| | | | | | | Presented By Gulfstream Aerospace | | | | Pro Rata | | By Dan Primack ·Dec 16, 2020 | | 🎧 Axios Re:Cap talks with Sen. Joe Manchin (D-W.Va.) about his efforts to craft a bipartisan stimulus deal, and why there should be a Senate vote this week. Listen via Apple, Spotify or Axios. 🖥️ You're invited to an Axios virtual event today at 12:30pm ET on businesses making a difference during the pandemic, including conversations with Michael Rubin (Fanatics), Karla Gallardo (Cuyana) and Rod Little (Edgewell Personal Care). Register here. | | | | | | Top of the Morning |  | | | Illustration: Aïda Amer/Axios | | | | On March 5, Sequoia Capital issued a dire warning to its portfolio company CEOs, telling them to "question every assumption" about their businesses. - Remember the timing: The WHO wouldn't categorize COVID-19 as a pandemic for another two weeks. The NBA was still playing games in front of fans. Congress had just committed $8 billion to fight the virus, believing it to be a sufficient amount, and non-citizen travel from Europe into the U.S. was still allowed. My kid was still in school.
Nine months later, Sequoia's letter stands as prophetic, befitting a firm long viewed as venture capital's platinum standard. And, like with Sequoia's "RIP Good Times" warning from October 2008, this one deserves credit for waking entrepreneurs — and other VCs — to the mortal danger before it was too late. - The goal, as Sequoia's Roelof Botha told me at the time, was to "sensitize" companies to compound risk, which is something people don't intuitively contemplate (particularly when it comes to public health).
- Sequoia didn't tell people their businesses were on the brink. Rather, it provided a brief playbook for how to lessen the odds they'd reach that point, advising founders to recalibrate cash assumptions and reconsider spending plans in areas like marketing and new hires.
- In short, the best way to keep the gravy train rolling was to give it a respite.
No, Sequoia didn't get everything right. - The firm suggested it would take "perhaps several quarters before we can be confident that the virus has been contained." Clearly an underestimation.
- It also argued that Fed interest rate cuts "may prove a blunt tool in alleviating the economic ramifications of a global health crisis." That was true, but neglected to predict how monetary policy would help cleave the investment economy from the real economy, and how that dichotomy would keep fueling private and public equity deal-making.
The bottom line: We should all hope Sequoia never again feels compelled to pen another of these letters. But, if it does, we'd best pay attention. |     | | | | | | The BFD |  | | | Illustration: Aïda Amer/Axios | | | | Aphria (Nasdaq: APHA) agreed to merge with rival Tilray (Nasdaq: TLRY), in an all-stock deal that values the combined entity at around US$3.9 billion. - Why it's the BFD: This would create the world's largest cannabis company by sales, with US$685 million in pro forma revenue.
- Details: Aphria shareholders would own 62% of the combined business, with Aphria CEO Irwin Simon to remain in charge. The corporate name would be Tilray, and it would use the "TLRY" ticker symbol.
- Bonus: Irwin Simon and Tilray CEO Brendan Kennedy will join me on today's Axios Re:Cap podcast. Subscribe.
- Bottom line: "Aphria and Tilray have struggled to fulfill the high expectations created by Canada's move to legalize cannabis use fully a year ago. Joe Biden's defeat of Donald Trump... and a wave of state level reforms, however, have renewed investors' hopes that the U.S. market is finally ready to open up, boosting deal-making in the sector after months of stagnation." — Reuters
| | | | | | | | Venture Capital Deals |  | | | Illustration: Aïda Amer/Axios | | | | • StockX, a Detroit-based online marketplace for shoes and accessories, raised $275 million in Series E funding at a $2.8 billion post-money valuation. Tiger Global led, and was joined by Altimeter Capital, Sands Capital, Whale Rock Capital Management and return backers Battery Ventures, DST Global, Detroit Venture Partners, Galaxy Interactive, GGV Capital, GV, General Atlantic and Marcy Venture Partners. http://axios.link/aq7O • Bolt, an Estonian ride-hail platform, raised €150 million led by D1 Capital Partners. http://axios.link/Bt8k 🚑 Neuron23, a biotech focused on genetically-defined neurological and immunological diseases, raised $80 million in Series B funding. Redmile Group led, and was joined by Westlake Village BioPartners, Kleiner Perkins, Cowen Healthcare Investments, Acorn Bioventures, HBM Partners, Perceptive Advisors and Surveyor Capital. http://axios.link/U47x • Bestow, a Dallas-based life insurance startup, raised $70 million in Series C funding from Breyer Capital, Valar Ventures, NEA, Core Innovation Ventures, Morpheus Ventures and Sammons Financial. http://axios.link/BgDI 🚑 MinervaX, a Danish developer of a Group B strep vaccine, raised $57 million in Series B funding from backers like Adjuvant Capital. http://axios.link/m7IB 🚑 Atsena Therapeutics, a Durham, N.C.