Market Insights

Summer Fundraising Heats Up: Friday Dealbook for 8/9/2019

August 9, 2019

Valar Ventures made big waves this week after closing $150 million from 57 investors for Valar Fund V. This follows Valar’s investment in BlockFi, which raised $18.3 million in its Series A. Scale AI and AU10TIX raised an enormous $100 million and $60 million, respectively. These large investments are somewhat out of the ordinary for slower summer months, but are a positive forecast for the upcoming fall fundraising season.

 

The Top Deals Covered by OWI this Week

 

BlockFi \ blockfi.com \ Founded in 2017

Developer of a blockchain based platform designed to collateralize crypto holdings and manage digital assets. The company’s platform utilizes blockchain technologies to issue tokens and contracts so as to provide liquidity, transparency and efficiency to digital financial markets, enabling fintech companies and investors to ease out bitcoin trading and secure digital payments in the cloud while mitigating risks associated with financial lending.

The company raised $18.3 million through the combination of Series A-1, Series A-2 and Series A-3 venture funding in a deal led by Valar Ventures on August 6, 2019, putting the company’s pre-money valuation at $28.6 million. Recruit Strategic Partners, ConsenSys Ventures, Fidelity Investments, Susquehanna Growth Equity, Morgan Creek Capital Management, Devonshire Investors, BitMEX Ventures, Galaxy Digital Holdings, able (NYC), Coinbase Ventures, PJC, Akuna Capital, Avon Ventures, CMT Digital and Winklevoss Capital Management also participated in the round. The company intends to use the funds to add new products to its existing platform, which includes interest-earning accounts for Bitcoin and crypto-backed USD loans.

 

Scale AI \ scaleai.ca \ Founded in 2017

Developer of AI-based supply chain solutions intended to accelerate industry performance. The company facilitates cooperation and help design and execute high value-add collaborative projects between partners to scale up of start-ups and SMEs with a focus on enhancing their offerings, enabling them to improve supply chain efficiency.

The company raised $100 million of Series C funding from Founders Fund, Accel, Coatue Management, Index Ventures, Spark Capital, Thrive Capital, Kevin Systrom and Mike Krieger, and Adam d’Angelo, bringing Scale AI’s total valuation to over $1 billion.

 

AU10TIX \ au10tix.com \ Founded in 2005

Provider of front-end and online secure customer onboarding services. The company provides technology for automating the capture, classification, authentication and conversion of ID documents and document images to workable digital records.

The company announced on Thursday a $60 million minority investment from TPG Tech Adjacencies, giving AU10TIX a post-money valuation of $260 million.

 

Become an OWI Member and receive daily insights, behind-the-scenes deal info, access to research, exclusive events, and much more.

 

Investor Highlight

 

Valar Ventures \ valar.com \ Founded in 2010

Description of Investor

Valar Ventures is a venture capital firm that was founded in 2010 and is based in New York, New York. The firm prefers to invest in the financial services and information technology sectors.

Active Portfolio – 34

Investments (TTM) – 10

Med. Round Amount – $10.80M 

Med. Valuation – $41.36M

# of Exits – 9

Deal History

In the past year, Valar Ventures has invested in the following 4 identity companies:

BlockFi

N26

Stash

Petal

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts