Category: uber

Anticipating the Driverless Future of Vehicles



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Anticipating the Driverless Future of Vehicles

With the rapid rise of electric vehicles (EVs) and increased investments in autonomous driving, what was once the future of vehicles is quickly becoming a present day reality.

By 2040, EVs are forecast to account for more than half of global annual car sales. A 2020 Consumer Reports survey showed that 31% of U.S. consumers said they are interested in an EV for their next car purchase, with another 40% saying they’re interested in EVs for a future purchase.

And the drive is no longer fueled by just a few players like Tesla. Every major automaker and several Silicon Valley giants are investing billions in the future of vehicles.

This infographic from eToro takes a detailed look at how a driverless future is taking shape right before our eyes.

Driverless Developments in Electric and Autonomous Vehicles

Investments in future-friendly cars are now commonplace—as are new vehicle releases—but for a long time, automakers hesitated to make the electric transition.

With the meteoric rise of Tesla, now a household name in EVs and self-driving vehicles, it’s now clear to the world’s automakers that the pivot to EVs could pay off. As of June 2021, two 100% electric car companies make it onto a list of the highest valued automakers in the world.

RankCompanyMarket Cap (June 2021)
#1Tesla (100% Electric)$662.1B
#2Toyota$247.0B
#3Volkswagen$149.9B
#4BYD$102.1B
#5Daimler$96.9B
#6General Motors (Read more...)

How VCs can get the most out of co-investing alongside LPs



It has rarely been easier for people looking to invest. Nontraditional investors, which include anyone outside of traditional VC firms investing in venture capital deals, are increasingly making their presence felt in the investing community.

McKinsey found that the value of co-investment deals has more than doubled to $104 billion from 2012 to 2018. And by some counts, there are as many as 1,600 “nontraditional” investors helping to fund venture capital deals in 2021.

The primary motivator for nontraditional investors is seeking better returns, and investing alongside VC funds is a great way to achieve that. A recent Preqin study shows co-investing funds significantly outperform traditional funds.

Research shows that 80% of investors found their co-investments outperforming private equity fund investments, with 46% outperforming by a margin of more than 5%. Investors also benefit from a generally less expensive fee structure compared to traditional private equity or VC funds.

When evaluating deals, keep in mind that most companies are not going to be the next tech unicorn, so set realistic views on exits.

Co-investors can also profit by sharing the investment risk, which (Read more...)

Why is Didi worth so much less than Uber?



Years ago, U.S. ride-hailing giant Uber and its Chinese rival Didi were locked in an expensive rivalry in the Asian nation. After a financially bruising competition, Uber sold its China-based business to Didi, focusing instead on other markets.

The two companies are coming head-to-head again, however, as Didi looks to list in the United States. The company’s IPO filing was big news for the SoftBank Vision Fund, Tencent and Uber, thanks to its stake in Didi from its earlier transaction.

Uber is more diversified both geographically and in terms of its revenue mix. Didi is larger, more profitable and more concentrated.

But Didi appears set to be valued at a discount to Uber. By several tens of billions of dollars, it turns out. And we can’t quite figure out why.

This week, Didi indicated that it will target a $13 to $14 per-share IPO price, with each share on the U.S. markets worth one-fourth of a Class A share in the company. In more technical language, each ADR is 25% of a Class A ordinary share in Didi, if you prefer it put like that.

With 288 million shares to be sold in its U.S. IPO, Didi could raise as much as $4.03 billion, a huge sum.

What’s Didi worth at $13 to $14 per ADR? Using a nondiluted share count, Didi is valued between $62.3 billion and $67.1 billion. Inclusive of shares that may be issued thanks to vested options and the like, Didi could be worth (Read more...)

Despite flat growth, ride-hailing colossus Didi’s US IPO could reach $70B



Didi filed to go public in the United States last night, providing a look into the Chinese ride-hailing company’s business. This morning, we’re extending our earlier reporting on the company to dive into its numerical performance, economic health and possible valuation.

Didi is approaching the American public markets at a fortuitous moment. While the late-2020 IPO fervor, which sent offerings from DoorDash and others skyrocketing after their debuts, has cooled, valuations for public companies remain high compared to historical norms. And Uber and Lyft, two American ride-hailing companies, have been posting numbers that point to at least a modest recovery in the ride-hailing industry as COVID-19 abates in many parts of the world.

As further grounding, recall that Didi has raised tens of billions worth of private capital from venture capitalists, private equity firms, corporations and other sources. The size of the bet riding on Didi is simply massive. As we explore the company’s finances, then, we’re more than vetting a single company’s performance; we’re examining what sort of returns an ocean of capital may be able to derive from its exit.

In that vein, we’ll consider GMV results, revenue growth, historical profitability, present-day profitability, and what Didi may be worth on the American markets, given current comps. Sound good? Into the breach!

Inside Didi’s IPO filing

Starting at the highest level, how quickly has gross transaction volume (GTV) scaled at the company?

GTV

Didi is historically a business that operates in China but has operations today in more (Read more...)

SoftBank, Uber, Tencent set to reap rewards from Didi IPO



After years of speculation, Didi Chuxing, China’s ridesharing behemoth, finally unveiled its IPO filing in the U.S., giving a glimpse into its money-losing history.

Didi didn’t disclose the size of its raise. Reuters reported the company could raise around $10 billion at a valuation of close to $100 billion, though The Wall Street Journal cited a valuation upward of $70 billion. Uber’s market cap currently exceeds $90 billion.

