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☆ See the 6 startups that have raised the most cash in 2023 to transform healthcare
▼ + stars: | 2023-04-05 | by ( Yeji Jesse Lee | ) www.businessinsider.com time to read: +3 min

Startups in the industry raised $3.4 billion across 132 deals in the first three months of 2023. The healthcare-staffing startup ShiftKey raised $300 million in a round led by its majority investor Lorient Capital. The clinical-trials-tech startup Paradigm raised a $203 million Series A round led by Arch Venture Partners and General Catalyst. The healthcare-staffing startup ShiftMed raised a $200 million round led by Panoramic Ventures. raised a $200 million round led by Panoramic Ventures.

☆ TikTok CEO: App has never shared US data with Chinese government
▼ + stars: | 2023-03-22 | by ( David Shepardson | ) www.reuters.com time to read: +4 min

"TikTok has never shared, or received a request to share, U.S. user data with the Chinese government. TikTok's critics fear that its U.S. user data could be passed on to China's government by the app and prompted growing calls to ban the app by U.S. lawmakers. The video app has spent more than two years in talks with CFIUS seeking to reach an agreement on protecting U.S. user data. TikTok has formed a special-purpose subsidiary, TikTok U.S. Data Security (USDS), that currently has nearly 1,500 full-time employees and contracted with Oracle (ORCL.N) to store TikTok’s U.S. user data. "Oracle has already begun inspecting TikTok’s sourcecode and will have unprecedented access to the related algorithms and data models," Chew's testimony said.

☆ Walmart pumps $200 mln in Indian fintech PhonePe in ongoing fundraise
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, March 17 (Reuters) - Indian digital payments firm PhonePe said on Friday it has raised $200 million from majority backer Walmart Inc (WMT.N) at a pre-money valuation of $12 billion. PhonePe, already India's most valuable payments firm and among the country's most highly-valued startups, said the investment is part of its ongoing fundraise of up to $1 billion. American retail behemoth Walmart, which acquired a majority share in PhonePe in 2018, will continue as a majority investor, the Indian company said, without disclosing its stake. PhonePe said it plans to deploy these funds to build and scale new businesses including insurance, wealth management and lending. The relocation, according to some reports, was to ensure an easier entry into the country's highly-regulated financial services industry, especially lending.

"Not only are these big banks not sitting around and waiting for the phone to ring, they are also being proactive." Amid the nation's most troubling turmoil in banking since the global financial crisis nearly 15 years ago, the big banks are flexing their collective muscle. The 2008 financial crisis humbled the banking behemoths; the 2023 crisis of regional banks has now only cemented their power. For an increasingly stretched financial system, the big banks provide a needed stability. The flight to safety that is benefiting the big banks will have a cost, however.

It would help organize a $2.25 billion stock sale for SVB to fill the funding gap caused by the bond portfolio sale, two of the sources said. It is unclear whether Goldman has held onto all or part of the bond portfolio or sold it. In a regulatory filing on Tuesday, SVB said its bond portfolio sales to Goldman were done at "negotiated prices". Goldman was not paid the underwriting fee it had agreed for the stock sale because that deal fell through, two of the sources said. UNDISCLOSED ROLESVB did not disclose in its stock sale prospectus to investors that Goldman was the acquirer of the bond portfolio it sold at a loss.

After a bank run of $42 billion in withdrawals, Silicon Valley Bank was shut down by regulators on Friday. The founders were banking at Silicon Valley Bank and wanted to switch banks immediately after being told by their venture investors that the bank was suffering from "liquidity issues." The go-to bank of Silicon ValleySilicon Valley Bank has been a pillar of the startup of ecosystem for four decades, acting as the go-to financial institution for VC fundraising and building strong ties with founders and investors alike. This helped bolster SVB's reputation as the go-to bank of Silicon Valley in the good times, but exacerbated the crisis when it hit Thursday and Friday. "If you're given responsibility to run this iconic Silicon Valley company, you need some humility."

☆ Goldman Sachs tried to help SVB. It didn't work. Here's what happened.
▼ + stars: | 2023-03-11 | by ( Dakin Campbell | ) www.businessinsider.com time to read: +6 min

Goldman helped set up a stock offering ahead of a credit rating downgrade. Late last week, its parent company, SVB Financial Group, turned to Goldman Sachs to help it navigate a difficult situation. It was a rare miss for Goldman Sachs and raises questions about whether the investment bank provided poor advice. Before the following day, SVB's stock continued declining. And it was left to Centerview, a boutique mergers advisor, and not Goldman, to help the bank pick up the pieces.

