Greetings from the home office. Early next week I plan to be in D.C. to see my Axios colleagues (who have been doing a remarkable job, in my biased opinion). If you haven't checked out the full site, please do. Here we go...
MuleSoft, a San Francisco-based SaaS integration company, raised $221 million in its IPO. The company priced 13 million shares at $17 per share, which was above its already-increased price range. It gives MuleSoft an initial market cap of around $2.14 billion, and a fully-diluted valuation just north of $2.2 billion. Early indications are that shares will open at the IPO price.
Why it's the BFD: This is the first domino in what looks to be a coming trail of significant (and unprofitable) cloud enterprise software IPOs, and pricing well above MuleSoft's last private valuation ($1.5b) should be welcome news to the VC community. As we've written before, there are a lot more VC-backed companies like MuleSoft in the IPO queue than there are companies like Snap (which has slid to below $20 per share).
Bottom line: In addition to revenue from its subscription model, a 'substantial' portion of the company's revenue comes from professional services, that is, implementing the platform and training customers in how to use it. MuleSoft lists this as a risk factor, as it has a lower gross margin than revenue from its other segments. ― Caitlin Huston
Venture Capital Deals
• Weather Analytics, a Washington, D.C.-based provider of weather and predictive risk software for the insurance industry, has raised $17 million in Series B funding from Tokio Marine and W.R. Berkley Corp. www.weatheranalytics.com
• EndoMaster, a Singapore-based developer of robot-assisted surgical systems, has raised around $14.6 million in Series B funding. No investor information was disclosed. http://bit.ly/2mCh3YW
• RenalGuard Solutions, a Medford, Mass.-based developer of a device that measures urine output and automatically infuses hydration fluid based on that output, has raised $14.5 million in Series A funding. Exigent Capital led the round, and was joined by return backer Genesis Capital Advisors. www.renalguard.com
• LimeBike, a San Francisco-based bike-share network, has raised $12 million in new VC funding. Andreessen Horowitz led the round, and was joined by firms like IDG Ventures and DCM. http://tcrn.ch/2nFcA7Z
• Brooklinen, a New York-based ecommerce company focused on the bedding products space, has raised $10 million in Series A funding led by FirstMark Capital. http://tcrn.ch/2ndLdWj
• Insurify, a Cambridge, Mass.-based virtual agent for car insurance shopping, has raised $4.6 million in new VC funding led by MassMutual Ventures and Nationwide Ventures. http://bit.ly/2n3ypB3
• POPxo, an Indian fashion, beauty and lifestyle content site aimed at young female readers, has raised $2.7 million in Series B funding. GREE Ventures led the round, and was joined by return backers Kalaari Capital and IDG Ventures India. http://bit.ly/2mWybeD
• Collective Retreats, a Wolcott, Colo.-based luxury pop-up travel startup, has raised $2.5 million in seed funding from First Round Capital, BBG Ventures, Box Group and Slow Ventures. http://bit.ly/2n5F9i6
• Countable, a San Francisco-based digital platform for civic engagement, has raised $2 million in seed funding from Canaan Partners. http://on.wsj.com/2mJQu54
• Homage, a Singapore-based caregiving platform for seniors, has raised $1.2 million in seed funding from 500 Startups, Golden Gate Ventures and SeedPlus. http://tcrn.ch/2mBhqmT
• Cohero Health, a New York-based developer of connected mobile health tools for respiratory patients, has raised an undisclosed amount of new Series A funding from Samsung NEXT and Omron Healthcare. The company previously announced a $9 million first close for the round. http://bit.ly/2mPQFvz
Private Equity Deals
• Anne Arundel Dermatology Management, a Severna Park, Md.-based portfolio company of New MainStream Capital, has acquired JOL, a provider of dermatology services to the Bethesda, MD and Washington, D.C. areas. No financial terms were disclosed. www.aadermatology.com
• Atlas Merchant Capital and QInvest have agreed to acquire listed British mid-cap broker Panmure Gordon. QInvest already holds a 43% stake in the business, which would be valued at around £15.5 million. http://bit.ly/2n55NaA
• Bharti Airtel of India has canceled plans to sell a control stake in its mobile tower unit (Bharti Infratel), which had received interest from firms like Blackstone Group, CPPIB and KKR. http://s.nikkei.com/2mWAJJJ
• KKR and Caisse de dépôt et placement du Québec have agreed to acquire USI Insurance Services, a Valhalla, N.Y.-based insurer owned by Onex Corp., for approximately $4.3 billion (including assumed debt). http://on.wsj.com/2mCa2re
• Providence Equity Partners has agreed to acquire the Baltic broadcasting unit of Sweden's MTG for approximately $124 million. http://reut.rs/2nMm1mn
• H.I.G. Bayside Capital has agreed to sell Bodybell, a distributor of perfumery and household products in Spain, to German retailer Douglas for an undisclosed amount. www.bodybell.com
• PVH, the parent company to Calvin Klein, Tommy Hilfiger, has acquired True & Co., a San Francisco-based e-commerce company focused on bras. No financial terms were disclosed. True & Co. had raised around $13 million in VC funding from firms like Crosslink Capital, First Round Capital, SoftBank, SoftTech VC and the Vegas Tech Fund. http://tcrn.ch/2nKIqQN
• 3M (NYSE: MMM) has agreed to acquire safety equipment company Scott Safety from Johnson Controls (NYSE: JCI) for approximately $2 billion. http://bloom.bg/2ne3Byk
• Circassia (LSE: CIR) paid up to $230 million for U.S. rights to a pair of AstraZeneca (NYSE: AZN) drugs that treat chronic obstructive pulmonary disease. http://on.ft.com/2nurguD
• Rao's Specialty Foods, a tomato sauce brand spinoff of Rao's Italian restaurant in Harlem, has hired Morgan Stanley to find a buyer, according to Reuters. The company reportedly generated more than $20 million in 2016 EBITDA. http://reut.rs/2mCaB4s
• Sinopec of China is in advanced talks to acquire a majority stake in Chevron Corp.'s (NYSE: CVX) South African oil assets for around $1 billion, according to Reuters. http://reut.rs/2nyvDS8
• Apax Partners has raised €1 billion for its ninth France-focused mid-market private equity fund (which also will back SMEs valued at up to €500m in other European countries). http://bit.ly/2mPWARA
Celestine Johnson, an "innovation partner" with Eric Schmidt's Innovation Endeavors, is raising $5 million for a VC firm called Boom Capital, per an SEC filing.