Feb 7, 2017

Axios Pro Rata

By Dan Primack
Dan Primack

Greetings from the snowy home office, which is still being warmed by the remnants of roasted Falcons. Remember to pass these morning missives on to your colleagues so they can sign up. Here we go...

Top of the Morning

• Godfather II: Dick Kramlich is one of the godfathers of modern venture capital, beginning his career in 1969 with Arthur Rock, before moving on in 1978 to co-found New Enterprise Associates (where he remains chairman). He even made an angel investment into Apple.

Since turning over the NEA management reins around six years ago, Kramlich has been investing out of a family office platform called Green Bay Advisors, where he is partnered with Anthony Schiller (who led early investments in such companies as Dropbox, Docusign, Spotify and Xiaomi).

Now comes word that Green Bay has raised $130 million (mostly from family offices) for Green Bay Ventures, an early-stage fund focused on enterprise tech startups. There also is talk of a life sciences-focused fund coming to market sometime soon, also under the Green Bay umbrella.

Kramlich and Schiller declined comment, via a spokeswoman.

• Update: Yesterday we mentioned that Snap's only female board member received less compensation than any of her male peers. So we dug in a bit, and the reality is more nuanced than the headline. Here you go.

• Immigration nation: The National Venture Capital Association and Engine today sent a letter to President Trump about his immigration plans, saying that they are "deeply troubled" both both his recent travel ban and a proposed executive order related to H1-B visas and the International Entrepreneur Rule (which we discussed earlier). It is signed by around 200 VCs, founders and startups, and you can download the PDF by going here. Its conclusion:

"While we recognize the importance of promoting national security and protecting the interests of American workers, we strongly believe that the existing and proposed Executive Orders will not accomplish these goals and in fact, could undermine our ability to found and grow new companies that create jobs here in the U.S. We urge you to reconsider these actions and their impact not only on American values, but also on America's economic future."

• Recommended reading: Steven Brill has a detailed piece for Axios on sky-high hospital CEO salaries, including a chart on how much each one of them makes per a nightly patient stay. Read it here.

• Keep in touch: If you want to provide feedback, share news or drop a dime, there are way too many available avenues. Email (dan@axios.com), text (857-472-3072), Confide, Telegram, WhatsApp, Signal, Twitter DM (@danprimack) and our anonymous tip box (which goes directly to me).

The BFD: Another IPO bites the dust

BWAY Corp., an Atlanta-based industrial packaging group, has agreed to acquire Dutch rival Mauser Group in an all-cash deal that values Mauser at $2.3 billion. BWAY is a portfolio company of Stone Canyon Industries, while Mauser is owned by Clayton, Dubilier & Rice.

• Why it's the BFD: Mauser had been expected to go public on the NYSE this week, with plans to raise around $245 million. This makes it the second large IPO candidate in recent weeks to opt for a sale at the last minute, following AppDynamics' agreement to be acquired by Cisco Systems.

• Bottom line: Mauser would have had around a $1 billion full-diluted market cap had it priced in the middle of its offering range, but it also carries just over $1.3 billion in debt. That means the sale price is roughly equivalent to the anticipated market value.

Venture Capital Deals

• View, a Milpitas, Calif.-based maker of smart glass, has raised $100 million in a first close to its Series G round led by TIAA. The deal values View at around $1 billion. http://on.wsj.com/2jYAZrX

• Fungible, a Santa Clara, Calif.-based provider of full-stack solution for cloud data centers, has raised $32.5 million in Series A funding from Mayfield, Walden Riverwood Ventures and Battery Ventures and Juniper Networks. The company was co-founded by Juniper Networks founder Pradeep Sindhu and former Apple engineer Bertrand Serlet. www.fungible.com

• Prexton Therapeutics, a Swiss biopharma company focused on CNS disorders, has raised €29 million in Series B funding. Forbion and Seroba Life Sciences co-led the round, and were joined by return backers like Merck Ventures and Ysios Capital. www.prextontherapeutics.com

• SnapRoute, a Palo Alto, Calif.-based open-source network stack for enterprises, has raised $25 million in Series A funding. Norwest Venture Partners led the round, and was joined by Lightspeed Venture Partners, AT&T and Microsoft Ventures. http://tcrn.ch/2lkGxtL

