Week Ending 09.28.2018
“DEEP LEARNING AND COMPUTER VISION AT THE EDGE”
NETRADYNE ATTRACTS RELIANCE AND MICROSOFT AND MORE ↓
MERGERS AND ACQUISITIONS
MoviePass, the New York City-based theater ticket subscription service using Ai and owned by Helios and Matheson Analytics, said it and NEON Rated have acquired stakes in each other. Details were not disclosed.
Xactly, the San Jose, California-based sales management software developer, said it acquired OpsPanda, the sales management company using AI. Terms weren’t disclosed.
TransEnterix, the Research Triangle Park, North Carolina-based medical device maker, said it acquired MST Medical Surgery Technologies, the Israeli medical software developer using AI.
TransEnterix is paying USD 5.8m in cash and providing MST with 3.15m shares. The company will pay another USD 6.6m in cash or stock within one year at its discretion.
FILINGS
Valtech, the London, UK-based business services firm with a focus on AI, AR and blockchain, said it plans to raise USD 100m in a Nasdaq initial public offering.
LAIX, the Shanghai, China-based company using AI in English language learning, saw its shares close up 2% on the first day of trading on the NYSE. The company raised USD 71.88m from a downsized initial public offering of 5.75m American depositary shares at a USD 12.50 each, just below the midpoint of the USD 11.50 to USD 13.50 range the shares were marketed. The company originally filed for a USD 100m deal. Company founders will maintain voting control in a dual-class shareholding structure.
CooTek, the Shanghai, China-based mobile app developer using AI, saw its shares plunge 21% on their first day of trading on the NYSE. The company raised USD 52.2m in an initial public offering of 4.35m American depositary shares at USD 12.00 each, the lowest end of the marketed price range.
Jump World, the Shanghai, China-based VR/AR game developer, refiled for an as much as USD 50m from an initial public offering on Nasdaq of an unspecified number of shares.
Fuqin Fintech, the Beijing, China-based online lending platform using AI, refiled for an as much as USD 21m initial public offering of as many as 3.5m shares at USD 5.00 to USD 6.00 each on the Nasdaq.
DTHERA, the San Diego, California-based medical device company using AI, said it plans to raise USD 12m from a follow on.
SharedLabs, the Jacksonville, Florida-based information technology company, said it plans to raise up to USD 17.5m from a Nasdaq initial public offering of 2.5m shares at USD 5.00 to USD 7.00 each. That’s far less than the initial filing in May when it said it planned to raise USD 32.5m. The company provides artificial intelligence and blockchain consulting and services.
Edtech X, the London, UK-based blank check company, said it plans to raise USD 55m from a Nasdaq initial public offering of 55m shares at USD 10 each. The company plans acquisitions in the educational technology field, and said it sees AI as a promising area.
FUNDING
Namaste, the Toronto, Canada-based cannabis company using AI, said it is raising USD 45m in a follow on offering of 15m units at USD 3.00 each.
In September the company said it is acquiring the UK medical distribution firm AF Trading for USD 5m in cash and stock. In a separate statement, the company “reaffirmed” its intention to list on the Nasdaq but did not specify a timeframe.
Highspot, the Seattle, Washington-based sales platform using AI, said it raised USD 35m in a Series C led by venture capital firm OpenView. A venture capital arm of Salesforce also participated.
Nozomi, the San Francisco, California-based cybersecurity firm using AI, said it raised USD 30m from a Series C from investors including GGV Capital.
Netradyne, the San Diego, California-based driver safety platform using AI, said it raised USD 21m in a Series B led by Microsoft’s venture unit M12 and Point72 Ventures. India’s Reliance Industries also participated.
Microsoft also led a USD 10m Series A round for Twenty Billion Neurons, the Berlin, Germany-based AI company using video data.
Cerberus, the New York City-based hedge fund, said it launched a new unit to facilitate AI, blockchain and other data related investments. Called Cerberus Technology Solutions the fund will also focus on using data and technology in the Cerberus’ existing investments. (Cerberus hired a new CEO for the unit. See People section for details.)
TapClicks, the San Jose, California-based marketing firm using AI, said it raised USD 10m from private equity firm Boathouse Capital.
