I solemnly swear to not write about corporate fraud tomorrow, since that would be four straight days. But this is too nuts not to share...

Christine Hunsicker, the founder and now-former CEO of fashion tech company CaaStle, isn't just being accused of fudging some numbers. It sounds like she may have built an entire Wonka factory.

• Axios has learned that Hunsicker last year told prospective investors that CaaStle generated $519 million in 2023 revenue.
• According to audited financials that the company sent this weekend to shareholders, the actual revenue figure for the year ending Sept. 30, 2023 was only $15.7 million.

But wait, there's more:

• Prospective investors also were told that fiscal 2022 revenue was $278 million, when it actually was $19.7 million. Projections for 2024 and 2025 revenue were $793 million and around $1 billion, respectively.
• Hunsicker also claimed that 2023 EBITDA was $91 million and virtually flat in 2022. The audited financials don't specifically include EBITDA, but do show a combined $135 million net loss for the two fiscal years with less than a combined $25 million for interest, depreciation, and amortization.
• Finally, prospective investors were told that CaaStle had hundreds of millions of dollars in cash as of mid-2024. If so, that's a heck of a trick. It ended Sept. 2023 with less than $1 million in cash and around $3 million in total assets, and then raised just under $60 million in subsequent funding.

It's unclear if all prospective investors and shareholders received the same information, or if different data went to different audiences.

Meanwhile, P180 is trying to distance itself from Hunsicker, who recently co-founded the retail acquisition platform with industry vet Brendan Hoffman.

• In a statement, Hoffman says: "I am both shocked and saddened by the recent developments at CaaStle. Christine Hunsicker has stepped down as Chairman of P180 which operates as an independent entity. Our primary focus moving forward is to nurture and grow Vince Holding Corp. and support our investment in Altuzarra."

Still no comment from Hunsicker.

Source: Giphy

Circle, the largest U.S. issuer of stablecoins, yesterday filed for an IPO.

Why it's the BFD: This comes as stablecoin legislation is moving fast through Congress, including a markup hearing today in the House.

• That's a far cry from the environment a few years back, when Circle agreed to go public via SPAC but then canceled due to regulatory uncertainty.

Why it matters: Issuers — from banks and fintechs to the state of Wyoming — are already lining up new offerings for dollar-backed stablecoins, a class of crypto asset responsible for over $15 trillion in transaction volume last year.

By the numbers: Circle reports $156 million of profit on $1.68 billion of revenue (including reserve income) for 2024, compared to $268 million of profit on $1.45 billion of revenue in 2023.

• The company raised around $1.2 billion via the private markets, including from Accel, Breyer Capital, General Catalyst, IDG Capital, Oak Investment Partners, and Fidelity.
• Circle's stablecoin, usd coin (USDC), has a market cap just north of $60 billion.
• Renaissance Capital estimates that the IPO could raise $750 million.

The bottom line: It's the third large fintech to file for an IPO in the past month, following Klarna and eToro.

• ReliaQuest, a Tampa, Fla.-based security ops startup, raised $500m at a $3.4b valuation co-led by EQT, KKR and FTV Capital, with participation from Ten Eleven Ventures and Finback Investment Partners. axios.link/4lc47H

🚑 Atsena Therapeutics, a gene therapy startup focused on blindness, raised $150m in Series C funding. Bain Capital Life Sciences led, joined by Wellington Management and insiders Lightstone Ventures, Sofinnova Investments, Abingworth, Foundation Fighting Blindness, Hatteras Venture Partners, Osage University Partners, and the Manning Family Foundation. axios.link/3FSv4iO

• Cyberhaven, a Palo Alto, Calif., data security startup, raised $100m in Series D funding led by StepStone Group. cyberhaven.com

⚡ Aetherflux, a space-based solar energy startup led by Robinhood co-founder Baiju Bhatt, raised $50m in Series A funding. Index Ventures and Interlagos led, joined by Breakthrough Energy Ventures, NEA, a16z, Vlad Tenev, Tim Draper, Jared Leto, and F.P. Journe. axios.link/4iY919g

• AttoTude, a Menlo Park, Calif.-based data center connection startup, raised $50m in Series B funding led by Mayfield, with participation from Sutter Hill Ventures, Canaan Partners, and Wing Venture Capital. attotude.com

