Jun 21, 2018

Axios Pro Rata

By Dan Primack
Dan Primack

Situational awareness: Intel CEO Brian Krzanich is out, following an investigation into a "consensual relationship with an Intel employee." CFO Bob Swan steps in on an interim basis.

Top of the Morning
Colony Capital CEO Tom Barrack. Photo: Robyn Beck/AFP/Getty Images

Colony Capital has agreed to buy several of the Abraaj private equity funds, just a week or so after it passed on buying the Dubai-based group's entire investment management business.

This is a bit unexpected. Not only because Colony didn't want the larger deal, but also because it's mostly a real estate investment firm that doesn't really have any experience in emerging markets private equity. On the other hand, Colony founder Tom Barrack — a close friend of President Trump — has longstanding business ties to the Middle East, including in UAE.

  • What's included: Colony buys Abraaj's Saharan Africa, North Africa, Latin America and Turkey funds (both active and legacy), plus Abraaj Holdings' linited partnership stakes in said funds. Staff from eight Abraaj offices go to Colony, although the fate of shared-services employees is still to be determined.
  • What's not included: Abraaj's controversial healthcare fund, which is said to be headed in some form to restructuring firm AlixPartners. Also not in the deal are some other regional fund assets, including ones focused on Southeast Asia, although Colony will "oversee" those on an interim basis. The holding company itself remains in liquidation, which almost certainly means we'll soon learn what Colony paid.

• Sidewalk wars: Kia has obtained a confidential fundraising deck circulated by Lime, the e-scooter company that is raising $250 million in new funding led by GV. If you want to know how an e-scooter leader thinks about expansion and financial metrics, check out her post.

IPO trendline: Five pre-revenue biotech companies priced IPOs last night, with four of them doing so at up-sized terms.

Coming attractions: Don't be surprised to see at least one more high-profile departure from Social Capital in the coming weeks.

Crypto: Fortune reported yesterday that cryptocurrency company Stellar is in advanced talks to acquire Chain, a VC-backed startup that develops blockchain-based technologies for the financial markets, for "$500 million in Stellar’s digital currency Lumens."

  • We've learned that the deal is legit, but more likely to be a combination of cash and Lumens, the latter of which would be subject to a lockup. There also are some additional complexities that seem to have delayed the official announcement.
  • It's more merger than acquisition, with Chain CEO Adam Ludwin expected to run the combined business and all Chain employees sticking around. Ludwin, a former venture capitalist with Chain investor RRE Ventures, declined comment.
The BFD
Source: Giphy

Tilray, a Canadian cannabis cultivation and distribution company owned by Privateer Holdings, filed for a $100 million IPO. It plans to trade on the Nasdaq under ticker TLRY with Cowen as lead underwriter.

  • Why it's the BFD: Because the filing came just one day after Canada's Senate voted to legalize recreational cannabis sales. Tilray currently focuses on medicinal marijuana, but says it will move into the "adult-use" space once legalization is implemented this October.
  • Bottom line: "Privateer... launched Tilray in Canada in 2014. It later received a license from the Government of Portugal in 2017 to import and produce medical cannabis in the European Union. In its filing, the company said it’s the first to legally export medical cannabis from North America to Africa, Australia, Europe and South America, but those overseas sales are a small fraction of its current business." — Derek Hall, Seattle Times
Venture Capital Deals

Vipkid, a Chinese K-12 online education platform, raised $500 million in new Series D funding at a $3 billion post-money valuation from Coatue Management, Tencent, Sequoia Capital China and Yunfeng Capital. http://axios.link/64mv

Swiggy, an Indian food delivery startup, raised $210 million in new funding. Return backer Naspers led, and was joined by DST Global, Meituan Dianping and Coatue Management. http://axios.link/QJ5e

🚑 Helian Health, a Chinese hospital WiFi provider, raised $75 million in Series B funding. SenseTime led, and was joined by Wanxiang Investment and Hangzhou Lianchuan Investment Management. http://axios.link/zOk3

🚑 iTeas Therapeutics, a Belgium-based immune-oncology startup, raised €64 million in Series B funding. MPM Capital led, and was joined by HBM Partners, 6 Dimensions Capital and Curative Ventures and return backers Fund +, VIVES II, SRIW and SFPI. http://axios.link/FygK

Nginx, a San Francisco-based operator of an open source web server, raised $43 million in Series C funding. Goldman Sachs Growth Equity led, and was joined by return backer NEA. http://axios.link/Ohb8

Seal Software, a London-based content discovery and analytics company, raised $30 million from Toba Capital. www.seal-software.com

