Zeroing in on the e-commerce category, these crossover investors were involved in some of the largest e-commerce mega-deals in that year, such as China Internet Plus Holding’s $2.8B growth equity round, Flipkart’s $550M Series I, and Jet.com’s $500M Series B.
We used CB Insights data to track e-commerce dealmaking with participation from crossover investors from 2012 to 2016 year-to-date. Our crossover investor category includes investment banks, mutual funds, and hedge funds, as well as asset managers and diversified financial services-based firms, all of which customarily invest in the public markets.
Since 2012, crossover investors participated in nearly 250 e-commerce funding rounds, totaling over $15.6B in aggregate.
We define e-commerce as companies using websites or mobile apps to sell physical goods, as well as enablement companies that build these sites and apps. We excluded companies focused on services, such as Uber, or those delivering food and groceries (see our food delivery category for trends there).
Annual trends in e-commerce crossover financing
Crossover investors increased participation in e-commerce deals in 2014 and 2015, participating in a high of 72 deals worth nearly $6.9B last year. So far this year, however, crossover investors only took part in 24 e-commerce funding rounds totaling $1.3B.
This run-rate would lead to full-year deals and funding dropping below 2014 levels.
E-commerce deals with crossover participation by stage
Deals with crossover participation are relatively evenly distributed by stage. Since 2012, the most common deal stage has been Series B, representing 22% of crossover participation deals. This is followed by Series C, with 17%, and Series A, with 16%.
Most active crossover investors in e-commerce
Tiger Global Management topped our list of most active e-commerce crossover investors by unique portfolio companies, having invested in over 25 e-commerce companies since 2012 (roughly 10 companies more than the next crossover investor on our ranking). Silicon Valley Bank ranks second, followed by Goldman Sachs in third.
Tiger Global Management is an extremely active investor in VC-backed companies across sectors, including tech. The New York-based hedge fund’s e-commerce portfolio includes Harry’s Razor Company, Flipkart, Warby Parker, One Kings Lane (recently acquired by Bed Bath & Beyond), and PetLove, among others.
Indian e-commerce unicorn Flipkart is a popular crossover investment target, with investments from Tiger as well as Morgan Stanley, T. Rowe Price, Steadview Capital, and more.
|1||Tiger Global Management|
|2||Silicon Valley Bank|
|4||JPMorgan Chase & Co.|
|5||T. Rowe Price|
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