When the U.S.-China fight disrupts U.S.-China financing

Happy Friday, Term Sheet readers.

Yesterday, I wrote of the rise of blank-check companies—a way of financing companies that was associated with penny stock frauds in the 1980s, but has since seen regulatory reform and a boom in interest as private companies seek new ways of going public.

It’s not the only thing getting a new dose of legitimacy in recent days. China’s contender to the Nasdaq, the tech-heavy STAR market in Shanghai, is set for a major milestone after Alibaba’s fintech giant, Ant Group, said it would list concurrently in Hong Kong and on the STAR market. On top of that, Tencent and Baidu-backed Chinese electric vehicle maker WM Motor Technology is reportedly also considering an IPO on the STAR board.

When it launched a year ago, the new Shanghai bourse received a heavy dose of skepticism. China launched a tech-focused exchange in Shenzhen a decade earlier, dubbed the ChiNext, that fell short of expectations. Companies still preferred to list in the U.S. For several reasons, chief among them: The U.S. Is home to perhaps the most liquid markets in the world. Alibaba itself is listed on the New York Stock Exchange.

But now, geopolitical tensions between Washington and Beijing are coinciding with greater cynicism over the success of Chinese companies in the U.S. Following the Luckin Coffee accounting fraud debacle, as well as a greater push for listings from the Chinese government. More and more Chinese tech companies are seeking dual listings in China as insurance amid threats of delisting in the U.S. (Already listed on the Nasdaq, gaming company NetEase and e-commerce firm JD.com also opted to list in Hong Kong in June.)

It is key to note Ant, known for Alipay, did not choose New York at all. Its valuation could be upwards of $200 billion, per analysts.
While lines are fraying between the U.S. And China, there’s another thread to follow: China has invested heavily in India in recent years. But lately, clashes between the two nations have also impacted India’s startup community as Chinese funding has cut off for some companies.

Lucinda Shen
Twitter: @shenlucinda
Email: [email protected]

VENTURE DEALS

- MissFresh, a Chinese online grocery delivery startup, raised $495 million in funding. Investors included China International Capital Corporation, ICBC International Securities, and Tencent. Read more.

- The Not Company, a Latin American plant-based meat and dairy substitute company, is about to close on an $85 million round that would value it at $250 million, per TechCrunch. Read more.

- Talkdesk, a San Francisco-based provider of a cloud contact centers, raised $143 million, valuing it at over $3 billion. Investors included Franklin Templeton, Willoughby Capital, Skip Capital and Lead Edge Capital.

- Quantexa, a London-based decision intelligence software company, raised $64.7 million in Series C funding. Evolution Equity Partners led the round and was joined by investors including Dawn Capital, AlbionVC, HSBC, British Patient Capital, ABN AMRO Ventures, and Accenture Ventures.

- Riiid, a Seoul-based AI education start-up based in Korea, raised $41.8 million in pre-Series D funding. Investors included the state-run Korea Development Bank, NVESTOR, Intervest, and IMM Investment.

- Religion of Sports, a sports media company co-founded by Gotham Chopra, Tom Brady and Michael Strahan, raised $10 million in funding. Investors included Elysian Park, Advancit, Courtside Ventures and LinkinFirm.

- iObeya, a France-based provider of enterprise visual management software, raised $17 million in funding. Red River West led the round and was joined by investors including Atlantic Bridge Capital and Fortino Capital Partners.

- Mira, a Los Angeles-based augmented reality startup, raised $10 million. Sequoia Capital and Happiness Ventures led the round and were joined by Blue Bear Capital.

- Vive Organic, a Venice, Calif.-based maker cold-pressed wellness shots, raised $13 million in Series B funding. Monogram Capital led the round and was joined by investors including Cambridge SPG and Powerplant Ventures.

- Levitate, a Raleigh, N.C.-based marketing platform, raised $6 million. Investors include Tippet Venture Partners, Bull City Venture Partners and angel investor Peter Gassner. Read more.

- Sotero, a Burlington, Mass.-based maker of a data protection platform, raised $5 million in funding. Gutbrain Ventures led the round and was joined by investors including Boston Seed Capital and PBJ Capital.

- Arrive Outdoors, a Santa Monica, Calif.-based outdoor travel company, raised $4.7 million in seed funding. Freestyle Capital led the round and was joined by investors including Science Inc., Corigin Ventures, Narrative Fund, AVG Basecamp Fund, and James Reinhart and John Voris, CEO and former COO of thredUP.

- Turbo Systems, a Campbell, Calif.-based no-code engagement platform, raised $3.5 million in extended Series A funding. Mayfield led the round and was joined by investors including B Capital and Nassau Street Ventures.

- Matik, a San Francisco-based startup focused on business reports, raised $3 million in seed funding. Menlo Ventures led the round and was joined by investors including BoxGroup and Oceans Ventures. Read more.

- Buzz Solutions, a Palo Alto, Calif.-based ai image analyzation maker for detecting infrastructure flaws, raised $1.2 million. Blackhorn Ventures led the round and was joined by investors including Ulu Ventures, Vodia Ventures, and Advisors.fund.

PRIVATE EQUITY

- Sovos, backed by Hg , acquired Keane’s unclaimed property consulting services and reporting technology. Financial terms weren't disclosed.

- Tenex Capital Management invested in Consolidated Label & Online Labels, a Sanford, Fla.-based maker of custom printed pressure sensitive labels, shrink sleeves, and blank labels on sheets. Financial terms weren't disclosed.

- E Source, backed by Align Capital Partners, acquired StrategyWise, a Birmingham, Ala.-based provider of predictive analytics services and artificial intelligence consulting. Financial terms weren't disclosed.

- Clayton, Dubilier & Rice invested in Cheney Brothers, a Riviera Beach, Fla.-based regional food distributor. Financial terms weren't disclosed.

- Alimentation Couche-Tard, Japan's Seven & i Holdings Co and TDR Capital are preparing to bid for Marathon Petroleum Corp’s gas station network Speedway, per Reuters. Speedway could fetch between $15 billion to $17 billion. Read more.

- DC Capital invested in PBK Architects, an architectural planning and design firm. Financial terms weren't disclosed.

- Parthenon Capital recapped Nuvem Health, a Mount Laurel, N.J.-based provider of pharmacy claims administration. Financial terms weren't disclosed.

OTHERS

- Groupe SEB ( Paris:SK) agreed to acquire a majority stake in StoreBound, a New York-based - company behind the Dash brand of kitchenware . Financial terms weren't disclosed.

- PetroChina plans to sell its major oil and gas pipelines and storage facilities to China Oil and Gas Pipeline Network for 268.7 billion yuan ($38.36 billion). Read more.

- Amazon is in talks to buy a 9.9% stake in the retail arm of Reliance Industries, the Indian conglomerate. Read more.

BREAKUPS, HANGUPS, AND BANKRUPTCIES

- Ascena Retail Group, owner of Ann Taylor and Lane Bryant, filed for Chapter 11 bankruptcy protection on Thursday. Read more.

-Brooks Brothers entered a $305 million “stalking horse” purchase agreement with SPARC Group, a retailer, amid the former’s bankruptcy proceedings. Read more.

IPOS

-Junlebao Dairy, a Chinese dairy company, is weighing a dual listing in Hong Kong and mainland China, per Bloomberg. Ping An Capital, Primavera Capital and Sequoia China back the firm. Read more.