Startup Funding Update for Week 04 of 2019

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Here is an update of on went down in the Week 04 of 2019 in funding for startups around the world. Week 04 commenced on 21st January 2019 and witnessed the signing of 252 deals in all, 214 deals of these raised a combined amount of $4.12 billion with the amount for the rest of the 38 deals remaining undisclosed.   As compared to the previous funding week’s figures, Week 04 marked a 43.6% decrease in the investment amount raised and a fall in the total number of deals by 21.9%.

Startup Funding Stage Highlights

Series A type of funding round took the lead in Week 04 with 62 deals and also had the highest amount of investments.  The number of deals in the venture funding category dropped by 8.1%  with and the investment amount raised in Week 04 fell by 18.9% in the same category as compared to the previous week. While Seed funding deals too saw a decrease in the number of deals by  26.5% with 57 deals in Week 04, the  investment amount raised through seed deals went up by 3.52%.

 Excelling Industries in the Week 04 of  2019 for Startup Funding

As per a research conducted by Yostartups team, the top sectors to shine in the Week 04 for startup funding are:

FinTech

Software & SaaS

MedTech

Media & Entertainment

Transportation & Logistics

The sectors mentioned above have recorded the highest number of deals in Week 04 and sharedfor 55.1% of the total disclosed deals.

Regarding the funding amounts raised, the following sectors outshone the rest in Week 04:

MedTech

Software & SaaS

FinTech

EdTech

E-Commerce

These industries led by securing a combined investment of $66.7 billion. The average investment raised during Week 04 of funding caps at $19.2 million.

Startup Funding Highlights of the Week – Top Companies and Investors

Edtech, MedTech and e-commerce startups stole the limelight week 04 of 2019. Here are some of the companies that made it possible.

Edtech

Zhangmen, a China-based company raised $350 million from China Media Capital, CICC Alpha. It is an online tutoring company offering one-to-one sessions for K-12 students.

US-based Adela raised $100 million from Generation Investment Management. Andela is bridging the gap in global technical talent shortage by building distributed engineering teams with Africa’s top software developers.

MedTech

Alvotech raised $300 million from Morgan Stanley in Week 04 of 2019. The Iceland-based company is involved in developing biosimilar versions of leading monoclonal antibodies molecules.

BridgeBio, a US-based MedTech company that focuses on genetic disease therapies, raised $299 million from Viking Global Investors, KKR & Co.

E-commerce

firstcry.com, an online shopping store offering a range of baby care products and toys, raised $149 million. The company is based in India and is a leader in the e-commerce segment for baby products.

Globality, a US-based company raised $100 million in the Week 04 of 2019. It has changed the way businesses buy and sell services by helping them find the best provider for the best price.

Other Top Performing Companies

The following companies from various other industries also raised significant funds in Week 04 of 2019.

Desktop Metal is based in the US and is reinventing the way design and manufacturing teams print with metal. It raised $160 million from Koch Industries.

Sequoia Capital funded Confluent with $125 million in Week 04 of funding. The US-based company offers accessible real-time streams of data using a streaming platform driven by Apache Kafka.

US-based Uplift raised $123 million from Madrone Capital Partners. Uplift is travel e-commerce platform that offers a flexible payment options for the travel services.

NEXT Trucking, another US-based company raised $97 million from Brookfield Asset Management in this round of funding. NEXT Trucking is an innovative transport and logistics tech company that has developed a platform that helps shippers connect with owner/operators and small fleets.

Leading  Countries in the Week 04 of 2019 for Startup Funding

215 companies participated in the funding activities in Week 04, indicating a 32.6% decrease in the number from the previous round of funding. These companies were from across 34 countries, a participation number lower by 22.7% as compared to the last funding week. The United States continues its lead both in terms of the number of deals and the amounts invested.

According to the 2019 Week 04 startup funding update, the number of deals in the US rose by 6.3%, while the investment amount decreased by 48.1%  from Week 03 this year. The UK also saw a 22.7% rise in the number of deals and a 36.4% increase in the investment amount raised.  China, on the other hand, saw a 42.5% fall in the number of deals and a 31.1% fall in the total amounts invested.

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This article is from Yostartups, YoStartups is a Pre Accelerator, and it empowers entrepreneurs to propel their business ideas into successful ventures.

In case you are looking at scaling or launching a venture on similar lines, you can apply for our virtual acceleration program Excelrate on our website, Yostartups.com, Yostartups’ Excelrate program will help you in streamlining and structuring your startup idea. We have limited scholarships and discount packs for deserving business ideas, depending on the strength of your startup ideas, you may qualify for a discount.

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