Fitness Startup Peloton Officially Begins Its Path to IPO: Term Sheet

THE CLIMB TO IPO

Peloton, the home exercise equipment maker, has filed confidential IPO paperwork with the Securities and Exchange Commission. As my coworker recently characterized the company: “It’s the biggest thing in home exercise since Jane Fonda in leggings.”

Peloton, founded in 2012, sells its proprietary bike for $2,245 and a monthly subscription to video streams of its live and on-demand classes for $39. Last year it introduced a $4,295 treadmill and expanded its class offerings.

Peloton raised approximately $550 million in funding last year that valued that company at $4.15 billion. Investors included TCV, Kleiner Perkins Caufield & Byers, Tiger Global Management and GGV Capital. The company is working with Goldman Sachs Group Inc. and JPMorgan Chase & Co. to lead its listing, which could value the company at more than $8 billion.

The tech world will watch its public market debut with great interest especially given that its rival SoulCycle back-pedaled out of an IPO last year citing "market conditions."

FROM POLITICS TO WALL STREET: Centerview Partners, a New York-based investment bank, hired longtime Democratic politician and former Chicago mayor Rahm Emanuel as a senior counselor. Just a month after leaving the mayor’s office of Chicago, Emanuel will open the firm's new Chicago office and advise clients on mergers for Centerview. Congresswoman Alexandria Ocasio-Cortez mocked Emanuel’s career change on Twitter. “Not all Democrats are the same,” she tweeted.

IN ACQUISITION NEWS: This just in — Google agreed to acquire Looker, a unified platform for business intelligence, data applications and embedded analytics, in a $2.6 billion all-cash transaction. Looker had raised approximately $280 million in venture funding from investors including Kleiner Perkins, CapitalG, Meritech Capital Partners, Redpoint, and First Round Capital.

...AN ACQUI-HIRE: Apple is reportedly in the process of acquiring a well-known but struggling self-driving shuttle firm, Drive.ai, for its engineering talent in order boost Apple’s own development of a self-driving vehicle system, according to The Information. Drive.ai had raised approximately $77 million in venture funding from investors including NEA, Nvidia GPU Ventures, and Northern Light Venture Capital.

… AND ONE MORE: Scooter startup Bird has agreed to acquire Scoot, a smaller two-wheeled mobility rival, according to TechCrunch. Scoot was last valued at approximately $71 million, having raised about $47 million in equity funding to date from Scout Ventures, Vision Ridge Partners, and Joanne Wilson.

INVESTING IN ‘RACIAL JUSTICE:’ Asset management platform OpenInvest is at the intersection of two of the most prevalent trends in the financial world today. Not only is the company a fintech startup, but it’s also specifically focused on “impact investing” and making it easier for people to invest in companies that meet environmental, social, and governance (ESG) criteria.

Now, the San Francisco-based startup is introducing its latest investment offering: a “Racial Justice” indexing tool, which allows investors and asset managers to customize their portfolios to prioritize companies committed to values like workforce diversity—and divest themselves from those that aren’t.

My colleague Rey Mashayekhi reports:

According to OpenInvest, its top 10 companies that qualify for the “Racial Justice” cause include a mix of familiar names across a variety of industries: Alphabet, PNC Financial Services, Intel, American Electric Power, Citigroup, Accenture, PepsiCo, Marsh & McLennan, Comcast, and Mastercard.

On the other hand, the startup’s top ten “excluded” companies under the “Racial Justice” criteria also feature a who’s who of major conglomerates: Chevron, ExxonMobil, JPMorganChase, Facebook, Microsoft, Oracle, Walmart, McDonald’s, Wells Fargo, and Home Depot.

OpenInvest has raised approximately $13.8 million in venture funding from investors including Andreessen Horowitz and QED Investors. Read the full story here.

VENTURE DEALS

• Yellowbrick Data, a Palo Alto, Calif.-based provider of data warehousing for the enterprise analytics market, raised $81 million in Series C funding. DFJ Growth led the round, and was joined by investors including IVP, BMW i Ventures, Next47, Third Point Ventures, Menlo Ventures, Threshold Ventures and GV.

