By Polina Marinova
January 5, 2018

THE BILLIONAIRE CLUB

Happy Friday, Term Sheet readers!

Uber co-founder Travis Kalanick used to boast that he had never sold a single Uber share, which emphasized his conviction that the ride-hailing giant would continue to dominate the market.

Things changed this week. Kalanick plans to sell 29% of his stake in Uber. This means the ex-CEO will sell equity worth about $1.4 billion to Japan’s Softbank Group. Kalanick had originally offered to sell as much as half of his 10% stake, but he had to pull back due to limits outlined in the agreement. One of the wealthiest people in the world on paper is now an actual billionaire.

So what now?

We’ve got an ex-CEO sitting idly on the sidelines with a billion dollars on his hands. Several sources tell Term Sheet that Kalanick will use the money to start working on another venture. In other words, it’s not likely Kalanick will make a play to come back to Uber and “Steve Jobs” it. Additionally, once the deal is finalized, a number of governance reforms will go into effect that will further reduce Kalanick’s influence at the company.

It’s unclear what Kalanick’s next move is, but it’s possible he’ll try his hand at leading a company yet again. While at the helm of Uber, he was often referred to as a ruthless CEO with no regard for the letter of the law. Many saw this as a double-edged sword — the reason for Uber’s rise and also for its downfall. When I spoke with Bradley Tusk, an early Uber investor who is still close with Travis, he said:

From working with [Kalanick], I found that he is tough and he can be a pain, but in terms of what I saw firsthand for several years…Some people will take terms like “aggressive” and turn it into “ruthless,” but in my experience, he’s the smartest client I’ve ever worked with in terms of understanding political dynamics.

It’s pretty incredible to think that it was only a year ago when Kalanick had to deal with Uber’s first massive scandal. At the time, I started an article about the #DeleteUber boycott with a sentence that proved to be the understatement of a lifetime: “Uber is not having the best start to 2017.” Little did we know what was to come. In a matter of 12 months, Uber was embroiled in sexual harassment allegations, faced a nasty legal fight with Alphabet, endured a board fight that led to Kalanick’s ousting, and appointed a new chief executive.

Let’s see what 2018 will bring. Read more at Fortune.


THE LATEST FROM FORTUNE...

• Ripple’s Cofounder Is Now One of the World’s Richest People (by Robert Hackett)

• J.C. Penney CEO Warns Sears: We’re Coming for Your Appliance Business (by Phil Wahba)

• Here’s The Dow Jones Stocks You Should’ve Invested In After Trump’s Election (by Lucinda Shen)

• Trump Offshore Drilling Plan Opens Almost Entire U.S. Coastline To Oil and Gas Companies (by Emma Hinchliffe)

• A Donald Trump Business Ally Says His Quote in Michael Wolff’s Book is Fake News (by Shawn Tully)

…AND ELSEWHERE

GoPro cuts 200-300 jobs, mostly in drone division. Mark Zuckerberg’s personal challenge for 2018: Fix Facebook. Jimmy Iovine said to leave Apple this year. David Sacks teams up with Bill Lee to raise $350 million VC fund. Intel CEO Brian Krazanich sells million in shares after learning about critical flaw. Bono-Backed Beautycounter raises $65 million. Weinstein close to sale for less than $500 million. The December jobs report misses.


VENTURE DEALS

SomaLogic, a Boulder, Colo.-based provider of health management insights, raised $200 million in funding. iCarbonX led the round, and was joined by investors including Nan Fung Life Sciences and Madryn Asset Management.

Chushou, a China-based live-stream mobile game platform, raised $120 million in funding. Google led the round. Read more at Fortune.

VillageMD, a Chicago-based national provider of primary care, raised $80 million in funding. Athyrium Capital Management led the round.

Wealthfront, a Redwood City, Calif.-based startup raised $75 million to expand its business further. Tiger Global led the round, and was joined by investors including Benchmark Capital, Greylock Partners, Index Ventures, Social Capital, and Spark Capital.

Chrome River, a Los Angeles-based provider of expense reporting and invoice management solutions, raised $35 million in funding. Investors include Argentum Group, Bain Capital, First Analysis and Great Hill Partners.

SolidEnergy Systems, a Woburn, Mass.-based develops and manufactures rechargeable lithium metal batteries, raised $34 million in Series C funding. The investors were not named.

Cityblock Health, a Brooklyn-based urban healthcare company, raised $20.8 million in Series A funding. Maverick Ventures led the round, and was joined by investors including Thrive Capital and Alphabet‘s Sidewalk Labs.

Swarm64, a Berlin and Oslo-based data acceleration company, raised $12.5 million in Series B funding. Intel Capital and Investinor led the round, and was joined by investors including Alliance Venture and Target Partners.

Frank, a New York-based company simplifying the student financial aid application process, raised $10 million in Series A funding. Apollo’s Marc Rowan led the round and was joined by Reach Capital, Aleph and Ground Up.

Concord, a San Francisco-based contract management platform, has raised $10 million in Series A funding. Charles River Ventures led the round, and was joined by investors including Alven Capital.

BondLink, a Boston-based provider of software to issuers in the municipal bond market, raised $10 million in Series A funding. Franklin Templeton Investments led the round, and was joined by investors including Coatue.

Threatcare, an Austin-based provider of cybersecurity solutions, raised $1.4 million in seed funding. Moonshots Capital led the round, and was joined by investors including Flyover Capital and Firebrand Ventures.


