GGV Capital this morning will announce that it has raised $1.25 billion for a pair of new funds, including $900 million for its sixth flagship and $250 million for a new “discovery” fund that will focus on seed and Series A opportunities. Expect both funds to begin calling capital late this summer.
A few notes, based on a conversation with GGV partner Hans Tung:
* No major changes to investment strategy, which means backing early and growth-stage mobile, SaaS and commerce tech companies in the U.S. and China. Expect a bit more focus on IoT this time around, plus greater attention being paid to “Tier 3-5 cities” in China (i.e., more rural areas).
* Tung acknowledges that China’s economic growth is slowing, but says that it is offset for firms like GGV by the rapid shift from offline to online. Not only on the consumer side, but also on the B2B side (suppliers coming online, etc.).
* Tung also thinks that still-private unicorns will respond to the flagging IPO market by merging with one another and/or with public companies. It’s something we’ve already seen in China, and Tung believes the trend will soon come stateside.
• Disturbance at the Harren house: Harren Equity Partners, a Virginia-based middle-market private equity firm, has quietly said goodbye to two of the four general partners on a $275 million third fund raised in $275 million. Gone are George Urban, who had been with the firm since 2001, and Jonathan Earnhardt, who had joined in 2002.
The firm didn’t respond for comment, but its website suggests that the pair have been replaced in the partnership ranks by George McCabe, who joined last year from Pine Creek Partners, and C. Taylor Cole, a former Charterhouse Group investor who joined as a strategic advisor in 2014.
• Academia: Yes, I know a lot of you are questioning Yale University’s claim to have generated a 93% annual return from its endowment’s venture capital portfolio over the past 20 years. Particularly given that it simultaneously claims an 18% return over the past decade and a 33.8% return since the program was formed in 1976.
Clearly the 93% is not a compounded figure, since that would mean that Yale’s venture capital portfolio would be valued higher than the U.S. GDP. It’s most likely a dollar-weighted number that relies heavily on the dotcom era (as opposed to a time-weighted figure), but I’m still waiting for details from Yale (which, so far, has not been terribly forthcoming). One thing that makes the calculations particularly tough is that Yale didn’t used to break out venture capital from “private equity” in older annual investment reports…
• Update: We reported in February that Tim Draper was raising between $150 million and $180 million for a new seed and early-stage fund under the Draper Associates brand, which he planned to co-manage with son Billy. Tim would commit $50 million to the effort, which was the first outside fundraising for Draper Associates (which historically has operated as a family office).
Yesterday came official word that the fund is closed with a total of $190 million in capital commitments. In addition to Tim and Billy Draper, the money will be invested by Andy Tang, the Draper University CEO who co-founded DFJ Dragon Fund and was a managing director of ABB Technology Ventures.
• Winner’s circle: As I mentioned yesterday, the winning team from this year’s VCIC International Finals came from the BYU Marriott School. But I neglected to name the actual team members, so big congrats to: Jono Castleton, Jorge Montalva, Brad Hoke, Erika Nash and Doug Hicken. If you’re a VC firm in search of some new talent, check them out…
THE BIG DEAL
• Alibaba Group has invested $1 billion into Lazada, an Indonesia-based e-commerce platform, at a $1.5 billion valuation. The deal includes $500 million in new equity, and secondary purchases from such existing Lazada shareholders as Rocket Internet (selling 9.1% for $137m), Tesco (selling 8.6% for $129m) and Kinnevik (selling 3.8% for $57m) — each of which will retain around half of their positions. Read more.
VENTURE CAPITAL DEALS
• Livongo Health, a Mountain View, Calif.-based digital health startup focused on managing chronic conditions like diabetes, has raised $44.5 million in Series C funding. Investors include Merck Global Health Innovation Fund, Cowen Private Investments, Sapphire Ventures, Zaffre Investments, Wanxiang America and return backers General Catalyst, Kleiner Perkins Caufield & Byers, DFJ and 7wire Ventures. www.livongo.com
• Datera, a Mountain View, Calif.-based block data storage startup, has raised $40 million in first-round funding. Backers include Khosla Ventures, Samsung Ventures, Andy Bechtolsheim, and Pradeep Sindhu. Read more.
• Altitude Digital, a Denver-based programmatic video platform, has raised $17.5 million in new equity and debt financing from Multiplier Capital and Bridge Bank. www.altitudedigital.com
• iSTAR Medical SA, a Belgium-based developer of ophthalmic implants for the treatment of glaucoma, has raised €10 million in Series B funding. The Belgian Federal Investment Fund and Fond Européen des Matériaux were joined by return backers Capricorn Venture Partners and Walloon Region Investment Fund. www.istarmed.com
• Testlio, a San Francisco-based mobile app testing startup, has raised $6.25 million in Series A funding co-led by Altos Ventures and Vertex Ventures. www.testlio.com
• CropX, an Israeli developer of sensor-based irrigation solutions, has raised an undisclosed amount of VC funding from Robert Bosch Venture Capital and Flex. Read more.
