Amazon Competitor Gets $300M At $1.2B Valuation

by: VCDeals

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Amazon (NASDAQ:AMZN) and GrubHub (NYSE:GRUB) competitor: Tiger Global led a $300M round in on-demand delivery company Postmates. The deal valued Postmates at about $1.2B. The CEO says the company has a “beautiful path” to a 2019 IPO.

Postmates CEO Bastian Lehmann said the company didn’t plan to raise more capital until Tiger Global approached. The startup reported over $1B in gross merchandise volume last year. Postmates says it completes over 3M delivers a month and that it’s contribution margin-positive in 90% of its operational markets.

Competitors: DoorDash raised $535M in March with SoftBank (OTCPK:SFTBF, OTCPK:SFTBY) among the backers the $250M in August from a list including Coatue Management and DST Global, pushing the company to a $4B valuation. UberEats also competes in this space.

GitHub competitor: Alphabet’s (GOOG, GOOGL) GV participated in a $100M round in open source DevOps company GitLab. The round came with an over $1B valuation and also included Iconiq Capital and Khosla Ventures. GV last invested in GitLab’s $20M funding in October 2017.

GitLab says it’s the leading integrated product for connecting issue management, version control, code review, and other aspects of modern software development. GitLab’s customers include Intel, Alibaba, and Nasdaq. The company’s user numbers surged after Microsoft (NASDAQ:MSFT) competitor GitHub in June because some programmers worried Microsoft would change the open-source nature of the platform.

Competitor: Microsoft bought rival GitHub for $7.5B in stock, beating out Alphabet to the buy. Atlassian (NASDAQ:TEAM) competes in the space with a trio of products: Jira, Trello (acquired in January 2017 for $425M), and Bitbucket.

Holographic AR display: Alibaba (NYSE:BABA), Porsche (OTCPK:POAHY), and Hyundai (OTCPK:HYMPY) took part in an $80M Series C round for holographic AR display tech company WayRay. The round valued WayRay at $500M. Sources put total fundraising between $110M and $140M.

WayRay’s tech and hardware powers head-up displays projecting images into a driver’s field of vision. The company will use the new funds to bring its tech to market through OEM deals with carmakers. WayRay’s long-term plans include building tech for other displays like windows.

Competitors: Continental and Panasonic (OTCPK:PCRFY), to name two.

Emerging biotech name: Celgene (NASDAQ:CELG) participated in a $37.5M funding in biotech group Silverback Therapeutics, bringing the Series A total up to $47.5M. OrbiMed and Alexandria Investment Partners also participated.

Silverback is developing a pipeline of targeted therapies for cancers and fibrosis with the treatment delivered systemically through, for example, an oral pill or IV. CEO Eric Dobmeier (former COO of SeattleGenetics) has left the role allegedly due to his unhappiness with Silverback’s timeline in getting products to market. OrbiMed partner/Silverback founder and ex-CEO Peter Thompson has stepped back into the position.

Seeking funds: Southeast Asian ride-hail company Go-Jek was looking into raising $2B after a $1.5B round earlier this year that included Tencent (OTCPK:TCEHY, OTCPK:TCTZF), (NASDAQ:JD), Google, and Temasek. Go-Jek wants to expand its available services in Singapore and enter new markets in Thailand, the Philippines, and Singapore. Competitor Grab (GRAB), which bought Uber’s (UBER) stake in the region, recently raised $2B including $1B from Toyota.

Social Capital turmoil: Social Capital CEO Chamath Palihapitiya confirms the fund will no longer take outside capital with plans to become a “technology holding company” by the end of the year with investments coming off its balance sheet. Palihapitiya gave a must-read interview with The Information where he a key quote was: “I would rather spend time with the people that are 100% aligned with what I want to do and the person that’s most aligned with what I want to do is me.”

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