Week Ending 11.24.19

 
 
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EYE ON A.I. GETS READERS UP TO DATE ON THE MOST CRITICAL FUNDING, CORPORATE AND REGULATORY NEWS WITH ORIGINAL CONTENT AND MEDIA REPORTS FROM AROUND THE GLOBE.


This week our AI-focused corporate finance newsletter features 10 mergers and acquisitions, five equity filings, 25 funding rounds, a handful of government moves on AI and 22 executive hires.

Companies we have tracked over the past year in the news this week include DataDirect Networks, Compass, AppTek, Geotab, Analytical Wizards, Astarte Medical, Celonis, Decibel, Progenics Pharmaceuticals, InterVenn BioSciences, Premier Health, Symphony AzimaAI, Evergage, Label Insight and Harness

See all of this and more below. A Happy Thankgiving to our US readers as well. ↓


MERGERS AND ACQUISITIONS

DataDirect Networks, the Chatsworth, California-based data storage company using AI, said it completed the acquisition of Western Digital’s IntelliFlash unit. DDN in May said it was acquiring software developer Nexenta.

Compass, the New York City-based real estate technology company using AI, said it acquired AI firm Detectica. Compass raised USD 370m in a Series G funding in May.

Wondr Gaming, the Toronto, Canada-based esports industry investment fund, said it acquired gaming firm Rival.ai.

Biofourmis, the Boston, Massachusetts-based healthcare services company using AI, said it acquired Biovotion, the German wearable health tech firm.

Phenomics Health, the Ann Arbor, Michigan-based healthcare analytics firm using AI, said it acquired the technology portfolio of Precera Bioscience.

Integral Ad Science, the New York City-based marketing firm using AI, said it acquired ADmantX, the natural language processing firm.

Episerver, the Nashua, New Hampshire-based marketing firm using AI, said it acquired Idio.

AppTek, the McLean, Virginia-based company using machine learning in speech recognition, said it acquired marketing firm Ignite-Tek.

In September last year Michael Veronis returned to the AppTek as chief revenue officer. He had previously worked at AppTek as vice president of business development. (See People section for news on the company’s new COO)

Sonos, the Santa Barbara, California-based audio equipment maker, said it acquired French audio AI firm Snips.

Geotab, the Toronto, Canada-based logistical services company using machine learning, said it acquired Intendia, the Spanish trucking technology firm.

Geotab announced it was acquiring BSM Technologies, a logistical services company focused on government contracts, in April.


FILINGS

Zhongcao, the Shanghai, China-based healthcare website operator using AI, filed for a placeholder USD 15m initial public offering on the Nasdaq.

XP, the Sao Paulo, Brazil-based financial services platform using AI, refiled for a placeholder USD 100m initial public offering on the Nasdaq.

Lizhi, the Guangzhou, China-based audio app using AI, refiled for a placeholder USD 100m initial public offering in the US.

EHang, the Guangzhou, China-based company developing autonomous air taxis, refiled for a placeholder USD 100m initial public offering on the Nasdaq.

GSX Techedu, the Beijing, China-based online tutoring company using AI, said shareholders are selling 18m American depositary shares worth USD 262m at the tie of the filing.

The company raised USD 208m from an initial public offering of 19.8m American depositary receipts on the NYSE.

Canaan, the Hangzhou, China-based AI chip designer and cryptocurrency mining machine maker, saw its shares jump 40% on the first day of trading before falling back to close one cent below the USD 9.00 a share IPO price.

The company raised USD 90m from the sale of 10m American depositary shares at USD 9.00 each, the lowest end of the marketed range. One ADS represents 15 shares. The company had filed a placeholder of USD 400m earlier.

Other deals include Yield10 Bioscience, the Woburn, Massachusetts-based agricultural company using AI, and Predictive Oncology


FUNDING

Automation Anywhere, the San Jose, California-based robotic process automation firm, said it raised USD 290m in Series B funding led by Salesforce Ventures. Softbank and Goldman Sachs also participated.

