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Illustration: Aïda Amer/Axios

DoorDash has raised $400 million in new equity funding at a $16 billion post-money valuation, Axios has learned.

Why it matters: For all the talk of deals that didn't happen because of coronavirus, this one is a product of the pandemic.

  • Durable Capital Partners led, and was joined by Fidelity and return backer T. Rowe Price.

Flashback: On Feb. 27, DoorDash secured $340 million in debt funding and filed confidential IPO paperwork. There were no plans to raise additional private equity.

  • Overall, DoorDash had raised around $2 billion from VCs (not including the debt). Its final infusion seemed to be last November, when it snared $700 million at a $13 billion post-money valuation.

Fast forward: The pandemic changed the meal delivery giant's plans. For starters, delivery volume soared due to the lockdowns. DoorDash also had new expenses, such as personal protective equipment for drivers and what it says was around $120 million worth of comped services to help beleaguered restaurant partners.

  • There also were concerns about market volatility, although most IPO issuers have sailed through smoothly. Plus the prospect of strengthened competition via an Uber/Grubhub merger that ultimately became a Just Eat/Grubhub merger.
  • The Wall Street Journal previewed this deal last week, noting that the company expects operations to break even for the quarter ending June 30 (excluding one-time expenses).
  • DoorDash declined to make an executive available for comment, likely because of the still-active IPO registration.

The bottom line: Gig economy companies are under all sorts of PR pressures right now, including from politicians and partners, but none of it seems to be fazing investors.

Go deeper

Dan Primack, author of Pro Rata
Sep 23, 2020 - Economy & Business

What the 2020 SPAC boom means for 2021

Illustration: Annelise Capossela/Axios

The blank-check boom of 2020 is sapping the 2021 IPO market of prospective issuers.

Driving the news: SPAC godfather Alec Gores this morning announced the market's largest-ever deal, with Gores Holdings IV (Nasdaq: GHIV) agreeing to buy wholesale mortgage lender UWM at an enterprise value of approximately $16.1 billon.

Biden to nominate Janet Yellen as Treasury secretary

Photo: Photo by Alex Wong/Getty Images

President-elect Joe Biden is preparing to nominate former Fed Chair Janet Yellen as his Treasury Secretary, four people familiar with the matter tell Axios.

Why it matters: Yellen, 74, will bring instant economic celebrity to Biden’s team and, if confirmed, she will not only be the first female Treasury Secretary but also the first person to have held all three economic power positions in the federal government: the chair of Council of Economic Advisers, the chair of Federal Reserve and the Treasury Secretary.

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Bob Nelsen on AstraZeneca and his plan to revolutionize biotech

AstraZeneca and the University of Oxford on Monday reported promising efficacy data for their COVID-19 vaccine, which has less stringent storage requirements than the Pfizer and Moderna vaccines and may be distributed earlier in developing countries.

Axios Re:Cap digs into the state of vaccine and therapeutics manufacturing with Bob Nelsen, a successful biotech investor who on Monday launched Resilience, a giant new pharma production platform that he believes will prepare America for its next major health challenges.