HEALTH AND LIFE SCIENCES DEALS

Gossamer Bio, Inc., a San Diego, Calif.-based biopharmaceutical company focused on discovering and developing new and differentiated therapeutic products to targeted patient populations, raised $100 million in funding. Investors include Omega Funds and ARCH Venture Partners.

Personal Genome Diagnostics Inc, a Baltimore-based developer of regulated tissue-based and liquid biopsy genomic products for laboratories, raised $75 million in Series B funding. Bristol-Myers Squibb and New Enterprise Associates led the round, and was joined by investors including Inova Strategic Investments, Helsinn Investment Fund, Windham Venture Partners and Maryland Venture Fund.

Neurogastrx, Inc, a Campbell, Calif.-based private biopharmaceutical company focused on developing therapies for gastrointestinal disorders affecting the enteric nervous system, raised $45 million in Series A financing. Investors include 5AM Ventures, OrbiMed Advisors and venBio Partners.

Stoke Therapeutics Inc, a Bedford, Massachusetts-based biotech company developing therapeutics that selectively increase gene expression, raised $40 million in Series A funding. Apple Tree Partners led the round.

Genome Medical, a San Francisco-based genomics medical practice, raised more than $23 million in funding. Investors include GE Ventures, Kaiser Permanente Ventures, Illumina Ventures and Canaan Partners.

Oculis, an Iceland-based developer of ophthalmic drugs, raised $20.3 million in Series B funding. Investors include Bay City Capital, Novartis Venture Fund, Pivotal bioVenture Partners, Brunnur Ventures and Silfurberg.

Themis, an Austria-based vaccine developer, raised 10 million euros ($12 million) in Series C funding. Global Health Investment Fund led the round, and was joined by investors including aws Gruenderfonds, Omnes Capital, Ventech and Wellington Partners Life Sciences.

Recros Medica Inc, a medical aesthetic device company, raised $9 million in funding. Investors include the Longwood Fund.

Acticor Biotech, a Paris-based biotech company involved in the acute phase of thrombotic diseases, raised 1.7 million euros ($2 million) in funding. Primer Capital led the round.


PRIVATE EQUITY DEALS

HS2 Solutions, which is backed by Mountaingate Capital, acquired LunaMetrics, a Pittsburgh-based analytics and digital marketing strategy consultancy. Financial terms weren’t disclosed.

North American Dental Group, a portfolio company of ABRY Partners, acquired TF Dental, an Atlanta-based provider of general dentistry services. The seller was Blackford Dental Management. Financial terms weren’t disclosed.

Ampersand Capital Partners made an investment in Detector Technology Inc, a Palmer, Mass.-based provider of analytical instrument contract design and manufacturing services. Financial terms weren’t disclosed.

Saw Mill Capital acquired Climate Pros LLC, a Glendale Heights, Ill.-based provider of refrigeration and HVAC repair, maintenance, and construction services to grocery retailers and other cold-chain customers. Financial terms weren’t disclosed.

P4G Capital acquired the assets of Unique Elevator Interiors Inc, an Alameda, Calif.-based maker of custom elevator interiors. Financial terms weren’t disclosed.

MidOcean Partners acquired BH Cosmetics, a Los Angeles-based cosmetics brand for the millennial/Generation Z consumers. Financial terms weren’t disclosed.

Upstream Rehabilitation Inc, a portfolio company of Revelstoke Capital Partners acquired Drayer Physical Therapy Institute, LLC. Financial terms weren’t disclosed.

Silver Lake invested $250 million in WPEngine, an Austin, Texas-based provider of managed WordPress cloud hosting solutions.


OTHER DEALS

• A group of investors led by Brookfield Business Partners LP will buy Westinghouse Electric Co, a Cranberry Township, Penn.-based nuclear power plant services firm, from Toshiba Corp for about $4.6 billion.

Boardriders Inc will buy Billabong (ASX:BBG) for about $155 million, according to Reuters. Read more.


IPOs

ADT, the home-security company backed by Apollo Global Management, is seeking an IPO of 111 million shares priced between $17 to $19 a share, raising roughly $2 billion. Apollo previously acquired ADT for nearly $7 billion in 2016. In 2016, the firm posted revenue of $3 billion and loss of 536.6 million. Morgan Stanley, Goldman Sachs, Barclays, Deutsche Bank, RBC Capital Markets, Citigroup, BofA Merrill Lynch, and Credit Suisse are joint book-running managers. The company plans to list on the NYSE as “ADT.”

Entera Bio, a Jerusalem-based oral drug maker for thyroid conditions, said it plans to offer 5 million shares priced between $10 to $12 a share, raising $55 million. In 2016, the company posted loss of $5.4 million. D.N.A Biomedical Solutions(43.7% pre-offering), Centellion Fund(21.1%) and Pontifax(8.9%) back the company. Oppenheimer & Co. is sole underwriter in the deal. The company plans to list on the Nasdaq as “ENTX.”


EXITS

Harbour Group acquired Thibaut Inc, a Newark, N.J.-based wallpaper and fabric company. The seller was Champlain Capital Partners. Financial terms weren’t disclosed.

Norwest Venture Partners has sold PCA Skin, a Scottsdale, Ariz.-based provider of skin care products, to Colgate-Palmolive Company. Financial terms weren’t disclosed.


PEOPLE

Berkshire Partners named Blake Gottesman and Sam Spirn as managing directors.


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Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here.

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