WeWork's IPO is still not dead, and this morning the company tried breathing new life into it.
Almost all of this is about reducing the power of co-founder and CEO Adam Neumann, who remains more controversial among many investors than is WeWork's business model. As such, the company said it will:
Bottom line: Last month we wrote that WeWork had put its IPO at risk via a series of unforced errors, many of which could be corrected in amended filings. The company has now done just that. What we still don't know is if fund managers will be willing to forgive and invest, or if they just can't shake their first impression.
Illustration: Sarah Grillo/Axios
We've spent lots of time castigating Leon Black for his continued relationship with Jeffrey Epstein, but have neglected to mention how famed entrepreneur, venture capitalist, and MIT Media Lab supporter Reid Hoffman also played a role in Epstein's image rehab project.
• BFD'oh: SmileDirectClub stock yesterday closed down 27.5% from its $23 per share IPO price.
• One to watch: Federal investigators are asking questions of Mithril Capital, a growth equity firm co-founded by Peter Thiel, per Recode. No specifics yet on any potential misdeed, with Mithril saying that it's cooperating with the government in what it refers to as an "extortionate... plot by a self-serving ex-employee."
• No deal: The London Stock Exchange (LSE: L) this morning rejected a proposed $39 billion takeover by the Hong Kong Exchange (HK: 0388), saying that it instead plans to proceed with its own $27 billion acquisition of financial data firm Refnitiv.
🎧 Pro Rata Podcast digs into President Trump's proposal to ban flavored e-cigarettes. Listen here.
Voyage, an autonomous ride-hail startup focused on retirement communities, raised $31 million in Series B funding. Franklin Templeton led, and was joined by Khosla Ventures, Chevron Technology Ventures, and the VC arm of Jaguar Land Rover.
• Element AI, a Montreal AI-as-a-service platform, raised C$200 million in Series B funding from CDPQ, Gouvernement du Québec and return backers Data Collective, BDC, Hanwha Asset Management, and Real Ventures. http://axios.link/5S1j
• OKCredit, an Indian bookkeeping automation startup, raised $67 million in Series B funding co-led by Lightspeed Venture Partners and Tiger Global. http://axios.link/Su3M
• Shape Security, a Mountain View, Calif.-based bot and online fraud mitigation startup, raised $51 million at a pre-money valuation of $1 billion. C5 Capital led, and was joined by return backers Kleiner Perkins, HPE, Norwest Ventures Partners, Focus Ventures, JetBlue Technology Ventures, Top Tier Capital Partners, and Epic Ventures. www.shapesecurity.com
• Lacework, a Mountain View, Calif.-based provider of public cloud security automation solutions, raised $42 million from Sutter Hill Ventures and Liberty Ventures. http://axios.link/sHk1
🚑 Insilico Medicine, an “AI-powered” drug discovery startup, raised $37 million in Series B funding. Qiming Venture Partners led, and were joined by Eight Roads, F-Prime Capital, Lilly Asia Ventures, Sinovation Ventures, Baidu Ventures, Pavilion Capital, BOLD Capital Partners, and Juvenscence. http://axios.link/LUU9
🚑 Incredible Health, a San Francisco-based job marketplace for nurses, raised $15 million in Series A funding. Andreessen Horowitz led, and was joined by NFX, Obvious Ventures, Precursor Ventures, and Gingerbread Capital. http://axios.link/pNOu
⚽ Veo, a Danish “AI camera” for taping and streaming amateur soccer games, raised $6 million in Series A funding from Courtside.vc, Ventech Capital, and VC Seed Capital. http://axios.link/xcmU
• Patch Homes, a non-debt home monetization platform, raised $5 million in Series A funding. Union Square Ventures led, and was joined by Tribe Capital and return backers Techstars Ventures and Breega Capital. http://axios.link/bqeo
• Middesk, a San Francisco-based provider of corporate customer background checks, raised $4 million in first-round funding. Accel led, and was joined by Sequoia Capital. http://axios.link/FPlO
• Prevu, a New York-based home-buying platform, raised $2 million in seed funding led by Corigin Ventures. www.prevu.com
