On July 3, 2018, King & Wood Mallesons (“KWM”) advised Neutron Holding, Inc. (“Lime”) on its successful Series C financing. The preferred equity financing raised approximately US$300 million.  Lime, only established for one year, passed a notable milestone as this round would value Lime at over $1.1 billion and Lime has since become a newest unicorn.

Lime is the first and the only bike sharing company operating pedal bikes, e-bikes and e-scooters, and it is the largest dockless bike-sharing operator in the U.S.  Since its launch in June 2017, Lime has developed rapidly.  Lime is currently serving over 90 markets in the U.S. and Europe, and working with over 70 cities and partnering with over 20 campuses across the U.S.

The founding round was led by GV (partner Joe Kraus has joined the board).  Other major backers include Alphabet, IVP, Atomico and Fidelity.  Lime’s existing investors, Andreessen Horowitz and Coatue Management also participated in the round.  The new funds will give Lime the ability to expand its operations globally, develop new technologies and products for consumers and build out its infrastructure and team.

This is a typical Silicon Valley venture capital financing transaction.  As counsel to Lime, KWM led the design of the transaction structure, the design of the respective rights and obligations for Series C preferred shareholders, drafted all the documents in connection with this transaction, and negotiated respective terms and conditions on behalf of throughout the process.  KWM also assisted Lime in processing the HSR fillings.  KWM played a key role in facilitating and ensuring the timely closing of Lime’s Series C round of financing, leveraging its legal expertise and resources in both China and the United States within a short period of time.  The project is led by partner Rocky Lee and Yuji Sun.

In this transaction, KWM acted as counsel to Lime, Fenwick & West LLP acted as counsel to lead investor GV, Gunderson Dettmer Stough Franklin Villeneuve Franklin & Hachigian, LLP acted as counsel to Coatue Management and Cooley LLP acted as counsel to Andreessen Horowitz.