Morning Report: NIO may go public, bringing another electric car maker’s shares to the masses.
NIO, a Chinese electric car company, may go public in the United States, according to Bloomberg. The same report goes on to note that NIO may raise as much as $2 billion in the transaction, which the firm has filed for confidentially.
The huge potential raise comes after the automotive company had a critical 2017. NIO raised $1.6 billion in the year, first in a $600 million chunk led by Baidu and Tencent and another billion later on led by Tencent.
In December, the firm released the ES8, an electric SUV that TechCrunch reports has “220 miles of range, fast charging that will top off the battery entirely in one hour of charging, [and] battery pack swapping capabilities for three-minute refueling.”
With the car in the market and some of China’s biggest tech companies behind you, why not go public while the getting is good? If NIO does list on American markets, it will join Tesla as an electric car company that trades publicly, which is being battered by a recent slew of negative reports.
A series of high-profile crashes has brought new attention to the firm’s self-driving technology; the company has missed production deadlines for its critical Model 3 car; and the car manufacturer’s cash consumption has worried some market observers, whose fears are, at least partially, made reasonable by declines in the value of Tesla’s long-term debt.
So it’s not easy to build an electric vehicle business. But we know nothing for now about NIO’s finances. Perhaps it is less unprofitable and cash-hungry. If so, it could have an easier roll to the public markers. But if NIO is akin to Tesla, it will be curious to see how the market values another electric car company that needs regular injections of money to keep going.
From The Crunchbase Daily:
Scooter-sharing startup Bird is reportedly raising $150 million in a funding round led by Sequoia Capital that will value the company at a billion dollars. If it closes, the deal will turn the year-old company into the first scooter unicorn.
Things are perking up at San Francisco venture investor Caffeinated Capital. The firm filed to raise $225 million across two new funds, including $75 million for its third flagship fund and $150 million for follow-on investments in existing portfolio companies.
Counsyl, a provider of genetic screening for prenatal care and cancer risk assessement, will sell to publicly traded Myriad Genetics for $375 million. Previously, Silicon Valley-based Counsyl raised nearly $240 million in venture funding.
China-based robotics startup ForwardX has raised $10 million in Series A funding to solve a problem few of us knew we had: dragging a suitcase around.