Celonis, the Munich, Germany-based business software company using machine learning, said it raised USD 290m in a Series C funding round led by Arena Holdings.

The company hired former SAP executive Hala Zeine as chief product officer in October.

Vayyar Imaging, the Yehud, Israel-based radar developer with robotics applications, raised USD 109m in a Series D financing round led by an investment unit of Koch Industries.

SmartNews, the San Francisco, California-based media company using machine learning, said it raised USD 92m in Series E funding led by an investment vehicle of Japan’s postal services company and ACA Investments.

CloudFactory, the Reading, England-based AI firm, said it raised USD 65m in a growth equity funding round led by FTV Capital.

Sendo, the Ho Chi Minh City, Vietnam-based ecommerce company, said it raised USD 61m in Series C financing that included SBI and the venture capital units of SoftBank and Daiwa.

BigPanda, the Mountain View, California-based business services firm using AI, said it raised a USD 50m Series C led by Insight Partners.

REX, the Austin, Texas-based real estate brokerage using AI, said it raised USD 40m from a Series C1 funding round led by Ken Griffin, CEO of Citadel, the hedge fund.

Abnormal Security, the San Francisco, California-based cybersecurity company, said it raised USD 24m in Series A funding led by Greylock Partners. The company was founded by former Twitter and Google machine learning executives.

Superpedestrian, the Boston, Massachusetts-based scooter maker with autonomous features, said it raised USD 20m in funding that included Spark Capital and General Catalyst.

Banyan Security, the San Francisco, California-based cybersecurity firm using machine learning, said it raised USD 17m in funding led by Shasta Ventures.

Decibel, the London, UK-based business services firm using machine learning, said it raised USD 17m in a Series B round led by Draper Esprit.

The company hired Shane Phair as chief marketing officer last month.

Nines, the Palo Alto, California-based healthcare diagnostics company using AI, raised USD 16.5m in a Series A funding round that included Accel and 8VC, according to a press release posted on Yahoo Finance.

CHEQ, the New York City-based cybersecurity company using natural language processing, said it raised USD 16m in a Series B funding round led by Battery Ventures and MizMaa Ventures.

Samasource, the San Francisco, California-based AI data company, said it raised USD 14.8m in Series A funding led by Ridge Ventures.

Loom Systems, the San Francisco, California-based business services firm using AI, said it raised USD 10m in Series B funding led by Flint Capital.

Viisights, the Tel Aviv, Israel-based security firm using AI, said it raised USD 10m in Series A funding led by Canada’s Awz Ventures.

Plantix, the Berlin, Germany-based agricultural services firm using AI, raised €6.6m (USD 7.3m) in Series A funding led by RTP Global, according to a Finsmes report.

Winterlight Labs, the Toronto, Canada-based healthcare services platform using AI, said it raised CAD 5.6m (USD 4.2m) in Series A funding led by the venture capital unit of Hikma Pharmaceuticals.

Picnic, the Seattle, Washington-based company commercializing robotic pizza making, said it raised USD 5m in a funding round led by Creative Ventures. The company’s formal name is Vivid Robotics.

Astarte Medical, the Yardley, Pennsylvania-based healthcare services firm using machine learning, said it raised an additional USD 3.5m in funding from unspecified investors. The firm raised USD 5m in May.

MontyCloud, the Seattle, Washington-based business services firm using AI, said it raised USD 2.85m in a seed funding round led by Madrona Venture Group.

Other deals include Kanarys, Lynk, and Analytical Wizards


LEGAL AND REGULATORY

The US Department of Energy said it was releasing USD 15m in funding for AI projects. A complete list of the projects is here.

Scotland is outlining a plan to bring AI into local government services, according to a Computer Weekly report.

The Indian state of Talengana begins to authenticate benefits with AI, according to a local report.


