Situational awareness: Food delivery company DoorDash announced this morning that it has filed confidentially for an IPO.
Photo by: Edwin Remsberg/VW PICS/UIG via Getty Images
Maryland may become the first state to unilaterally change the tax treatment of carried interest, the investment profits earned by managers of venture capital, hedge, and private equity funds.
The proposal, which you can read here, closely mirrors a similar bill that passed last year in New Jersey. For example, both undercut their "fairness" argument by exempting real estate investments.
One big difference is that New Jersey's tax increase only goes into effect if similar statutes are passed in Connecticut, Massachusetts, and New York — in an effort to prevent New Jersey-based firms from relocating. So far, that hasn't happened.
Carried interest is effectively a fee for services — profits earned from investing someone else's money — and should be taxed as ordinary income. In fact, that's one of the few areas of agreement on tax policy between Presidents Trump and Obama, even though neither of them got it changed at the federal level (thanks, in part, to lobbying by many of you, dear readers).
The hope, therefore, should be that whatever the Democrat-controlled legislature sends to Maryland's Republican governor will be tightened up.
🎧 Pro Rata Podcast digs into space tourism, which could change space industry economics, regulation, and size. Listen here.
Roblox, a San Mateo, Calif.-based gaming platform, raised $150 million in Series G funding led by Andreessen Horowitz at a $4 billion valuation. Th company also will launch up to a $350 million tender for existing holders.
• Pony.ai, a self-driving car startup with offices in California and China, raised $462 million in new funding led by Toyota at around a $3 billion valuation. http://axios.link/I6h7
• Rupeek, an Indian online gold loan brand, raised $60 million over two rounds of funding from GGV Capital, Accel, Bertelsmann India Investments, Binny Bansal, KB Investments, Tanglin Venture Partners, and Sequoia India. http://axios.link/Tgw5
• Jumo, a South African platform for building fintech products, raised $55 million in second-round funding from Odey Asset Management, LeapFrog Investments, and Goldman Sachs. http://axios.link/okL7
• Unqork, a New York-based no-code enterprise app platform, raised $51 million in new Series B funding from Aquiline Technology Growth, World Innovation Lab and return backer Goldman Sachs. http://axios.link/3Ocs
🚑 K Health, a New York-based digital primary care service, raised $48 million in Series C funding. 14W and Mangrove Capital co-led, and were joined by Anthem, Lerer Hippeau, and Primary Ventures. www.health.ai
• Tractable, a London-based insuretech startup, raised $25 million in Series C funding. Georgian Partners led, and was joined by return backers Insight Partners and Ignition Partners. http://axios.link/Qs5E
• Dahmakan, a Malaysian food delivery startup, raised $18 million in Series B funding from Rakuten, White Star Capital, JAFCO Asia, GEC-KIP Fund, Woowa Brothers, and return backers Partech Partners and YC. http://axios.link/XL6o
🍦 Van Leeuwen, a Brooklyn-based artisanal ice cream brand, raised $18.7 million led by NextWorld. www.vanleeuwenicecream.com
🚑 Qure.ai, a Mumbai-based developer of radiology scanning software, raised $16 million led by Sequoia India and MassMutual Ventures Southeast Asia. www.qure.ai
• LinkSquares, a Boston-based SaaS contract management and analysis tool, raised $14.5 million in Series A funding. Jump Capital led, and was joined by First Ascent Ventures and return backers MassMutual Ventures and Hyperplane VC. www.linksquares.com
• Dray Alliance, a Los Angeles-based digital drayage marketplace, raised $10.2 million in Series A funding. Matrix Partners led, and was joined by Moving Capital, Craft Ventures, Act One Ventures, and Wonder Ventures. http://axios.link/vdQG
• Made Renovation, a San Francisco-based bathroom renovation platform, raised $9 million in seed funding. Base10 Partners led, and was joined by Felicis Ventures. www.maderenovation.com
• Cioplenu, a German startup focused on digitizing production floor processes, raised €4.2 million in seed funding led by Cherry Ventures. http://axios.link/PUFA
• Adaptas Solutions, a Palmer, Mass.-based portfolio company of Ampersand Capital Partners, agreed to buy the applied kilovolts and analytical instrumentation unit of L3Harris Technologies (NYSE: LHX). www.adaptas.com
• BlackRock Long Term Private Capital acquired Creed, a London-based luxury fragrance company. http://axios.link/w4KF
• Brookstone Partners invested in Hudson Valley, a New Hampton, N.Y.-based mitigation and restoration company. www.hudsonvalleydki.com
• BV Investment Partners invested in TopBloc, a Chicago-based Workday services partner. www.topbloc.com
• InMoment, a South Jordan, Utah-based portfolio company of Madison Dearborn Partners, acquired MaritzCZ, a Lehi, Utah-based customer experience management company. www.inmoment.com
• Pacific Equity Partners and Visy reportedly are the remaining bidders for the Australia and New Zealand business of glassmaker Owens-Illinois (NYSE: OI), which likely will fetch just under A$1 billion. The Blackstone Group recently left the process. http://axios.link/iGhh
• Sverica Capital Management acquired Cytracom, an Allen, Texas-based provider of cloud-based voice and messaging solutions for MSPs. www.cytracom.com
• Freshworks, a San Mateo, Calif.-based customer support software company that recently raised VC funding at a $3.5 billion valuation, agreed to buy AnsweriQ, a Bellevue, Wash.-based customer support platform that raised over $5 million from Madrona Venture, Kernel Labs and GE Ventures. www.freshworks.com
• Ridgemont Equity Partners is considering a sale process for ZenFi Networks, a New York-based communications infrastructure company that could fetch around $750 million, per Bloomberg. http://axios.link/6lWa
• The Brink’s Co. (NYSE: BCO) agreed to buy the cash operations business of G4S (LSE: GFS) for around $860 million. http://axios.link/JZ5B
🚑 Takeda (Tokyo: 4502) exercised its option to buy PvP Biologics, a San Diego-based developer of drugs for celiac disease, in a deal that could be worth up to $330 million (including earnouts). www.pvpbio.com
• United Airlines (Nasdaq: UAL) and Lufthansa (DE: LHAG) each are considering takeover offers for TAP-Air Portugal, per a German news report. http://axios.link/N5VV
• Walmart (NYSE: WMT) said it’s in talks with a “small number” of potential buyers for its stake in British supermarket chain Asda, which it unsuccessfully tried merging last year with Sainsbury’s (LSE: SBRY). http://axios.link/NEQn
⛽ Williams Cos (NYSE: WMB) is seeking an investment partner to form a JV for its western U.S. pipelines, in a deal that could be worth upwards of $5 billion, per Reuters. http://axios.link/56Ur
• Corsair Capital raised $1 billion for its fifth private equity fund focused on the financial services market. www.corsair-capital.com
• QED Investors, an Alexandria, Va.-based VC firm, raised $350 million for its sixth fund. www.qedinvestors.com
• Ridgewood Infrastructure raised $600 million for its debut private equity fund focused on water and other strategic infrastructure. www.ridgewoodinfrastructure.com
• Fiona Blakemore joined London-based VC firm Balderton Capital as CFO and head of portfolio financial services. She previously led IR for Man Group. http://axios.link/eP6G
• Chris Scoggins, a former Oracle exec, joined VC firm SignalFire as a venture partner. www.signalfire.com
• Summit Partners promoted Scott Ferguson and Sergio Mur to principals, and Chris Bon, Olivia Ley, and Jono Pagden to vice presidents. www.summitpartners.com
🙏 Thanks for reading Axios Pro Rata! Please ask your friends, colleagues, and Robloxers to sign up.