SoftBank Vision Fund has added another Boston unicorn to its portfolio, confirming an interest in backing local tech and biotech companies that has become more prominent since at least last year.
The second VC fund of the Japanese conglomerate led Boston-based ezCater's $100 million round, which the corporate food delivery startup announced Wednesday.
Stefania Mallett, ezCater co-founder and CEO, said that in the past year ezCater has been working to adjust its food-delivery services to accommodate fluctuating headcount — in other words, to adapt its business to hybrid workplaces, where in-person returning plans may change on a short notice. "That's something we perfected in this last year, and we will continue to expand it with the funding that we raised," she said.
ezCater had a rough start to the pandemic, laying off hundreds of employees. But things have turned around, according to Mallett, with revenue now back at pre-pandemic levels. That means that a public listing, which was put on hold because of the pandemic, is now back on the agenda.
SoftBank Vision Fund's investments in Massachusetts companies
Company: Cambridge-based drug discovery company Relay Therapeutics Inc. (Nasdaq: RLAY)
Fund: SoftBank Vision Fund 1
Date of 1st investment: SoftBank Vision Fund was the leading investor in the company's $400 million Series C financing round announced in December 2018
Total funding to date: The company raised approximately $520 million before going public in July 2020
Image: Members of the Relay Therapeutics team participated in a virtual Nasdaq bell-ringing to celebrate the biotech's IPO in 2020
Company: Cambridge-based mobile telematics and analytics provider Cambridge Mobile Telematics
Fund: SoftBank Vision Fund 1
Date of 1st investment: SoftBank Vision Fund invested $500 million in Cambridge Mobile Telematics. The investment was announced in December 2018
Total funding to date: Just over $500 million
Image: Cambridge Mobile Telematics is located at 314 Main St. in Cambridge
Company: Bedford-based robotics company Berkshire Grey
Fund: SoftBank Vision Fund 2
Date of 1st investment: On its site, SoftBank Vision Fund includes Berkshire Grey as one of its portfolio companies for its second Vision Fund. Berkshire Grey announced $263 million in Series B financing with SoftBank and other investors in January 2020
Total funding to date: $263 million
Image: Named after the Berkshires of Western Massachusetts, Berkshire Grey is planning to go public later this year in a deal with special purpose acquisition company Revolution Acceleration Acquisition Corp. (Nasdaq: RAAC)
Company: Boston-based digital health company Biofourmis Inc.
Fund: SoftBank Vision Fund 2
Date of 1st investment: Biofourmis announced the completion of a $100 million Series C financing round led by SoftBank Vision Fund 2 in September 2020
Total funding to date: $145 million
Image: Biofourmis CEO Kuldeep Singh Rajput
Company: Cambridge-based drug discovery company XtalPi Inc.
Fund: SoftBank Vision Fund 2
Date of 1st investment: SoftBank Vision Fund 2 co-led a Series C funding round of $318.8 million in XtalPi, which the company announced in September 2020
Total funding to date: $386.4 million
Image: The company is based at 245 Main St. in Cambridge's Kendall Square
Company: Pear Therapeutics Inc., a Boston developer of software-based disease treatments
Fund: SoftBank Vision Fund 2
Date of 1st investment: In December 2020, Pear Therapeutics announced the closing of an $80 million Series D financing round led by SoftBank Vision Fund 2
Total funding to date: $234 million
Image: Pear Therapeutics CEO Corey McCann
Company: Boston-based unicorn fitness tracker Whoop Inc.
Fund: SoftBank Vision Fund 2
Date of 1st investment: In October 2020, the company said it raised $100 million in a Series E funding round that saw participation from SoftBank Vision Fund 2. IVP, a California-based later-stage venture capital firm, was the leading investor
Total funding to date: Over $200 million
Image: Whoop opened a "data collection lab" in Boston's Fenway over the summer of 2020. For its corporate headquarters, the company plans to occupy 121,000 square feet at One Kenmore Square, beneath Boston’s Citgo sign, by mid-2022
Company: Cambridge-based gene writing company Tessera Therapeutics Inc.
Fund: SoftBank Vision Fund 2
Date of 1st investment: SoftBank Vision Fund 2 co-led a $230 million investment in Tessera Therapeutics in January 2021. The Series B financing was co-led by Alaska Permanent Fund Corporation and Altitude Life Science Ventures as well
Total funding to date: $230 million
Image: The entrance to Somerville's Boynton Yards, the city's first lab building. Tessera Therapeutics is one of three life-science companies backed by Flagship Pioneering that are set to move to Boynton Yards this fall
Company: Cambridge-based cell and gene therapy company ElevateBio LLC
Fund: SoftBank Vision Fund 2
Date of 1st investment: ElevateBio raised $525 million in a Series C round in March 2021. Matrix Capital Management led the round, with SoftBank's Vision Fund 2 and Fidelity Research & Management Company joining as new investors
Total funding to date: $845 million
Image: ElevateBio's Cambridge office is located at 139 Main St. The company also has a "BaseCamp," a research and manufacturing facility, in Waltham
Company: Cambridge-based immunology startup Repertoire Immune Medicines Inc.
Fund: SoftBank Vision Fund 2
Date of 1st investment: Softbank Vision Fund 2 participated in a $189 million Series B financing announced in April 2021
Total funding to date: Over $350 million
Image: Repertoire Immune Medicines formed last year by the merging of two Flagship Pioneering-founded companies. Venture capital firm Flagship Pioneering is based at 55 Cambridge Parkway in Cambridge
Company: Somerville-based 3D printing company Formlabs
Fund: SoftBank Vision Fund 2
Date of 1st investment: SoftBank Vision Fund 2 was the leading investor in Formlabs's $150 million Series E round, announced in May 2021
Total funding to date: $250 million
Image: Max Lobovsky, CEO and co-founder of Formlabs
Company: Perch, a Boston company that buys Amazon sellers
Fund: SoftBank Vision Fund 2
Date of 1st investment: In May 2021, Perch announced it has closed a $775 million Series A round led by Softbank Vision Fund 2
Total funding to date: Over $900 million
Image: Perch CEO Chris Bell
Company: Corporate food delivery startup ezCater Inc.
Fund: SoftBank Vision Fund 2
Date of 1st investment: In December 2021, ezCater announced it has closed a $100 million Series D-2 round led by Softbank Vision Fund 2
Total funding to date: $425 million
Image: Stefania Mallett, CEO and co-founder of ezCater
"I should have been a public company CEO now," Mallett said. "Our target was fall of 2021 that we would be public. That didn't happen, of course — thank you, Covid — but we'll get there. We are spending 2022 continuing our great growth and cementing our position as public-ready company that will be a very successful public company in 2023."
A traditional IPO is the path Mallett is thinking about, even if ezCater were to receive multiple overtures for a reverse merger.
As part of the 2022 growth, ezCater plans to add 350 programmers, sales, marketing and customer service employees to its current 500 total headcount, which includes 280 people in greater Boston. Probably the majority of the new hires will be in Boston, Mallett said.
"Maybe there's some acquisitions in our future," she added. "Honestly, I don't have one targeted. But with more money ... you have more opportunities."
The latest investment round brings ezCater’s total funding to $425 million and the company's post-money valuation to $1.6 billion. Quadrille Capital, GIC, ICONIQ Growth, Insight Partners and Invus participated.