• Canada Pension Plan Investment Board and Astra Infra (Indonesia) offered to buy PT Lintas Marga Sedaya, an Indonesian toll-road operator, for around $500 million from Malaysian sovereign wealth fund Khazanah, per Bloomberg. http://axios.link/b1Kv
• Luminate Capital Partners invested in MSI Data, a Wisconsin-based provider of field service management software. http://axios.link/7uxw
🚑 TPG Capital and Malaysian conglomerate Hong Leong Group agreed to buy a portfolio of 30 mid-sized hospitals in India and Malaysia from Columbia Pacific Management for around $1.2 billion. Earlier reports had suggested a $2 billion asking price. http://axios.link/OK3E
• Vector Capital invested in MoxiWorks, a Seattle-based real estate broker platform. http://axios.link/DPeP
• AllHome, a Philippines-based home furnishing retail chain, launched an IPO that could raise nearly $350 million. http://axios.link/2zwX
• Cloudflare, a San Francisco-based provider of content delivery network services, raised $525 million in its IPO. The company priced 35 million shares at $15 (above upwardly-revised range), for an initial market cap of $4.4 billion. It will trade on the NYSE (NET) with Goldman Sachs as lead underwriter, and reports a $37 million net loss on $129 million in revenue for the first half of 2019. Cloudflare had raised over $400 million in VC funding, from firms like Fidelity (30.9% pre-IPO stake), Pelion Ventures (9.2%), NEA (8.8%), Venrock, Union Square Ventures, and Franklin Templeton. www.cloudflare.com
• ESR Cayman, a logistics real estate group backed by Warburg Pincus, is relaunching its Hong Kong IPO, just months after pulling a proposed $1.2 billion float. http://axios.link/PGDg
🚑 Satsuma Pharmaceuticals, a South San Francisco-based developer of therapies for migraines, raised $83 million in its IPO. It sold 5.5 million shares at $15 (upsized from 5m shares, middle of range), for an initial market cap of $242 million, and will trade on the Nasdaq (STSA) with Credit Suisse as lead underwriter. The pre-revenue company raised $74 million in VC funding from firms like RA Capital (30.2% pre-IPO stake), TPG Biotech (16.1%), Wellington Management (10%), Osage University Partners (6%), CAM Capital (5.5%), and Cormorant Asset Management (5%). www.satsumarx.com
🚑 SpringWorks Therapeutics, a Stamford, Conn.-based developer of treatments for rare diseases and cancers, raised $162 million in its IPO. The company priced 9 million shares at $18 (upsized from 7.35m shares, top of price range), for an initial market cap of $754 million. It will trade on the Nasdaq (SWTX) and used JPMorgan as lead underwriter. The pre-revenue company raised $228 million in VC funding from firms like Bain Capital (21.69% pre-IPO stake), OrbiMed (21.69%), Pfizer (13.82%), and Perceptive Advisors (6.41%). www.springworkstx.com
• XP Investimentos, a Brazilian financial services group, hired JPMorgan, Goldman Sachs and Morgan Stanley to lead a U.S. IPO, per Reuters. http://axios.link/x1v8
• KKR is considering a sale process for ELL, an Austrian and German train leasing business that could fetch over $1 billion (including debt), per Bloomberg. http://axios.link/znEc
• Cargill agreed to sell CarVal Investors, a fund manager with around $10 billion in AUM, to a group of 17 CarVal employees. http://axios.link/PTja
⛽ Greece’s privatization agency said it may sell a stake in the country’s largest oil refiner, Hellenic Petroleum. http://axios.link/FVwq
⛽ Ingka Group, the parent company of IKEA, will pay €136 million for an 80% stake in seven Romanian wind farms from Vestas (CPSE: VWS).
⛽ SSE (LSE: SSE) confirmed plans to sell its UK retail energy business to OVO Group for £500 million. http://axios.link/uQ0n
• Elizabeth Chou joined education-focused private equity firm Leeds Equity Partners. She previously was a general partner with New Markets Venture Partners. www.leedsequity.com
• Dan Glickman joined private equity firm Harvest Partners as a partner. In April he stepped down as senior managing director of Antares, the mid-market lender acquired by CPPIB in 2015. www.harvpart.com
• Sarah Puil joined Next Coast Ventures as an entrepreneur-in-residence. She previously was a VP at marketing company Civic Entertainment. www.nextcoastventures.com
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