-based developer of ocular gene therapies, raised $55 million in Series A funding. Sofinnova led, and was joined by Hatteras Venture Partners, the Foundation Fighting Blindness, Osage University Partners, University of Florida and the Manning Family Foundation. www.atsenatx.com ✈️ Boom Technology, a Colorado-based developer of supersonic aircraft, is raising $50 million in new funding led by WRVI Capital at a valuation north of $1 billion. http://axios.link/hc8i • Provide (fka Lendeavor), a San Francisco-based provider of finance solutions for healthcare practices, raised $34 million in Series A and B funding. QED Investors led, and was joined by Fifth Third Bank, Montage Ventures and Clocktower Technology Ventures. www.lendeavor.com • Zilch, a London-based buy now, pay later startup, raised $30 million from firms like Gauss Ventures. http://axios.link/sbq0 🚑 Curai Health, a Palo Alto-based telehealth startup, raised $27.5 million in Series B funding. Morningside Ventures led, and was joined by insiders General Catalyst and Khosla Ventures. www.curaihealth.com • Parsec, a New York-based developer of streaming tech, raised $25 million in Series B funding. Andreesen Horowitz led, and was joined by return backers Lerer Hippeau, Makers Fund, NextView Ventures and Notation Capital. http://axios.link/wEl3 ✈️ ZeroAvia, a Hollister, Calif.-based developer of hydrogen planes, raised $21.4 million. Breakthrough Energy Ventures led, and was joined by Amazon and Royal Dutch Shell. http://axios.link/a1wd • BoxCast, a Cleveland-based event livestreaming company, raised $20 million in Series A funding led by Updata Partners. http://axios.link/7MBU • Iris Automation, a San Francisco-based developer of collision avoidance tech for drones, raised $13 million in Series B funding led by Bessemer Venture Partners. http://axios.link/EKRo • Aware, a Columbus, Ohio-based enterprise social security platform , raised $12 million in Series B funding. Spring Mountain Capital led, and was joined by Blue Heron Capital and Allos Ventures. www.awarehq.com • Tive, a Boston-based platform for tracking the condition of shipped products, raised $12 million in Series A funding. RRE Ventures led, and was joined by Two Sigma Ventures and return backers NextView Ventures, Hyperplane Ventures, One Way Ventures and Fathom Ventures. http://axios.link/xJ1G • Truera, a Redwood City, Calif.-based model intelligence platform, raised $12 million in Series A funding. Wing VC led, and was joined by Data Community Fund, B Capital Group, Harpoon Ventures and return backers Conversion Capital and Greylock. http://axios.link/q2c7 • Tonic, a San Francisco-based synthetic data startup, raised $8 million in Series A funding. GGV Capital led, and was joined by Bloomberg Beta, Xfund, Heavybit, and Silicon Valley CISO Investments. www.tonic.ai • Supabase, an open-source alternative for Google's Firebase, raised $6 million led by Coatue. http://axios.link/c8zs 🎧 Storyboard, a Palo Alto-based enterprise podcast and audio platform, raised $4.5 million in seed funding led by CRV. www.storyboard.com • Deepwave Digital, a Philadelphia-based developer of AI-powered RF and wireless systems, raised $3 million in seed funding. Northrop Grumman and Jumpstart NJ Angel Network co-led, and were joined by Robin Hood Ventures, Ben Franklin Technology Partners and Lehigh Valley Angel Investors. http://axios.link/hK8A • Nubix, a San Francisco-based developer of edge-native app platforms, raised $2.7 million in seed funding. Tuscan Management led, and was joined by Chevron Technology Ventures. www.nubix.io • Socially Determined, a Washington, D.C.-based social risk analytics company, raised an undisclosed amount of funding from TransUnion Healthcare (NYSE: TRU). www.sociallydetermined.com | | | | | | | | A message from Gulfstream Aerospace | | Merging style with state-of-the-art ergonomics | | |  | | | The Gulfstream G700™ represents the ultimate expression of form and function in business aviation, featuring: - A flexible ultragalley for company or crew.
