Venture capital's distribution drought isn't parching all employees of VC-backed companies, thanks to a growing number of stock tenders.

By the numbers: Tender activity climbed 44% year-over-year in Q3 2024, according to new data from Carta, which is one of the largest startup equity and VC fund administrators.

• There were 26 such offers via Carta last quarter, the highest quarterly total in over two years.

Zoom in: Earlier-stage companies are getting in on the act, representing about half the recent volume.

• That's quite different from 2021, for example, when over 80% of the offering came from companies that were Series C or later.

Coming attractions: The new Carta data doesn't include the massive $1.5 billion tender that OpenAI just signed with SoftBank, which applies to current and former employees so long as they have at least two years of tenure.

• Nor the one announced today by Veeam. Nor the one that Databricks is said to be prepping.

The big picture: This feels like venture capital exacerbating its own problem. Yes, some of these tenders help early investors get liquidity, but the real upshot is to let IPO-skittish founders stay private longer.

• Carta, however, views it a bit differently, pointing out that there is historical correlation between tenders and IPOs, suggesting that an IPO boom could be a year or two away. On the other hand, that history dates back to just after the Great Financial Crisis.

The bottom line: There are willing buyers and willing sellers, and no reason to expect that dynamic to change any time soon.

7-Eleven parent company Seven & i Holdings (Tokyo: 3382) would launch an IPO for its North American business, as part of a proposed $58 billion management buyout, per Bloomberg.

Why it's the BFD: This begins to explain how Seven & i management plans to finance its bid, as Canadian rival Alimentation Couche-Tard continues to circle (or Circle K, as the case may be).

Details: The IPO could raise more than $6 billion, with Seven & i to retain an ownership stake. It would include not only 7-Eleven locations in North America, but also Speedway and Sunoco gas stations.

• Speedway is particularly notable here, since Seven & i outbid Couche-Tard for the company in 2020.

Look ahead: Both sides await a recommendation from Seven & i's board, which may still opt for independence.

• Veeam, a Seattle-based data resiliency firm, signed a $2b secondary share sale at a $15b valuation. TPG led, and was joined by Temasek and Neuberger Berman Capital Solutions. axios.link/4igUlSD

• Lumin Digital, a San Ramon, Calif.-based digital banking provider, raised over $160m from Light Street Capital, NewView Capital and Partners Group. axios.link/3Zmi9f0

🌎 Heirloom, an SF-based direct air capture company, raised $150m in Series B funding. Future Positive and Lowercarbon Capital co-led, and were joined by Japan Airlines, Mitsubishi (Americas), Mitsui, Siemens Financial Services, and H&M Group. axios.link/3OLrN5X

🚑 Maze Therapeutics, a South SF-based human genetics biotech, raised $115m in Series D funding. Frazier Life Sciences and Deep Track Capital co-led, and were joined by Janus Henderson Investors, Logos Capital, Third Rock Ventures, Arch Venture Partners, and Matrix Capital Management. axios.link/49t6Giv

• Vastu Housing, an Indian home financing startup, raised $100m from Prosus at around $1.2b valuation. axios.link/41fchqA

🚑 Antag Therapeutics, a Danish developer of obesity drugs, raised €80m in Series A funding. Versant Ventures led, and was joined by Novo Holdings, SR One, Dawn Biopharma, Pictet, Longview Ventures, and the Export & Investment Fund of Denmark. axios.link/49t72FR

• Mintifi, an Indian B2B supply chain financing firm, raised $79.9m from Prosus at a $750m valuation. axios.link/41fchqA

🚑 Soda Health, an Arkansas-based benefits-matching startup, raised $50m in Series B funding. General Catalyst led, and was joined by ex-Humana CEO Humana CEO, Bruce Broussard and insiders Lightspeed Venture Partners, Define Ventures, Qiming Venture Partners USA, and SVB Capital. axios.link/4igP6lU

• Cofactr, a New York-based supply chain and logistics management platform for hardware manufacturers, raised $17.2m in Series A funding. Bain Capital Ventures led, and was joined by YC, Floating Point Ventures, Broom, and DNX. cofactr.com