PEOPLE

Endura Technologies, the Dublin, Ireland-based semiconductor and AI firm, said it hired Babak Bastani as CEO. Former CEO Taner Dosluogluv will remain on the board of directors.

Progenics Pharmaceuticals, the New York City-based cancer drug developer using AI, said it appointed board member David Mims as interim CEO. Former CEO Mark Baker resigned earlier this month after a campaign for his ouster was launched as part of a larger activist campaign by Georgia’s Velan Capital.

Progenics hired Huw Jones to the newly created role of vice president, commercial in July.

Pure Storage, the Mountain View, California-based data storage firm that supports AI, said it hired former VMWare executive Kevan Krysler as CFO.

AppTek, the McLean, Virginia-based company using machine learning in speech recognition, said it hired Michael Ferzacca as COO. (See Mergers and Acquisition section for more news on AppTek)

Sojern, the San Francisco, California-based digital marketing firm, said it hired Noreen Henry as chief revenue officer. He was CEO of WayBlazer, an artificial intelligence travel technology start up.

SiFive, the San Mateo, California-based maker of processors used in AI, said it hired former Arm executive Stuart Ching as chief revenue officer.

Soteria AI, the Hong Kong and San Francisco, California-based gaming support firm developing AI, said it hired Tim Carruthers as president and COO and Devon Nobrega as chief scientist.

TechStyle Fashion Group, the El Segundo, California-based clothing retailer, said it hired Daria Burke as chief marketing officer. The former Facebook executive spearheaded AR and AI marketing initiatives at the social media giant and at Instagram.

Finastra, the London, U.K-based financial services software developer, said it hired AI and machine learning specialist Lisa Fiondella as chief data officer.

InterVenn BioSciences, the Redwood City, California-based company developing cancer tests using AI, said it hired former Pfizer executive Klaus Lintpaintner as chief scientific officer and chief medical officer.

The company raised USD 9.4m in a funding round led by Genoa Ventures in December.

Premier Health, the Vancouver, British Columbia-based health care company using AI, said it hired David Ostrow as chief medical officer.

Last week, the company acquired Livecare Health Canada for USD 3m in shares and assumed debt. Premier Health said it was raising USD 3m from the sale of shares with warrants in April and said it was acquiring an unidentified pharmacy for USD 1.35m in December last year.

Citrine Informatics, the Redwood City, California-based chemicals and materials platform using AI, said it promoted Julia Ling as chief technology officer and hired Michael Smocer as vice president of global sales. Ling had previously led the data science and engineering department.

Autohome, the Beijing, China-based online car dealer using AI, said it promoted Jingyu Zhang to co-president to serve alongside Haifeng Shao. The company also promoted Xiao Wang to chief technology officer.

Symphony AzimaAI, the Woburn, Massachusetts-based industrial machinery diagnostics company using AI, said it hired Jack Leahey as chief revenue officer and John Renick as vice president of product management.

Symphony AI acquired Azima, a machinery diagnostics company, in May.

Evergage, the Somerville, Massachusetts-based marketing firm using machine learning, said it promoted Meera Murthy to chief strategy officer and Matt Thompson to vice president of partnerships.

In April, the company hired Laura Saati as vice president of customer success.

NTENT, the New York City-based marketing firm using natural language processing, said it hired former Reliance executive Deval Parikh as president of international business and chief product officer.

Label Insight, the Chicago, Illinois-based marketing firm using machine learning, said it hired Jenny Condon as senior vice president of e-commerce.

The company hired Tim Whiting as vice president of marketing in October.

Harness, the San Francisco, California-based business services firm using AI, said it hired Thiya Ramalingam as the company's first senior vice president of engineering.

The company hired former SAP executive John Bonney as CFO in May and raised USD 60m in a Series B round in April.

Omniscience, the Palo Alto, California-based business services firm using AI, said it hired Nandu Jayakumar as vice president of engineering and Tom Niermann as vice president of product.

Other hiring included Xact Robotics, The Ted Berry Company and Invicro


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