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Unicorns gorge as buyers dish up greater rounds, extra capital

Gené Teare Contributor Gené Teare is the top of content material at Crunchbase. Extra posts by this...


Is there a degree when buyers will flip off the spigots for large unicorn funding rounds? If that’s the case, we haven’t reached that threshold but.

Final yr, buyers put a document quantity of capital into members of the Crunchbase Unicorn Leaderboard, an inventory of personal venture-backed firms valued at greater than $ 1 billion.

Globally, a staggering $ 66 billion went into unicorn firms in 2017, up 39 % year-over-year, in keeping with an evaluation of Crunchbase knowledge. The ride-hailing house was the one largest recipient of investor , with a number of rivals within the house elevating billions. Traders additionally poured copious sums into co-working, client web and augmented actuality.

Newcomers additionally joined the unicorn membership for the primary time in 2017, albeit at a barely slower tempo than the previous two years. For all of 2017, 60 new startups had been added to the unicorn checklist. This compares to 66 newly minted unicorns in 2016 and the record-setting 2015 with 99 newcomers.

Beneath, we break down the main places for brand new and current unicorns, prime sectors for funding capital, exits and some different tendencies affecting the house.

Geographic breakdown

The overwhelming majority of unicorns are headquartered in both the U.S. or China, and that’s additionally the case for newcomers to the Unicorn Leaderboard.

In 2017, each the U.S. and China continued to mint new unicorns at a gradual clip. A complete of 29 U.S. firms inked their first funding spherical at a valuation of a billion or extra, up from 22 the prior yr. In China, 24 new unicorns joined the leaderboard, down from 32 in 2016. Europe and Southeast Asia, in the meantime, additionally contributed a number of unicorns.

Within the chart under, we take a look at new entrants, categorized by nation:

The newcomers had been a reasonably numerous bunch, spanning industries from agtech to enterprise software program, together with no-cost inventory shopping for platform Robinhood, on-line training supplier VIPKID and cryptocurrency shopping for and promoting platform Coinbase.


Unicorn buyers confirmed a very sturdy urge for food, nonetheless, for firms in a handful of sectors.

Ridesharing, specifically, had a robust funding yr, with firms within the house taking greater than 10 % of all unicorn funding. That was largely attributable to billion and multi-billion greenback rounds for Lyft, Seize, Ola and Didi Chuxing.

Bike-sharing was additionally large. Two new entrants onto the unicorn checklist got here from that house: Ofo and Mobike. Nonetheless, issues arose later within the yr over whether or not client demand might help the ballooning bike provide.

Different recipients of actually substantial funding rounds, even by unicorn requirements, embody U.S. co-working big WeWork and China-based client web gamers Toutiao and Koubei.

Exiting the board

So loads of unicorns are elevating large rounds. However is there any signal members of the group will finally produce returns for buyers?

General, 2017 supplied some modestly constructive information for unicorn exit watchers. Fifteen venture-funded firms with personal valuations of a billion or extra went public final yr, greater than double 2016 ranges and the very best complete since Crunchbase started monitoring the asset class.

Acquisition exercise, in the meantime, was weaker. There have been simply seven recorded M&A exits involving unicorns in 2017, down from 10 in 2016. AppDynamics was the highest-performing exit at 95 % over its final personal valuation. For the remaining firms that exited, all seem to have been under or at their final personal valuation.

Within the chart under, we take a look at IPO and M&A counts for unicorns over the previous seven years:

Unicorn IPOs weren’t simply extra frequent in 2017. Efficiency was usually fairly good, too. A lot of final yr’s newly public firms sustained market caps far increased than their final personal valuations. Prime performers by this metric embody a number of China-based unicorns, led by funding supervisor Qudian and search engine Sogou. Different standouts embody gaming supplier Razer  and app developer software program supplier MuleSoft.

Within the chart under, we take a look at a number of the prime performers primarily based on the post-IPO share features over their final personal valuations:

These days, going public appears to be a greater choice for investor returns. If the corporate goes out under its final personal valuation, that a number of can enhance if it grows its market and public shareholders enhance the inventory. For an M&A transaction, the worth is about and both late-stage buyers have in-built protections or are shedding cash at these exit costs.