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Learn more. | | | | | | Private Equity Deals | | • Artlist, an an Israeli stock digital content platform backed by KKR and Elephant Partners, acquired Motion Array, a Decatur, Ga.-based digital assets marketplace, for $65 million. www.artlist.io • Cathcart Rail, a portfolio company of Star America Infrastructure Partners, acquired Eleanor, W.Va.-based Appalachian Railcar Services from GenNx360 Capital Partners. www.apprailcar.com 🚑 Cedar Gate, a Greenwich, Conn.-based portfolio company of GTCR, acquired Deerwalk, a Lexington, Mass.-based provider of data and analytics SaaS for the healthcare payer market. www.cedargate.com • Corsair Capital acquired IDIQ, a Temecula, Calif.-based provider of credit report and identity theft monitoring solutions. www.idiq.com ⛽ Offen Petroleum, a Commerce City, Colo.-based motor fuel distributor owned by Court Square Capital Partners, acquired the business assets of Mt. Vernon, Mo.-based Ozark Mountain Energy. www.offenpetro.com • Oaktree Capital Group sweetened its buyout offer for bankrupt Indian shadow lending Dewan Housing Finance to $5 billion. http://axios.link/8DGo • Partners Group agreed to invest around $265 million in Ecom Express, an Indian e-commerce logistics company owned by Warburg Pincus, per the Economic Times. http://axios.link/KXYA • Providence Equity Partners agreed to buy a majority stake in French car classifieds firm Groupe La Centrale from German publisher Axel Springer. http://axios.link/pDy3 • The Riverside Company acquired Bonnie & Don Flavours, a Canadian maker of natural and organic flavors and extracts. www.bdflavours.com • Spectrum Automotive, a portfolio company of Cornell Capital, acquired CalTex, a Schertz, Texas-based maker of automotive appearance protection products. www.spectrumautoholdings.com 🚑 Sun Capital Partners acquired Miami Beach Medical Group Center, a provider of primary care services to Medicare Advantage members in South Florida, for more than $500 million. http://axios.link/ZXxD • Tailwind Capital bought ArrowStream, a Chicago-based provider of supply chain management software for the foodservice industry, from Diversis Capital. www.arrowstream.com | | | | | | | | Public Offerings |  | | | Illustration: Aïda Amer/Axios | | | | • Wish, a San Francisco-based mobile shopping app, raised $1.1 billion in its IPO. It priced 46 million shares at $24 (high end of range), for a fully diluted market value of $17.1 billion. It will list on the Nasdaq (WISH), Goldman Sachs as lead underwriter and reports a $176 million net loss on $1.7 billion in revenue for the first nine months of 2020. The company was most recently valued by private investors at $11.2 billion, and raised $1.8 billion from such firms as DST Global, Founders Fund, Formation8, General Atlantic and GGV Capital. http://axios.link/lDvH 🚑 BioAtla, a San Diego-based developer of antibody therapies for solid tumor cancers, raised $189 million in its IPO. The company priced 10.5 million shares at $18, versus plans to offer 9.4 million at $15-$17, for an initial market cap of $558 million. It will list on the Nasdaq (BCAB), used JPMorgan as lead underwriter and raised $162 million from firms like Pfizer Ventures (10.4% pre-IPO stake), Soleus Private Equity (8.3%), HBM Healthcare (7.9%), Baker Brothers (6.9%), Cormorant Asset Management (6.9%) and Farallon Capital Management (6.9%). http://axios.link/4wYa • InPost, a Polish parcel locker business owned by Advent International, is prepping an Amsterdam IPO that could value thew company at between €7–8 billion, per Reuters. http://axios.link/5D7Z • Upstart, a San Mateo, California-based consumer lending platform, raised $240 million in its IPO. It priced 12 million shares at $20 (low end of range), for an initial market cap of $1.45 billion, and will list on the Nasdaq (UPST) with Goldman Sachs as lead underwriter. The company reports $147 million in revenue for the first nine months of 2020, and raised nearly $650 million in VC funding from firms like Third Point Ventures (19.5% pre-IPO stake), Khosla Ventures (8.4%), Rakuten (5.3%), and First Round Capital (5.2%). http://axios.link/ScVz | | | | | | | | SPAC Stuff | | • 2MX Organic (Paris: 2MX), a SPAC led by Xavier Niel, is considering a takeover of French supermarket chain Grand