Term Sheet — Wednesday, November 1

Nov 02, 2016

Et cetera

Money in the Bank: Yesterday’s Term Sheet included a last-minute deal announcement that deserves a little extra attention today: Battery Ventures, Andreessen Horowitz and Ribbit Capital invested $28 million in Cross River Bank.

As the company’s name suggests, Cross River isn’t a hot fintech startup working out of a WeWork in SoMa. It’s a boring old FDIC-insured, deposit-taking community bank. It is eight years old and has a single branch in Teaneck, New Jersey.

So why would three venture firms throw so much money at a bank? Well, they think Cross River can become the next Bank of America. As WSJ and others reported yesterday, the bank is doing some interesting partnerships with companies like Stripe and Mastercard, as well as online lenders.

But there’s one key element that wasn’t reported in yesterday’s announcement: Cross River is stealthily building a brand-new “next generation” consumer bank.

It’s called Almond Bank, and its run by Ben Weiss, who was most recently entrepreneur-in-residence at Two Sigma Ventures. Prior to that he did business development at Opera Solutions and StockTwits.

A Cross River rep declined to share any more information about Almond Bank, but from what I understand, it’s meant to be an innovative “bank within a bank.” Based in New York, the division has been in the works for about a year. LinkedIn lists around ten employees.

One source described Almond as “if BBVA had incubated Simple instead of buying it.” You remember Simple: It was meant to be a new kind of bank with no branches and no ATM fees. It even marketed itself as an “anti-bank.” But it was plagued by outages and glitches, which led to lots of toldja-sos. (“This is what happens when your bank is an app!”) When it comes to money, trust will always trump good UX. Simple eventually sold to BBVA in 2014, and it has stayed quiet since. From the looks of it, Almond aims to pick up where Simple left off.

White House to Sand Hill Road: President Obama has hinted he would like to dabble in venture capital once he’s out of office. Many bold-faced names on his staff have already taken jobs at startups or tech giants, including David Plouffe, Lisa Jackson, Eric Holder, Ryan Metcalf, Nick Shapiro, and Demetrios Marantis.

Here’s one more to add to the list joining a venture firm: Jay Tansey, former presidential appointee and policy advisor at the U.S. Small Business Administration, has joined North Atlantic Capital, a Portland, Maine-based venture firm focused on late-stage technology companies, as a principal.

For Your Health: Fortune’s inaugural Brainstorm Health conference is underway. Follow along with the livestream, if that’s your thing, right here. Some coverage from last night’s kick-off: We’ve been treating appendicitis wrong. Arianna doesn’t love VR, does love rest. Maria Shriver talks Alzheimer’s. How to stop pandemics. Meditating with Deepak Chopra. Shrinking drug development cycles. Replacing doctors with 3D printing and AI.

THE LATEST FROM FORTUNE.COM...

• Herbalife’s CEO steps down.

• A tepid response for Yum’s Chinese IPO.

• What it takes to become a YouTube Star.

• Ousted Barclays CEO’s next act is in fintech.

• The insider trading app.

• More potential chip industry consolidation.

• Why Mark Carney staying on for Brexit matters.

• Uber partners with Lyft’s major investor.

Alibaba earnings beat.

• Chipotle may oust founder.

• The Russian bank with ties to Trump.

• Volvo’s built-in refrigerators.

…AND ELSEWHERE

Female CEOs get blamed more than their male counterparts. How the Internet is loosening our grip on the truth. Prenups for ideas.

VENTURE DEALS

Voyager Labs, an Israeli artificial intelligence company, has emerged from stealth mode with $100 million in funding. Investors include OCAPAC Holding Company, Horizons Ventures, and angels Ronald Cohen and Lloyd Dorfman.

Biohaven, a New Haven, Conn.-based biopharmaceutical company, has raised $80 million in funding. Venrock led the round, and was joined by RA Capital Management, Vivo Capital, Aisling Capital, Rock Springs Capital, John W. Childs, Knoll Capital Management, Osage University Partners, Aperture Venture Partners, Connecticut Innovations, Greg Bailey and Litmore Capital.

