Another downround for Rocket Internet. Snapchat to IPO? Google's latest acquisition.


In a week in which tech news was dominated by the disappearing iPhone headphone jack, Google announced it would acquire Apigee, a publicly-traded cloud software company, for $625M. It's Google's 11th acquisition this year, according to our Google acquisitions tracker, and the largest since the company's $3.2B purchase of Nest in 2014.

Google's M&A appetite has picked up this summer, with Q3'16 already topping the company's 7 previous quarters for M&A. The recent burst of activity — 4 acquisitions in July alone — also puts Google roughly on pace to equal its M&A pace of 16 last year


The Week In Data

  • 1878: So much technology comes and goes, but the classic 1/4-inch headphone jack dates back to a slightly different version launched in 1878, when operators sat at switchboards directing calls. Now, Apple has said goodbye to all that with its introduction this week of the jack-less iPhone 7.
  • $119M: OfferUp, a marketplace for people to buy and sell things locally, achieved unicorn status this week. The company raised a $119M Series D round led by private equity firm Warburg Pincus. As a result, there are now 175 private companies valued at or over $1B on our Unicorn Tracker

  • 50%: Rocket Internet cut the valuation of its online furniture business Home24, which lost more than half of its value in its latest financing round that raised €20M ($22.4M). The company's valuation went from €981M ($1.1B) to €420M ($471M), a reduction of over 50%. This downround follows Rocket Internet's move to lower the valuation of its online shopping business, Global Fashion Group, which was the largest downround from a private valuation since the start of 2015. See the entire downround list here.
  • $84M: Coupa Software, which provides software to businesses to help them manage their spending, generated $84M in revenue in its latest fiscal year that ended Jan. 31. It's on our unicorn list with a $1B valuation, and has raised $169M in total funding.
  • $350M: Snapchat took out a line of credit with Morgan Stanley as the lead bank. The amount remains undisclosed and there is a lot of speculation around why the company needs it. Some anticipate an IPO, especially since Snapchat's business continues to grow and is on track to beat its $350M revenue goal for 2016, according to Recode.
  • 12.9%: Earlier this year, Oracle announced that it would acquire NetSuite for $9.3B, but that deal now faces opposition from T. Rowe Price. This week, the mutual fund sent a letter to NetSuite stating that it believes the offer is undervalued and that NetSuite did not do its due diligence of seeking competing offers. T. Rowe Price has an over 12.9% stake in NetSuite.
  • 12: The number of startups in the Techstars Mobility Class of 2016 that presented this week at the accelerator's annual demo day in Detroit. As part of the program, all companies received $120,000 in funding, but some received more as a result of outside funding from other investors. 

  • 60: Google announced it is adding ride-hailing services Lyft and Gett to its Google Maps app. This will allow users to compare prices between different ride-hailing services, a move that could stir up more tension between Google and Uber competitors in the driverless car space and more recently, the ride-sharing space. In total, Google Maps says it displays pick-up times and fare ranges for nine ride-hailing services in 60 countries.
  • 1.6 million: The top coconut water seller in the US, All Market Inc., which owns the Vita Coco brand (found on our food and beverage startups infographic), cracks 1.6 million nuts per day to keep up with demand for the latest health drink fad. Unfortunately, the Caribbean is running out of its signature fruit and may miss its chance to ride the crest of the beverage craze. Local prices for coconuts are rising in the region, while coconut harvests haven’t bounced back from bad seasons, a lull in plantings in the 1990s, and a lack of fertilizers to improve yields and meet demand.

  • $10MCheddar, an online news video subscription service, raised a $10M Series B. Lightspeed Venture Partners, Comcast Ventures, and Ribbit Capital participated in the round.
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. 

The CB Insights Mosaic algorithm is a National Science Foundation-backed score that tracks the health of private companies using public data.

1. Cloud Imperium Games+270
Cloud Imperium Games is a video game company.

2. Tongal+190
Tongal develops content strategies and produces video for every platform. Investors include Bulger Capital Partners and Insight Venture Partners.

