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How to land startup funding from Brookfield Asset Management, which manages $600 billion in assets

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There are big investment firms, and then there are big investment firms. Brookfield Asset Management, the Toronto-based 122-year-old outfit whose current market cap is $63 billion and that oversees $600 billion in assets, clearly falls into the latter camp. Think real estate, infrastructure, renewable power, private equity, and credit. If it falls into a defined asset class, Brookfield probably has it in its portfolio.

That’s also true of venture capital, though venture is new enough to Brookfield that founders who might like its capital are still getting the memo. Indeed, it was a little less than four years ago that Brookfield Technology Partners began investing off the company’s balance sheet and soon after recruited Josh Raffaelli — a Stanford MBA who cut his teeth as a principal with Draper Fisher Jurvetson, then spent another five years with Silver Lake — to lead the practice.

Its existence came as a surprise to him, actually. “I’ve been a tech investor in Silicon Valley,” says Raffaelli. “My entire professional career has been in a 15-minute drive from the house I grew up in. And I had never heard about Brookfield before they started this practice because it’s in businesses. It’s in real estate. It has done things that are not generally tech-enabled.”

Not until fairly recently, that is. Raffaelli and his 11-person team have not only made dozens of bets since then, but they’re currently investing out of a pool of capital that features third party capital in addition to that of Brookfield — which is a first. As for what they are looking for, the idea is help Brookfield reimagine how its many office towers, malls and other real estate might be used or developed or leased or insured. It’s to make Brookfield smarter, better prepared, and more profitable. In return, the startups get industry expertise and a major customer in Brookfield

 

To date, its bets have varied widely, as with Armis, an IoT startup focused on unmanaged device security; Loanpal, a point-of-sale payment platform for solar and other home efficiency products; and Carbon Health, a primary care company that blends real-world and virtual visits. “”We’re getting our themes effectively from the Brookfield ecosystem,” Raffaelli says.

Pulling back the curtain a bit more, Raffaelli says his team writes checks from $25 million to $50 million dollars and that they look for companies with $10 million in revenue that are seeing top-line year-over-year growth of more than 100%. In terms of pacing, they jump into roughly one new deal per quarter.

The fund is also independent and has its own custom committee, but that the committee is made up of the senior managing partners from each line of Brookfield’s businesses. (“These are the people that actually help us translate our investment themes that we’re generating here,” Raffaelli notes.)

To highlight how the operation works, Raffaelli points to Latch, a smart access software business that announced last month that it’s using a blank-check company backed by the real estate giant Tishman Speyer to become publicly traded. Brookfield owns roughly 70,000 multifamily units in North America, “so we have a lot of doors that need a lot of locks,” Raffaelli says. Latch, of course, is not the only smart access lock out there, so Brookfield ran “what was almost like a mini [proposal process], reaching out to all different companies in the market to understand how they compete,” he says.

It was a “six-month exercise,” but ultimately, his group led Latch’s Series B round in 2018 and since then, Brookfield was bought about 7,000 blocks from the business. It’s a meaningful difference, considering that when Brookfield first invested, the company had less than $20 million in bookings and those 7,000 locks have since brought in an additional $10 million to $15 million in revenue, Raffaelli says. “When we buy a lot of things at that stage of a company,” he adds, “we’re meaningfully enhancing their trajectory.”

It’s not a foolproof strategy, doubling down. If Latch’s locks turned out to be lemons (they haven’t), Brookfield would be out a big check along with that capital expenditure. It’s why Brookfield takes its time, says Raffaelli, adding that if he has done his job right, his team is involved with a company well before it is raising a round and shown already that it is a “strategic partner that has another lever.”

Either way, Raffaelli says that while the commercial real estate market has been hard hit by the pandemic, it has, counterintuitively, been a productive time for his group given the stronger incentive it has given the real estate world to adopt tech tools faster. Among the bets about which Raffaelli sounds most excited right now is VTS, for example, a leasing and asset management platform that can show properties remotely, and Deliverr, an e-commerce fulfillment startup that Raffaelli describes as “Amazon Prime for everybody else.”

In fact, Raffaelli convincingly argues that while the use case for a lot of real estate is changing,  the so-called built world remains Brookfield’s strongest competitive advantage given the size of its footprint.  The way he sees it, its options going forward are plentiful. “You’re looking at retail locations becoming ghost kitchens; you’re looking at retail locations turning into distribution and logistics facilities. We can turn physical locations into healthcare sites for [our portfolio company] Carbon Health, and our mall locations into locations for urgent care and primary care clinics for testing and vaccinations.”