• Cake, a New York-based AI infrastructure platform, raised $10m in seed funding led by Gradient Ventures. axios.link/41gE4a8

🚑 Refoxy Pharma, a German biotech focused on age-related diseases, raised €9.1m in seed extension funding. BIVF led, and was joined by Apollo Health Ventures, NRW Venture, and High-Tech Gründerfonds. axios.link/3OGd50m

• System Two Security, a Palo Alto, Calif., cybersecurity startup focused on GenAI-powered attacks, raised $7m. Costanoa Ventures led, and was joined by Runtime Ventures, The Hive, and Webb Investment Network. systemtwosecurity.com

• StretchDollar, a small business insurer, raised $6m. Fika Ventures and Oscar Health co-led, and were joined by Precursor Ventures and Springbank. stretchdollar.com

• Bounce Insights, an Irish market research firm, raised $4.5m. ACT VC led, and was joined by Irrus Investments, Enterprise Ireland, and Digital Irish Venture Fund. axios.link/3ZFAPbi

• Nurture Boss, a Scottsdale, Ariz., provider of virtual assistants for multifamily housing marketing, raised $4m in Series A funding. AZ-VC led, and was joined by PHX Ventures and In Revenue Capital. nurtureboss.io

• Talentium, a Swedish hiring platform, raised €3.5m in seed funding led by EQT Ventures. axios.link/3CYLTqY

🌎 FireDome, an Israeli developer of autonomous cannons that shoot flame retardant at approaching wildfires, raised $3m in pre-seed funding. Third Sphere and Gravity Climate co-led, and were joined by Atooro Fund, Caesar Fund, and Vertex Ventures. axios.link/4ikdq6w

• Stackfix, a London-based software testing and reviews platform, raised $3m in seed funding. Chalfen Ventures led, and was joined by Seedcamp and helloworld. axios.link/3Zy7nng

🚑 Offcall, a career platform for physicians, raised $2m in seed funding co-led by Bloomberg Beta and Roar Ventures, per Axios Pro. axios.link/4eX2k4d

• OpenPad AI, Singaporean decentralized investment data business, raised $2m led by Basics Capital. openpad.io

• Freckle, an SF-based data enrichment and research platform for non-technical users, raised $1.9m in pre-seed funding. Asymmetric Capital Partners led, and was joined by Brenteca Investments, Mintaka VC, CoVentures, and Polaris Ventures. axios.link/3CTre7w

• AE Industrial Partners sold Kellstrom, a Davie, Fla.-based aerospace engine aftermarket company, for $200m to VSE (Nasdaq: VSEC). kellstromaerospace.com

🌎 Align Capital Partners acquired MKB Co., a Belleville, Pa., maker of erosion control, pollution prevention and stormwater management products. mbkcompany.com

⚽ Bruin Capital has merged previously acquired three soccer representation firms, and added a fourth, Football Division Worldwide, into a single agency called As1. axios.link/4f1uXNT

• FTV Capital invested in Arden, an insurer for residential condominium associations. ardeninsure.ai

• General Atlantic agreed to buy British corporate training firm Learning Technologies Group (LSE: LTGL) for £802.4m. axios.link/4fXB8Uv

• Gersh, a Beverly Hills-based talent agency backed by Crestview Partners, acquired You First, a Madrid-based sports and entertainment agency. axios.link/4f0bVao  

• Omers Private Equity agreed to buy a majority stake in Ingtegris, a Cranbury Township, N.J.,-based cybersecurity and IT consulting firm, from Frontenac Co. axios.link/3Zkgh6B

• Sojourner Consumer Partners acquired a majority stake in roaster Hawaii Coffee Co. axios.link/41hCTY8

• Sylmar Group, an LA industrial water services company backed by Westerly Group, acquired Eastern Technologies, a Morgantown, Pa., provider of chemical blending for industrial water treatment. sylmargrp.com

• Thoma Bravo acquired a majority stake in USU Product, a German provider of IT management solutions. usu.com