• Chorus.ai, a startup that uses AI to analyze sales conversations, has raised $16 million in Series A funding. Redpoint Ventures led the round, and was joined by seed backer Emergence Capital. Chorus.ai has offices in San Francisco and Tel Aviv. www.chorus.ai

• TerrAvion, a San Leandro, Calif.-based provider of aerial imaging and data analytics services for agriculture, has raised $10 million in Series A funding. Merus Capital led the round, and was joined by from Promus Ventures, Initialized Capital and 10x Group. www.terravion.com

• TravelTriangle, an India-based travel booking marketplace, has raised $10 million inj Series B funding. RB Investments led the round, and was joined by return backers Bessemer Venture Partners and SAIF Partners. http://tcrn.ch/2kNDQmT

• Blooom, a Leawood, Kansas-based robo-advisor, has raised $9.15 in Series B funding co-led by return backers QED and Commerce Ventures. Others investors include Allianz Life Ventures, Nationwide Ventures and TTV Capital. http://bit.ly/2jYl3pr

• SubVRsive, an Austin, Texas-based provider of VR experiences for brands, has raised $4 million in Series A funding from WPP. www.subvrsive.com

Private Equity Deals

• Altus Capital Partners has acquired Max Environmental Technologies, a Pittsburgh-based environmental treatment and disposal company. No financial terms were disclosed. www.maxenvironmental.com

• AnaCap Financial Partners has agreed to acquire a €177 million Italian performing and non-performing loan portfolio from Barclays. http://on.ft.com/2kn7PkH

• Centerfield Media Holdings, an El Segundo, Calif.-based digital media company sponsored by H.I.G. Growth, has raised $156 million in new financing from H.I.G. Growth and Falcon Investment Advisors. The company also has acquired Qology Direct Holdings, a Ft. Lauderdale, Fla.-based provider of customer acquisition and conversion solutions, for an undisclosed amount. www.centerfield.com

• Hoffman Southwest, a Mission Viejo, Calif.-based provider of water flow inspection, repair and cleaning services, has raised an undisclosed amount of private equity funding from ORIX Capital Partners. www.pro-pipe.com

• ICP Group, an Andover, Mass.-based chemicals company owned by Audax Group, has acquired MinusNine Technologies, a Birdsboro, Penn.-based maker of UV/EB coatings, adhesives, primers and specialty products for graphic arts and industrial applications. No financial terms were disclosed. http://bit.ly/2lkkwLw

• Industrial Opportunity Partners has acquired GT Technologies, a Westland, Mich.-based supplier of custom-engineered gasoline and diesel engine valvetrain actuation components and assemblies, from American Securities. No financial terms were disclosed. www.gttechnologies.com

• Salient CRGT, a Fairfax Va.-based provider of agile software development and other tech solutions, has agreed to acquire Information Innovators, a Springfield, Va.-based healthcare IT company serving federal government clients. No financial terms were disclosed. Salient CRGT is backed by Bridge Growth Partners and Frontenac Group, while Information Innovators is sponsored by DFW Capital Partners. http://bit.ly/2kIcgrc

• SGB-SMIT, a German power transformer business owned by BC Partners, is in talks to merge with a unit of French electrical components giant Schneider Electric (Paris: SCHN), according to Reuters. SGB-SMIT generated around €720 million in 2016 revenue. http://reut.rs/2kNUrqo• The Sterling Group has acquired Time Manufacturing, a Waco, Texas-based maker of vehicle-mounted aerial lifts for the telecom and electric utility markets, from O'Flaherty Holdings. No financial terms were disclosed. http://bit.ly/2kn0vWk

• Webster Capital has acquired PharmaLogics, a Quincy, Mass.-based provider of recruiting solutions for life sciences companies. No financial terms were disclosed. http://bit.ly/2jTytlN

Public Offerings

• Azul, Brazil's third-largest airline, has filed for a $500 million IPO. This is the company's third such filing, twice before having withdrawn its registrations. Deutsche Bank is serving as lead underwriter. Azul reports around a $39 million net loss on over $2 billion in revenue for 2016, and was founded by David Neeleman (67% pre-IPO ownership stake), who also founded JetBlue. Other shareholders include TPG Growth, Weston Presidio, Calfinco and Peterson Partners. http://bit.ly/2kmXNjF

• Kuaishou, a Chinese photo-sharing app most recently valued at around $3 billion by private investors, is prepping a U.S. IPO for the back half of 2017, according to TechCrunch. Shareholders include DST, Sequoia Capital, Baidu and DCM. http://tcrn.ch/2kLksXD