It will never be a completely seamless transition. Brookfield has to be “thoughtful” given the pandemic and its devastating impacts, too. But Raffaelli comes across as excited in conversation nonetheless. The idea of turning physical real estate into a “mechanism for change within technology businesses,” adds Raffaelli, is a “very powerful place to be.”

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Vietnamese electric motorbike startup Dat Bike raises $2.6M led by Jungle Ventures

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Son Nguyen, founder and chief executive officer of Dat Bike on one of the startup's motorbikes

Son Nguyen, founder and chief executive officer of Dat Bike

Dat Bike, a Vietnamese startup with ambitions to become the top electric motorbike company in Southeast Asia, has raised $2.6 million in pre-Series A funding led by Jungle Ventures. Made in Vietnam with mostly domestic parts, Dat Bike’s selling point is its ability to compete with gas motorbikes in terms of pricing and performance. Its new funding is the first time Jungle Ventures has invested in the mobility sector and included participation from Wavemaker Partners, Hustle Fund and iSeed Ventures.

Founder and chief executive officer Son Nguyen began learning how to build bikes from scrap parts while working as a software engineer in Silicon Valley. In 2018, he moved back to Vietnam and launched Dat Bike. More than 80% of households in Indonesia, Malaysia, Thailand and Vietnam own two-wheeled vehicles, but the majority are fueled by gas. Nguyen told TechCrunch that many people want to switch to electric motorbikes, but a major obstacle is performance.

Nguyen said that Dat Bike offers three times the performance (5 kW versus 1.5 kW) and 2 times the range (100 km versus 50 km) of most electric motorbikes in the market, at the same price point. The company’s flagship motorbike, called Weaver, was created to compete against gas motorbikes. It seats two people, which Nguyen noted is an important selling point in Southeast Asian countries, and has a 5000W motor that accelerates from 0 to 50 km per hour in three seconds. The Weaver can be fully charged at a standard electric outlet in about three hours, and reach up to 100 km on one charge (the motorbike’s next iteration will go up to 200 km on one charge).

Dat Bike’s opened its first physical store in Ho Chi Minh City last December. Nguyen said the company “has shipped a few hundred motorbikes so far and still have a backlog of orders.” He added that it saw a 35% month-over-month growth in new orders after the Ho Chi Minh City store opened.

At 39.9 million dong, or about $1,700 USD, Weaver’s pricing is also comparable to the median price of gas motorbikes. Dat Bike partners with banks and financial institutions to offer consumers twelve-month payment plans with no interest.

“These guys are competing with each other to put the emerging middle class of Vietnam on the digital financial market for the first time ever and as a result, we get a very favorable rate,” he said.

While Vietnam’s government hasn’t implemented subsidies for electric motorbikes yet, the Ministry of Transportation has proposed new regulations mandating electric infrastructure at parking lots and bike stations, which Nguyen said will increase the adoption of electric vehicles. Other Vietnamese companies making electric two-wheeled vehicles include VinFast and PEGA.

One of Dat Bike’s advantages is that its bikes are developed in house, with locally-sourced parts. Nguyen said the benefits of manufacturing in Vietnam, instead of sourcing from China and other countries, include streamlined logistics and a more efficient supply chain, since most of Dat Bike’s suppliers are also domestic.

“There are also huge tax advantages for being local, as import tax for bikes is 45% and for bike parts ranging from 15% to 30%,” said Nguyen. “Trade within Southeast Asia is tariff-free though, which means that we have a competitive advantage to expand to the region, compare to foreign imported bikes.”

Dat Bike plans to expand by building its supply chain in Southeast Asia over the next two to three years, with the help of investors like Jungle Ventures.

In a statement, Jungle Ventures founding partner Amit Anand said, “The $25 billion two-wheeler industry in Southeast Asia in particular is ripe for reaping benefits of new developments in electric vehicles and automation. We believe that Dat Bike will lead this charge and create a new benchmark not just in the region but potentially globally for what the next generation of two-wheeler electric vehicles will look and perform like.”

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Binance Labs leads $1.6M seed round in DeFi startup MOUND, the developer of Pancake Bunny

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Decentralized finance startup MOUND, known for its yield farming aggregator Pancake Bunny, has raised $1.6 million in seed funding led by Binance Labs. Other participants included IDEO CoLab, SparkLabs Korea and Handshake co-founder Andrew Lee.

Built on Binance Smart Chain, a blockchain for developing high-performance DeFi apps, MOUND says Pancake Bunny now has over 30,000 daily average users, and has accumulated more than $2.1 billion in total value locked (TVL) since its launch in December 2020.