Bossa Nova, a San Francisco-based maker of in-store inventory robots, raised $29 million in new funding. Cota Capital led, and was joined by China Walden Ventures and LG Electronics. www.bnrobotics.com

Beamery, a London-based recruiting software startup, raised $28 million in Series B funding. EQT Ventures led, and was joined by return backers Angelpad, Edenred Capital Partners and Index Ventures. http://axios.link/BbfX

🚑 Calm, a San Francisco-based meditation app, raised $27 million in Series A funding at a $250 million pre-money valuation. Insight Venture Partners led, and was joined by Sound Ventures ans singer Harry Styles. http://axios.link/nrxB

Urban Airship, a Portland, Ore.-based provider of mobile push messaging software, raised $25 million in Series F funding. Foundry Group led, and was joined by return backers True Ventures, August Capital, Intel Capital, Verizon Ventures, QuestMark Partners and Franklin Park Associates. www.urbanairship.com

Blinkist, a Berlin-based condensed reading platform for non-fiction books, raised $18.8 million led by Insight Venture Partners. http://axios.link/f3mS

Silexica, the German developer of SLX programming tools, raised $18 million in Series B funding. EQT Ventures led, and was joined by return backers Merus Capital, Paua Ventures, Seed Fonds Aachen and DSA Invest. http://axios.link/xAnu

SharesPost, a San Francisco-based secondary share exchange, raised $15 million in Series C funding co-led by LUN Partners and Kenetic Capital. www.sharespost.com

Grove, a San Francisco-based financial advisory startup, raised $8 million in new funding. Defy Ventures led, and was joined by Tusk Ventures, Bullish, Winklevoss Capital and angels like Kevin Durant. http://axios.link/e5Ze

Truepic, a San Diego-based provider of image authenticity software, raised $8 million in Series A funding from backers like Dowling Capital Partners. http://axios.link/SIiY

Stensul, a New York-based email marketing startup, raised $7 million in Series A funding. Javelin Venture Partners led, and was joined by Arthur Ventures, First Round Capital, Uncork Capital and Lowercase Capital. http://axios.link/jcPL

Universe, an iOS app for building simple websites, raised $4 million in Series A funding from Javelin Venture Partners, General Catalyst, Box Group, YC and Eniac Ventures. http://axios.link/dLPw

Finless Foods, a Berkeley, Calif.-based developer of lab-grown seafoods, raised $3.5 million led by Draper Associates. http://axios.link/EyfH

🚑 Mightier, a Boston-based kids behavioral health startup, raised $2.4 million in seed funding led by Slow Ventures. www.mightier.com

Private Equity Deals

Altice has agreed to sell a 49.99% stake in its French telecom towers business to KKR and a 75% stake in its Portugal telecom towers business to Morgan Stanley Infrastructure Partners and Horizon Equity Partners. The combined deals are worth around €2.5 billion in cash. http://axios.link/nfTF

⛽ OKEA, a Norwegian oil and gas company backed by Seacrest Capital, agreed to pay $566 million for Norway oil and gas assets from Royal Dutch Shell (LSE: RDS). http://axios.link/45ri

TPG Capital agreed to acquire a minority stake in cosmetics company Anastasia Beverly Hills. No terms were disclosed, but an earlier report was that the deal would value ABH at just under $3 billion (including debt).

Public Offerings

🚑 Aptinyx, an Evanston, Ill.-based developer of drugs for neurologic disorders, raised $102 million in its IPO. It priced 6.4 million shares at $16 (upsized from 5.3m at $14-$16), and will trade on the Nasdaq (APTX). J.P. Morgan was lead underwriter. Aptinyx had raised around $135 million in VC funding, from firms like Adams Street Partners (14.85% pre-IPO stake), New Leaf Ventures (11.63%), Longitude Venture Partners (11.63%), Frazier Life Sciences (11.63%), Bain Capital Life Sciences (6.98%) and LVP Life Science Ventures (5.71%). www.aptinyx.com

🚑 AvroBio, a Cambridge, Mass.-based gene therapy company, raised $100 million in its IPO. The pre-revenue company priced 5.25 million shares at $19 (upsized from 4.4m at $16-$18), and will trade on the Nasdaq (AVRO). Morgan Stanley was lead underwriter. AvroBio had raised $87 million from firms like Atlas Venture (27% pre-IPO stake), Claris Ventures (17%), SV Life Sciences (15%) and Cormorant (8%). www.avrobio.com

i3 Verticals, a Nashville-based provider of payment processing solutions to SMBs, raised $86 million in its IPO. The company priced 6.7 million shares at $13, for an initial market cap of $332 million. It will trade on the Nasdaq (IIIV), while Cowen & Co. was lead underwriter. Shareholders include First Avenue Partners and Harbert Management. www.i3verticals.com