Rokid, a San Francisco-based artificial intelligence and robotics smart home company, has raised more than $50 million in Series B funding at a post-money valuation of $450 million. Advantech led the round, and was joined by existing investors IDG Capital Partners and Walden International. Note: A prior edition of Term Sheet overstated the amount raised by Rokid.

Turnstone Biologics, an Ottawa-based biotech company that develops viral immunotherapies to treat cancer, has raised $41.4 million in Series B funding. OrbiMed led the round and was joined by F-Prime Capital Partners,FACIT and Versant Ventures.

• MiRagen, a Boulder-based biotech company, has raised $40 million in funding from investors including Fidelity Management and Research Company, Brace Pharma Capital, Atlas Venture, Boulder Ventures, JAFCO, MP Healthcare Venture Management, MRL Ventures, and Remeditex Ventures. MiRagen also announced has agreed to merge with Signal Genetics, a Carlsbad, Calif.-based molecular diagnostic company.

Paktor, a Singapore-based Tinder-like dating app, has raised $32.5 million  K2 Global and MNC Media Group led the round.

Classy, a San Diego-based crowdfunding platform for social enterprises, has raised $30 million in Series C funding. JMI Equity led the round and was joined by Bullpen Capital, Galileo Partners, Mithril Capital Management, and Salesforce Ventures.

ConcertoHealth, an Irvine, Calif.-based provider of healthcare services for seniors, has raised $30 million in a round led by Aboretum and Deerfield Management Company.

Axonify, an Ontario-based company that builds gamified training platforms for employees, has raised $27 million in Series C funding. JMI Equity led the round and was joined by BDC IT Venture Fund, BDC Capital’s VC arm.

Relayr, a Berlin-based startup creating Internet of Things technology for industrial customers, has raised $23 million in funding. Munich Re/HSB Ventures led the round, and was joined by Kleiner Perkins Caufield & Byers, and Munich Venture Partners.

uBiome, a San Francisco-based consumer microbial sequencing company, has raised $22 million in Series B funding, according to TechCrunch. 8VC led the round, and was joined by Slow Ventures, StartX, and angel investors. Read more.

Atlas Informatics, a Seattle-based digital content organization company founded by Napster cofounder Jordan Ritter, has raised $20.7 million in funding. Investors include Microsoft, Nathan Myhrvold, and Aspect Ventures. The company also announced the launch Atlas Recall, a new product that allows consumers to build a cross-platform searchable index of their digital activity.

Interana, a Redwood City, Calif.-based behavioral analytics company, has raised $18 million in funding in a round led by Vertex Ventures led the round, with participation from Battery Ventures, Data Collective, Allen Company, Fuel Capital, and Index Ventures.

Teforia, a Mountain View, Calif.-based smart tea infuser and app, has raised $12 million in Series A funding. Translink Capital led the round, and was joined by Upfront Ventures, Lemnos Labs, Mousse Partners, and Correlation Ventures.

ValiMail, a San Francisco-based automated email authentication service, has raised $12 million in Series A funding. Shasta Ventures led the round, and was joined by Flybridge Capital and Bloomberg Beta.

Spongecell, a New York City-based ad tech company, has raised $10.5 million in a combination of equity and debt financing. Existing investor Safeguard Scientifics participated, and was joined by venture debt company Pivotal Capital.

Ando, David Chang’s New York City-based delivery-only restaurant, has raised $7 million in Series A funding. Forerunner led the round, and was joined by BoxGroup, Wildcat Venture Partners, and angel investors including Jimmy Fallon, Aziz Ansari, and William Lauder.

Genos Research, a San Francisco-based consumer genome sequencing startup, has raised $6 million in funding from NantWorks, a Los Angeles-based network of digital healthcare and media companies founded by billionaire pharma executive Patrick Soon-Shiong.

AirPR, a San Francisco-based analytics company that measures the impact of PR efforts, has raised $5 million in Series B funding. Storm Ventures led the round, with participation from Salesforce Ventures, Mohr Davidow, and Correlation Ventures.

Fleetsmith, a San Francisco-based startup that makes computer management tools for small and medium businesses, has raised $3.1 million in seed funding. Index Ventures and Harrison Metal led the round, and was joined by angel investors including Dropbox co-founder Arash Ferdowsi.

