Jun 18, 2020

Axios Pro Rata

By Dan Primack
Dan Primack

🎙️ Axios Re:Cap talks to Rep. Jennifer Wexton about her push to get full PPP loan transparency. Listen via Apple or via Axios.

🖥️ Today: Axios hosts a virtual live event on the financial future for millennials, including conversations with NerdWallet CEO Tim Chen, SoFi CEO Anthony Noto, Worth Winning founder Lauryn Williams, and WeWoreWhat founder Danielle Bernstein. 12:30pm ET. Register.

🖥️ Tomorrow: Axios hosts a virtual event to commemorate Juneteenth and unpack next steps. Conversations with Valerie Jarrett, BET co-founder Bob Johnson, Houston Mayor Sylvester Turner, and Campaign Zero co-founder DeRay Mckesson. Register.

Top of the Morning

Illustration: Aïda Amer/Axios

DoorDash has raised $400 million in new equity funding at a $16 billion post-money valuation, Axios has learned. Durable Capital Partners led, and was joined by Fidelity and return backer T. Rowe Price.

  • Why it matters: For all the talk of deals that didn't happen because of COVID-19, this one is a product of the pandemic.

Flashback: On February 27, DoorDash secured $340 million in debt funding and filed confidential IPO paperwork. There were no plans to raise more 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 around 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.

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.

The BFD
Source: Giphy

Hertz (NYSE: HTZ) suspended its planned $500 million public offering of common stock, following SEC pushback and public criticism by SEC chairman Jay Clayton.

  • Why it's the BFD: Because this is the bellwether for the recent day-trading craze. Particularly among the Robinhood crowd that keeps bidding up Hertz shares even though the car rental company filed for bankruptcy last month and warned prospective investors that the risk is akin to sticking your hand in an active blender.
  • Bottom line: "Hertz is the 48th most popular stock among Robinhood investors, ranking right between UCO and GUSH, which are both vehicles for making leveraged bets on the oil industry. Because the company is in bankruptcy, its stock will almost certainly end up worthless — but shareholders will see exciting volatility on the way to zero." — Felix Salmon, Axios
Venture Capital Deals

🚑 Orca Bio, a Menlo Park-based developer of allogeneic cell therapies, raised $192 million in Series D funding. Lightspeed Venture Partners and an undisclosed investor co-led, and were joined by 8VC, DCVC Bio, ND Capital, Mubadala, Kaiser Foundation Hospitals, Kaiser Permanente, and IMRF. http://axios.link/28va

Geek+, a Beijing-based developer of logistics robots, raised $50 million in new Series C funding (round total now around $200m). Backers include V Fund, GGV Capital, D1 Capital Partners, Warburg Pincus, Redview Capital, and Vertex Ventures. http://axios.link/8Zsa

Zero Mass Water, a Scottsdale, Ariz.-based developer of hydropanels for drinking water, raised $50 million in Series C1 funding. BlackRock led, and was joined by Duke Energy, Breakthrough Energy Ventures, and Material Impact Fund. http://axios.link/TTSH

Brightside, a financial care platform for employers, raised $35 million in Series A funding. Andreessen Horowitz led, and was joined by Comcast Ventures and Trinity Ventures. http://axios.link/k6QV

Zerto, a Boston-based IT resilience startup, raised $33 million in new equity funding from insiders Access Industries, 83North, Battery Ventures, Harmony Partners, IVP, RTP Ventures, and USVP. www.zerto.com

Onna, a “knowledge integration platform” with offices in New York and Barcelona, raised $27 million in Series B funding. Atomico led, and was joined by Glynn Capital and return backers Dawn Capital, Nauta Capital, and Slack Fund. http://axios.link/6jUH

🚑 Proprio, a Seattle-based surgical navigation startup, raised $23 million in Series A funding. DCVC led, and was joined by Bold Capital Partners and Alan Frazier. http://axios.link/mOJp

MayStreet, a New York-based market data infrastructure platform, raised $21 million in Series A funding led by Credit Suisse Asset Management's NEXT Investors. www.maystreet.com

Remessa Online, a Brazilian money transfer startup, raised $20 million from Kaszek Ventures, Bewater Ventures and Kevin Efrusy. http://axios.link/PPy3

Splyt, a London-based maker of ride-hail simplification software, raised $19.5 million led by SoftBank. http://axios.link/Elhq

BizCapital, a Brazilian online lender, raised $12 million from backers like MercadoLibre, Quona Capital, Monashees, Chromo Invest, and 42K Investments. http://axios.link/X6QG

