Early delivery this morning, as I have tickets to a kindergarten farewell concert for their beloved principal (the reworked arrangement of Zip-a-Dee-Doo-Dah is said to be particularly poignant). Here we go...
Today's plan was to sidestep the Uber drama, and instead just link you to our awesome recap of the investigation's findings and some related actions (including CEO Travis Kalanick's decision to take a leave of absence). But then TPG Capital founding partner David Bonderman said something sexist during an all-hands meeting called to address the company's problems with, among other things, sexism. And the audio was leaked. So the plan was scrapped, and here we are:
• What we would have talked about: The U.S. government is considering greater scrutiny of Chinese investments into American tech companies involved in artificial intelligence and machine learning, according to an unreleased Pentagon report viewed by Reuters.
The main worry seems to be that China could gain access to AI technology that could have military benefit, as opposed to the U.S. getting first dibs. One outcome could be much more stringent CFIUS involvement on national security grounds, perhaps even on venture capital deals. Axios breaks it down here.
Neiman Marcus, a luxury retailer owned by Ares Management and Canada Pension Plan Investment Board, said that it is no longer exploring either a full or partial sale of the company. A strategic review had been launched three months ago, in large part to help Neiman Marcus deal with $4.8 billion debt load.
• Element AI, a Montreal-based platform for companies to build AI solutions, has raised US$102 million in Series A funding. Data Collective led the round, and was joined by Real Ventures, BDC, Fidelity Investments Canada, Hanwha Investment, Intel Capital, Microsoft Ventures, National Bank of Canada, NVIDIA, Tencent and unidentified sovereign wealth funds. http://tcrn.ch/2rv7nBb
• AEye, a Pleasanton, Calif.-based robotic vision startup, has raised $16 million in Series A funding from Kleiner Perkins Caufield & Byers, Airbus Ventures, Intel Capital, Tyche Partners. www.aeye.ai
• Snapsheet, a Chicago-based provider of virtual claims software for the personal and commercial insurance industry, has raised $12 million in Series D funding led by Tola Capital. http://bit.ly/2ro7148
• Figure 1, a sort of Instagram for physicians, has raised $10 million in Series B funding. Kensington Capital Partners led the round, and was joined by Samsung NEXT, John Hancock/Manulife, WTI, Hedgewood and return backers Union Square Ventures, Rho Canada Ventures and Version One Ventures. http://tcrn.ch/2sk3tzr
• WhiteSource, an Israel-based provider of software security and compliance management solutions, has raised $10 million in Series B funding. 83North led the round, and was joined by Microsoft Ventures and Greylock's David Strohm (as an individual). www.whitesourcesoftware.com
• Submittable, a cloud-based submission management platform based in Montana, has raised $5 million in Series A funding from True Ventures. http://tcrn.ch/2soPZD4
• Yofumo Technologies, developer of a post-harvest system for the cannabis industry, has raised $1.5 million in seed funding led by MedScience Ventures. http://mjm.ag/2skZ2UY
• Actility, a French machine-to-machine communications platform focused on the industrial and physical infrastructure sectors, said that Cisco Systems was part of a previously-announced $75 million Series D round. http://bit.ly/2sZgJHq
• Audax Private Equity has acquired Altasciences, a Canadian contract research organization, from Kilmer Capital Partners for an undisclosed amount. www.altasciences.com
• Fosun International of China has made a takeover bid for British gemstone miner Gemfields (LSE AIM: GEM), the owner of Faberge which has a current market cap of around £225 million. This rivals an existing offer from existing Gemfields shareholder Pallinghurs, a South African private equity firm. http://on.ft.com/2szC64C
🚑 Great Hill Partners has sponsored a recapitalization of Quantum Health, a Columbus, Ohio-based provider of consumer navigation and healthcare coordination solutions. No financial terms were disclosed. Selling shareholders include Altaris Capital Partners and GE Ventures. www.quantum-health.com
🍺 Heineken has until June 20 to offer concessions to British antitrust regulators, related to Heineken and Patron Capital's £403 million agreement to purchase Punch Taverns (LSE: PUB). https://bloom.bg/2rcZMbd
• J.F. Lehman & Co. has led a recapitalization of NorthStar Group, a provider of environmental and technical solutions to the commercial and government end markets. No financial terms were disclosed. www.jflpartners.com
• Peak 10 Holding, a Charlotte-based portfolio company of GI Partners, has agreed to acquire data center group ViaWest from Shaw Communications for US$1.675 billion. http://reut.rs/2slc4lp
• SK Hynix, a South Korean chipmaker, is partnering with Japanese government-backed INJC and private equity firm KKR in their bid for Toshiba's semiconductors business, according to Reuters. http://reut.rs/2snGtPK
• Canada Goose Holdings (NYSE/TSX: GOOS), a Toronto-based outdoor apparel maker, has filed for a secondary public offering of 12.5 million shares (current value of $280m). Around 10.5 million of the sales are being offered by majority shareholder Bain Capital.
• Amazon (Nasdaq: AMZN) is in talks to acquire Indian online grocery site BigBasket, according to Bloomberg. Sellers would include Abraaj Group. https://bloom.bg/2swSkM7
• Hexagon AB (Oslo: HEXA), a Swedish industrial technology company, has held early talks on a sale to a U.S. or European rival that could be worth around $20 billion, according to the WSJ. http://on.wsj.com/2s81vju
• Sears Canada (TSX: SCC) said that it is exploring strategic options, including a possible sale. http://reut.rs/2sxZzDx
• Verizon has completed its $4.5 billion purchase of Yahoo's core Internet assets, which basically means it bought all of Yahoo except for its equity holdings in Alibaba and Yahoo Japan. http://bit.ly/2sp9Fa8
• Zhonghong Zhuoye Group, a Chinese conglomerate, is in talks to acquire Brookdale Senior Living (NYSE: BKD), a Brentwood, Tenn.-based owner and operator of senior living communities that has a current market cap of around $2.7 billion, per Reuters. http://reut.rs/2rmYEpA
• Hamilton Lane has closed its latest credit-focused fund with around $435 million in capital commitments. www.hamiltonlane.com
• Dylan Morris has joined venture firm CRV as part of its new bioengineering practice. He previously was with Innovation Endeavors. www.crv.com