PeerWell, a San Francisco-based mobile platforms for patients preparing for and recovering from surgery, has raised $2.1 million in seed funding in a round led by XSeed Capital.

Avizia, a Reston, Va.-based a telehealth company, has closed its Series A rounding, adding $6 million to the $11 million it raised in July for a total of $17 million. HealthQuest Capital led the round, and was joined by NewYork-Presbyterian.

PRIVATE EQUITY DEALS

Salt Creek Capital has acquired Extranomical Adventures, a San Francisco-based tour company. Financial terms were not disclosed.

Bridgepoint Development Partners has acquired Inspiring Learning, a U.K.-based educational tour company.

LNC Partners has invested an undisclosed amount in OutSolve, a consulting firm for federal contractors.

Peak Rock Capital has acquired Lew’s Fishing, a Springfield, Miss.-based fishing gear supplier.

Bertram Capital has invested in Trademark Games Holdings, a Lorain, Ohio-based wholesale distributor.

JMI Equity has invested in AutomotiveMastermind, a New York City-based predictive analytics and marketing automation software provider for the automotive industry.

Strattam Capital has agreed to invest in Contegix, a Saint Louis-based IT hosting company.

OTHER DEALS

Broadcom, a Singapore-based chipmaker, said it would acquire network gear maker Brocade for $5.5 billion in cash, or $12.75 per share, 46.7% above Brocade's Friday close. Read more at Fortune.

Valeant Pharmaceuticals International is in talks to sell Salix Pharmaceuticals, its stomach drug business, to the Japanese pharmaceutical giant Takeda for around $10 billion, the Wall Street Journal reports. Valeant acquired Salix less than two years ago for about $11 billion. Read more.

Angie’s List, an Indianapolis-based publicly traded local services marketplace and review site, said it is exploring ‘strategic options’ after reporting a loss for a third quarter. Last year, it rejected an unsolicited $512 million buyout offer from IAC/Interactive Corp.

IPOS

GDS Holdings, a China-based provider of data centers, has priced its IPO below the expected range of $12 to $15 at $10 per share. The company will raise $192.5 million. Credit Suisse, J.P. Morgan, Citigroup Global Markets Inc., RBC Capital Markets, LLC and China Renaissance Securities are joint book-running managers. Shareholders include ST Telemedia (45.1% pre-IPO stake), SB China Venture Capital (18.1%) and Ping An Insurance (9.9%)

EXITS

Fulcrum Equity Partners and Level Capital Partners have recapitalized CarePlus Medical Corporation, a senior credit company.

Wasena Capital Management and Millpond Equity Partners have recapitalized Science First, a Yulee, Fla.-based-based designer, manufacturer, and distributor of science education equipment and supplies.

Audax Private Equity has acquired Mobileum, a San Jose, Calif.-based mobile financial services startup, whose backers include DCM Ventures, Shelter Capital Partners, and T-Mobile. Financial terms were not disclosed.

Spotify has acquired Preact, a San Francisco-based cloud service that helps companies acquire and retain customers. Preact has raised $12.3 million from investors including Trinity Ventures, Root Ventures, Atlas Venture, Bee Partners, Boldstart Ventures, Karlin Ventures, Harmony Partners and Launchpad LA.

FIRMS + FUNDS

Kensington Capital Partners, the manager of BC Tech Fund, has invested in Vanedge Capital II, a Vancouver-based venture capital fund focused on technology companies in cloud and Infrastructure, SaaS, cybersecurity and digital media.

NEW JOBS

Daniel Schultz has joined Webster Capital as vice president of business development, while Alicia Alexander has been promoted to vice president of the consumer group at the private equity firm. Schultz was previously director of business development at Capstone Partners.

Michael Drai and Kim Vender Moffat have both been promoted to managing director at Sterling Partners. Moffat joined the private equity firm in 1999, and Drai in 2008.

Robbie Radant has joined Matrix Capital Markets Group as a director, where he’ll head the firm’s new Dallas office. He was previously vice president of mergers and acquisitions at 7-Eleven.

SHARE TODAY'S TERM SHEET

http://fortune.com/newsletter/termsheet

Term Sheet is produced by Laura Entis. Submit deal items here.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions