term sheet

By Dan Primack
September 1, 2016

Random Ramblings

Last week in discussing the current state of daily fantasy sports sites, we mentioned that DraftKings had quietly raised a new round of funding within the past month. Now we have more details.

The new round comes in at a whopping $153 million, and includes new investors like Revolution Growth (co-founded by Steve Case and Washington Capitals and Wizards owner Ted Leonisis). Steve Murray, who recently joined Revolution from SoftBank Capital, will join the DraftKings board of directors.

No specifics on valuation but, as we previously reported, it’s a down-round at a steep discount to the approximately $2 billion post-money mark that DraftKings was afforded late last summer.

Existing investors include Accomplice, DST Global, FirstMark Capital, GGV Capital, The Kraft Group, The Raine Group and Wellington Management. Certain sports leagues, including Major League Baseball, also hold small equity stakes.

Both DraftKings and Revolution confirmed the round to Fortune.

“Revolution Growth is a tremendous new partner for DraftKings, with an entrepreneurial outlook and spirit of innovation that meshes perfectly with the culture of our company,” said DraftKings co-founder and CEO Jason Robins.

Revolution’s Murray added: “Building a business is never easy, especially one that is leading the creation of a new marketplace, but Revolution has the expertise to help entrepreneurs execute on their ideas, especially where sports and policy intersect.”

• Update: Back in March we reported on how Emily White, a former top exec with both Snapchat and Instagram, had launched a personal concierge startup called Mave. But the company shut down in early June, per White, due to a personal health issue. Investor money was returned.

• Your turn: Interested in LP thoughts on the issue of preferential PE co-investment opportunities afforded to larger LPs, including related to disclosure and/or lack thereof. My brush-off of this issue yesterday caused some heated reader feedback, and I’m interested in more insights.

• Correction: Yesterday we reported that Midwest-focused VC firm Drive Capital had closed on around half of a $300 million-targeted second fund. Turns out the entire thing is closed. The confusion, based on a regulatory filings, relates to the fact that Drive technically created two separate vehicles at the request of certain tax-exempt LPs, who were concerned about UBIT tax implications of being in a partnership that occasionally invests in LLCs (Drive did two such deals out of its first fund).


THE BIG DEAL

• Infoblox Inc. (NYSE: BLOX), a Santa Clara, Calif.-based provider of network control and security solutions, has launched a process to sell the company, according to Reuters. Earlier this summer, the company had hired Morgan Stanley to defend against activist investors like Starboard Value. Takeover suitors are expected to include Thoma Bravo, while Infoblox’s current market cap is around $1.2 billion. Read more.


VENTURE CAPITAL DEALS

• Sense, a Boston-based home energy usage and awareness platform, has raised $14 million in Series A funding. Shell Technology Ventures and Energy Impact Partners co-led the round, and were joined by seed backers Capricorn Investment Group, Prelude Ventures, CRV and Bolt. www.sense.com

• RedShelf, a Chicago-based digital content platform for higher education, has raised $4 million in Series B funding. Coniston Capital led the round, and was joined by the National Association of College Stores. www.redshelf.com

• Aromyx, a Palo Alto, Calif.-based developer of “technology that captures the human sensory experience of taste and scent,” has raised $3.6 million in VC funding via the Propel(x) platform. Backers include Oriza Ventures, TEEC Angel Fund and individual angels. www.aromyx.com

• Renoviso, a Boston-based recommendation engine for home renovation professionals, has raised $3.5 million in new VC funding. Bessemer Venture Partners led the round, and was joined by return backers RRE Ventures and NextView Ventures. Read more.

• Cordata Healthcare Innovations LLC, a Cincinnati-based specialty care coordimnation platform, has raised just under $3 million in Series A funding (including convertible note conversion). First Health Capital Partners led the round, and was joined by seed backer CincyTech. www.cordatahealth.com

• Mux, a San Francisco-based developer of performance analytics for video developers and media publishers, has raised $2.8 million in seed funding. Backers include SV Angel, Lowercase Capital, Susa Ventures, Liquid 2 Ventures, Advancit Capital, Pathbreaker Ventures, Y Combinator and individual angels. www.mux.com

• Micrima, a UK-based breast imaging startup, has raised £2.6 million in VC funding. Backers include Technology Venture Partners, Swarraton Partners, Angel CoFund, University of Bristol Enterprise Fund and individual angels via the Venture Founders platform. www.micrima.com/