⚡ Tavia Acquisition, an energy transition SPAC, raised $100m in its IPO. axios.link/4eZOOwS

• Carlyle may revive its sale process for seaplane operator Trans Maldivian Airways, per Bloomberg. Other owners include King Street Capital Management and Davidson Kempner Capital. axios.link/3ZgLDuZ

⚡ Crescent Energy (NYSE: CRGY) agreed to pay $905m for Eagle Ford Basin assets from Ridgemar Energy, a portfolio company of Carnelian Energy Capital. axios.link/4imUiF0

• GXO Logistics (NYSE: GXO), a supply chain services firm that spun out of XPO (NYSE: XPO) in 2021, rebuffed acquisition offers and plans to remain independent, per Bloomberg. axios.link/3ODmKob

• JC Flowers and QIA hired Evercore to explore a sale for U.K. specialty insurer Inigo, which could fetch up to £2b, per Bloomberg. axios.link/49o5mNG

• Klar, Mexican fintech that's raised around $250m in VC funding, agreed to buy most assets of Tribal, an SMB payments startup whose backers include SoftBank, per Axios Pro.

• Pactiv Evergreen (Nasdaq: PTVE) is weighing a takeover offer for Novolex, a Hartsville, S.C.-based packaging firm owned by Apollo Global Management, per Bloomberg. axios.link/3ZC8Uc2

🍦 Peak Rock has pulled ice cream maker Turkey Hill off the auction block, per Axios Pro.

• Salesforce (NYSE: CRM) disclosed that it paid $344m in its recent acquisition of Zoomin, an Israeli technical documentation development platform that had raised over $70m from Salesforce Ventures, General Atlantic, Bessemer Venture Partners, and Viola Growth. axios.link/3Vn0gvy

⚡ TotalEnergies (Paris: TTEF) agreed to buy German renewables developer VSB Group from Partners Group for €1.57b. axios.link/3CYLm8u

• TPG is weighing a sale process for gym chain Crunch Fitness, which could fetch more than $1.5b (including debt), per Reuters. axios.link/4ihnddr

⚡ Aramco acquired a 10% stake in Horse Powertrain, a Spanish developer of hybrid and internal combustion powertrains. axios.link/3Zh16LC

⚡ MARA (Nasdaq: MARA), a Bitcoin miner, bought a North Texas wind farm from a joint venture between National Grid and Washington State Investment Board. axios.link/41i2NuB

• ThredUp (Nasdaq: TDUP) is unloading its European business via a management buyout. axios.link/3ZhD8Qc

• Vodafone (Nasdaq: VOD) is seeking to raise as much as $335m from the sale of its remaining stake in India's Indus Towers. axios.link/4giBsgb

🚑 BioRock Ventures, which focuses on therapeutics startups, is raising $60m for its second fund, per an SEC filing.

• Sixty8 Capital of Indianapolis is raising up to $40m for its second fund, per an SEC filing. sixty8.capital

• Jennifer Nason is retiring as global chair of investment banking at JPMorgan Chase, and will join the board of Accenture. axios.link/3CUlw5r

• Brian Singerman is stepping down as a general partner with Founders Fund, where he'll become a partner emeritus. No word yet on his future plans. The move does not trigger a keyman for the VC firm's ninth fund, as three of its five general partners remain.

• Yukon Partners promoted Troy Mertins to VP. axios.link/3B90dwz

President-election Trump on Monday vowed to block Nippon Steel's proposed $15 billion acquisition of U.S. Steel, in his first comments on the deal since being elected.

• But it may not be up to him.

State of play: President Biden, who also has said he opposes the merger, is awaiting a CFIUS recommendation.

• If CFIUS opposes, then Biden would be the blocker. If it doesn't, then Biden doesn't really have a legal leg to stand on and Nippon would close the deal by year-end.
• The incoming administration's CFIUS, likely chaired by Scott Bessent, could demand the deal be unwound — although that's a very heavy lift and still wouldn't "block" the actual merger.