Tech Deals I Like
So tech global tech deals are booming. (Source)
I wanted to share a few recent VC deals that caught my attention and why I like them.
- MissFresh raises $450M
Goldman Sachs and Tencent have led the most recent funding raise in the Chinese Fresh Produce E-Commerce Platform, MissFresh. This round of funding comes on the back of previous funding rounds which included Tiger Global Management LLC and Belgium-based investment company Sofina and brings total investment in the company to $1.4B (Source)
Why I like it:
The scale of funding and scale of ambition for this company is incredible; I suppose you have to be ambitious when your competitive set includes JD.com and Alibaba.com. Founder and CEO of MissFresh, Xu Zheng states that “MissFresh plans to march into 100 cities in China. We expect to provide fresh food products to 100 million families with an one-hour delivery service”
With demand for high quality fresh food in China increasing at incredible rates (Source), there should be more opportunities for international providers to help bridge any sourcing gaps that might appear.
2. iQiyi Sports Raises US$124M
iQiyi is like the Sky Sports of China. They have secured the broadcasting rights in China for the English Premier League, the Australian Open, ATP Tour and WTA Tour tennis events so are well placed to take advantage of China’s fast-growing sports streaming industry. This Series A financing round was led by China Sports Capital and China Media Capital (CMC).
Post Money valuation for the company is now $489.5 million.
Why I like it:
Within the sports streaming sector; having the cash to secure long term deals is critical especially when securing first mover advantage / early loyalty with consumers. With the extra funding of $124M, iQiyi aim to secure additional content in football, tennis and golf, enabling them to reinforce their position as a market leader. While western sports gain traction, it will be interesting to see if any Chinese sports succeed in the opposite direction — E-sports feels like the most logical opportunity.
3. Uppercase Raises $3M
This deal is a slightly smaller scale — a seed round of $3m for Uppercase,a company that helps deliver strong offline retail experiences for online native brands. The company works with real estate companies, architects and designers to build stores for online brands in multiple North American cities. The funding round was led by Lerer Hippeau.
Why I like it:
So in a time where offline retail is dead, I find it really interesting that companies like Uppercase are able to raise funds in an effort to bring the online offline. I can completely see the value in brands creating tangible offline experiences that can help them compete on something more than just online prices. The trend is reflected by other brands including Luggage startup Away and fashionable shoe company Allbirds. Based on this trend, while e-commerce might be the future, offline will still have a role to play in helping brands to differentiate in a competitive space.