Averages level to extra exits forward

For the 45 unicorn firms which have gone public, the typical time to go public has been 26 months after first being valued at $ 1 billion. For the 25 firms which were acquired, the typical time to get acquired is 24 months after first being valued at $ 1 billion.

So what does that say in regards to the present crop of still-private firms? As a result of greater than 150 firms out of 263 have been on the Unicorn Leaderboard for greater than two years, we anticipate exits to extend, given the backlog.

Particular due to Steven Rossi who manages the Crunchbase Unicorn Leaderboard.

Featured Picture: Li-Anne Dias

As nuclear loss grows, Toshiba needs chip investors, soon


As nuclear loss grows, Toshiba needs chip investors, soon

European tech investors spot safe havens from Brexit worries


European tech investors spot safe havens from Brexit worries

Frankfurt (Reuters) -. Technology investors sought shelter after Brexit picking companies provide direct access to services for web and mobile clients or companies mainly do business worldwide that could benefit from falling kilos

It’s way too Skram hardware makers or email trafficking suppliers with large British sales, which accounts for less currency driven by swinging voice of great Britain to leave the EU.

Shareholder is also cautious for software and services companies get caught short by freezing budgets by customers scrambling to evaluate their businesses and consequent slower economic growth.

Second quarter results starting this week and running in August. The Stoxx European technology index fell 10 percent in the June 23 vote, but has since returned 6.6 percent. It is namely 10.5 percent so far this year, weighed by the slowdown in the global economy is growing smartphone and concern about the global economy.

Brexit playing in a deeper trend in which established technology companies providing traditional hardware, software or services is losing ground to cloud-based businesses, such as corporate spending and consumer appetite shifted to the Web and mobile phones.

“There will be many companies poorly positioned for the cloud that will proclaim Brexit as a timely excuse for their own problems,” said Ben Rogoff, a fund manager at Polar Capital in London

“Let’s be clear here:. This uncertainty takes place against the background of growth, which in any case disappointing These companies will blame Brexit their own misexecution” ..

a recording of the head inligting beamptes in the United States and Europe by Morgan Stanley in June – before Brexit voice – the buyers had already paring back 2016 spending plans for hardware and technical services. Cloud, big data and security remains above bestedingsprioriteite, it found.

After the vote, global market research firm Gartner cut its technology spending outlook for Britain by 3 percent this year and 5 percent in 2017.

safe havens

two UK-based safe havens is ARM Holdings, the chip technology used in most smartphones licenses worldwide, and Sophos, driven by demand for its computer security software and services, most financial analysts say.

US names such as Salesforce.com and Red Hat, with a long-term subscriptions for Internet software supplied little direct exposure to the UK, are safe bets, said Silicon Valley-based analyst Trip Chowdhry. Amazon.com and Apple, while operating in Britain, enjoys strong brands and tough sake subscription models tend to isolate them from any UK slowdown, he said.

Worldwide benefits of spending on its advanced chip aimed ASML Netherlands makes tools from Intel and Taiwan’s TSMC <2330.TW>, along with the positive effects of product sales in dollars, but the discussion of them said in euros, Morgan Stanley.

Europe’s largest software maker, SAP, remains isolated by long sales cycles and an entrenched multinational client base, with little direct exposure to the UK, although the Brexit shock could prove in the last week of June has delayed some new software license trade.

Baader analyst Knut Woller expects SAP later confirm this month its full year 2016 financial targets, “SAP consensus for flat growth licensed in the second quarter, which would be seen to meet as a relief” and the stock handlebar higher, he said.


But the UK online advertising and e-commerce sales by other major American Internet in particular is set to an ultimate hit of slower economic growth and translation pounds in US dollars take breaks for record purpose, said Deutsche Bank analyst Ross Sandler

it includes eBay, with 16 percent of revenue from Britain. Price travel site with an estimated 15 per cent; Google 9.5 percent and Facebook with an estimated 7 to 10 percent linked to Britain, Sandler said.

Eastern European software service EPAM and Luxoft, which heavily rely on contracts of financial services and media customers in Britain and Western Europe, a number of technology stocks hardest hit in the region by worry about how Brexit undermine economic growth. Both stocks are en 15-20 percent in the past month.

