🎧 Pro Rata Podcast digs into the Defense Production Act. What it is, why President Trump won't fully invoke it, and how the White House regularly used it before COVID-19. Listen here.
Illustration: Aïda Amer/Axios
Private equity and venture capital investors now have high-powered bipartisan support for their efforts to expand the types of small businesses eligible for $350 billion in federal loans via the CARES Act.
What's the affiliation rule? As we discussed last week, it excludes most small businesses from qualifying as small businesses if they are owned by a private equity firm — by "affiliating" all of the company's employees with those of the private equity firm's other portfolio companies.
Affiliation rules also expand to many VC-backed companies, even if there is no outside investor control, such as if two or more VC firms combined "are large compared to other stock holdings."
Some argue that these companies should tap their existing financial sponsors for support, but that misses the point of a federal program designed to stem job losses immediately.
All of which brings us back to Pelosi and McCarthy.
The bottom line: Waiving the affiliate rule remains a long shot, particularly given that it wasn't addressed yesterday in new loan application information released by the Treasury and SBA. Still, it remains a long shot that's worth taking.
SoftBank has officially pulled the plug on its $3 billion tender offer for WeWork shares, which was agreed to last fall and scheduled to close yesterday.
🍕 Today's project is to ask your kid(s) to make a pizza. It can be a real pizza, a bagel pizza, a drawn pizza, a Lego pizza, or something else. BUT: It needs to include at least one unusual (and edible) ingredient. Bonus points if it's real AND it becomes lunch or dinner.
Yesterday, I asked your kid(s) to "make" an emotion, but without using a face. Here are a couple submissions:
🚑 iTeos Therapeutics, a Belgian immuno-oncology startup, raised $125 million in Series B2 funding. RA Capital and Boxer Capital co-led, and were joined by Janus Henderson Investors, RTW Investors, Invus Group, and return backers MPM Capital, HBM Partners Fund, VIVES II, and SFPI. http://axios.link/MPOg
• Collibra, a New York-based provider of data governance software for business users, raised $112.5 million in fifth-round funding at a $2.3 billion post-money valuation co-led by Durable Capital Partners and insiders Iconiq Capital and Index Ventures. Also returning were Battery Ventures, CapitalG, and Dawn Capital. http://axios.link/WQgc
🚑 Pandion Therapeutics, a Cambridge, Mass.-based biotech focused on autoimmune disorders like Type 1 diabetes, raised $80 million in Series B funding. Access Biotechnology and Boxer Capital co-led, and were joined by RA Capital, OrbiMed, and return backers Polaris Partners, Versant Ventures, Roche Venture Fund, SR 1, JDRF T1D Fund, and BioInnovation Capital. http://axios.link/13n7
🚑 MedGenome, a Foster City, Calif.-based genetic diagnostics and research startup focused on Southeast Asia, raised $55 million. LeapFrog Investments led, and was joined by return backers Sequoia Capital and Sofina. http://axios.link/zBWr
🚑 Dynacure, a French drug startup focused on rare and orphan disorders like myotubular and centronuclear myopathies, raised €50 million in Series C funding. Perceptive Advisors led, and was joined by Bpifrance, Tekla Capital, Andera Partners, Kurma Partners, and Pontifax. http://axios.link/O0By
• Notion, a San Francisco-based provider of cloud-based collaboration tools, raised $50 million in new funding at a $2 billion valuation led by Index Ventures. http://axios.link/36HW
• BigRentz, an Irvine, Calif.-based construction equipment rental platform, raised $15 million led by Japan’s Itochu Corp. http://axios.link/WhEG
• RoadSync, an Atlanta-based digital payment platform for transportation, raised $5.7 million in Series A funding. Base10 Partners led, and was joined by Hyde Park Venture Partners and Companyon Ventures. http://axios.link/7jCM
• Orum, a San Francisco-based AI-sales platform, raised $4 million in seed funding. Unusual Ventures led, and was joined by Neo. http://axios.link/ctG5
🚑 Francisco Partners completed its purchase of Smith Technologies, a Spartanburg, S.C.-based developer of community pharmacy and long-term care technology, from J M Smith Corp. The company has been rebranded RedSail Technologies. http://axios.link/KlXf
⛽ PSP Investments and Alberta Teachers’ completed their C$1.7 billion take-private acquisition of Canadian utility AltaGas Canada.
• Stone Canyon Industries completed its US$2 billion acquisition of Kissner, a Toronto-based salt producer, from Metalmark Capital. www.kissner.com
• WiMi Hologram Cloud, a Chinese augmented reality platform, raised $26 million in its IPO. The company priced 4.8 million shares at $5.50 (low end of range, for a market cap of $325 million. It will trade on the Nasdaq (WIMI). http://axios.link/oPUm
⛽ Koch Engineered Solutions, a unit of Koch Industries, acquired Sentient Energy, a Burlingame, Calif.-based provider of electric line sensors and grid analytics software. Sentient had raised around $47 million from backers like ClearSky, Foundation Capital, GE Ventures, and KCK Group.
Illustration: Aïda Amer/Axios
• T-Mobile US (Nasdaq: TMUS) completed its $26 billion merger with Sprint and said that T-Mobile CEO John Legere is stepping down a month early, meaning that Mike Sievert is now running the show. http://axios.link/6p5P
• CSC, a Wilmington, Del.-based provider of administration services to alternative asset managers, acquired Dutch peer TCS-Groep. http://www.finsmes.com/2020/04/csc-buys-tcs-groep.html
• Majesco (Nasdaq: MJGO) acquired Eddystone, Penn.-based InsPro Technologies, an OTC-listed provider of software to the life and annuity insurance markets. www.inspro.com
• Xerox (NYSE: XRX) abandoned its $35 billion hostile takeover of HP (NYSE: HPQ). http://axios.link/DsHd
• HGGC promoted Dan Stanko to partner and hired Chris Heim (ex-CEO of HGGC portfolio company HelpSystems) as an executive director. www.hggc.com
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