☆ Silicon Valley Bank's demise began with downgrade threat
▼ + stars: | 2023-03-11 | by ( Echo Wang | ) www.reuters.com time to read: +5 min

Investors worry that the Federal Reserve's aggressive interest rate increases to fight inflation are exposing vulnerabilities in the financial system. The transaction would generate a loss, but if SVB could fill that funding hole by selling shares, it would avoid a multi-notch downgrade, the sources said. Moody's downgraded the bank, but only by a notch because of SVB's bond portfolio sale and plan to raise capital. SVB's stock plunged on news of the share sale, ending Thursday down 60% at $106.04. This quickly became a self-fulfilling prophecy: General Atlantic and other investors walked away and the stock sale collapsed.

☆ Explainer: What caused Silicon Valley Bank's failure?
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

Here is the sequence of events that led to Silicon Valley Bank's failure:FEDERAL RESERVE RAISES RATESThe Federal Reserve has been raising interest rates from their record-low levels since last year in its bid to fight inflation. This weighed on technology startups - the primary clients of Silicon Valley Bank - because it made their investors more risk-averse. SOME SILICON VALLEY BANK CLIENTS FACE CASH CRUNCHAs higher interest rates caused the market for initial public offerings to shut down for many startups and made private fundraising more costly, some Silicon Valley Bank clients started pulling money out to meet their liquidity needs. This culminated in Silicon Valley Bank looking for ways this week to meet its customers' withdrawals. SILICON VALLEY BANK SELLS BOND PORTFOLIO AT A LOSSTo fund the redemptions, Silicon Valley Bank sold on Wednesday a $21 billion bond portfolio consisting mostly of U.S. Treasuries.

In this photo illustration of the TradingView stock market chart of SVB Financial Group seen displayed on a smartphone with the SVB Financial Group logo in the background. Shares of SVB Financial Group , known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again on fears more banks would incur heavy losses on their bond portfolios. The SPDR S&P Regional Banking ETF was off another 1.5% Friday following an 8% tumble on Thursday. Signature Bank , which does a lot of business with the crypto sector, was off 4% in premarket trading following a 12% tumble Thursday. On Thursday, the bank was worth $6.3 billion with that value set to drop even more when trading begins Friday.

Venture capital firms on both sides of the Atlantic have been urging their portfolio companies to move money out of embattled lender Silicon Valley Bank, deepening fears of a run on the tech-focused bank. Silicon Valley Bank shares plunged 60% Thursday after disclosing that it needed to shore up its capital with a $2.25 billion equity raise from investors including General Atlantic. Pear VC, an early-stage VC firm based in San Francisco, urged its portfolio network to withdraw funds from SVB on Thursday. The wind-down of crypto-centric Silvergate Bank and pressure on Silicon Valley Bank this week reminded some founders of the 2008 financial crisis, in which banks toppled during the mortgage bust. We are seeing other funds encouraging companies to withdraw their funds from SVB.

☆ European banking stocks sink as Silicon Valley Bank jitters spread
▼ + stars: | 2023-03-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

European banking stocks sold off sharply in early trade Friday as jitters surrounding U.S. bank SVB Financial — which plunged 60% Thursday — spread around the world. It followed an announcement by the tech-focused lender of a capital raise to help offset bond sale losses. The Euro Stoxx Banks index was on pace for its worst day since June, led by a decline of more-than 8% for Deutsche Bank . Silicon Valley Bank caters heavily to startup firms, particularly venture-backed tech and life sciences companies in the U.S. "If private capital can't provide a solution, a highly dilutive gov't preferred bailout should be considered."

☆ Silicon Valley investors and founders express shock over SVB's collapse, describe struggles to get money out
▼ + stars: | 2023-03-10 | by ( Jonathan Vanian Ashley Capoot Jordan Novet Annie Palmer | Jonathan Vanian | Ashley Capoot | ) www.cnbc.com time to read: +9 min

Nikolas Kokovlis | Nurphoto | Getty ImagesVenture capitalists and technology executives are scrambling to make sense and account for the potential repercussions of the sudden implosion of Silicon Valley Bank on Friday. The Federal Deposit Insurance Corp. said Friday that U.S. federal regulators shut down Silicon Valley Bank , the premiere financial institution for Silicon Valley tech startups for the past 40 years. On Friday, Yang returned to the Silicon Valley Bank branch 15 minutes before it opened to remove the remaining money. One person showed a tweet on their phone suggesting that bank employees had been instructed not to come to work. Watch: CEO's react to the closure of Silicon Valley Bank

