"We got a bargain."

• That's not usually what you hear from a venture capitalist who just committed to a $10 billion round at a $62 billion valuation.
• But it's what one told me yesterday as news broke of the big Databricks round. And I heard similar sentiments throughout the day, leading up to my Axios AI+ Summit interview with company co-founder and CEO Ali Ghodsi.

The bull case is logical.

• Databricks is growing more than 60% year-over-year, topping $3 billion in revenue run rate with expectations of being cash-flow positive this quarter.
• Rival Snowflake has more top-line revenue, but the gap keeps shrinking and its growth is significantly slower (some believe Snowflake missed the first AI boat and is trying to catch up in a canoe).
• In short, this was a deal that many investors felt they could not miss out on, which is why there are now around two dozen new institutional investors on Databricks' cap table — some which never even met with Ghodsi — with some participants writing the largest single checks in their firms' histories.

But there are three issues with the "bargain."

1) Everyone could be wrong about the company's future. This is the same risk as in any VC round, although this quantum of capital inflates the consequences. Moreover, Ghodsi himself said on stage that we're in a "peak AI bubble," which suggests that this round could look expensive in hindsight, even if Databricks maintains its growth trajectory.

2) If the VCs are correct, it means that employees are selling low. Almost all of the $10 billion is going toward a nondilutive tender. Of course Databricks employees will take some money off the table — it's the only responsible move for those without existing wealth — but they could have sold much higher had Databricks gone public at a market price (possibly $100 billion or more).

3) Certain LPs will look askance at what was essentially a party round, given that different partygoers charge higher fees than others. A bit reminiscent of LBO club deals before the Great Financial Crisis.

The bottom line: Ghodsi said that Databricks will eventually go public, possibly as early as next year, but gave no definitive calendar. Whenever that time does come, we'll all find out if this week's VC math added up.

Watch my full interview with Ali Ghodsi, including discussion of the financing, how his refugee journey impacted company culture, and what he wants David Sacks to do as "AI czar.".

Grammarly, a writing assistant valued by VCs at $13 billion, agreed to buy productivity startup Coda, with Coda's CEO Shishir Mehrotra to take that position at Grammarly.

Why it's the BFD: Grammarly is kinda/sorta one of the earliest AI agents, founded in 2009, but faces extinction-level competition from the GenAI class. Merging with Coda helps it expand from a one-trick pony into a productivity stable.

By the numbers: Axios has learned that this was an all-stock deal at each company's most recent post-money valuation. That means that Grammarly shareholders will hold around 90% of the combined company, as Coda was last valued at $1.3 billion.

• Grammarly had raised around $400 million from backers like General Catalyst, IVP, and SignalFire.
• Coda had raised around $320 million from backers like General Catalyst, Greylock, and Kleiner Perkins.

The bottom line: This deal moved at the speed of the AI revolution. Mehrotra tells me that the first conversation was just three weeks ago, with the agreement signed on Monday.

• As for the CEO swap, it seems to be about both sides' desire for a founder to lead the combined company. Outgoing Grammarly CEO Rahul Roy-Chowdhury had joined in 2021 from Google.

• SandboxAQ, a Palo Alto, Calif.-based developer of large quantitative models, raised more than $300m on a $5.3b pre-money valuation from Fred Alger Management, T. Rowe Price Mumtalakat, Parkway VC, Breyer Capital, Rizvi Traverse, S32, US Innovative Technology Fund, Ava Investments, Eric Schmidt, Marc Benioff, David Siegel, Yann LeCun, and IQT. axios.link/41GYeKG

• Parafin, an SF-based embedded fintech platform, raised $100m in Series C funding at a $750m valuation. Notable Capital led, and was joined by Redpoint Ventures, Thrive Capital, Ribbit Capital and GIC. parafin.com