• Adaptive Security, a New York-based cybersecurity startup focused on deepfake attacks and other AI-engineered cons, raised $43m. A16z and OpenAI Startup Fund co-led, and were joined by Abstract Ventures, Eniac Ventures, CrossBeam Ventures, and K5. axios.link/4i8nM8g

• Gradyent, a Dutch digital twin startup, raised €28m in Series B funding. Blue Earth Capital led, joined by SEB Greentech VC, Capricorn Partners, Eneco Ventures, Helen Ventures, and Energiiq. axios.link/4cf2btp

🌏Fairmat, a French carbon composite recycling startup, raised €26.5 in Series B equity funding (plus €25m in debt). Bpifrance and Slate VC co-led, joined by Cape Capital and insiders Singular, Temasek, CNP, and Pictet Group. axios.link/42qY9ut

🌏Persefoni AI, a Tempe, Ariz.-based provider of sustainability management software, raised $23m in Series C extension funding from TPG Rise, Rice Investment Group, Clearvision Ventures, and NGP Energy Technology Partners. axios.link/4hRCH6p

🚑 Venteur, an SF-based ICHRA administrator, raised $20m in Series A funding led by Informed Ventures and American Family Ventures with participation from Morgan Health, Ingeborg Investments, Catalyst by Wellstar, and Plug and Play. axios.link/448hdPn

⚡ BetterFleet, an Ann Arbor, Mich.-based provider of fleet management software, raised $15m from Aligned Climate Capital, Ecosystem Integrity Fund, and Remarkable Ventures Climate. axios.link/3FSM8FC

🚑 RapidClaims, a New York-based provider of revenue cycle and claims management health-care providers, raised $11m in Series A funding from Accel and Together Fund, per Axios Pro. axios.link/4hUT821

• Equal Parts, an Austin, Texas-based insurance agency acquisition platform, raised $10m co-led by Equal Ventures and Max Ventures. equalparts.ai

• Parasail, an AI deployment network, raised $10m in seed funding from Basis Set Ventures, Threshold Ventures, Buckley Ventures, and Black Opal Ventures. parasail.io

• Incentify, an LA-based platform for discovering and managing tax credits and incentives, raised $9.5m in Series A funding led by Innovent Capital Group. incentify.com

• Gierd, an Idaho-based provider of B2B software to brands for ecommerce orchestration, raised $8m in Series A funding led by Nyca Partners. axios.link/4iY3U94

🚑 Orthobrain, a Cleveland-based orthodontics startup, raised $7.5m led by CareCapital and JumpStart Ventures, with participation from JobsOhio. axios.link/3QZkV6j

• Ambient, an "AI-infused" blockchain, raised $7.2m in seed funding from a16z, Delphi Digital, and Amber Group. axios.link/4hPQU3H

• Prowler, an SF-based open cloud security startup raised $6.5m in seed extension funding led by Decibel VC. prowler.com

• Sturdy, a Portland, Ore.-based customer intelligence platform, raised $6m in seed funding led by Voyager Capital with participation from Fortson VC and Grotech Ventures. axios.link/3QYldKD

• ControlTheory, an Austin, Texas-based observability platform, raised $5m in seed funding from Silverton Partners. controltheory.com

• FurtherAI, an SF-based provider of AI assistants for commercial insurance, raised $5m. Nexus Venture Partners led, joined by Pioneer AI Fund, YC, South Park Commons, and ConvergeVC. furtherai.com

🌎 LeakZon, an Israeli water leak detection developer for utilities, raised $5m in Series A funding led by Peal Holdings. axios.link/3RtNk4z

⚡DeCharge, an Indian EV charging network, raised $2.5m in seed funding led by Lemniscap, joined by Colosseum, Daedalus Angels, EV3 Labs, Echo Fundraiser Chainyoda Jedis, and Levitate Labs. axios.link/3G1I5qd

⚡ Evident Battery, a Watford, Mass.-based battery inspection tech developer, raised $3.2m in seed funding led by Ibex Investors, joined by Nationwide Ventures, Automotive Ventures and Avesta Fund. batteryevidence.com

🚑 Acuity Behavioral Health, an Atlanta-based ops platform for inpatient psychiatric care providers, raised a $1.5m seed funding round led by Valor Ventures. acuitybh.com

