The Briefing: SEC Said To Pause Chinese Company IPOs, Neuralink Raises $205M, And More

Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

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SEC reportedly freezes China-based company IPOs

U.S. securities regulators have stopped processing registrations of U.S. IPOs and other security sales by Chinese companies while they craft new guidance addressing the risk of a new regulatory crackdown by China’s government, according to a Reuters report citing unnamed sources.

Deal flow has reportedly slowed a month after Chinese regulators banned ride-sharing giant Didi from signing up new users shortly after its blockbuster IPO. That was followed by crackdowns on technology and private education companies.

Allison Lee, a commissioner at the Securities and Exchange Commission, has also reportedly said that Chinese companies listed on U.S. stock exchanges must disclose to investors the risks of China’s government interfering in their businesses as part of their regular reporting obligations.

Musk’s Neuralink raises $205M

Neuralink, the brain-machine interface startup co-founded by Elon Musk, raised $205 million in a Series C funding round.

Vy Capital led the financing, with participation from Google’s GV, DFJ Growth, Valor Equity Partners, Craft Ventures, Founders Fund and Gigafund. The financing brings total funding to date for the Fremont, California-based company to $363 million.

New funds

• True Beauty Ventures raises debut fund to back beauty, wellness brands: True Beauty Ventures L.P. said Friday that it has closed its debut fund, raising more than $42 million to back companies in the beauty and wellness space with checks in the $1 million to $5 million range from seed to Series C funding.

The fund is led by co-founder and General Partner Cristina Nuñez and co-founder and Managing Partner Rich Gersten. Nuñez brings consumer private equity investing experience from stints at Tengram Capital and L Catterton as well as beauty operating experience as an executive at Clark’s Botanicals and Laura Geller Beauty, the firm said, while Gersten brings investing experience as a former partner at private equity firms Tengram Capital, L Catterton, and North Castle Partners.

True Beauty Ventures has made six investments to date, including in hair care brands AQUIS and K18 Hair, Gen Z oriented skincare brand Kinship, direct-to-consumer CBD products company Feals, luxury hair care brand Crown Affair, intimacy products brand Maude, and a not-yet-disclosed clean makeup brand.

Travel and hospitality tech

Exoticca lands $30M for tours: Barcelona-based Exoticca, a provider of travel tour package deals, reportedly raised $30 million in a funding round led by 14W and Mangrove Capital Partners. The financing follows a sharp rise in demand for bookings as more borders reopen to travel.

— Joanna Glasner

Illustration: Dom Guzman