Startup Funding Update for Oct 2018

YoStartups Team

As per research from Yostartups team here is the startup funding update for Oct 2018. In October 1055 deals were signed to raise $30.99 billion. In addition, another 397 deals were signed whose investment amount was not disclosed. Overall this marks a 3.71% increase in the number of deals and 3.27% increase in the investment amount raised, compared to September this year. However, over a three month period, i.e. from August to October, there has been a marginal growth in the number of deals signed and a 2.63% fall in the investment amount raised.

In October, Seed round leads in terms of the number of deals signed, while Series F leads in terms of the investment amount raised. 25.4% of the deals signed were for Early Stage funding, i.e. Pre-Seed, Seed and Angel rounds. Compared to September 2018, the number of Early Stage deals has reduced by 14%, and the amount raised in these deals has increased by 4.87%. The average amount raised for Early Stage funding is $2.51 million. Venture funding accounted for 52.75% of the deals signed. Compared to September 2018, Venture funding saw 2% increase in the number of deals signed and 1.8% increase in the amount raised. The average amount raised for Venture funding is $29.15 million.

Industry Highlights

As per startup funding update for Oct 2018 , in October, Fintech, Media & Entertainment, and Software & SaaS topped the chart in terms of the number of deals, accounting for 33.26% of the deals. Startups in these sectors raised $11.61 billion, which accounts for 37.5% of the total investment amount raised in October. Media & Entertainment witnessed the highest amount of investments at $6.09 billion. Transportation & Logistics and Fintech followed with $4.18 billion and $3.33 billion investments, respectively.

Country Highlights

Overall in October in startup funding and investments, 1407 companies in 64 countries raised investments. Compared to September, this marks a 1.3% increase in the number of startups that raised investments and a 1.5% decrease in the number of countries that saw investments flow in. The United States continues its lead both in terms of the number of deals and investment amounts.

In October 2018, 615 deals were signed by United States based startups, compared to 432 in September 2018. Although the overall investment in the US has increased by 19.11%, the average investment has gone down by 16.33%. China and the United Kingdom based startups follow with 220 and 136 deals respectively. The average amount raised in China is $33.87 million, which is a decrease of 53.32% since September 2018. Total investments in China has reduced by 11.46% compared to September 2018.

Startup Funding Highlights – Americas

In the Americas, there were two billion dollar deals signed this month. Uber raised $2 billion in Debt funding. The deals were overseen by Goldman Sachs, with the investors not being disclosed. Epic Games, a US-based company, raised $1.25 billion in Venture funding from Vulcan Capital and KKR & Co. Epic Games, also known as Epic, is a video game development company. E-Commerce company Instacart raised $600 million. Instacart is a delivery company delivering groceries and home essentials and raised the amount in an unclassified funding round from D1 Capital Partners. Snowflake Computing, raised $450 million from Sequoia Capital. Snowflake provides a data warehouse as a service designed for the cloud. SmileDirectClub, a MedTech company raised $380 million as Private Equity from Clayton. SmileCareClub offers invisible aligners, a series of plastic aligners that gradually shift teeth into their desired position.

Startup Funding Highlights – Asia

Asia too saw two billion dollar deals this month. ByteDance, a China-based company, raised $3 billion in Private Equity from Softbank, KKR & Co. (Kohlberg Kravis Roberts & Co.), Primavera Capital Group, and General Atlantic. Bytedance owns a series of content platforms that enable people to connect with, consume, and create content. Go-Jek, an Indonesia-based e-commerce enabler, raised $1.2 billion from Tencent Holdings, JD.com and Google. Meicai, a China-based AgriTech company raised $800 million. Meicai sells agricultural products online that aims to change agriculture, rural areas, and farmers through the Internet. Panshi, a Media and Entertainment company raised $324 million from Cybernaut Venture Capital. Panshi is an online and mobile advertising firm that offers online advertising services to small and medium enterprises. Xiaozhu.com, a Real Estate company raised $300 million from YF Capital (Yunfeng Capital) and Advantech Capital. Xiaozhu.com is a platform for online communication and transactions for landlords and tenants.

Startup Funding Highlights – Europe

According to research from Yostartups and it’s startup funding update for Oct 2018, Europe did not have any billion-dollar deals and was not dominated by any single country. CDB Aviations, an Ireland-based Transportation & Logistics company, raised $700 million from Westpac, Sumitomo Mitsui Trust Bank, Societe Generale, Natixis, National Australia Bank, ING Group, Crédit Agricole and BNP Paribas. CDB Aviation is a global platform which owns, leases, and manages commercial aircraft. Green Yellow Holding, a French Sustainability & Renewable Energy company, raised $173.4 million from Tikehau Capital and Bpifrance. Green Yellow Holding offers solar panels and generates electricity from centralised power plants. GoEuro, a German travel and tourism company, raised $150 million from Temasek Holdings and Kinnevik AB. GoEuro is a multi-mode search tool that compares and combines rail, air, bus, and car for European destinations. Prima.it, an Italian FinTech company was funded $115.8 million by Goldman Sachs Private Capital Investing and Blackstone Tactical Opportunities. Prima.it distributes online insurance policies for cars, motorcycles, and vans. Monzo, another Fintech company, based in the UK, raised $107.9 million from General Catalyst and Accel. Monzo is a London-based digital-only bank platform.

Startup Funding Highlights – Middle East

In the Middle East, Israel and UAE based startups feature in the top investments in the region. In the UAE, Careem, a ride-hailing company, raised $200 million in Series F funding from Kingdom Holding Company. Wadi, another UAE based company in the E-commerce sector, raised $30 million from Majid Al Futtaim Holdings LLC. CTERA Networks, an Israeli Cybersecurity company, raised $30 million from Singtel Innov8 and Red Dot Capital Partners. StarkWare Industries Ltd., a FinTech company, based in Israel, raised $30 million in a Series A funding headed by Paradigm. Airobotics, an AI, Robotics & IOT company based in Israel, raised $30 million from Pavilion Capital.

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