Cheng Wei, Didi’s 38-year-old founder, owns 7% of the company’s shares and controls 15.4% of its voting power before the IPO, according to the prospectus. Major shareholders to reap returns are SoftBank Vision Fund, which owns 21.5% of the company, Uber with 12.8% and Tencent at 6.8%.

The nine-year-old company, which famously acquired Uber’s China operations in 2016, is more than a ride-hailing platform now. It has a growing line of businesses like bike-sharing, grocery, intra-city freight, financial services for drivers, electric vehicles and Level 4 robotaxis, which it defines as “the pinnacle of our design for future mobility” for its potential to lower costs and improve safety.

Didi set up an autonomous driving subsidiary that banked $500 million from SoftBank’s second Vision Fund in May last year. The unit now operates a team of over 500 members and a fleet of over 100 autonomous vehicles. It’s also designing EVs for ride-hailing as China pushes taxis and ridesharing companies to phase out fossil fuel vehicles.

Market dominance

For the 12 months ended March, Didi served 493 million annual active users and (Read more...)

Synctera raises $33M Series A to pair fintechs with banks



Synctera, which aims to serve as a matchmaker for community banks and fintechs, has raised $33 million in a Series A round of funding led by Fin VC.

The raise comes just under six months after the fintech raised $12.4 million in a seed round of funding.

New investors Mastercard and Gaingels also participated in the latest round, which included follow-on investments from Lightspeed Venture Partners, Diagram Ventures, SciFi Ventures and Scribble Ventures. Several angel investors put money in the Series A including Omri Dahan, Marqeta’s Chief Revenue Officer, Feedzai Chairman and CEO Nuno Sebastiao and Greenlight co-founder and CEO Tim Sheehan. 

Alongside the Series A, Synctera is also announcing its commitment to the new Cap Table Coalition – which includes funding from Gaingels, Neythri Futures Fund, Plexo Capital and over 20 angels – alongside other startups by allocating 10% of all funding rounds to “traditionally marginalized,” or underrepresented, investors via an SPV. (Fellow fintech Finix led the initiative earlier this year before forming this coalition but more on that later).

“This has exposed us to find great folks who we otherwise might not have known,” said Synctera’s co-founder and CEO Peter Hazlehurst. “That’s why we pledge to reserve 10% of this round and all future rounds to diverse investors.”

In a nutshell, San Francisco-based Synctera has developed a platform designed to help facilitate partnership banking. It was founded on the premise that some community banks and (Read more...)

Belvo, LatAm’s answer to Plaid, raises $43M to scale its API for financial services



Belvo, a Latin American startup which has built an open finance API platform, announced today it has raised $43 million in a Series A round of funding.

A mix of Silicon Valley and Latin American-based VC firms and angels participated in the financing including Future Positive, Kibo Ventures, FJ Labs, Kaszek, MAYA Capital, Venture Friends, Rappi co-founder and president Sebastián Mejía (Rappi), Harsh Sinha, CTO of Wise (formerly Transferwise) and Nubank CEO and founder David Vélez.

Citing Crunchbase data, Belvo believes the round represents the largest series A ever raised by a Latin American fintech. In May 2020, Belvo raised a $10 million seed round co-led by Silicon Valley’s Founders Fund and Argentina’s Kaszek.

Belvo aims to work with leading fintechs in Latin America, spanning across verticals like the neobanks, credit providers and personal finance products Latin Americans use every day.

The startup’s goal with its developer-first API platform that can be used to access and interpret end-user financial data is to build better, more efficient and more inclusive financial products in Latin America. Developers of popular neobank apps, credit providers and personal finance tools use Belvo’s API to connect bank accounts to their apps to unlock the power of open banking.

As TechCrunch Senior Editor Alex Wilhelm explained in this piece last year, Belvo might be considered similar to U.S.-based Plaid, but more attuned to the Latin American market so it (Read more...)

Figure raises $7.5M to help startup employees better understand their compensation



The topic of compensation has historically been a delicate one that has left many people — especially startup employees — wondering just what drives what can feel like random decisions around pay and equity.

Last June, software engineers (and housemates) Miles Hobby and Geoffrey Tisserand set about trying to solve the problem for companies by developing a data-driven platform that aims to help companies structure their compensation plans and transparently communicate them to candidates.

Now today, the startup behind that platform, Figure, announced it has raised $7.5 million in seed funding led by CRV. Bling Capital, Better Tomorrow Ventures and Garage Capital also participated in the financing, along with angel investors such as AngelList co-founder Naval Ravikant, Jason Calacanis, Reddit CEO Steve Huffman and other executives based in Silicon Valley.

The startup has amassed a client list that includes other startups such as fintechs Brex and NerdWallet and AI-powered fitness company Tempo. 

Put simply, Hobby and Tisserand’s mission is to improve workflows and transparency around pay, particularly equity. The pair had both worked at startups themselves (Uber and Instacart, respectively) and ended up leaving money on the table when they left those companies because no one had properly explained to them what their equity, which changed at every valuation, meant.  

Image Credits: Figure co-founders and co-CEOs Miles Hobby and Geoffrey Tisserand. Image Credits: Figure

So, one of their goals was to create a solution that would provide a user-friendly explanation of what a person’s equity stake really means, from tax (Read more...)