🚑 SiteOne Therapeutics, an SF-based developer of non-opioid pain treatments, raised $100m in Series C funding. Novo Holdings led, and was joined by OrbiMed, Wellington Management, Mission BioCapital, and Bsquared Capital. axios.link/49HI05W

🚑 SpinSci, a Dallas-based provider of patient engagement tools, raised $53m led by Aldrich Capital Partners. axios.link/3ZD37BX

• BVNK, a stablecoin payments infrastructure startup, raised $50m in Series B funding. Haun Ventures led, and was joined by Coinbase Ventures, Scribble Ventures, DRW VC, Avenir, and Tiger Global. axios.link/3DuDsnm

• Nuitée, a hotel-booking startup, raised $48m in Series A funding led by Accel, per Fortune. nuitee.com

• Bureau, an SF-based fraud risk and intelligence startup, raised $30m in Series B funding. Sorenson Capital led, and was joined by PayPal Ventures, Commerce Ventures, GMO Venture Partners, Village Global, Quona Capital, and XYZ Ventures. bureau.id

• Cimulate, a digital commerce search startup, raised $28.5m in Series A funding, per Axios Pro. Spark Capital led, and was joined by Sierra Ventures, Pillar VC, LFX Venture Partners, and Commerce Ventures.

• Slip Robotics, a Norcross, Ga., maker of truck-loading robots, raised $28m in Series B funding. DCVC led, and was joined by insiders Eve Atlas, Tech Square Ventures, Hyde Park Venture Partners, Overline, and Pathbreaker Ventures. axios.link/4gCvsip

🚑 Indapta Therapeutics, a developer of cell therapies for treating cancer and autoimmune diseases, raised $22.5m from RA Capital Management, Leaps by Bayer, Vertex Ventures HC, Pontifax, and the Myeloma Investment Fund. axios.link/4fq2yRQ

🚑 Scripta Insights, a pharmacy management system for self-insured employers and health plans, raised $17m in Series B funding, per Axios Pro. Aquiline led, and was joined by Contour Venture Partners, Eastside Partners, and ReMY Investors.

🚑 NeuroKaire, a Kearny, N.J.-based developer of precision medicine in psychiatry and neurology, raised $10m. GreyBird Ventures led, and was joined by Meron Capital and Jumpspeed Ventures. axios.link/4gIrjtz

🚑 Sami Saúde, a Brazilian health plan startup, raised nearly $10m in equity and debt funding co-led by Mundi Ventures and StoneX Bank. axios.link/49IIBEw

🚑 General Proximity, an SF-based drug discovery startup initially focused on dementia, raised $8m in seed funding, per Axios Pro. Felicis led, and was joined by YC, age1, Modi Ventures, and Wilson Sonsini.

• Orqa, a Croatian developer of autonomous drone solutions, raised €5.8m in seed funding led by Lightspeed Venture Partners. orqafpv.com

• Starboard, a Toronto-based developer of virtual infrastructure for global trade, raised US$5.5m. Eclipse led, and was joined by Garuda Ventures and Everywhere Ventures. starboard.biz

• Loadar, a U.K. freight procurement and management startup, raised $4m in seed funding. Frontline Ventures led, and was joined by Techstart Ventures. axios.link/49ZRdXH

🚑 Corsmed, a Swedish MRI software startup, raised $3.5m in new seed funding co-led by Luminar Ventures and Big Pi Ventures. axios.link/3Df7ziz

• Leap Financial, a cross-border payments startup, raised $3.5m in seed funding led by Fuel VC. axios.link/3Dhgznk

• MoldCo, a Boston-based mold exposure treatment startup, raised $3m in pre-seed funding from Starship Ventures, SALT, Conscience VC, Boost VC, Night Ventures, Bleu Capital, Behind Genius Ventures, and Moth Fund. axios.link/3Bzfw1C

🧀 Avance Investment Management and AUA PE Partners acquired a majority stake in Tropical Cheese, a dairy products maker based in New Jersey that Reuters had reported could fetch more than $500m. axios.link/3ZJi6tR

