The final quarter of 2019 brought a small uptick in VC investment globally, with $63.1 billion in VC investment across 4,289 deals, led by a $6.55 billion corporate investment in The We Company – a strategic investment by Softbank following WeWork’s failed IPO. Given the array of political and economic uncertainties affecting most regions of the world in Q4’19, it is notable that the Americas, China, India, and Europe all saw at least one $1 billion+ deal during the quarter.
As a whole, 2019 was a very strong and relatively stable year for VC funding, with $257 billion raised across the globe – the second highest level on record next to 2018’s over $300 billion, according to the Q4’19 edition of KPMG Private Enterprise’s Venture Pulse report. The robust results are notable given the year did not include any massive $10 billion+ megadeals like those raised by Juul ($12.8 billion) and Ant Financial ($14 billion) in 2018.
“The results highlight the strength that comes with having a diversity of growing startup ecosystems around the world. While different jurisdictions may have experienced challenges at different points of 2019, VC investment in others picked up the slack,” explained Kevin Smith Co-Leader, KPMG Private Enterprise Emerging Giants Network, KPMG International and EMA Head of KPMG Private Enterprise. “Europe, in particular, shattered its previous annual high of VC investment, attracting $37.5 billion in 2019 and set a new record, with 18 new unicorns in 2019 compared to 12 in 2018 and only 6 in 2017. The breadth and diversity of Europe’s VC market and growing innovation ecosystems continued to attract deep pocketed investors from across the globe, with companies in the UK, Germany, the Netherlands, Spain, Lithuania, Israel, and France all attracting $100 million+ funding rounds.”
- Global VC investment rose from $62 billion across 5,453 deals in Q3’19 to over $63 billion across 4,289 deals in Q4’19. The US alone accounted for more than half of VC investment globally during
- Q4’19, with $34.2 billion of investment across 2,215 deals.
- At a regional level, the Americas led VC investment in Q4’19, with $36.2 billion raised across 2,400 deals. Asia followed with $18.7 billion raised across 1,021 deals, while Europe saw $9 billion raised across 804 deals.
- The largest deals this quarter occurred in three different countries: US-based The We Company ($6.5 billion – corporate investment), China-based Tenglong Holding Group ($3.7 billion – Series A), and India-based PayTM ($1.7 billion – Series G).
- The percentage of investment by corporates reached an all new high in Q4’19, with corporates participating in 29.4% of all VC deals globally.
Key 2019 Annual Highlights
- For the third consecutive year, global median deal sizes rose across all deal stages in 2019 – to $1.7 million for seed/angel deals, $8 million for early stage deals, and $10.3 million for later stage deals.
- The global median deal size for Series D and higher was $58 million in 2019, up from $50 million in 2018 – and more than triple the $15.9 million it was in 2013.
- For the third year in a row, global median pre-money valuations rose across all deal stages in 2019, including to a massive $423.5 million for Series D or later rounds. Other global median pre-money valuations were $7 million for seed stage rounds, $22 million for Series A, $70 million for Series B, and $150 million for Series C deals.
- The number of global first-time venture financings of companies dropped for the fifth year in a row – to 5,878 in 2019. Deal value in 2019 was $23.9 billion – second only to 2018’s $29.7 billion. The combination suggests that investors are scrutinizing deals heavily and investing more in companies with stronger business fundamentals.
US continues to dominate investment in Americas
VC investment in the Americas rose slightly, from $34.6 billion in Q3’19 to $36.2 billion in Q4’19. The largest deals in the Americas came from the US, including the $6.5 billion corporate investment in The We Company, a $700 million raise by Door Dash, a $635 million raise by Bright Health, and a $500 million raise by Magic Leap. The 10 largest deals in the US spanned numerous sectors, including real-estate, food delivery, health care, virtual reality, fintech, publishing, and logistics. The top deals also showed strong geographic diversity, with several deals well outside of Silicon Valley – such as in Florida (Magic Leap), Minneapolis (Bright Health), Seattle (Convoy), and Portland (Vacasa).
Despite small quarter-over-quarter declines in VC investment, Canada and Brazil both saw strong VC investment for the year as a whole, including a number of $100 million+ megadeals during Q4’19. In Canada, top deals included a $200 million raise by Toronto-based password management company 1Password. In Brazil, annual VC investment grew year over year – from $1.7 billion in 2018 to almost $2.1 billion in 2019 – setting a large new annual record. Brazil also saw three new unicorns created in 2019, including three in Q4’19: Loggi, QuintoAndar and Wildlife Studios.