PRIVATE EQUITY DEALS

• American Industrial Partners has acquired Gerber Technology, a Tolland, Conn.-based provider of software, automation and vision systems for the apparel, graphics and packaging markets. No financial terms were disclosed. The seller was Vector Capital. www.gerbertechnology.com

• Arrow Business Communications, a British telecom provider, has raised an undisclosed amount of equity funding from Growth Capital Partners. www.arrowcommunications.co.uk

• C3 IoT, a full-stack IoT development platform founded by by Thomas Siebel, has raised an undisclosed amount of equity funding from TPG Growth. A source familiar with the deal says that the round is for $60 million. www.c3iot.com

• General Electric (NYSE: GE) has completed the sale of its commercial lending and leasing business in India to a group of former GE Capital executives who were sponsored by AION Capital Partners. No financial terms were disclosed. www.ge.com

• New Mountain Capital Partners is merging two portfolio companies focused on the performance materials space: Avantor Performance Materials (Center Valley, Penn.) and NuSil Technology LLC (Carpintera, Calif.). The combined company will operate under the name Avantor. www.avantormaterials.com


IPOs

• There is no IPO news this morning.


EXITS

• Ardian has hired J.P. Morgan to find a buyer for Schustermann & Borenstein GmbH, a German fashion maker and seller of designer clothes, according to Bloomberg. The deal could be valued at around €700 million. Read more.

• Genstar Capital has hired William Blair & Co. to find a buyer for Tecomet Inc., a Wilmington, Mass.-based contract manufacturer for the medical device and aerospace industries, according to Reuters. The deal could be valued at more than $1 billion (including debt). Read more.


OTHER DEALS

• Areva (Paris: AREVA) has rejected a non-binding offer from General Electric (NYSE: GE) for Areva’s offshore wind power assets that are part of a joint venture with Spain’s Gamesa, according to Reuters. Read more.

• Caroussel, a Singapore-based mobile classifieds startup that recently raised $35 million in Series B funding, has acquired Watch Over Me, a Malaysia-based safety app primarily for women. No financial terms were disclosed. Carousel investors include Rakuen, Sequoia Capital, Golden Gate Ventures and 500 Startups. Read more.

• Deutsche Bank and Commerzbank senior executives reportedly held talks earlier this month on a merger of the two banks, which are the largest in Germany. The discussions are no longer active. Read more.

• Fosun International of China is in talks to acquire an equity stake in Russian investment bank Renaissance Capital, according to Reuters. Read more.

• The U.S. Department of Justice has filed an antitrust lawsuit to block Deere & Co. (NYSE:DE) from purchasing the Precision Planting farm equipment business of Monsanto Co. (NYSE: MON) Read more.

• Ve Interactive, a London-based ad tech company, has acquired Optomaton, a Copenhagen-based provider of a video demand side platform, for €5.13 million in cash and stock. www.veinteractive.com


FIRMS & FUNDS

• Hyde Park Venture Partners has closed its second fund with $65 million in capital commitments. Read more.

• Kayne Anderson Capital Advisors has raised $1.55 billion for a new fund that will partner with management teams to acquire and developer large, long-life producing oil and gas assets in North America. www.kaynecapital.com

• Peninsula Capital Partners, a Detroit-based subordinated debt firm, has closed its sixth fund with $402 million in capital commitments. Read more.

• TPG is planning to target more than $4 billion for its seventh Asia-focused buyout fund, according to Reuters. The firm’s sixth Asia fund was closed with $3.3 billion in 2014. .


MOVING IN, ON & UP

• Gilde Buy Out Partners has named Karl van de Paer as head of investor relations and co-investments. He has been a partner with the firm since early last year and, before Gilde, he was a vice president with Catterton Partners. www.gilde.com

• Nick Luckock has joined British private equity firm HgCapital as a partner and member of its services team. He previously was a partner with Actis. www.hgcapital.com

• Lisa Pinsley has joined Actis as a Johannesburg-based director on the private equity firm’s energy team. She previously was a director with American Capital Energy & Infrastructure. www.act.is

• Oliver Rochman has joined law firm Morrison & Foerster as a London-based partner focused on fund formation. He previously was with Proskauer. www.mofo.com

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