• Align Capital Partners acquired ISPN, a managed IT services provider with offices in Kansas and North Carolina. ispn.net

• Ardonagh Group, a British insurance broker, secured a minority equity investment from Stone Point Capital at a $14b valuation, per Bloomberg. axios.link/4fpUd0z

• ATG Entertainment, a British live entertainment firm, acquired Celebrity Attractions, a Tulsa-based touring Broadway presenter. ATG backers include ICG Enterprise Trust, Leumi Partners, Providence Equity Partners, and Salem Capital Management. axios.link/3Dn4360

• Bain Capital is going hostile in its efforts to buy Fuji Soft (Tokyo: 9749), as it battles with KKR for the Japanese tech group. axios.link/3ZIVKIZ

• Bain Capital is in talks to buy Sizzling Platter, a Utah-based franchisor of quick-serve restaurants like Little Caesars and Jersey Mike's, for more than $1b (including assumed debt) from CapitalSpring, per Reuters. axios.link/4gktSSK

• Bain Capital was rebuffed on its A$2.7b takeover offer for Australian financial services firm Insignia Financial (ASX: IFL). axios.link/402IAZ2

• Cassava, an Africa-focused digital infrastructure platform, raised $90m in equity funding from the U.S. DFC, the Finnish Fund for Industrial Cooperation, and Google. axios.link/49KjyAP

⚡ CleanCapital raised $145m in equity funding from Manulife IM, and also acquired a portfolio of commercial solar projects from Kendall Sustainable Infrastructure. cleancapital.com

• David's Bridal, a retailer owned by CION Investments, acquired wedding media brand Love Stories TV, per Axios Pro. axios.link/4gz9uxv

• Harbour Group acquired pet grooming supplies provider Senproco. groomerschoice.com

• Relam, a railroad maintenance equipment company owned by Paceline Equity Partners, acquired Falcon Equipment, a Canadian specialty truck company. relaminc.com

• VSS Capital Partners and Century Equity Partners acquired Lumenci, an Austin, Texas-based IP consultancy. lumenci.com

• Aye Finance, an Indian SME lender, will seek to raise $171m in its domestic IPO. The company has raised $160m from backers like CapitalG, Elevation Capital, and British International Investment. axios.link/3DlRjfO

• Vishal Mega Mart, an Indian retailer backed by Kedaara Capital and Partners Group, raised $944m in its Mumbai IPO. axios.link/4giopfi

• Paystone, a Canadian payment processor that's raised over $120m in VC funding, agreed to acquire Canadian payments firm Ackroo (TSX: AKR) for C$21m in cash. axios.link/3P1MBq2

• Thyssenkrupp said that it's again seeking bids for its naval shipbuilding unit, which could fetch around $1.5b, after Carlyle walked away from deal talks. axios.link/4fDVnFT

⚡ Volkswagen invested C$69m for a 9.9% stake in Canadian lithium developer Patriot Battery Metals (TSC: PMET). axios.link/4iL6OOL

• MidOcean Partners raised $304m for its first CLO equity fund. midoceanpartners.com

• New State Capital Partners is raising up to $600m for its fourth flagship fund, per an SEC filing. newstatecp.com

• Slow Ventures is raising up to $165m for its sixth flagship fund and up to $110m for its third opportunity fund, per SEC filings. slow.co

• Tectonic Ventures is raising up to $75m for its third fund, per an SEC filing. tectonicventures.com

Japanese automakers Honda and Nissan are in early merger talks, as first reported by Nikkei.

• Both companies have seen their stock prices sink in 2024, with Honda currently valued at around $44 billion and Nissan at around $8 billion.
• Axios auto reporter Joann Muller writes: "Smaller automakers have to team up to afford the huge investment in EVs and autonomy, particularly if they want to keep up with lower-cost Chinese cars."