• Valeritas Holdings, a Bridgewater, N.J.-based developer of insulin delivery devices for people with diabetes, has filed for a $50 million IPO. It plans to trade on the Nasdaq under ticker symbol VLRX, with Cowen & Co. and Wedbush PacGrow serving as lead underwriters. Capital Royalty holds a 72.21% pre-IPO stake in the company, which generated over $14 million in revenue for the first nine months of 2016. Valeritas withdrew a prior IPO filing last March. http://bit.ly/2ljgRgu

Liquidity Events

• Hootsuite, a VC-backed platform for social media marketing, has acquired AdEspresso, an Italian developer of Facebook advertising tools. No financial terms were disclosed. AdEspresso backers included 500 Startups, Atlantic Capital Partners and VTF Capital. http://tcrn.ch/2knbsac

• Stratoscale, an Israel-based developer of "zero-to-cloud-in-minutes solution" for data centers, has acquired Tesora, a Cambridge, Mass.-based database-as-a-service company. No financial terms were disclosed. Stratoscale backers include Qualcomm Ventures,Battery Ventures, Bessemer Venture Partners, Cisco Investments, Intel Capital and SanDisk Ventures. Tesora had raised nearly $13 million in VC funding from firms like Launch Capital and Walnut Venture Associates. http://tcrn.ch/2kivoeC

More M&A

• Connect Group (LSE: CNCT), a British parcel delivery and newspaper distributor, has agreed to sell its education and care unit to RM PLC (LSE: RM) for £56.5 million. http://reut.rs/2jY8jz6

• DCC (NYSE: DCC) has agreed to acquire the retail fuel station network of Esso Norge, the Norwegian unit of Exxon Mobil (NYSE: XOM) for approximately $293 million. http://reut.rs/2ljnbVg

• The London Stock Exchange has offered to divest its French clearing business, in an effort to gain regulatory approval for its proposed merger with the Deutsche Boerse. http://bit.ly/2jXF0bd

• Three UK, a subsidiary of CK Hutchison Holdings, has agreed to acquire smaller British broadband carrier UK Broadband for £300 million (including £250m upfront) from PCCW (HK: 8). http://tcrn.ch/2kjgKUh


• Boost VC, a San Mateo, Calif.-based firm led by Adam Draper, has secured $29 million of a $55 million-targeted third fund, per an SEC filing. http://bit.ly/2llh975

• Bregal Sagemount has closed its second private equity fund with $960 million in capital commitments. www.sagemount.com

• CITIC Capital has closed its third Japan-focused buyout fund with around $267 million in capital commitments.

• Frontline Ventures, a European VC fund focused on seed-stage B2B companies, has closed its second fund with €60 million in capital commitments. http://tcrn.ch/2liUZl6

One Equity Partners has closed its sixth middle-market private equity fund with $1.65 billion in capital commitments. www.oneequity.com

It's Personnel

• Michael Anstey has joined UK-based Cambridge Innovation Capital as an investment director focused on healthcare opportunities. He previously was a Toronto-based principal in the healthcare practice of Boston Consulting Group. www.cicplc.co.uk

• Chase Brogan has joined TSG Consumer Partners as a principal. He previously led corporate development for direct marketing company Guthy|Renker. www.tsgconsumer.com

• Neeraj Chandra has left Tiger Global Management, which he had joined Tiger in 2004 from Goldman Sachs. Fortune reports that he may be prepping a new fund. http://read.bi/2jMY6AB

• Martin Hauge has joined European growth equity firm Frog Capital as non-executive chairman. He previously was a partner with Nordic VC firm Creandum. http://bit.ly/2lhtsBA

Ashley Johansen has joined Monomoy Capital Partners as a managing director and head of IR and fundraising. She previously was a partner with Coller Capital. Monomoy also has promoted Lee Mlotek from VP to director and added Kelly Meyers (ex-Grant Thornton) and Rick Key (ex-Toyota and Pon Material Handling) to its operating group. www.mcpfunds.com

• Rezwan Pavri has joined Wilson Sonsini Goodrich & Rosati as a Palo Alto-based partner in the firm's corporate practice. He previously was a partner in the technology and life sciences group at Goodwin Procter. www.wsgr.com

Final Numbers: Apollo's permanent capital AUM
Dan Primack