President Biden yesterday proposed an effective ban on U.S. venture capital and private equity investments into Chinese tech companies, via an executive order aimed at bolstering national security.

Why it matters: This is the end of unfettered globalization in venture capital and private equity.

Details: This is the so-called "reverse CFIUS" rule that we've discussed since last year, and its implementation is subject to a comment period and rulemaking by the U.S. Treasury Department.

• It would prevent U.S. individuals and institutions from making equity investments in Chinese companies involved in the development or production of artificial intelligence, quantum information technologies and semiconductors/microelectronics. Also blocked would be related M&A, greenfield and joint venture transactions.
• There would be carveouts for passive public equity investments, including in exchange-traded funds, and for debt investments that aren't structured as convertible notes. Also exempted would be limited partner commitments into venture capital or private equity funds.
• The rule would not be retroactive, although Treasury would want notification of deals agreed to since yesterday's announcement.
• Read more here.

Behind the scenes: The White House justified its focus on private markets by arguing that VC/PE investors offer "intangible benefits" that are absent in most public equity deals, such making introductions and connecting various portfolio companies.

• "The thing we're trying to prevent is not money going into China overall, because they have plenty of money," says a senior administration official.  "The thing they don't have is the know-how."

What to know: Yesterday's big rhetorical adjective was "narrow," in an effort to highlight how the administration continues to value cross-border investment.

• But it's hard to see this as anything other than a blanket ban on U.S. investment in privately held Chinese tech companies, given that virtually all tech companies either are touting their AI efforts or soon will be.
• It also could be interesting to see if some Chinese tech companies accelerate IPO plans in an effort to tap foreign investment (particularly if U.S. allies follow suit).

Look ahead: While many U.S. VC/PE firms had already slowed their investments in Chinese tech companies, there are still several for whom that strategy is central to both strategy and structure.

• Expect to see more firm breakups, similar to what Sequoia Capital announced earlier this summer.

The bottom line: Carlyle Group co-founder David Rubenstein used to say that private equity, broadly defined, was "one of the the great exports of the United States." That may not be true for much longer.

Novo Nordisk (NYSE: NVO) agreed to buy Inversago Pharma, a Montreal-based developer of anti-obesity drugs, for upwards of $1.1 billion in cash.

Why it's the BFD: Novo isn't content to rest on its weight loss laurels, despite the popularity of its Ozempic and Wegovy products.

• Inversago uses a different technique than do Novo's existing blockbusters, by instead targeting CB1 receptors. Its lead candidate has focused on diabetic kidney disease, but Novo's announcement highlights the obesity potential.

ROI: Inversago has raised around $110 million in VC funding since 2018 from firms like NEA, Amgen Ventures, Forbion, T1D Capital, AmorChem, Genesys Capital, adMare BioInnovations and Fonds de solidarité FTQ.

The bottom line: "Sanofi won approval for a CB1 receptor blocker weight loss drug in Europe in 2006. However, European authorities withdrew the approval in 2009 after studies linked the drug to a doubling of the risk of psychiatric disorders. The product never won approval in the U.S. Since then, scientists have continued to study the potential to treat obesity by blocking the cannabinoid receptor." — Nick Paul Taylor, Fierce Biotech

🚑 Georgiamune, a Gaithersburg, Md.-based monoclonal antibody developer focused on oncology and autoimmune diseases, raised $75m in Series A funding. General Catalyst and the Parker Institute co-led, and were joined by Mubadala. https://axios.link/3QxxerB

• Credgenics, an Indian debt collection software startup, raised $50m at a $340m valuation from Westbridge Capital, Accel and Tanglin Ventures and Beams Fintech Fund. https://axios.link/3Yrbsr8

• Virtualitics, a Pasadena, Calif.-based data analytics and 3D visualization platform, raised $37m in Series C funding. Smith Point Capital led, and was joined by Citi and clients of Hillman Co. www.virtualitics.com

• Kernel, a plant-based fast-casual restaurant concept from Chipotle founder Steve Ells, raised $36m in Series A funding from Raga Capital, Willoughby Capital and Rethink Food. https://axios.link/4447ztJ

🌎 Wint, an Israeli water management startup, raised $35m in Series C funding. Insight Partners and Inven Capital co-led, and were joined by Taronga Vetures. https://axios.link/47sqUYf

• Moove, a Ghanian fintech for "mobility entrepreneurs," raised $28m from insider Mubadala and $10m in venture debt from BlackRock. https://axios.link/45kUQ6W

⚡ General Fusion, a Canadian nuclear fusion developer, raised $25m in Series F funding co-led by BDC Capital and GIC. www.generalfusion.com

• Osano, an Austin, Texas-based data privacy management startup, raised $25m in Series B funding. Baird Capital led, and was joined by Jump Capital, LiveOak, NextCoast and TDF. https://axios.link/3DRGOy0

• Rightfoot, an SF-based data connectivity startup for financial services, raised $15m in Series A funding co-led by Blue Lion Global and Renegade Partners, per Axios Pro. https://axios.link/43ZaHXv

• Atmosfy, an SF-based short-form video app for finding and reviewing local businesses like restaurants, raised $12m in seed funding. Redpoint Ventures led, and was joined by Kygo, Streamlined Ventures, Industry Ventures, Canaan Partners, Village Global, Progression Fund and Convivialite Ventures. https://axios.link/3DMtquZ

• Matter, a British water filtration startup focused on microfibers, raised $10m in Series A funding co-led by S2G Ventures and SOUNDWaves. https://axios.link/3OlyMlG

🚑 Endear Health, a Miami-based provider of onboarding and administrative tools for hospitals, raised $8m. Optum Ventures led, and was joined by 8VC and Blue Cross of Idaho. www.endearhealth.com

