was backed by the venture arms of American Express and Citi, as well as General Catalyst and Accomplice. It reached a $40 million valuation in 2018, according to PitchBook data.

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Fundraising

Chinese firm plans $275M fund

Shanghai-based Yunqi Partners has set a $275 million target for its latest venture capital fund, according to an SEC filing. Founded in 2014, the firm invests primarily in tech startups.

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