3. Numerify+190
Numerify is a provider of IT business analytics applications for organizations that use cloud-based IT services, assets, projects, and finance systems. 

4. Delphix+160
Delphix, formerly Seventh Shield, is specialized in data-as-a-service, which helps enterprises accelerate application projects including cloud migrations, custom development, and ERP rollouts.

5. Biz2Credit+150
Biz2Credit is as an online credit resource for startup loans, lines of credit, equipment loans, working capital, and other funding options.

6. ADARA+140
ADARA is a travel intelligence platform. Investors include Felicis Ventures, August Capital, and Baseline Ventures.

7. Extole+130 
Extole, formerly TellAPal, is a social advocacy platform for brands and agencies that uses referral marketing technology.

8. Allbound
Allbound is a cloud-based channel sales and marketing platform.

9. Duetto Research+110
Duetto delivers revenue strategy solutions to hotels and casinos. Investors include Accel Partners and Battery Ventures.

10. Man Crates+110
Man Crates are curated gifts for men, packed in wooden crates. Products include NFL barware and outdoor survival gear.
The Week's Top Deals
We tracked 299 deals totaling $3.8B in the last week. Here's the top 10. Run this search on CB Insights to see them all.
1. Yum! Brands raises $460M for China-based spin-off
Yum! Brands reached a deal with Ant Financial Services Group and Primavera Capital Group to create a separate China-based business. Along with the $460M private equity investment, the spin-off will be publicly traded in November, and will have the exclusive rights to KFC, Pizza Hut, and Taco Bell (which is not yet in China).

2. RenRenChe raises $150M Series D round
The China-based used car platform raised from Ceyuan Ventures, China Minsheng Investment, HanFor Holdings, Prometheus Capital, Redpoint Ventures, Shunwei Capital Partners, and Xinjun Capital.

3. Didi Chuxing raises $120M Corporate Minority from FoxConn
Following its August deal to take over UberChina's operations for a minority stake, Didi Chuxing raised a corporate minority from FoxConn Technology Company, the China-based manufacturer of Apple products. Didi also counts Apple as an investor, and Apple is said to be working on its own electric car. 

4. OfferUp raises $119M Series C extension round
The Seattle, Washington-based platform for selling used items joined the unicorn club raising at a $1.2B valuation. Backers in the round included Altimeter Capital, Andreessen Horowitz, Coatue Management, GGV Capital, T. Rowe Price, VY Capital, and Warburg Pincus.

5. Byju's raises $50M round
The India-based online classes app raised from Chan Zuckerberg Initiative, Lightspeed India Partners, Sequoia Capital India, Sofina, and Times Internet.

6. Chrono Therapeutics raises $48M Series B round
The company is developing a transdermal smoking cessation wearable that is currently in clinical trials and is planning submission to the FDA in 2018. Backers in the round included 5AM Ventures, Asahi Kasei, Canaan Partners, Cota Capital, Emergent Medical Partners, Endeavour Vision, Fountain Healthcare Partners, GE Ventures, Hikma Ventures, Kaiser Permanente Ventures, Mayo Clinic, Mission Bay Capital, and Xeraya Capital. 

7. Proclara Biosciences raises $47M Series E round
The Cambridge, Massachusetts-based focuses on protein misfolding-based diseases and raised from Merieux Developpement and Shire. The company, which has raised $109M to date, plans to use the proceeds to develop its Alzheimer's treatment. 

8. Cyence raises $40M Series A round
The San Mateo, California-based company helps insurance companies model cyber risk. Institutional Venture Partners and New Enterprise Associates were backers in the round.

9. SessionM raises $35M Series D round
The Boston, Massachusetts-based consumer engagement platform raised from Causeway Media Partners, CRV, General Atlantic, Highland Capital Partners, Kleiner Perkins Caufield & Byers, and Salesforce Ventures.

10. PillPack raises $31M Series D round
The Somerville, Massachusetts-based pharmacy company packages medications into divided dose packs. Investors in the round included Accel Partners, Accomplice, CRV, and Founder Collective.
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