Frais, per Bloomberg. http://axios.link/KvU0 • Tokopedia, an Indonesian e-commerce firm backed by SoftBank Vision Fund, is in talks to go public via a reverse merger with Bridgetown Holdings (Nasdaq: BTWN), a SPAC formed by Theil Capital and Pacific Century, per Bloomberg. The deal could be vworth between $8 and $10 billion. http://axios.link/9rsh 🚑 Blue Water Acquisition, a healthcare-focused SPAC formed by Joseph Hernandez (Blue Water Vaccines), raised $50 million in an IPO. http://axios.link/HOOv • Churchill Capital Corp V, a SPAC led by Michael Klein, raised $450 million in an upsized IPO. http://axios.link/efiB • Epiphany Technology Acquisition, a tech-focused SPAC formed by Arthur Coviello (Rally Ventures, ex-Dell) and Peter Bell (Amity Ventures, ex-Highland Capital Partners), filed for a $350 million IPO. http://axios.link/dK7w • Tribe Capital, a VC firm led by ex-Social Capital partners Arjun Sethi and Ted Maidenberg, plan to raise $200 million for a tech-focused SPAC, per Bloomberg. http://axios.link/wZwf • Vickers Vantage I, a SPAC formed by Vickers Venture Partners, filed for a $100 million IPO. http://axios.link/sksa | | | | | | | | Liquidity Events | | • American Securities is seeking a buyer for Germany's Emerald Kalama Chemical, which could fetch around $1 billion, per Bloomberg. Interested suitors include H.I.G. Capital, Rhone Capital, TPG and Lanxess. http://axios.link/xXuY ⛽ BP (NYSE: BP) acquired a majority stake in Finite Carbon, a Wayne, Pa.-based carbon offset developer that had raised $12 million in VC funding from BP Ventures and TL Ventures. http://axios.link/s8WZ 🚑 Cerner (Nasdaq: CERN) agreed to buy Kantar Health, a data and commercial research consultancy for life sciences, from Kantar Group, a portfolio company of Bain Capital and ACE & Co. www.kantar.com • MessageBird, a Dutch omnichannel cloud communications platform valued by VCs at $3 billion, acquired Pusher for $35 million. Pusher, a London-based developer of real-time APIs, raised over $11 million from firms like Balderton Captial, Heavybit and Fabric Ventures. http://axios.link/kP3y • Vroom (Nasdaq: VRM) agreed to buy Vast (aka CarStory), an Austin, Texas-based provider of analytics and digital services to the auto retail industry, for $120 million in cash (60%) and stock. Vast raised $58 million from firms like Capital One Ventures, LeapFrog Ventures and Clearstone Venture Partners. http://axios.link/E2my | | | | | | | | More M&A | | • BRP Group (Nasdaq: BRP) agreed to buy the assets of Tanner, Ballew & Maloof, an Atlanta-based provider of commercial property and casualty insurance. www.baldwinriskpartners.com ⛽ Cenovus Energy (TSX: CVE) and Husky Energy (TSX: HSX) shareholders approved Cenovus' $6.07 billion all-stock takeover of Husky. The deal was valued at C$3.8 billion when first announced, but share prices have climbed with the oil rebound, and creates Canada's third-largest oil and gas producer. http://axios.link/Exo4 🚑 Eli Lilly (NYSE: LLY) agreed to buy Prevail Therapeutics (Nasdaq: PRVL), a New York-based gene therapy developer focused on Parkinson's disease, for $1 billion of $22.50 per share (80% premium to Monday's closing price). http://axios.link/Gu6L • R.R Donnelley & Sons (NYSE: RRD) is considering a sale of its Asia-Pacific unit, which could fetch around $800 million, per Bloomberg. http://axios.link/gNDg | | | | | | | | Fundraising | | • AlpInvest Partners, a unit of The Carlyle Group, raised $9 billion for its latest private equity secondaries fund. It also secured $1.2 billion for a co-investment fund. http://axios.link/HfO7 | | | | | | | | It's Personnel | | • Greg Smithies joined property-focused VC firm Fifth Wall, a former partner with BMW iVentures, as a partner. http://axios.link/14Sf • VMG Partners promoted Evan Mintz to vice president. www.vmgpartners.com | | | | | | | | Final Numbers |  Data: Company filings; Chart: Andrew Witherspoon/Axios | | | | | | | | A message from Gulfstream Aerospace | | Integrating technology and artistry | | |  | | | The Gulfstream G700™ introduces the most spacious, innovative and flexible cabin interior in the industry, featuring: - The choice of true circadian lighting.
- A state-of-the-art immersive sound system.
- A grand suite with adjustable bed and optional shower.
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