China's five-year plan sets sights on tech

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The Daily Pitch: VC

March 15, 2021

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What China's five-year plan could mean for VC tech investment

Chinese president Xi Jinping, center, and premier Li Keqiang, center right (Kevin Frayer/Getty Images)

The Chinese government's latest economic roadmap calls for boosting innovation, heralding a potential boon for startups in preferred industries.

The county's five-year plan singles out emerging technologies like quantum computing, space exploration, cryptocurrencies, artificial intelligence and 5G.

China's strategic plans influence how money from government guidance funds—which oversee more than $800 billion—is spent.

The government has also signaled its intent to further open up industries to private companies and foreign investors.

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Why many large unicorns are choosing direct listings over SPACs

(twomeows/Getty Images)

Some of the biggest VC-backed companies are already showing significant interest this year in going public via direct listings. Gaming giant Roblox had a successful listing last week, while crypto specialist Coinbase and data software providers Databricks and UiPath are set up for similar exits later this year.

Our recent analyst note explores why companies valued at more than $5 billion might pick a direct listing over a SPAC merger, and why a wider range of businesses could pursue this path to the public markets. Among the takeaways:

A direct listing, combined with a large private funding round, can allow large unicorns to select the specific pricing and investors they want.

This approach can be especially attractive for companies that have above-market revenue growth or operate in a popular industry, which can drive significant investor demand.

Regulatory changes may help level the playing field between traditional IPOs and direct listings.

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Stripe's valuation leaps to $95B

Stripe's latest funding round values the online-payments giant at a staggering $95 billion post-money, in a European growth-focused bet that makes it second only to ByteDance as the world's most valuable venture-backed company.

Stripe previously was valued at about $36 billion following a private round less than a year ago.

In the deal announced Sunday, the company raised $600 million from investors including Baillie Gifford, Fidelity and Sequoia. Also participating were Allianz X, Axa and Ireland’s National Treasury Management Agency. Stripe's headquarters are in Dublin and San Francisco.

At $95 billion, the new price tag vaults Stripe up the valuation leaderboard past SpaceX, Didi Chuxing and Instacart, according to PitchBook data.

Funding European growth is the main focus of the deal, Stripe said, underscoring the surge in demand by many of the region's largest businesses.

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Recommended Reads

For now, Las Vegas lies dormant. But Apollo Global Management and Vici Properties are betting that, soon, a new Roaring '20s will begin. [Bloomberg]

NASA's massive new James Webb space telescope is too large to be flown to its future launch site in South America. Which means it will have to go by sea. Which means NASA is now worried about pirates. [The Atlantic]

Will a well-funded sector of companies working to build electric air taxis create a new future of transportation? It might help to look back on the past. [The Wall Street Journal]

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Quick Takes


	The Daily Benchmark
	2014 Vintage Global Real Assets Funds
	People
	Ant Group CEO resigns
	VC Deals
	Airtable sets sights on $5B valuation
	Monte Rosa Therapeutics secures $95M
	FalconX collects $50M
	Portfolio Companies
	Crypto exchange Binance under CFTC scrutiny
	Exits & IPOs
	Richard Branson's Virgin Orbit seeks SPAC deal
	Fundraising
	Openspace Ventures closes $200M fund

The Daily Benchmark

2014 Vintage Global Real Assets Funds

Median IRR

7.48%

Top Quartile IRR Hurdle Rate

12.06%

1.16x

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Join us as we analyze the historical track record of emerging funds and provide insight into how to identify and assess these nascent managers. Highlighting information from our most recent Benchmarks Report, our experts will discuss:

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Ant Group CEO resigns

Simon Hu, the CEO of Chinese fintech giant Ant Group, has resigned from the company and handed the reins to chairman Eric Jing, according to reports. Following its failed attempt to go public late last year, Ant Group is in the midst of a structural overhaul that has been imposed by Chinese regulators.

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VC Deals

Airtable sets sights on $5B valuation

Cloud collaboration services provider Airtable is planning to raise over $200 million, bringing the company's valuation to around $5 billion, Reuters reported. Airtable was valued at $2.59 billion last year after a $185 million Series D, according to PitchBook data. The startup's roster of backers includes actor Ashton Kutcher, Stripe CEO Patrick Collison, Benchmark and Coatue.

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Monte Rosa Therapeutics secures $95M

Monte Rosa Therapeutics has raised a $95 million Series C led by Avoro Capital Advisors. The Boston-based company is developing precision medicines designed to target disease-causing proteins.

Select Additional Investors:

Aisling Capital, Casdin Capital, Cormorant Asset Management, NEA, Versant Ventures

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FalconX collects $50M

FalconX has raised $50 million in a round co-led by Tiger Global and B Capital Group. The Bay Area-based company is the developer of a digital asset trading platform for cryptocurrencies.

Select Additional Investors:

American Express Ventures, Accel, Coinbase Ventures, Accomplice VC, Flybridge Capital Partners

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Portfolio Companies

Crypto exchange Binance under CFTC scrutiny

Binance, which operates one of the world's largest cryptocurrency exchanges, has become the subject of an investigation by the Commodity Futures Trading Commission, Bloomberg reported. The company, which isn't registered with the agency, is under scrutiny for allowing US residents to buy and sell derivatives that may have violated CFTC rules, the report said. Binance has raised capital from investors like Sequoia and Janse Capital.

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Exits & IPOs

Richard Branson's Virgin Orbit seeks SPAC deal

Virgin Orbit, Richard Branson's satellite launch company, has reached out to banks to help it go public by a blank-check merger, The Wall Street Journal reported. The company is reportedly pursuing a valuation of $2.5 billion to $3 billion. Branson owns about 80% of the business, the report said.

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Fundraising

Openspace Ventures closes $200M fund

Openspace Ventures, a Singapore-based early-stage firm, has raised a third fund with $200 million in commitments. That brings the Southeast Asia-focused firm's total committed capital to $425 million. Openspace has offices in Bangkok, Jakarta and Manila, Philippines.

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View 31 investments »

Chart of the Day

"Sweden, the largest country in the Nordic region, accounts for the bulk of Nordic PE deal activity. Sweden's proportions of PE deal volume in the Nordics hit a 10-year high in 2020, accounting for 48.5% of all closed deals—up from 39.0% five years ago."

Source: PitchBook's 2021 Nordic Private Capital Breakdown