Financial software vendors Temenos of Switzerland and the United Kingdom established Fidessa may have trouble closing contracts to reconsider the second half of 2016 as banks their British positions, UBS said.

“While we do not think the UK abandoned” vote is analogous collapse of Lehman, we think it’s probably as banks consider impede the possible implications of the decision-making in Europe, “UBS software analyst Michael Briest said

Dutch car navigation vendor TomTom’s stock has 20 percent immersed in the past month. UK consumers are responsible for 13 percent of sales, with three-quarters of total sales come from Europe, Barclays said <. / p>

“We have challenging times ahead for TomTom based on its exposure to the UK consumer market and the negative impact of foreign currency must TomTomâ ???? Gross have margins, “the Barclays analyst Andrew Gardiner.

TomTom face a double hit because most of what they sell are priced in dollars, making purchases more expensive in Britain.

(Editing by Ruth Pitchford)

Vodafone investors want bigger bid or full takeover by Verizon


Vodafone investors want bigger bid or full takeover by Verizon

Six big investors Vodafone said $ 100 billion is not enough for the participation of British society in its U.S. joint venture with Verizon Communications, and urged it to come up with a range of at least $ 120 billion.

Their comments followed a Reuters report Wednesday that Verizon had hired to prepare for a possible bid $ 100 billion to buy 45 percent of Vodafone in their joint venture of Verizon Wireless, which may be structured as a case about advisers 50:50 and stock offer.

If the figure are 100 billion, six shareholders, with about 1.3 billion shares of Vodafone they said they would prefer the British group to insist on a full merger Verizon instead.

The main concern of investors contacted by Reuters was the fact that sales of Verizon Wireless – the best thing about the show later in the Vodafone portfolio -. , the exposure of individuals in European markets in trouble

“Without being too disrespectful mark (Vodafone), sitting with a pretty ugly set of assets once you lose the game Verizon Wireless,” said Ralph Brook-Fox, UK shares manager at Ignis Asset Management, a top 40 institutional shareholder Vodafone.

“I think the merger or the scenario of full recovery, but not at the forefront of discussions at this time, would actually end up being more acceptable agreement.”

Verizon Communications has issued a statement earlier this month to say that he did not intend to merge or make an offer for Vodafone speculation after submission.

The share of Verizon Wireless Vodafone

accounted for about half of the adjusted income of the British group in the six months to end-September 2012, according to financial results.

He also received before the end of 2012, a dividend of £ 2.4 billion on its stake in Verizon Wireless, and said he was going to spend £ 1.5 billion to its shareholders through a buyback program that the importance of participation group.

In the European core of Vodafone operates in operations affected by the crisis and the highly regulated markets such as Italy, Spain and Portugal, where sales have been caused by economic turmoil and intense competition under pressure.

With this in mind, investors contacted by Reuters prefer to bid for participation in between $ 120 billion and $ 135 as acceptable. At its current share price, the market capitalization of all Vodafone is about $ 146 billion.

“I think … $ 120 billion is the point where you think you have a decent premium,” a top 20 shareholder said on condition of anonymity. “I think it is reasonable and if they succeed in this, I think the shares (Vodafone) rise.”

Another big question for Vodafone and its shareholders is the possible tax invoice for the sale of its interest would suffer: between $ 5000000000 and $ 25

. The range is due to a lack of clarity on that company Vodafone hold assets – for example America Vodafone holds assets in a number of other countries – from outside the company is not able to say believe how much tax should be paid.

Exclusive: Southeastern joined by other Dell investors – source


Exclusive: Southeastern joined by other Dell investors - source

At least three of Dell Inc. Top 20 shareholders support decision Southeastern Asset Management to vote against the acquisition of $ 24.4 billion manufacturer of PC # 3, led by CEO Michael Dell, a person close the file.

Among the incumbents who support Southeast Harris Associates LP, Yacktman Asset Management LP and Pzena Investment Management LLC, representing approximately 3.3 percent keep in Dell, the person said.

Yacktman Harris were not immediately available for comment. President Richard Pzena Pzena says many Dell must be in the range of $ 20 per share or the company should other options.