Europe shatters annual record for VC investment
Europe shattered its previous annual high of VC investment, attracting $37.5 billion in VC investment in 2019 compared to $28.2 billion in 2018. After setting a new quarterly record of $10.8 billion in VC investment in Q3’19, VC investment dropped to $7.9 billion in Q4’19 – still a very robust amount for the region.
The UK proved fundamentally resilient to concerns around Brexit, attracting a record high $11.9 billion in VC investment during 2019, including more than $2.5 billion in Q4’19. Large deals in Europe during Q4’19 included a $525 million raise by UK-based Deliveroo, a $284 million raise by Celonis in Germany, and a $276 million raise by Picnic in the Netherlands. Germany, France, and Spain also reached new annual records for VC investment in 2019.
VC investment in Asia falls year-over-year
After achieving a massive record of $126 billion in 2018, Asia-based VC investment fell to $73 billion in 2019. On a quarterly basis, VC investment rose slightly to $18.7 billion in Q4’19, led by a $3.7 billion Series A round by Tenglong Holding Group in China, a $1.7 billion raise by PayTM in India, and a $1 billion raise by China-based Beike.
VC investment in China remained steady quarter-over-quarter at $11.1 billion, although the two largest deals in China accounted for $4.7 billion of this total during Q4’19. With four consecutive quarters of growth – including its second highest quarter of investment in Q4’19 ($4.6 billion), India achieved a new annual record high of over $12.5 billion in VC investment in 2019. Australia also saw its second-highest quarter of VC investment in Q4’19 ($339 million).
Future outlook positive, yet cautious
The challenges associated with WeWork’s IPO, combined with the mixed results associated with other unicorn IPOs during 2019 raised significant concerns regarding the profitability of companies – particularly unicorn companies on the path to IPO. These concerns will likely have VC investors undertaking more due diligence with respect to potential deals. Companies without strong business models and paths to profitability will likely find it more challenging to raise funds in the future.
“In 2019, we saw numerous unicorn companies IPO with a broad range of outcomes. Over the next few months, we’ll likely see this IPO activity continue as companies look to get out before the November presidential election in the US,” said Conor Moore, Co-Leader, KPMG’s Emerging Giants Network. “However, we are going to see companies, particularly consumer-focused companies, taking some time to put their financial house in order and to really prove the unit economics of their business models to investors. Profitability or a clear path thereto is going to be a key success factor for IPOs moving forward.”
SOURCE KPMG International
Medici Ventures Keiretsu Companies GrainChain and Symbiont Working Together to Expand Global Operations
GrainChain to expand to numerous countries in 2020 using Symbiont’s Assembly™ enterprise blockchain solution
SALT LAKE CITY, March 27, 2020 (GLOBE NEWSWIRE) — Medici Ventures, the wholly owned blockchain accelerator of Overstock.com, Inc. (NASDAQ:OSTK), announces that two of its keiretsu companies, GrainChain and Symbiont, are working together to expand GrainChain’s global operations through the use of Symbiont’s blockchain solution. GrainChain, a blockchain-powered agritech company, is utilizing Symbiont’s Assembly™ enterprise blockchain network to improve platform performance and privacy features. Assembly™ has allowed GrainChain to significantly increase the number of farmers, buyers, and grain elevators using its products.“Medici Ventures encourages its keiretsu companies to find synergies among the group to build world-changing technologies. We’re pleased to see these two keiretsu companies working together to build meaningful technology that benefits everyone in the global agricultural community,” said Jonathan Johnson, CEO of Overstock.com and president of Medici Ventures. “GrainChain and Symbiont’s goals align directly with ours, as the companies are working to eliminate middlemen, democratize capital, and re-humanize commerce through the use of blockchain technology.”GrainChain’s innovative platform allows for quicker payments between farmers and buyers while offering immediate availability of tradable commodities. GrainChain currently has operations in Texas, Mexico, and Honduras, with plans to expand to several new countries in 2020.Symbiont is an enterprise fintech company building the next generation of financial markets infrastructure on a foundation of blockchain technology. Symbiont’s Assembly™ blockchain platform provides privacy features and seamless scalability and allows its customers to build networks where numerous, independent entities may view and share data in real time.“GrainChain’s goal is to continue to grow into new countries to help support farmers around the globe, and Symbiont’s blockchain platform is the solution that will help us reach that goal,” said Luis Macias, CEO and founder of GrainChain. “By utilizing blockchain technology in our supply chain operations, each stakeholder in the agriculture ecosystem receives fair value and prompt payment, which is something we believe every buyer and farmer should have access to.”