☆ China's Shein set to raise $2 billion in new funding round, aims for U.S. IPO later this year, sources say
▼ + stars: | 2023-03-09 | by ( ) www.cnbc.com time to read: +2 min

Reuters reports the fast fashion retailer is targeting a U.S. IPO in the second half of 2023. Shein cut its valuation to $64 billion in this fundraising, down by a third from a funding round a year ago, according to six sources with knowledge of the matter. All sources declined to be identified as the information was confidential. Shein said it does not currently have plans for an IPO and declined to comment further. Shein, founded by Chinese entrepreneur Chris Xu, has grown into one of the world's largest online fashion marketplaces since its 2008 launch in Nanjing.

☆ Shares of SVB Financial fall more than 50% as tech-focused bank looks to raise more cash
▼ + stars: | 2023-03-09 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

In this photo illustration of the TradingView stock market chart of SVB Financial Group seen displayed on a smartphone with the SVB Financial Group logo in the background. Shares of tech-focused bank SVB Financial plunged by more than 50% on Thursday after the company announced a plan to raise more than $2 billion in capital to help offset losses on bond sales. SVB Financial fell sharply after the bank announced a plan to raise more cash. The company reported $28.8 billion in available-for-sale securities on its balance sheet at the end of December, as well as $95.3 billion held-to-maturity securities. The bank cited higher interest rates and "elevated cash burn from our clients" as reasons to raise the new capital.

☆ Silicon Valley Bank scrambles to reassure clients after 60% stock wipe-out
▼ + stars: | 2023-03-09 | by ( ) edition.cnn.com time to read: +5 min

SVB Financial Group scrambled on Thursday to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares. SVB, which does business as Silicon Valley Bank, launched a $1.75 billion share sale on Wednesday to shore up its balance sheet. Investors in SVB’s stock fretted over whether the capital raise would be sufficient given the deteriorating fortunes of many technology startups that the bank serves. The company’s stock collapsed to its lowest level since 2016, and after the market closed shares slid another 26% in extended trade. However, the Information publication reported the bank told four clients that transfers could be delayed.

Silicon Valley Bank has long been considered the lifeblood for tech startups, providing traditional banking services while funding projects and companies deemed too risky for traditional lenders. For the Silicon Valley region, the troubles land at a particularly difficult time. As a large regulated bank, SVB has been viewed as a stabilizing force. Orn called SVB a "crown jewel of Silicon Valley" and a "strong franchise" that he expects to survive this difficult period and even potentially get acquired by a bigger bank. S&P lowered its rating on SVB to BBB- from BBB, leaving it just one notch above its junk rating.

☆ Silicon Valley Bank to sell stock to cope with cash burn
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

Shares in the California-based parent of Silicon Valley Bank dropped nearly 30% in premarket trading on Thursday. Its customers' "cash burn" rose in February and is driving deposits lower than forecast, CEO Greg Becker said in a letter to investors. The company also liquidated most of its securities portfolio, raising $21 billion, which it plans to re-invest in shorter-term debt while doubling its term borrowing to $30 billion. "We are taking these actions because we expect continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients," Becker said. "When we see a return to balance between venture investment and cash burn – we will be well positioned to accelerate growth and profitability," he added, noting SVB is "well capitalised".

☆ Bertarelli-backed Volta Trucks seeks $264 mln in pre-IPO round, says CEO
▼ + stars: | 2023-03-08 | by ( Pablo Mayo Cerqueiro | ) www.reuters.com time to read: +3 min

LONDON, March 8 (Reuters) - Volta Trucks, the electric-truck maker backed by billionaire Ernesto Bertarelli, is in advanced discussions to raise as much as 250 million euros ($263.58 million), its CEO told Reuters. Volta Trucks is gearing up to roll out its electric trucks, after delays in obtaining certification for its vehicles and constraints in sourcing supplies held up production, according to a company spokesperson. The company just months ago tapped investors for around 300 million euros in a deal that valued it at close to 600 million euros. Volta Trucks' existing backers include Kuwaiti supply-chain services provider Agility Public Warehousing Co (AGLT.KW), Bertarelli's family office B-Flexion, Swedish investor Byggmastare Anders J Ahlstrom (AJAb.ST) and U.S. hedge fund Luxor Capital. A spokesperson for B-Flexion said the investor remains "wholly committed" to Volta Trucks, but declined to comment further.

