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Uber reportedly raising $1B in deal that values self-driving car unit at up to $10B

Posted by on Mar 13, 2019 in AV, economy, funding, General Motors, Google, Lyft, Softbank, Softbank Vision Fund, t.rowe price, TC, the wall street journal, Toyota, TPG Growth, transport, Transportation, Uber, United States, Venture Capital, waymo | 0 comments

Uber is in negotiations with investors, including the SoftBank Vision Fund, to secure an investment as large as $1 billion for its autonomous vehicles unit. The deal would value the business at between $5 billion and $10 billion, according to a Tuesday report from The Wall Street Journal.

Uber declined to comment.

The news comes shortly after TechCrunch’s Mark Harris revealed the ridehailing firm was burning through $20 million a month on developing self-driving technologies, which means, according to our calculations, that Uber could have spent more than $900 million on automated vehicle research since early 2015.

According to the WSJ, the deal could close as soon as next month, shortly before Uber is expected to complete a highly-anticipated initial public offering. Uber, in December, filed the necessary paperwork with the US Securities and Exchange Commission to go public in 2019. The documents were submitted only hours after its competitor Lyft did the same; Lyft, for its part, unveiled its S-1 earlier this month and will debut on the Nasdaq shortly.

Uber, to date, has raised nearly $20 billion in a combination of debt and equity funding, reaching a valuation north of $70 billion. The business is said to be seeking funding for its self-driving business in order to tout the unit’s growth and valuation. After all, a $10 billion sticker price on its AV efforts may bandage its reputation, damaged by continued reports questioning its progress.

Alphabet-owned Waymo, meanwhile, is reportedly looking to raise capital, too. This would be the first infusion of outside funding for the autonomous vehicle business, rolled out of Alphabet’s Google X. According to The Information, which broke this news on Monday, Waymo would raise capital at a valuation “several times” that of Cruise, the AV company owned by General Motors.

Raising capital from outside investors would help limit costs and would allow Alphabet the opportunity to display Waymo’s valuation for the first time in several years. Alphabet, however, does not want to relinquish too much equity in the business, justifiably. Waymo, years ago, was valued at $4.5 billion, though analysts claim it could surpass a valuation as high as $175 billion based on future revenue estimates.

Waymo didn’t respond to a request for comment.

Other investors in Uber’s purported round include an “unnamed automaker,” per the WSJ. Uber’s existing backers include Toyota, SoftBank, T. Rowe Price, Fidelity and TPG Growth.

Uber’s net losses were up 32 percent quarter-over-quarter as of late last year to $939 million on a pro forma basis. On an EBITDA basis, Uber’s losses were $527 million, up about 21 percent. The company said revenue was up five percent QoQ sitting at $2.95 billion and up 38 percent year-over-year.

Announcing TechCrunch meetups in Buenos Aires and Santiago next week

Posted by on Jul 18, 2018 in AOL, AV, blogs, Chile, coo, digital media, early-stage startups, economy, Facebook, jon shieber, Latin America, mexico city, Ned Desmond, premier, Start-Up Chile, TC, TechCrunch, world wide web | 0 comments

TechCrunch is heading to Latin America for the first time and staging its first ever Startup Battlefield Latin America on Nov. 8 in São Paulo to find the next wave of early stage startups tackling big ideas!

To spread the word, TechCrunch’s Jon Shieber and Anna Escher will visit Buenos Aires and Santiago next week to meet with the startup community and hold meetups for anyone interested in learning more about the Startup Battlefield. They’ll also spend time explaining how to apply. Tickets to the meetups are free, but they will go fast so sign up now.

Here are the details:

Buenos Aires

Tuesday, July 24th, 7:00pm – 9:00pm

Innovation Lab Buenos Aires from Facebook @ Av. Cnel. Niceto Vega 4866, C1414BEF C1414BEF, Buenos Aires, Argentina

Register here.

Santiago

Thursday, July 27th, 5:00pm – 7:00pm

Startup Chile @ Monjitas 565, Santiago, Región Metropolitana, Chile

Register Here.

At the meetup, Founders will learn how to apply for Battlefield and investors will learn how to refer companies in their portfolio. TechCrunch will provide a brief presentation on Startup Battlefield and answer questions. Application close next month, and when they do, our editors will choose 15 companies to compete, and one will win $25,000 and a free trip to the next Disrupt SF.  All the companies, however, will receive global exposure, winners or not, because video from their pitches on stage in front of top tier judges will be posted on TechCrunch.

(And in case you missed it, TechCrunch COO Ned Desmond is in São Paulo and Mexico City this week hosting meetups and briefings for TechCrunch Startup Battlefield Latin America.)

Startup Battlefield is the world’s premier startup launch competition. To date, the Startup Battlefield alumni community comprises almost 750 companies that have raised over $8 billion USD, and produced over 100 successful exits and IPOs.


Source: The Tech Crunch

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