“Assembly™ will bring efficiencies to GrainChain’s operations while allowing the company to continue to empower farmers around the globe,” said Mark Smith, Symbiont CEO. “GrainChain’s work in reducing frictional costs for both farmers and buyers helps everyone in the ecosystem, and Symbiont is pleased to support GrainChain’s expansion to bring this important technology to the global agricultural community.”Medici Ventures, Overstock.com’s wholly owned blockchain accelerator, was founded in 2014 with a mission to change the world by accelerating the adoption of blockchain technology, in order to fundamentally change the way in which we transact. Medici Ventures’ keiretsu of companies are introducing blockchain technologies to industries such as identity, land governance, money and banking, capital markets, supply chain, and voting. Medici Ventures is also committed to increasing public awareness and understanding of the use cases for and corresponding value of blockchain technology through public engagement and policymaker outreach.About GrainChain
GrainChain was founded in 2013 with the goal of using technology to empower farmers and level the playing field in the global agricultural market. Our innovative, blockchain and IoT-based suite of products allows producers, buyers and storage operators to accurately, efficiently and reliably buy, sell and track commodities throughout the supply chain, from farm to market.About Symbiont
Symbiont is the enterprise fintech company creating the next generation of financial markets infrastructure using blockchain technology. Assembly™, Symbiont’s enterprise blockchain platform, creates efficiencies, eliminates manual data replication and reconciliation processes, and enables real-time data sharing with complete privacy. The world’s leading financial services firms, including Citi, Nasdaq, Ranieri, Templum and Vanguard, choose to work with Symbiont to solve their toughest business problems. With offices in New York and Amsterdam, Symbiont is led by a team of experts in capital markets and blockchain technology. To learn more about Symbiont, please visit symbiont.io or contact the team at firstname.lastname@example.org.About Medici Ventures
Launched in 2014, Medici Ventures is a wholly-owned subsidiary of Overstock.com, Inc. created to leverage blockchain technology to solve real-world problems with transparent, efficient, and secure solutions. Medici Ventures has interests in a global keiretsu of groundbreaking blockchain-focused companies focused on building the foundation of a technology stack for civilization. Medici Ventures’ companies are introducing blockchain technology to industries including identity, land governance, money and banking, capital markets, supply chain, and voting. The company’s majority-owned financial technology company, tZERO, executed the world’s first blockchain-based stock offering in December 2016.About Overstock
Overstock.com, Inc Common Shares (NASDAQ:OSTK) / Digital Voting Series A-1 Preferred Stock (Medici Ventures’ tZERO platform:OSTKO) / Series B Preferred (OTCQX:OSTBP) is an online retailer and technology company based in Salt Lake City, Utah. Its leading e-commerce website sells a broad range of new home products at low prices, including furniture, décor, rugs, bedding, home improvement, and more. The online shopping site, which is visited by nearly 40 million customers a month, also features a marketplace providing customers access to millions of products from third-party sellers. Overstock was the first major retailer to accept cryptocurrency in 2014, and in the same year founded Medici Ventures, its wholly owned subsidiary dedicated to the development and acceleration of blockchain technologies to democratize capital, eliminate middlemen, and re-humanize commerce. Overstock regularly posts information about the Company and other related matters on the Newsroom and Investor Relations pages on its website, Overstock.com.O, Overstock.com, O.com, Club O, Main Street Revolution, and Worldstock are registered trademarks of Overstock.com, Inc. Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding Overstock’s expectations regarding Symbiont and GrainChain. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company’s Form 10-Q for the quarter ended December 31, 2019, which was filed with the SEC on March 13, 2020, and any subsequent filings with the SEC.SOURCE: Overstock.com, Inc.Media Contact:
Labuan IBFC’s Financial Services Community Band Together to Contribute to the Relief Efforts in Combating COVID-19
Labuan International Business and Financial Centre, Labuan IBFC’s financial services and intermediation community have come together to assist local authorities in relief efforts via the pooling of resources.
Labuan IBFC’s Cross-Industry Group comprising of all the industry associations representing licensed entities in the jurisdiction has led the formation of a pool fund, focused on providing relief to frontliners and those less fortunate in Labuan.
This Cross-Industry Group consists of Labuan Financial Services Authority, Labuan International Insurance Association, Association of Labuan Banks, Association of Labuan Trust Companies, Labuan Investment Banking Group and the Labuan Fintech Association.
