Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Venture-backed exits remained soft in the third quarter with 90 M&A deals and 13 IPOs in the United States, according to a report by Thomson Reuters and the National Venture Capital Association. Twenty of the 90 deals reported an aggregate deal value of $5.1 billion, which was up 39 percent from the second quarter and marked the strongest quarter for M&A exits with a disclosed value this year. The 13 IPOs raised $1.7 billion. This was a 55 percent decrease in the number of offerings from the second quarter and a 54 percent decline in total amount of dollars raised, the report found. PRESS RELEASE M&A Value Hits $5.1 billion for Strongest Quarter This Year Market Volatility Drags Down Venture-Backed IPO Activity in Third Quarter NEW YORK, NY – Ninety venture-backed M&A deals were reported in the third quarter, 20 of which had an aggregate deal value of $5.1 billion, increasing 39 percent compared to the second quarter and marking the strongest quarter for M&A exits with disclosed value this year, according to the Exit Poll Report by Thomson Reuters and the National Venture Capital Association (NVCA).  Thirteen venture-backed initial public offerings (IPOs) raised $1.7 billion during the third quarter of 2015, a 55 percent decrease, by number of offerings, from the second quarter of this year and 54 percent decline in total amount of dollars raised during the previous three-month period. “While the number of companies making a public offering during the third quarter was down as a result of market volatility, M&A activity was robust, marking the strongest quarter by disclosed deal value this year.  Of the thirteen companies that did make an IPO, more than two-thirds are currently trading above their offering price in the middle of a choppy market, a strong indicator of the quality of venture-backed IPOs,” said Bobby Franklin, President and CEO of NVCA.  “In addition to market volatility weighing down IPOs, another recent and important trend that has impacted the venture-backed IPO market is the increased activity of both VCs and non-traditional investors making late-stage investments into private companies that might otherwise file for an IPO.  While these so-called ‘private IPOs’ are weighing down the current IPO market, it also means the venture-backed IPO pipeline is deep and we are hopeful exit activity picks up steam in future quarters.” IPO Activity Overview There were 13 venture-backed IPOs valued at $1.7 billion in the third quarter of 2015.  By number of deals, quarterly volume decreased 55 percent from the second quarter of this year and registered a 54 percent decrease, by dollars, compared to the previous quarter. Led by the biotechnology sectors, ten of the 12 offerings during the quarter were life sciences IPOs, representing more than three-quarters of the total listings in the third quarter. By location, 11 of the quarter’s 12 IPOs were from U.S.-based companies.  In the only non-U.S. offering of the quarter, Austria-based Nabriva Therapeutics AG (NBRV) raised $92.3 million on the NASDAQ stock exchange on September 17th. In the largest IPO of the quarter, Sunrun Inc (RUN), a San Francisco, California-based provider of solar energy, raised $250.6 million and began trading on the NASDAQ stock exchange on August 4th.  The company is currently trading 26 percent below its $14 offering price. Eleven companies listed on the NASDAQ stock exchange during the third quarter, while two listed on the New York Stock Exchange. Nine of the 13 companies brought to market this quarter are currently trading at or above their offering price.  There are 50 venture-backed companies currently filed publicly for IPO with the SEC.  This figure does not include confidential registrations filed under the JOBS Act, where many observers believe the majority of venture-backed companies now file. Mergers and Acquisitions Overview As of September 30th,  90 venture-backed M&A deals were reported for the third quarter of 2015, 20 of which had an aggregate deal value of $5.1 billion, a 42 percent uptick compared to the overall number of deals reported during the second quarter of this year, and a 39 percent increase, by disclosed deal value. The information technology sector led the venture-backed M&A landscape with 69 of the 90 deals of the quarter and had a disclosed total dollar value of $3.4 billion.  Within this sector, Computer Software and Services and Internet Specific deals accounted for the bulk of the targets with 47 and 17 transactions, respectively, across these sector subsets. The largest venture-backed M&A transaction during the third quarter was EMC Corp’s $1.2 billion million purchase of Virtustream, a Bethesda, Maryland-based provider of enterprise cloud solutions.  Infor Inc’s $675 million acquisition of Oakland, California-based Gt Nexus Inc ranked as the second largest venture-backed M&A deal during the quarter.

