January 2019 Startup Funding Update – 4 companies Swoop Deals Worth more than $1 Billion

YoStartups Team

The first month of funding rounds for 2019 is over and here is a lowdown of it, as recorded by the research team at YoStartups.  The article covers the highlights of the funding activities in January 2019 with a focus on funding patterns according to the geography, funding round categories and the industries.

According to the research by YoStartpus, 1423 funding deals were completed in this first month of funding for 2019. The amount raised from 281 of these deals have not been disclosed yet, and the total amount raised from the rest of the signed 1142 deals capped at  $26.52 billion.

Overall, this marks a decrease in the number of deals by 48.7% and 10.4% drop in the investment amount raised, as compared to the funding deals completed in  January 2018.

Funding Stage Highlights – Categories that Stood Out

Let us look at the top performing funding round types for January 2019.

The maximum number of deals was recorded in the category of seed rounds in January 2019 while the highest amount of funding was raised through private equity rounds.

The early stage funding rounds which include pre-seed, seed and angel rounds accounted for 34.2% of the total deals signed. Compared to January 2018, the number of early-stage deals, as well as the amount raised, has shown a decline. The total number of deals fell by 62.1%, and the amount raised in these deals fell by 20.3%.

Venture funding deals dominated with a share of 46.45% in the total deals signed in January 2019. When compared to the funding deals in January 2018, venture funding witnessed a drop by 29.5% in the number of deals and an 8.3% decrease in the amount raised.

The average amount raised in early-stage funding and venture funding stands at $1.97 million and $27.95 million.

Industries Soaring with Investments in January 2019

According to the research team at YoStartups, startups from the following industries bagged the highest number of deals in January 2019:

Software & SaaS

Health & Wellness

Medtech

Media & Entertainment

These industries witnessed deals that accounted for 49.6% of the total number of deals. Startups in these sectors raised $13.64 billion which is 51.4% of the total investment amount raised in January 2019.

Software & SaaS brought in the highest amount of investments at $4.24 billion. Real estate and fintech follow in the ranking with  $3.68 billion and $2.91 billion respectively.

Outstanding Countries in the Funding Rounds in January 2019

1,404 companies from across 67 companies participated in funding activities, recording a 22.1% decrease in the number of countries that got investments in comparison to January 2018. The United States continues to lead with the highest number of deals and investment amounts received.

This January, only 539 deals were signed by US-based startups as compared to 1171 deals in January last year. However, the overall investment in the US has increased by 43.8%, and the average investment has grown three times the amount recorded in January 2018.

Startups from China and the United Kingdom also saw important funding activities with 244 and 125 deals respectively. The average amount raised in China for January 2019 is $18.18 million while that in the United Kingdom stands at $7.4 million.

Region Wise Highlights for Funding Rounds Completed in January 2019

Let us look at how each of the regions around the world has performed in the first month of funding rounds in 2019.

The Americas

Four startups from the US signed funding deals that crossed over a billion with the highest deal valued at $2  billion, giving the country an impressive lead in the region. Here are the details about top funding rounds from January 2019.

We Company, a US-based co-working space – formerly known as WeWorks – raised $2 billion from Softbank.

Infor raised $1.5 billion from Koch Equity Development and Golden Gate Capital. The US-based company provides enterprise software and services worldwide.

KKR & Co. (Kohlberg Kravis Roberts & Co) invested $1 billion into Altavair. It is an asset management firm that offers commercial aviation assets management services.

Health and wellness company Verily raised $1 billion from Silver Lake Partners. Verily develops tools and devices to collect, organize and activate health data.

Clover Health secured $500 million from Greenoaks Capital. Clover Health offers a revolutionary health insurance model that is driven by technology at every step.

Asia

Asian startups from across the region raised significant amounts in the last month but unlike the US, did not record any deals that touched a billion this month. The highest deal recorded was valued at $356 million. The following are the top startups’ deals from Asia:

Jusda, a China-based a business-to-business (B2B) supply chain management firm, raised $356 million from IDG Capital, China Life Insurance, and CICC.

Singapore-based ride-hailing platform Grab secured $350 million from Tokyo Century.

Chinese startup Zhangmen raised $350 million from China Media Capital and CICC Alpha in January. Zhangmen is an online tutoring company offering personalized learning modules for K-12 students.

Yimidida, a China-based transportation & logistics company raised $266 million from Boyu Capital. Yimidida provides crowd-sourced delivery services in China’s small counties and villages.

China-based edtech company DaDa that offers one-on-one innovative online English training programs raised $255 million from Warburg Pincus.

Europe

European startups recorded deals valuing up to $500 million in January 2019. Here are the top companies that raised the highest amount of funding in Europe.

Veeam Software, a Switzerland-based data services company, raised $500 million from Insight Venture Partners. The company provides backup solutions that enable intelligent data management.

N26, a Germany-based fintech company raised $300 million from Insight Venture Partners. N26 helps its customers manage their bank accounts efficiently through with their smartphones from wherever they are.

German startup Medici Living Group picked up $300 million from W5 Group last month. The company develops and operates innovative and digitalized co-living concepts worldwide.

Alvotech, an Iceland-based biotech company raised $300 million from Morgan Stanley. Alvotech focuses on developing biosimilar versions of leading monoclonal antibodies molecules.

Mainstream Renewable Power from Ireland raised $102 million from HSBC Ireland and DNB. The company provides project design and management services for renewable and alternative energies.

Oceania & Africa

Australia, South Africa and Ghana outshone the countries in the Oceania and Africa region with their startups raising impressive funding amounts in January 2019. Here are the details of the top deals completed in this month.

Lendi, a fintech company based in Australia, raised $40 million from General Atlantic. It is a home loan platform that matches borrowers and lenders.

Baraja raised $32 million from Sequoia Capital China and CSIRO. Baraja is based in Australia and is a 3D machine vision systems manufacturer that has created a LiDAR called Spectrum-Scan that is capable of delivering the best in class performance for application in self-driving cars

Humanforce, a workforce management company that has developed a software called TimeTarget to help businesses manage their workforce better raised $16 million from Accel-KKR.

African Leadership Academy, a South Africa based company, raised $30 million from Anders Holch Povlsen. African Leadership Academy (ALA) is developing a robust network of over 6,000 leaders who will be aid in tackling the various social challenges to achieve extraordinary social impact and accelerate the continent’s growth trajectory.

mPharma, a Ghana-based health & wellness company, raised $9 million from undisclosed investors. mPharma is a prescription drug manager for providers and payers in Africa.

These were the updates from the funding rounds completed in January 2019. Keep watching this space for more updates for future funding rounds.

Read about the funding summary for 2018 here.

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