A CHINESE COMPANY? Those rules followed a regulatory crackdown that has slowed U.S. listings by Chinese companies to a trickle. Chinese companies raised only around $230 million in U.S. listings last year, a massive drop from $12.9 billion in 2021, according to Refinitiv data. It was not immediately clear if SHEIN is planning to officially seek Chinese regulatory approval for its IPO. The moves were designed so that SHEIN could bypass seeking Chinese regulatory approval for the listing, sources have previously said.

☆ Abu Dhabi sovereign wealth fund ADQ and IHC to create asset manager with General Atlantic
▼ + stars: | 2023-03-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAbu Dhabi sovereign wealth fund ADQ and IHC to create asset manager with General AtlanticADQ, IHC and General Atlantic are joining forces to launch an Abu Dhabi-based investment group. CNBC's Dan Murphy reports.

☆ Edmond de Rothschild to open advisory office in Dubai
▼ + stars: | 2023-02-28 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: +2 min

DUBAI, Feb 28 (Reuters) - Edmond de Rothschild Group, which specialises in asset management and private banking, said on Tuesday it is expanding its presence in Dubai with an advisory office as it looks to the fast-growing Middle East hub to cater to an affluent pool of clients. It previously had a representative office in Dubai, but said the new office will "enhance" its ability to serve clients in the region. Edmond de Rothschild plans to hire about five people in Dubai next year, a spokesperson said. A growing number of hedge funds have set up shop in Dubai, attracted by lower licensing fees and capital requirements for the industry, including Millennium Management, ExodusPoint Capital Management and BlueCrest. French private equity firm Ardian said last month it was opening an office in neighbouring Abu Dhabi, capital of the United Arab Emirates, while CVC opened an office in Dubai last year.

☆ Paramount Turned Down $3 Billion-Plus Offer for Showtime From Former Executive
▼ + stars: | 2023-02-28 | by ( Jessica Toonkel | ) www.wsj.com time to read: 1 min

Former Paramount Global executive David Nevins offered to buy Showtime for more than $3 billion in recent weeks but was turned down by Paramount executives, according to people familiar with the situation. Mr. Nevins’s approach, which was backed by private-equity firm General Atlantic, was the latest in a number of offers Paramount has received over the past few years for Showtime, people familiar with the matter said. Other suitors included Mark Greenberg, another former Showtime executive who most recently ran the premium network Epix, and Lions Gate Entertainment Corp., some of the people said.

☆ Biden nominates former MasterCard exec Ajay Banga to lead World Bank
▼ + stars: | 2023-02-23 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +3 min

New York CNN —President Joe Biden has announced that he’s nominating Ajay Banga, a former MasterCard executive, to serve as president of the World Bank. Notably, the White House highlighted Banga’s “extensive experience” in creating partnerships to address climate change and financial inclusion,” something Biden pledged would be an important qualification for the next World Bank President. “We’ve achieved many of the things I wanted to…I think it’s really important that institutions have energy, new energy, and this is a good time for the World Bank to do that,” he said. The World Bank, a group of 187 nations, lends money to developing countries to help reduce poverty. Former US President Donald Trump appointed Malpass as World Bank chief in 2019 for a five-year period.

☆ Biden nominates former MasterCard chief Banga to head World Bank
▼ + stars: | 2023-02-23 | by ( Andrea Shalal | ) www.reuters.com time to read: +4 min

[1/2] Ajay Banga, CEO of MasterCard, speaks during the Women In The World Summit in the Manhattan borough of New York April 8, 2016. REUTERS/Lucas Jackson/File PhotoWASHINGTON, Feb 23 (Reuters) - U.S. President Joe Biden on Thursday nominated Indian-American business executive Ajay Banga to become president of the World Bank, lauding his experience forging public-private partnerships to address financial inclusion and climate change. “Ajay is uniquely equipped to lead the World Bank at this critical moment in history," Biden said in a statement. Banga's nomination is the first to be made public, but the bank will accept nominations from other member countries through March 29. That would enable the World Bank to serve "as a force multiplier for good" by catalyzing action from the wide range of players, she said, adding that the World Bank could not meet the massive needs of developing countries on its own.

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