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Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

LendingClub co-founder Soul Htite leads funding of Credible

San Francisco-based Credible, which operates a platform for borrowing and refinancing student loans, raised a $10 million Series A round of funding led by Soul Htite, founder and CEO of Dianrong.com and co-founder of LendingClub. Ron Suber, president of Prosper, also participated in the round, along with peer-to-peer lending investor Scott Langmack. The company previously raised $2.7 million in seed funding from multiple investors and individuals, including Carthona Capital, Redbus Group, Mark Goines and Bruce Gibney. PRESS RELEASE Credible Closes $10 Million in Series A Funding, Signaling a New Era of Transparency in Student Lending Credible answers the increasing demand for choice in online lending San Francisco, CA (September 29, 2015) – Credible (credible.com), the multi-lender student loan marketplace, allows borrowers to receive competitive loan offers from its vetted lending partners. Credible’s goal is to empower borrowers with more options to finance and refinance their student loans. The $10 million in Series A funding is led by Soul Htite, Founder & CEO of Dianrong.com and Co-founder of LendingClub, with participation from Ron Suber, President of Prosper, and online lending pioneer Scott Langmack. “We’re building Credible for the future of online lending – providing borrowers with choice, better information, and simplicity of process”, said Stephen Dash, Founder & CEO of Credible. “Simply put, we are making student loans more fair. In Soul, Ron and Scott, we have three of the most experienced individuals in online lending which will allow us to accelerate our growth.” As an independent, multi-lender marketplace that has been adopted by some of the most prestigious organizations in the country, including the American Medical Association, the American Pharmacists Association, and Georgia Tech Alumni Association, Credible provides borrowers with unbiased information and multiple offers from its lending partners. “The speed of innovation occurring in financial services has created a once in a generation opportunity” said Soul Htite. “Credible’s unique model is fundamentally changing the dynamics of the loan selection process. We see Credible as a core fixture of the next phase of online lending.” About Credible Credible’s founding principle is to provide borrowers the level of transparency they deserve. As a multi-lender marketplace that allows borrowers to receive competitive loan offers from its vetted lenders, Credible empowers consumers to take control of their student loans. Borrowers can fill out one form, then receive and compare personalized offers from numerous lenders and choose which best serves their individual needs. Credible is fiercely independent, committed to delivering fair and unbiased solutions in student lending. Existing investors include Mark Goines, Carthona Capital, Redbus Group, and Bruce Gibney.

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LendingClub co-founder Soul Htite leads funding of Credible

Safe Cash Payment Technologies raises $1.12 mln

Safe Cash Payment Technologies said it raised $1.12 million from Bialla Ventures, InfoSpace founder Naveen Jain, Vuk Bulajic, Vinh Vo and company founder Chris Kitze. The company is developing a platform to enable the use of digital tokens. PRESS RELEASE Safe.Cash Raises $1.12 Million from Top Fintech Investors to Usher in the Era of Digital Cash Safe Cash Payment Technologies to Unveil First Digital Tokens Redeemable for Cash; Consumers Buy Tokens for Cash at Banks, Can Use Digitally Like Cash (SAN FRANCISCO, Sept. 29, 2015 — Safe Cash Payment Technologies (http://www.safe.cash/) has raised $1.12 million from leading technology and business investors, including Bialla Ventures, InfoSpace founder Naveen Jain, veteran trader Vuk Bulajic, Vinh Vo and founder Chris Kitze. The revolutionary new platform, which is set to go live later this year, is the first to let consumers take cash to a bank and purchase digital tokens which preserve the privacy and universal acceptance of cash, while adding in the security and digital portability of cryptocurrency. “Trillions of dollars are transacted in cash globally each year,” said founder Chris Kitze, “representing 85 percent of all global consumer transactions. Instead of asking how to make a digital token like bitcoin more globally accepted, we’ve taken the universally accepted currency of cash and made it digital.” Initial partner banks will be announced in Q4 2015, with the platform set to go live shortly thereafter. The ingenious Safe Cash utilizes digital wallets with end-to-end encryption—which will be available on iOS, Android and other mobile platforms—and partner banks. Following a legal and straightforward fact-pattern, cash stays in the bank while consumers can spend the tokens as freely as if they were cash, swapping them for local currency at partner banks whenever they desire. The Safe Cash system will eventually support euros, U.S. dollars and other fiat currencies. “While this is a boon to consumers, it is first and foremost a fully compliant, legal banking product,” said Kitze. “Safe Cash is a secured digital payment system that enables banks to do things they can’t do now. Consumers and merchants will greatly benefit from person-to-person e-commerce, store of value without digital asset fluctuation risk, and eventually, cross-border payments and remittance. Kitze, a serial entrepreneur who has created companies with more than $8 billion of market capitalization over his 25-year career, was on the IPO team of Lycos, and founder and CEO of Xoom.com and NBCi (the merger of  Xoom.com and Snap.com). His management team includes other technology and finance veterans. About Safe Cash Technologies,Inc. Founded in December 2014, Safe Cash is the first payment system to allow cash to be used as a digital asset, with member banks storing U.S. dollars and providing tokens which are redeemable for cash. The system is designed to work globally and on most mobile phones. All product and company names herein may be trademarks of their registered owners.