The Labuan IBFC Community is deeply concerned about the growing scale of the COVID-19 pandemic and its social and economic impact, particularly on Labuan island. Specifically, this resource pool will fund towards the purchase and distribution of personal protective equipment for hospital staff, healthcare providers, and other frontline service personnel on the island.
Relief, in the form of household necessities, will also be provided to those in the B40 income group and to daily wage earners who are impacted by the situation, as well as schools and small businesses.
The above effort is testament of the commitment and empathy of the Labuan IBFC community towards the people of Labuan island, by providing whatever assistance it can to relieve hardships under the current situation.
SOURCE Labuan IBFC
Asia-Pacific B2B Payments Market, Forecast to 2025 – Lucrative Opportunities in Offering Competitive Payment Terms, Virtual Credit Cards, Digital Currencies & Value-added Services
Dublin, March 27, 2020 (GLOBE NEWSWIRE) — The “Growth Opportunities in the Asia-Pacific B2B Payments Market, Forecast to 2025” report has been added to ResearchAndMarkets.com’s offering.Digital payments technology adoption in Asia-Pacific remains in a nascent stage, and unlike digital payment methods used by consumers in which streamlined checkout processes accept instant payment using credit cards, the bulk of B2B payments is still tied to paper checks and manual processes.What are the trends within the B2B payments landscape in Asia-Pacific?How large is the B2B payments market in Asia-Pacific?When is the digital B2B payments market projected to grow in Asia-Pacific, and what are the expected growth rates?What are the potential implications of digitalization on B2B payments?What are future opportunities within B2B payments in Asia-Pacific?What is the market outlook on B2B payments in Indonesia?What is the market outlook on B2B payments in Vietnam?Key Topics Covered
1. Executive SummaryKey Findings – Asia-PacificKey Findings by Country2. Market Overview – Total B2B Payments MarketMarket DefinitionsKey Questions This Study Will AnswerMarket SegmentationRisks in B2B PaymentsMarket Trends – B2B Payments Paid LateMarket Trends – Increased Usage of eInvoicingMarket Trends – Decline in Use of Trade CreditMarket Trends – Increased Government Support3. Drivers & Restraints – Total B2B Payments MarketMarket DriversMarket Driver – Growth and Support of SMEsMarket Driver – Partnerships & Collaborations amongst Key Industry ParticipantsMarket Driver – Partnerships & Collaborations amongst Key Industry Participants (continued)Market Driver – GlobalizationMarket Driver – Growth in Payment Technology SolutionsMarket RestraintsMarket Restraint – Geopolitical Risk for Cross-border B2B PaymentsMarket Restraint – Security Concerns over Digital Payment MethodsMarket Restraint – Complexity and Inefficiency of B2B Payments4. Forecast and Trends – Total B2B Payments MarketForecast AssumptionsRevenue Forecast by Payment TypeRevenue Forecast by Payment Type Discussion5. Key B2B Payments Solution Providers in Asia-PacificVisa ProfileMastercard ProfileEKO-PAY ProfileInvapay ProfilePayoneer ProfileiPayLinks ProfilePayPal ProfileTransferWise ProfileWestern Union ProfileEarthport Profile6. B2B Payments in IndonesiaCountry Analysis – IndonesiaRevenue Forecast by Payment TypeRevenue Forecast by Payment Type DiscussionIndonesia B2B Payments – Service and Market TrendsIndonesia – B2B Payments Competitive Landscape7. B2B Payments in VietnamCountry Analysis – VietnamRevenue Forecast by Payment TypeRevenue Forecast by Payment Type DiscussionVietnam B2B Payments – Service and Market TrendsVietnam – B2B Payments Competitive Landscape8. Growth Opportunities and Companies to ActionGrowth Opportunity 1 – Offer Competitive Payment TermsGrowth Opportunity 2 – Offer Virtual Credit CardsGrowth Opportunity 3 – Offer Digital CurrenciesGrowth Opportunity 4 – Offer Feasibility throughout Delivery ProcessGrowth Opportunity 5 – Offer Value-added ServicesStrategic Imperatives for Success Factors9. The Last WordThe Last Word – Conclusion and RecommendationsThe Last Word – 3 Big PredictionsFor more information about this report visit https://www.researchandmarkets.com/r/p27dqbResearch and Markets also offers Custom Research services providing focused, comprehensive and tailored research.CONTACT: ResearchAndMarkets.com
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