• DAZN, backed by Access Industries, completed its A$3.4b purchase of Foxtel, an Australian pay TV and streaming business, from News Corp (Nasdaq: NWSA). axios.link/42tJFde

⚡ Delta Utilities, backed by Bernhard Capital Partners, acquired CenterPoint Energy's regulated natural gas local distribution companies in Louisiana and Mississippi. axios.link/3YbWYMY

⚡ Dresser Utility Solutions, a First Reserve portfolio company, acquired Kobus, a provider of gas and water pipe pulling technology, from Agile Growth Equity. dresserutility.com

• Encore Consumer Capital bought minority stake in clean beauty brand LYS Beauty. axios.link/4l8kRPz

🌎 Goldman Sachs Alternatives acquired Atlas-SSI Holdings, a Monticello, Miss.-based water management equipment supplier. atlas-ssi.com

Hahn & Co. acquired SK Specialty, a South Korean producer of gases for semiconductor and advanced display manufacturing, for $1.77b. axios.link/3FRVb9K

• Rampart Exterior Services, a Huron Capital portfolio company, acquired Port Enterprises, a provider of commercial roofing services in Texas. rampartexteriors.com

• The Riverside Co. invested in DAWGS, a Chicago-based provider of door and window guards for securing vacant properties. dawgsinc.com

• Sequoia Financial Group, an Ohio-based wealth manager backed by Kudu Investment Management and Valeas Capital Partners, completed its purchase of Carlson Capital Management, a Northfield, Minn.-based investment advisory with $3.8b in client assets. sequoia-financial.com

• Tencarva, backed by Bessemer Investors, acquired Atlantic Valve, a Richmond, Va., manufacturer's representative for valve brands serving municipal and industrial water/wastewater markets. tencarva.com

• Warburg Pincus acquired Tokyo Beta, a share house portfolio in Japan, from Lone Star Funds. axios.link/4i2nEqK

• Comcast (Nasdaq: CMSCA) completed its purchase of Nitel, a Chicago-based managed services provider, from Cinven. axios.link/4fgpBhV

🐔 Orchestra Private Equity is seeking to sell the South Korean operations of KFC, which could fetch around $280m, per KED. axios.link/42rLqHV

• A.P. Moller Holding offered to buy the 53% stake it doesn't hold in Danish tug-boat operator Svitzer at a $1.3b valuation. axios.link/4iSA6KZ

• Cantor Fitzgerald agreed to buy Canaccord Genuity's (TSX: CF) U.S. wholesale market-making business. axios.link/4jdekBi

• Cellnex Telecom (Madrid: CLNX) is seeking to sell a majority stake in its Swiss unit, which could fetch up to €2b, per Bloomberg. axios.link/4ljLaCv

• Greencore (LSE: GNC) agreed to buy rival convenience food maker Bakkavor (LSE: BAKK) for £1.2b, after two prior bids failed. axios.link/3Rkhwzj

• Qualcomm (Nasdaq: QCOM) is weighing a takeover bid for British semiconductor company Alphawave (LSE: AWE), per Reuters. axios.link/4ifq0Tn

• WNS Holdings (NYSE: WNS), a tech outsourcer with a $2.8b market cap, is exploring a sale after inbound from suitors like Capgemini (Paris: CAPP), per Reuters. axios.link/42eG15U

• IK Partners of London raised €3.3b for its 10th midcap buyout fund. axios.link/3FMsriH

• Kensington Capital Partners of Toronto acquired the VC business of Ottawa-based ONE9, which is focused on defense investments. axios.link/3QYS6qI

• Kotak of India is raising up to $2b for a private credit fund, per Bloomberg. axios.link/3RtLikS

• Lux Capital is raising up to $200m for a co-investment fund for existing defense-focused portfolio companies, Axios has learned. luxcapital.com

• Rahm Emanuel, most recently U.S. ambassador to Japan, is rejoining Centerview Partners, per Semafor. axios.link/4jgqucM

• Katie Hoffman (ex-Regeneration.VC) and Deborah Zajac (Cerity Venture Partners) both joined SOSV as general partners, focused respectively on hard tech and life sciences. sosv.com

• Justin Kaplan joined White Wolf Capital as a managing partner. He previously was a partner with Balance Point Capital Partners. axios.link/425VExP