The new funding will be used to expand Pancake Bunny and develop new products. MOUND recently launched Smart Vaults and plans to unveil Cross-Chain Collateralization in about a month, bringing the startup closer to its goal of covering a wide range of DeFi use cases, including farming, lending and swapping.

Smart Vaults are for farming single asset yields on leveraged lending products. It also automatically checks if the cost of leveraging may be more than anticipated returns and can actively lend assets for MOUND’s cross-chain farming.

Cross-Chain Collateralization is cross-chain yield farming that lets users keep original assets on their native blockchain instead of relying on a bridge token. The user’s original assets serve as collateral when the Bunny protocol borrows assets on the Binance Smart Chain for yield farming. This allows users to keep assets on native blockchains while giving them liquidity to generate returns on the Binance Smart Chain.

In statement, Wei Zhou, Binance chief financial officer, and head of Binance Labs and M&A’s, said “Pancake Bunny’s growth and MOUND’s commitent to execution are impressive. Team MOUND’s expertise in live product design and servie was a key factor in our decision to invest. We look forward to expanding the horizons of Defi together with MOUND.”

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Battery Resourcers raises $20M to commercialize its recycling-plus-manufacturing operations

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As a greater share of the transportation market becomes electrified, companies have started to grapple with how to dispose of the thousands of tons of used electric vehicle batteries that are expected to come off the roads by the end of the decade.

Battery Resourcers proposes a seemingly simple solution: recycle them. But the company doesn’t stop there. It’s engineered a “closed loop” process to turn that recycled material into nickel-manganese-cobalt cathodes to sell back to battery manufacturers. It is also developing a process to recover and purify graphite, a material used in anodes, to battery-grade.

Battery Resourcers’ business model has attracted another round of investor attention, this time with a $20 million Series B equity round led by Orbia Ventures, with injections from At One Ventures, TDK Ventures, TRUMPF Venture, Doral Energy-Tech Ventures and InMotion Ventures. Battery Resourcers CEO Mike O’Kronley declined to disclose the company’s new valuation.

The cathode and anode, along with the electrolyzer, are major components of battery architecture, and O’Kronley told TechCrunch it is this recycling-plus-manufacturing process that distinguishes the company from other recyclers.

“When we say that we’re on the verge of revolutionizing this industry, what we are doing is we are making the cathode active material — we’re not just recovering the metals that are in the battery, which a lot of other recyclers are doing,” he said. “We’re recovering those materials, and formulating brand new cathode active material, and also recovering and purifying the graphite active material. So those two active materials will be sold to a battery manufacturer and go right back into the new battery.”

“Other recycling companies, they’re focused on recovering just the metals that are in [batteries]: there’s copper, there’s aluminum, there’s nickel, there’s cobalt. They’re focused on recovering those metals and selling them back as commodities into whatever industry needs those metals,” he added. “And they may or may not go back into a battery.”

The company says its approach could reduce the battery industry’s reliance on mined metals — a reliance that’s only anticipated to grow in the coming decades. A study published last December found that demand for cobalt could increase by a factor of 17 and nickel by a factor of 28, depending on the size of EV uptake and advances in battery chemistries.

Thus far, the company’s been operating a demonstration-scale facility in Worcester, Massachusetts, and has expanded into a facility in Novi, Michigan, where it does analytical testing and material characterization. Between the two sites, the company can make around 15 tons of cathode materials a year. This latest funding round will help facilitate the development of a commercial-scale facility, which Battery Resourcers said in a statement will boost its capacity to process 10,000 tons of batteries per year, or batteries from around 20,000 EVs.

Another major piece of its proprietary recycling process is the ability to take in both old and new EV batteries, process them and formulate the newest kind of cathodes used in today’s batteries. “So they can take in 10-year-old batteries from a Chevy Volt and reformulate the metals to make the high-Ni cathode active materials in use today,” a company spokesman explained to TechCrunch.

Battery Resourcers is already receiving inquiries from automakers and consumer electronics companies, O’Kronley said, though he did not provide additional details. But InMotion Ventures, the venture capital arm of Jaguar Land Rover, said in a statement its participation in the round as a “significant investment.”

“[Battery Resourcers’] proprietary end-to-end recycling process supports Jaguar Land Rover’s journey to become a net zero carbon business by 2039,” InMotion managing director Sebastian Peck said.

Battery Resourcers was founded in 2015 after being spun out from Massachusetts’ Worcester Polytechnic Institute. The company has previously received support from the National Science Foundation and the U.S. Advanced Battery Consortium, a collaboration between General Motors, Ford Motor Company and Fiat Chrysler Automobiles.

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