GoFor Industries, an Ottawa-based provider of contactless last-mile delivery for the construction market, raised C$9.8 million. Builders VC led, and was joined by CEMEX Ventures, Mucker Capital, Plug & Play Ventures, Panache Ventures, I2BF Global Ventures, and the Capital Angel Network. http://axios.link/cFvI

DroneBase, a Los Angeles-based aerial data analytics startup, raised $7.5 million in Series C funding. Valor Equity Partners and Razi Ventures were joined by return backers USV, Upfront Ventures, Hearst Ventures, Pritzker Group VC, and DJI. http://axios.link/INld

DMarket, a blockchain-based game marketplace, raised $6.5 million led by Almaz Capital. http://axios.link/Rg77

Dumpling, a startup that helps users launch and run independent grocery shopping and delivery businesses, raised $6.5 million in Series A funding. Forerunner Ventures led, and was joined by seed backers Floodgate and Fuel Capital. http://axios.link/opdM

Bellman, a French provider of building management solutions, raised €4 million in new seed funding. Lakestar led, and was joined by Connect Ventures and Financière Saint-James. http://axios.link/QNvs

Unum ID, a San Francisco-based digital identity startup, raised $2 million in seed funding led by Draper Associates. http://axios.link/JrGn

Proteus Digital Health, a Redwood City, Calif.-based digital pill developer that had raised over $400 million in VC funding, filed for Chapter 11 bankruptcy protection. Backers included EW Healthcare Partners, Frazier Healthcare Partners, Novaertis, and Adams Street Partners. http://axios.link/bLk1

UiPath, a New York-based developer of robotic process automation software, is in talks to raise new funding at a valuation north of $10 billion, per Bloomberg. http://axios.link/aCvk

Private Equity Deals

Athene Holding, an insurance affiliate of Apollo Global Management, agreed to invest $500 million in Jackson, the U.S. business of Prudential PLC (LSE: PRU). http://axios.link/mNjb

EQT agreed to sell its €3.9 billion credit business to British private equity firm Bridgepoint. http://axios.link/w5PQ

KKR agreed to buy Dutch vacation parks operator Roompot from PAI Partners. http://axios.link/y8jF

Public Offerings

Ebang International, a Chinese maker of cryptocurrency mining equipment, set IPO terms to 19.3 million shares at $4.50-$6.50. It would have an initial market cap of $721 million, were it to price in the middle, and plans to list on the Nasdaq. http://axios.link/mHwt

Liquidity Events

Mubadala is considering the sale of a shopping mall and other real estate assets to Abu Dhabi property developer Aldar Properties, per Bloomberg. http://axios.link/Dj5U

🎧 SiriusXM (Nasdaq: SIRI) agreed to buy podcast management platform Simplecast, which had raised around $7 million from firms like Zelkova Ventures. http://axios.link/LqzW

More M&A

Australian antitrust regulators are raising concerns about Google’s planned $2.1 billion purchase of fitness tracking company Fitbit (NYSE: FIT). http://axios.link/TKU9

Telia (Oslo: TELIA) agreed to sell its 26.2% stake in Turkish mobile operator Turkcell Iletisim to the Turkey Wealth Fund for $530 million. http://axios.link/iaF5

Tesco (LSE: TSCO) agreed to sell its Polish supermarkets business to Danish retailer Salling Group for around £165 million. http://axios.link/EvOu

Fundraising

Fly Ventures, a German VC firm focused on European enterprise and deep tech startups, raised €53 million for its second fund. http://axios.link/6Q0F

Hoxton Ventures of London raised nearly $100 million for its second fund. http://axios.link/bPCv

IVP, a later-stage VC firm, is raising its seventeenth fund, per an SEC filing. www.ivp.com

Louis Dreyfus Co., an agricultural commodities trader, launched a venture capital unit that will be led by existing business development executive Max Clegg. http://axios.link/bh7N

Menlo Ventures is raising between $450 million and $500 million for its fifteenth flagship fund, per the WSJ. http://axios.link/EjM2

It's Personnel

FFL Partners, a mid-market private equity firm, promoted Chris Harris and Cas Schneller to managing partners. www.fflpartners.com

Final Numbers: Preliminary VC returns
Source: Cambridge Associates. Note: The return is a 1-quarter IRR calculation based on data compiled from venture capital funds formed between 1981 and 2019. Preliminary asset class returns are displayed when at least 50% of the number of active funds and prior period's NAVs have been updated.
Dan Primack

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