So we got a LOT of questions about the Apple — Didi Chuxing deal today.
Here's a quick data-driven hot take on it.
Does Apple do this frequently?
No they do not.
The tech giant’s $1B investment in Didi Chuxing is the 4th disclosed private market deal (M&A or investment) Apple has been involved in this year. But the rest were all acquisitions of private companies thus far in 2016.
Apple disclosed 11 acquisitions in 2015 (no minority investments).
Here is a CB Insights search of Apple's investments and M&A. The screenshot below shows recent deals which are dominated by acquisitions.
What is Didi Chuxing's valuation vs Uber and other unicorns?
Didi Chuxing’s most recent disclosed valuation was $20B. Their rumored raise of $2-3B is also said to be at a larger valuation ($25B) but as of their last closed financing round, it was $20B.
Uber, by comparison, was valued at $62.5B most recently.
This financing would make Didi Chuxing China’s second-highest valued unicorn, trailing only Xiaomi (valued at $46B as of its December 2014 Series E).
Only 4 other unicorns globally have achieved a valuation of $20B or more (the others being Uber, Xiaomi, Airbnb, and Palantir). Here is our complete list of unicorn companies and valuations sortable by valuation and location.
How do fundings between Uber and Didi Chuxing and other startups compare?
Didi Chuxing has raised $6.28B inclusive of the Apple investment ($725M to Kuaidi Dache, $818M to Didi Dache, and $4.74B to the merged entity). Here is the Didi Chuxing profile from CB Insights.
This compares to the $8.01B raised by Uber to date (last raised $200M in a Corporate Minority round in February 2016).
Among VC-backed companies, only 2 others — Lu.com and Spotify — have raised $1B+ equity financing rounds in 2016 to date (this excludes a round to JD Finance, a subsidiary of JD.com). Spotify’s was a convertible note deal.
Has Apple invested in other ride-hailing apps too?
Apple hasn't directly invested in other ride hailing apps.
But interestingly, Didi itself has invested in other ride-sharing and on-demand unicorns, including Lyft, Grab (formerly GrabTaxi), Olacabs, and Ele.me.
However, through their investment in Didi, Apple has some ownership of these other startups including Lyft, Uber's main rival in the USA and Olacabs, Uber's primary rival in India.
And for all my friends in the Bay Area
I leave you with this.
Median home prices in San Francisco hit an all-time high in April 2016. You're welcome.
Have a great weekend.
P.S. We just crossed 25k followers on Twitter. Follow @cbinsights if you like being happy.
The Week In Data
- 750: Hyperloop One, the company looking to make 750-mile-an-hour terrestrial transportation of people and cargo a reality, just raised an $80M Series B. Joe Lonsdale (@JTLonsdale) — board member and founding partner at Hyperloop-backing firm 8VC — will be joining us at the Future of FinTech Conference.
- -68%: That’s the decline in Q1’16 in dollar funding to companies in food tech, which we define as tech-enabled startups involved with the ordering/delivery of food to consumers or the creation of next-generation foods. Funding was $684M in the quarter. Deals also dropped dramatically.
- 30%: Related to your coverage of the Didi-Apple deal above, Neil Cybart’s Apple analysis blog Above Avalon analyzes Apple’s R&D expenses and finds that they’re up 30% in 2016. Cybart believes it’s a sign that Apple will “pivot” into the automobile industry as similar run-ups in the past have preceded new product launches. Others believe Cybart is confusing correlation with causality.
- $150M: Ed tech company Age Of Learning has received a $150M mega-round at a $1B valuation, which we highlighted in our Friday weekly top deals section last week (see this week’s edition, below). This week we released our Periodic Table of Ed Tech, which includes Age Of Learning and 130+ other players in ed tech.
- 18: That’s the multiple on earnings that could be drawn by Argus Media, which provides energy price data and industry news, in a possible deal from private equity house General Atlantic, according to the Financial Times. The deal could value Argus at $1.4B. That’s a valuation that would place Argus, a niche and data-driven B2B media brand, not too far behind Buzzfeed’s valuation in private markets, as shown in our analysis of media startup valuations.
- 20: The number of years the Pokémon franchise has been obsessing kids — ever since the first games launched in 1996 for the Nintendo Game Boy. To mark the 20-year anniversary, the Japanese company is planning a slate of game releases for later this year, including an augmented reality mobile app game, Pokémon Go. The developer is gaming startup Niantic, which was spun out of Google and counts Pokemon Company International, Google, and Nintendo as investors.
- 65.5%: Smartphones carrying Google’s Android OS grabbed 65.5% of market share in the US and 75.6% across Europe’s five major markets, according to Q1’16 numbers from Kantar Worldpanel ComTech. Those numbers were up 7 percentage points year-over-year in both markets. European growth was the strongest in over 2 years.