• ShapesXR, an SF-based VR design and collaboration startup, raised $8.6m in seed funding. Supernode Global led, and was joined by Triptyq VC, Boost VC, Hartmann Capital and Geek Ventures. www.shapesxr.com

• Cube3.AI, a Palo Alto, Calif.-based web3 transaction security platform, raised $8.2m in seed funding. Blockchange Ventures led, and was joined by Dispersion Capital, Symbolic Capital, Hypersphere Ventures, ICLUB and TA Ventures. www.cube3.ai

• Spearbit, a Miami-based web3 security startup, raised $7m. Framework Ventures led, per TechCrunch, and was joined by Nascent, 1kx, Volt Capital, Breed VC and Robot Ventures. https://axios.link/3s46jJN

⚡ Nuclearn.ai, a Phoenix-based developer of automation software for the nuclear energy industry, raised $2.5m in seed funding. AZ-VC led, and was joined by Nucleation Capital. www.nuclearn.ai

🌎 Nature Coatings, an LA-based biochemicals startup, raised $2.5m in seed funding co-led by Regeneration.vc and The 22 Fund. www.naturecoatings.com

⚡ Crestline Investors agreed to sell German renewables developer NeXtWind Capital for $750m to Sandbrook Capital, PSP Investments and Investment Management Corp. of Ontario. https://axios.link/45lFJdf

• Schneider Geospatial, an Indianapolis-based portfolio company of Align Capital Partners, acquired Spatialest, a British provider of assessor-focused SaaS. www.schneidergis.com

• Strata Information Group, a San Diego-based portfolio company of Fort Point Capital, acquired Triaxom Security, a Charlotte-based provider of penetration testing, compliance auditing and cybersecurity consulting. www.sigcorp.com

• Symphony Technology Group agreed to buy Avid Technology (Nasdaq: AVID), a Burlington, Mass.-based media editing software maker, for around $1.4b (including debt). The $27.05 per share price represents a 32% premium over where Avid shares traded before media reports of a possible deal. https://axios.link/3OQ9SMk

🌎 Tango, a Dallas-based portfolio company of Berkshire Partners, acquired WatchWire, a New York-based provider of building data and analytics for reducing emissions and energy expenses. www.tangoanalytics.com

• Tech24, a Greenville, S.C.-based portfolio company of HCI Equity Partners, acquired Pronto Repairs, a Tappan, N.Y.-based kitchen equipment repair and maintenance firm. www.mytech24.com

• TekBrands, an Omaha, Neb.-based portfolio company of WILsquare Capital, acquired key assets of quilting and sewing products company June Tailer. www.tekbrandsllc.com

• DKV Mobility, a German fleet services firm owned by CVC Capital Partners, is reviving IPO plans that could value the company at €3.5b, per Bloomberg. https://axios.link/3OR1X1o

🚑 American Gene Technologies, a Rockville, Md.-based gene therapy company focused on HIV, agreed to go public at an implied $500m pre-money valuation via 10X Capital Venture Acquisition III (NYSE: VCBX), whose VC sponsor is among AGT's investors. https://axios.link/3Qy31IE

• Body Art Alliances, a Hanover, Md.-based tattoo products company backed by Trivest Partners, hired Jefferies to explore a sale that could fetch nearly $1b (including debt), per Reuters. https://axios.link/3s3Xu2r

• Madison Dearborn Partners is seeking to sell Sunnyvale, Calif.-based Intermedia Cloud Communications for more than $1b, with Evercore managing the process, per Reuters. https://axios.link/47rhxIb

⚡ PSP Investments and Ontario Teachers' Pension Plan are seeking to sell renewable energy project firm Cubico Sustainable Investments, a London-based renewable energy firm that could fetch at least US$6b (including debt), per Reuters. https://axios.link/47u1wBm

🚑 Sunbird Bio, a Singaporean molecular diagnostics firm backed by Polaris Partners and ClavystBio, acquired Glympse Bio, a Cambridge, Mass.-based injectable diagnostic platform that had raised around $90m from firms like Polaris, Arch Venture Partners, CRV, Gilead, GreatPoint Ventures, Catalio Capital, DNS Capital, New Leaf Ventures, Ascan Investments, Aspect Ventures and Section 32. https://axios.link/45kf68H

• Tapestry (NYSE: TPR), the parent of Coach and Kate Spade, agreed to buy Capri (NYSE: CPRI) the owner of Versace, Michael Kors and Jimmy Choo, for $8.5b in cash, or $57 per share (65% premium to yesterday's closing price), per the WSJ. https://axios.link/3DPQWqN

⚡ Blackstone raised $7.1b for its third energy transition credit fund. www.blackstone.com

• Commerce Ventures is raising up to $150m for its fifth fund, per an SEC filing.

• Ride Home Fund, founded by Brian McCullough, is raising $15m for its second AI-focused fund and has added hashtag creator and top Product Hunt "hunter" Chris Messina. https://axios.link/3DNLpB6

• TPG is raising $4b for its sixth growth equity fund. https://axios.link/3QzKtrF

• Ben Laufer joined Edison Partners as a principal. He previously was with PeakEquity Partners. www.edisonpartners.com

• Nexa Equity promoted Joey Maloney and Todd Cramer to partners and Doug Popper to senior associate. www.nexaequity.com

The Consumer Price Index rose 3.2% year-over-year and 0.2% in July, in line with economist expectations.

• Core CPI, which excludes energy and food prices, climbed 4.7% year-over-year and 0.2% for July.
• Axios' Courtenay Brown writes: "Despite a tick up in overall inflation, underlying details point to further signs of cooling last month as the steep price gains that plagued American consumers look to be moderating." Go deeper