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Safe Cash Payment Technologies raises $1.12 mln

Qualcomm to invest up to $150 mln in India startups

Qualcomm Inc will be launching a fund that will invest up to $150 million in India startups. Qualcomm Ventures will advise and direct Qualcomm on all these investments. PRESS RELEASE September 28, 2015 Qualcomm Incorporated (NASDAQ: QCOM) today announced its intention to invest up to $150 million in Indian startup companies across all stages as part of its commitment to India during a meeting with Prime Minister Narendra Modi at the Digital Economy event in San Jose. Qualcomm Ventures will advise and direct Qualcomm’s activities with respect to these strategic investments. Qualcomm has been investing in promising Indian startups since 2007 and there are more than 20 Indian companies as part of its global portfolio. Sectors of investment vary across the mobile ecosystem and include hardware, software platforms, e-commerce, healthcare, location based services and retail technology. Initiatives such as the QPrize™ competition, a global seed investment competition, as well as an early stage fund, are part of the team’s efforts in encouraging early stage entrepreneurs. Qualcomm directly invests in Indian mobile and internet start-up companies to keenly foster the local ecosystem. Portfolio companies include Yourstory, a media tech platform for entrepreneurs; Portea Medical, an in-home healthcare provider; and MapMyIndia, a provider of digital map, navigation, and tracking products and services. Indian companies receiving funding can benefit from Qualcomm’s insights on mobile technologies and utilize Qualcomm’s relationships throughout the industry. Qualcomm Ventures’ India team also provides unique support through its comprehensive knowledge and understanding of the region. “We share Prime Minister Narendra Modi’s vision to transform India into a digitally empowered society and knowledge economy. India is at the cusp of a technology revolution and mobile technologies will lay the foundation for Digital India,” said Dr. Paul E. Jacobs, executive chairman, Qualcomm Incorporated. “We are committed to providing local innovative start-ups with the support needed to help India’s IOE ecosystem grow, increasing consumer choice and availability.” “Since Qualcomm’s first India investment in 2007 and with full-fledged presence starting in early 2008, we continue to invest broadly to strengthen India’s overall economy,” said Nagraj Kashyap, senior vice president of Qualcomm Incorporated. “We are committed to providing these companies with the support needed to help propel them forward in the competitive Indian region. We’re excited about the new prospects in India and look forward to growing our portfolio.” Qualcomm also plays a key role driving India’s wireless revolution by making mobile communications increasingly accessible and affordable. For over two decades, Qualcomm has been helping the country’s mobile ecosystem achieve ongoing success and growth through its work with operators, OEM/ODMs, software developers, sales/distribution partners, governmental entities, academic institutions and standards organizations, among others. Qualcomm believes that its initiatives in India will help support the Indian government’s Digital India vision. For more information please visit www.qualcommventures.com. ABOUT QUALCOMM INCORPORATED Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. For more than 30 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm’s website,OnQ blog, Twitter and Facebook pages.

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Qualcomm to invest up to $150 mln in India startups

UK private equity firm Lion Capital eyes takeover of Kurt Geiger: Sky News

(Reuters) — British private equity firm Lion Capital, former owner of high-end footwear designer Jimmy Choo, is considering returning to the upscale footwear market with a takeover of luxury shoe retailer Kurt Geiger, Sky News reported citing people familiar with the matter. Lion Capital, who along with a number of bidders presented initial offers on Monday, is believed to have received financial information about Kurt Geiger and may value the brand at about 250 million pounds ($379.28 million), Sky News said. Earlier this year, Kurt Geiger hired Goldman Sachs (GS.N) to explore a sale of part or all of the business, and even issue an initial public offering. Kurt Geiger was sold to Jones Group in 2011 for $350 million, including debt. However, following pressure from activist hedge fund manager Barington Capital, Jones Group sold itself to U.S. private equity firm Sycamore Partners for $2.2 billion, thereby making Sycamore the owner of Kurt Geiger. Lion Capital and Kurt Geiger could not be reached for comment outside regular UK business hours. Sycamore Partners could not be immediately reached for comment.

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UK private equity firm Lion Capital eyes takeover of Kurt Geiger: Sky News