- 56%: That’s the percentage of Austin voters that defeated a proposition backed by Lyft and Uber, which would have eased fingerprint requirements and other rules for ride-hailing companies. Uber and Lyft announced Monday they’d suspend operations in Austin, the 11th largest city in the US, calling existing regulations too onerous. An estimated 10,000 Uber and Lyft drivers are affected.
- 10: That’s the number of US news sites Facebook editors rely on to decide whether a topic should be considered a “national story,” and considered for its trending topics, per leaked editorial guidelines. Critics have said this is too narrow a selection, and have accused Facebook editors of liberal bias for this and other reasons. But others have pointed out that Facebook’s newsfeed is far more important than the “trending” module and this was a tempest in a teacup.
- 116: That was the age of the world’s oldest person, Brooklyn resident Susannah Mushatt Jones, who died this week. She was the last living American to have been born in the 1800s, according to analysts from the Gerontology Research Group cited by the Associated Press. When she was born in 1899, William McKinley was president and the US had 45 states.
Tweet of The Week
Here's what the team at CB Insights has been talking about.
|Mosaic Momentum Alerts
These startups saw the biggest uptick in their Mosaic momentum scores in the last week. To see the entire list of this week's biggest movers, login and run this search.
The CB Insights Mosaic algorithm is a National Science Foundation-backed score that tracks the health of private companies using public data.
1. BookingBug, +310
BookingBug is a booking and reservation system for businesses. Deep Ventures is an investor.
2. Voalte, +140
Voalte develops smartphone alternatives for caregiver communication that enables care teams inside and outside the hospital to access and exchange information securely.
3. GENBAND, +120
GENBAND provides communications software solutions with a focus on migrating clients to IP-based systems.
4. YCharts, +110
YCharts provides individual investors with online tools to invest and trade stocks. Investors include Amicus Capital and Chicago Ventures.
5. CLEAR, +110
CLEAR is a membership that enables people to pass through airport security in a quick fashion.
6. SpaceX, +110
SpaceX designs, manufactures and launches advanced rockets and spacecrafts.
7. Zane Benefits, +100
Zane Benefits is focused in individual health insurance reimbursement for small businesses.
8. Oppa, +90
Oppa is a self-branded e-commerce company dedicated to making smart design furniture more affordable.
9. Delphix, +80
Delphix, formerly Seventh Shield, is specialized in Data as a Service, which helps enterprises accelerate application projects, including cloud migrations and custom development.
Modernizing Medicine's product, Electronic Medical Assistant (EMA), is a cloud-based, specialty-specific electronic medical record (EMR) system with a library of built-in medical content, designed to be used by physicians.
|The Week's Top Deals
We tracked 406 deals totaling $4.92B in the last week. Here's the top 10. Run this search on CB Insights to see them all.
1. Apple Invests $1B Into Didi Chuxing
The ride-sharing wars took an interesting twist with Apple invested $1B into China-Based Didi Chuxing. The company is now valued at $20B, putting it into the top 5 most valuable private companies.
2. Krispy Kreme taken private by JAB Holding Company
Krispy Kreme was taken private by JAB Holding Company for $1.35B. JAB will find synergies with other companies in its portfolio including Peet's Coffee & Tea and Keurig Green Mountain.
3. PAI Partners acquires a majority stake in Ethypharm for $855M
PAI Partners acquires Ethypharm from another private equity firm, Astorg Partners, for $855M. Ethypharm develops and manufacturers oral drug delivery systems.
4. Alibaba takes stake in cinema company Dadi Cinema via $154M convertible bond
Alibaba Pictures Group (the movie division of Alibaba) has issued a convertible note of $154M to Guangdong Dadi Cinema Construction, which owns 313 cinemas and is expanding.
5. The Trade Desk secures a $150M line of credit from four banks.
California-based adtech company The Trade Desk secured a $150M revolving credit facility from Citibank, N.A., US Bancorp, East West Bancorp, and City National Bank.
6. Wallapop and LetGo merge and raise $100M
Online classifieds companies Wallapop and LetGo have merged to expand their presence in the US. Both have raised more than $100M each and are raising and additional $100M from existing investors as a joint entity.
7. Fractal Analytics raises a $100M growth equity round
Data insights firm Fractal Analytics raises from Khazanah Nasional Berhad, the strategic investment fund of the Government of Malaysia.
8. Hyperloop One raises a $80M Series B
Hyperloop One raised $80M from Sherpa Ventures, Khosla Ventures, and GE Ventures among others to create frictionless high-speed travel.
9. Insurance firms invest in $70M into traditional Chinese medicine clinic chain Gushengtang
Ping An Insurance and Starr Companies invested $70M into Gushengtang. Gushengtang provides an innovative payment structure to its doctors, who receive a portion of the clinic's profits, in addition to prescription drug revenue sharing and free stock options.
10. Aptinyx raises a $65M in venture to focus on treating brain disorders
Aptinyx raised $65M led by New Leaf Venture Partners and also included Frazier Healthcare, Adams Street Partners, and Longitude Capital among others.
|Most Popular Search
This week's top query in our database:
Ed tech deals