• MediQuire, a New York-based provider of data analytics for improving Medicaid patient outcomes, has raised an undisclosed amount of Series A funding led by FCA Venture Partners. www.mediquire.com
PRIVATE EQUITY DEALS
• Complete Merchant Solutions, an Orem, Utah-based provider of electronic payments solutions for merchants, has raised an undisclosed amount of private equity funding from GCP Capital Partners, Western Heritage Capital and Performance Equity Management
• EveryBodyFights, a new boxing fitness brand co-founded by George Forman, has raised an undisclosed amount of equity funding from Breakaway. www.everybodyfights.com
• Eurazeo and Mérieux Développement have agreed to acquire a majority equity stake in Novacap, a French chemicals group, from Ardian (which will retain a minority position). The deal values Novacap at €654 million, plus an earn-out for Ardian of up to €30 million. www.novacap.eu
• Greybull Capital has agreed to acquire the European long steel products unit of India’s Tata Steel for just a single pound. This is one of three UK steelmaking facilities that Tata is seeking to divest. Read more.
• Innovative Chemical Products Group, an Andover, Mass.-based portfolio company of Audax Group, has acquired Fomo Products Inc., a Norton, Ohio-based maker of low pressure one- and two-component polyurethane foam sealant and adhesives products. No financial terms were disclosed. www.icpgroup.com
• LeverPoint Management, a Clifton Park, N.Y.-based fund administrator, has raised an undisclosed amount of equity and debt funding from Hamilton Lane and the New York Crddit SBIC Fund. www.leverpoint.com
• National Response Corp., a Great River, N.Y.-based portfolio company of J.F. Lehman & Co., has acquired Enpro Holdings Group Inc., a Newburyport, Mass.-based provider of environmental and emergency response solutions in the Northeastern U.S. No financial terms were disclosed. www.nrcc.com
• Phoenix Natural Resources LLC has launched with a $250 million equity commitment from Kayne Anderson Energy Funds. The Houston-based startup will seek to acquire oil and gas assets in North American basins, with an initial focus on the Eagle Ford. www.kaynecapital.com
• RFE Investment Partners has acquired the Path to Purchase Institute, a Chicago-based association that advocates for omnichannel retailers, brands and service providers. No financial terms were disclosed. www.p2pi.org
• AdvancePierre Foods Holdings, a Blue Ash, Ohio-based maker of ready-to-eat sandwiches and related products for retail and foodservice customers, has filed for a $100 million IPO. The company reports $46 million of net income on $1.6 billion in revenue for 2015. It plans to trade under the AdvancePierre is owned by Oaktree Capital Management. www.advancepierre.com
• Intellia Therapeutics, a Cambridge, Mass.-based gene-editing company focused on the development of medicines using CRISPR/Cas9 technology, has filed for a $120 million IPO. It plans to trade on the Nasdaq under ticker symbol NTLA, with Credit Suisse, Jefferies and Leerink Partners serving as lead underwriters. The pre-revenue company has raised in VC funding, from firms like Novartis (20.3% pre-IPO stake), Atlas Venture (17%), OrbiMed Advisors (9.3%), Fidelity (7.1%), Janus Capital Management, Foresite Capital, Sectoral Asset Management and EcoR1 Capital. www.intelliatx.com
• Midland States Bancorp Inc., an Effingham, Ill.-based regional bank with around $2.9 billion in assets under management, has filed for a $120 million IPO. It plans to trade on the Nasdaq under ticker symbol MSBI, with Sandler O’Neill and Keefe, Bruyette & Woods serving as co-lead underwriters. www.midlandsb.com
• Linden Capital Partners has agreed to sell Corpak MedSystems, a Buffalo Grove, Ill.-based maker of nasogastric and gastrostomy feeding tubes, to Halyard Health Inc. (NYSE: HYH) for $174 million in cash. www.corpakmedsystems.com
• Primus Capital and Brentwood Capital Partners is seeking a buyer for PathGroup Inc., a Brentwood, Tenn.-based provider of clinical lab and anatomic pathology testing services, according to the WSJ. PathGroup generated around $50 million in 2015 EBITDA, and MTS Health Partners is advising on its auction. Read more.
• Marathon Oil (NYSE: MRO) has agreed to sell $950 million of non-core assets, including its Wyoming midstream and upstream assets. Read more.
FIRMS & FUNDS
• Accel has closed its fifth Europe and Israel-focused venture capital fund with $500 million in capital commitments. www.accel.com
• AE Industrial Partners, a Boca Raton, Fla.-based private equity firm focused on aerospace and related industry segments, has closed its debut fund with $680 million in capital commitments. www.aeroequity.com
• Cohesive Capital Partners has closed its second fund with $384 million in capital commitments, according to Dow Jones. The New York-based middle-market private equity firm was launched in 2010 by John Barber, previously managing partner of Citi Private Equity. www.cohesivecapital.com
• Maveron, a Seattle-based VC firm, is raising upwards of $100 million for its sixth fund, according to a regulatory filing. www.maveron.com
MOVING IN, ON & UP
• Kristin Agatone has joined Lehigh University as chief investment officer of the school’s $1.2 billion endowment. She previously was a senior manager with Summit Rock Advisors, and also spent time with Harvard Management Co., TPG Capital and Goldman Sachs. Read more.
• Sean Mallon has joined George Mason University as associate VP for entrepreneurship and innovation. He previously was senior investment director for CIT GAP Funds. www.gmu.edu
• Nomura Holdings is planning to cut upwards of 1,000 jobs in Europe and North America, including its entire European equities group, according to Bloomberg. Read more.
• Versant Ventures has promoted Jerel Davis and Carlo Rizzuto to partner, and also hired Luca Santarelli (ex-Roche) as a Switzerland-based venture partner. www.versantventures.com
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