🚑 Kezar Life Sciences, a San Francisco-based developer of drugs to treat autoimmune diseases, raised $75 million in its IPO. The pre-revenue company priced 5 million shares at $15 (upsized from 4.7m at $14-$16), and will trade on the Nasdaq (KZR). Jefferies was lead underwriter. Kezar had raised around $78 million from firms Cormorant Asset Management and Morningside Ventures (15.5% pre-IPO stake), Cormorant (9.9%), Cowen Healthcare (7.6%), EcoR1 Capital (5.5%) and Omega Funds (5.2%). www.kezarlifesciences.com

🚑 Magenta Therapeutics, a Cambridge, Mass.-based developer of bone marrow transplant therapeutics, raised $100 million in its IPO. The pre-revenue company priced 6.7 million shares at $15 (midpoint), and will trade on the Nasdaq (MGTA). J.P. Morgan was lead underwriter. It had raised around $150 million from firms like Third Rock (28.91% pre-IPO stake), Atlas Venture (17.48%), GV (12.05%) and Casdin Capital (5.9%). www.magentatx.com

🚑 Xeris Pharma, a Chicago-based developer of injectable hypoglycemia treatments, raised $86 million in its IPO. The pre-revenue company sold 5.7 million shares at $15 (upsized from 5m at $14-$16), and will trade on the Nasdaq (XERS). Jefferies was lead underwriter. Xeris had raised $145 million from firms like Palmetto Partners (13.88% pre-IPO stake), Deerfield Management (12.32%), Redmile Group (12.3%) and Mérieux (6.18%). www.xerispharma.com

Liquidity Events

🚑 Vitruvian Partners is seeking a buyer for CRF Health, a Pennsylvania-based clinical trial software company, per the WSJ. http://axios.link/IXgQ

Match Group (Nasdaq: MTCH) has acquired a 51% stake in dating app Hinge, with an option to buy the remainder. New York-based Hinge had raised around $26 million from firms like Shasta Ventures and Great Oaks Venture Capital. http://axios.link/87UV

More M&A

⛽ BP (LSE: BP) has terminated it’s a $1.8 billion agreement to purchase the gas stations business of Woolworths (ASX: WOW), following objections from Australian regulators. http://axios.link/EvnJ

JCDecaux (Paris: JCDX) has offered to buy Australian outdoor advertising firm APN Outdoor Group (ASX: APO) for A$1.1 billion. http://axios.link/tBb4

Microsoft (Nasdaq: MSFT) agreed to acquire Bonsai, a Berkeley, Calif.-based AI startup that helps non-programmers develop machine-learning tools for industrial applications.

WalkMe, a San Francisco-based digital adoption platform that has raised over $160 million in VC funding, has acquired DeepUI, a developer of machine learning tech to understand business software and the graphical user interface level. www.walkme.com

Fundraising

The Carlyle Group closed its fifth Asia buyout fund with $6.55 billion. http://axios.link/2QGL

Matrix Partners raised $450 million for its eleventh VC fund, per an SEC filing.

Providence Equity Partners has closed its third growth equity fund with $1.3 billion. www.provequity.com

It's Personnel

Micah Baldwin is joining Madrona Venture Group to launch a new innovation center. He previously was a biz dev and product manager with Amazon Web Services. www.madrona.com

• Paul Greff is being promoted to chief investment officer from deputy CIO at the $100 billion Ohio Public Employees Retirement System (OPERS). http://axios.link/nsBg

Katie Hughes as joined General Catalyst as a partner. She previously was a talent partner with DFJ. www.generalcatalyst.com

Lexington Partners has named Wil Warren, who leads the firm’s US secondaries practice, as firm president. He succeeds firm founder Brent Niklas, who will become non-executive chairman. www.lexingtonpartners.com

Ramzi Ramsey has joined SoftBank Vision Fund as a director. He previously was a VP with Technology Crossover Ventures.

Katsunori Sago was named chief strategy officer of SoftBank, just days after retiring as an EVP of Japan Post Bank. http://axios.link/adhs

Final Numbers
Expand chart
Data: Macro Polo; Chart: Lazaro Gamio/Axios

Go deeper: Why Chinese investment in the U.S. jumped and then plunged

  • Also, mark June 29 on your calendar. That's when the U.S. Treasury Department plans to unveil its new set of restrictions on Chinese investment in U.S. companies.
Dan Primack

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