Tech Deals, People, News: January 22 2016
China’s top online seller of movie tickets and restaurant bookings raised $3.3 billion in the largest private fundraising round globally for a venture-capital-backed start-up, reports the Wall Street Journal. Valued at more than $18 billion by the fundraising, Meituan-Dianping said it raised the fresh capital from investors such as Chinese Internet company Tencent and Singapore state investment firm Temasek.
The unicorn wars are coming, as the downturn in the market will force these onetime highfliers to seek money at valuations below their earlier billion-dollar-plus levels, known as “down rounds,” writes Steven Davidoff Solomon in the New York Times Dealbook.
The recent market selloff is pummeling the business-technology sector, but it may come with a silver lining for its top players: an opportunity to buy cash-poor upstarts that have been eating away at their business, reports the WSJ.
Microchip Technology agreed to acquire Atmel for $8.15 per share in a cash and stock deal that values the smaller rival at about $3.6 billion, reports the Financial Times.
Struggling electronics group Sharp has become the object of a bidding war between Taiwan’s Hon Hai Precision Industry and a Japanese state-backed fund, reports the reports the FT.
Venture investors pumped $72.3 billion into venture-backed companies in the U.S., according to data from industry tracker Dow Jones VentureSource. That compares with the $58.19 billion invested in 2014 and the $94.09 billion in 2000, the pinnacle of the Internet boom. In the fourth quarter, venture investments fell 7 percent compared with a year ago.
Norwest Venture Partners has raised a new $1.2 billion fund, less than two years after it collected roughly the same amount of money for its last fund, reports the New York Times Dealbook.
In China, venture capital investment fueling the growth of new start-ups fell 29 percent in the fourth quarter from the level in the third quarter,according to a new report from CB Insights and KPMG, reports Dealbook.
The market for initial public offerings has been all but dead since late last year. Don’t expect that freeze to lift anytime soon, according to two top officials for the United States’ biggest stock exchanges, reports Dealbook.
Practice Fusion, an electronic health records start-up, hired JPMorgan Chase last year to explore an initial public offering in 2017, according to people with knowledge of the matter, though the discussions are now in flux because of market volatility, reports Dealbook.
Dick Costolo, the former chief executive of Twitter, unveiled plans to launch a new personal fitness platform and join a venture-capital firm, reports the WSJ.