AbCellera, the Vancouver, Canada-based biopharmaceutical company using AI, said it raised USD 10m in a Series A led by venture capital fund DCVC Bio.
Proscia, the Philadelphia, Pennsylvania-based software company, said it raised USD 8.3m in a Series A led by Flybridge Capital Partners. The company is focused on AI-backed cancer research.
Plyzer Technologies, the Toronto, Canada-based business services firm using AI, began trading over the counter on the OTCQB Venture Market Exchange.
Lyrical Partners, the New York City-based investment firm, said it launched a venture fund focused on AI, cybersecurity and data analytics called Lytical Ventures.
H&D Wireless, the Stockholm, Sweden-based global positioning systems company, said it raised SEK 29.8m (USD 3.4m) from a rights issue after 80% of its shareholders participated.
Earlier this month the company said Johan Schlyter joined its board of directors. He has worked at German truck maker MAN and Scania.
BrandTotal, the Tel Aviv, Israel-based marketing firm using AI, said it raised USD 6m in a funding round led by venture capital firm Flint Capital.
Nine Dynamics, the Calgary, Canada-based financial investment analytics company using AI, said it raised an unspecified amount from investors associated with Canada’s MATCO Investments. The company also has a cryptocurrency trading platform.
Cannabics Pharmaceuticals, the Tel Aviv, Israel-based company using AI to develop treatments for the side effects of cancer therapies, said it raised USD 7.5m from the sale of shares with warrants. In August the company said it brought former Intel executive Dr Giloz-Ran onto its advisory board.
Spiking, the Singapore-based cryptocurrency trading app using AI, said it raised an unspecified amount from a second private token sale. In August, the company said it had raised USD 2.3m in a pre-Series A.
Other deals include Acronis
LEGAL & REGULATORY
US House of Representatives Subcommittee on Information Technology report on AI here.
Corporate moves to manage data are similar to the 19th century gold rush in California, according to US Securities and Exchange Commissioner Kara Stein in a speech to the Georgia State University College of Law.
PEOPLE
Cerberus, the New York City-based hedge fund, said it hired JP Morgan executive Len Laufer as CEO of its new AI and data unit Cerberus Technology Solutions. The unit will facilitate AI and other data related investments, and will also focus on using data and technology in the fund’s existing investments. (See Funding section for details.)
Transfix, the New York City-based freight services company using AI, said it hired Lily Shen as COO. Shen was previously at Goldman Sachs and eBay.
Inpixon, the Palo Alto, California-based cybersecurity company using AI, said it hired Adam Benson as chief technology officer.
CrowdStrike, the Sunnyvale, California-based cybersecurity firm, said Roxanne Austin is taking up the audit committee chair on its board of directors. Austin was the CEO of DIRECTV.
In August the company hired Paul Bradley Shinn as chief legal officer. Shinn held a similar position at cybersecurity firm Gigamon. He has also served as associate general counsel in HP’s Enterprise Group.
CrowdStrike raised USD 300m in June from a Series E financing led by General Atlantic, Accel and IVP. The round valued the company, which is also backed by Warburg Pincus, at USD 3bn. CrowdStrike offers the AI-backed Falcon product.
TruDecision, the Grapevine, Texas-based financial technology company using AI, said former IBM executive and blockchain researcher John Medellin has joined its advisory board. TruDecision is focused on auto loans.
NeuroOne Medical Technologies, the Eden Prairie, Minnesota-based company developing technological treatments for neurological diseases, said it formed an AI advisory board to be overseen by Kip Ludwig. Ludwig runs the University of Wisconsin’s bioelectronic medicine lab.
Selligent Marketing Cloud, the Redwood City, California-based advertising firm using AI, said it hired former Microsoft executive Maria Carrelli as senior director of product marketing.
Precision Therapeutics, the Minneapolis, Minnesota-based company developing cancer treatment databases with AI, said Robert Murphy has joined its scientific advisory board. Murphy is the head of the computational biology department at Carnegie Mellon University.
Other hiring includes Simmons Research, Ideanomics here and here, 8X8 and Victory Square Technologies
DATA
The Global AI market is expected to reach USD 32bn by 2024, according to a new report from New York-based KBV Research. Growth of 44% year on year is expected over that period, and the Asia-Pacific region is forecast to show the fastest pace of growth.