• Litify, a Brooklyn, N.Y.-based software platform for law firms, raised $50 million in Series A funding, from Tiger Global Management.

• AllyO, a recruiting startup, raised $45 million in Series B funding. Investors include Sapphire Ventures, Scale Venture Partners, Gradient Ventures, Randstad Innovation Fund, Bain Capital Ventures and Cervin Ventures.

• Matillion, a U.K.-based developer of cloud data integration software solutions, raised $35 million round in funding. Battery Ventures led the round, and was joined by investors including Sapphire Ventures and Scale Venture Partners.

• Carbon Health, a San Francisco-based healthcare provider, raised $30 million in Series B funding. Brookfield Growth Partners led the round.

• Getsafe, a Germany-based mobile insurance company, raised 15 million euros ($16.9 million) in Series A funding. Earlybird led the round, and was joined by investors including CommerzVentures.

• CellPoint Mobile, a Miami, Fla.-based provider of digital commerce and payment solutions for airlines and travel companies, raised 11 million pounds ($14 million) in funding, from Toscafund Asset Management LLP.

• FormAssembly, a Bloomington, Ind.-based web form platform that aims to help businesses collect and process data, raised $10 million in funding from Level Equity.

• Voatz, a Brookline, Mass.-based mobile-focused voting platform, raised $7 million in Series A funding. Medici Ventures and Techstars co-led the round, and were joined by investors including Urban Innovation Fund and Oakhouse Partners.

• Zyper, a San Francisco-based marketing platform that connects brands with their superfans to drive engagement, insights and sales, raised $6.5 million in Series A funding. Talis Capital led the round, and was joined by investors including Forerunner Ventures and Y Combinator.

• PlayWorks, a London-based social games provider, raised 2 million pounds ($2.5 million) in funding. Vala Capital led the round.

• Hypergiant Industries, an Austin, Texas-based AI industrial complex for global businesses and governments, raised funding of an undisclosed amount. Investors include Sumitomo Corporation of Americas, Align Capital, and Perot Jain.

HEALTH AND LIFE SCIENCES DEALS

• EpimAb Biotherapeutics, a China-based biopharmaceutical company, raised $74 million in Series B funding. SDIC Fund and Sherpa Healthcare Partners co-led the round, and was joined by investors including SCVC.

PRIVATE EQUITY DEALS

• Artisan Design Group, which is backed by The Sterling Group, acquired Heritage Capital & Tile, a Boynton Beach, Fla.-based provider of design center and installation services for flooring and complimentary products. Financial terms weren't disclosed.

• DexKo Global, a portfolio company of KPS Capital Partners, acquired Preston Chassis Industries Pty Ltd, an Australia-based provider of chassis. Financial terms weren't disclosed.

• Motor City Industrial, which is backed by Kian Capital Partners and Oakland Standard Co, acquired Quality Fastener and Supply Co, an Oxford, Mich.-based provider of industrial consumables and ancillary products. Financial terms weren't disclosed.

• Quad Partners LLC recapitalized SchoolAdmin, a Austin, Texas-based provider of admissions and enrollment software for K-12 schools. Financial terms weren't disclosed.

• Flexera acquired RISC Networks, an Asheville, N.C.-based provider of a SaaS-based analytics platform that helps companies speed their migration to the cloud. Financial terms weren't disclosed.

• LLR Partners recapitalized CareATC, a Tulsa-based employee population health management company. Financial terms weren't disclosed.

• Marlin Equity Partners acquired Webtrekk, a Berlin, Germany-based provider of marketing analytics and customer intelligence software solutions. Financial terms weren't disclosed.

OTHER DEALS

• Calabrio acquired Teleopti, a Sweden-based workforce management software provider. Financial terms weren't disclosed.

IPOs

• Hansoh Pharmaceutical Group, a Jiangsu, China-based drugmaker, reportedly raised $1 billion in a Hong Kong IPO, Reuters reports.

• China East Education, a vocational training firm, raised $625 million in a Hong Kong IPO, Reuters reports citing sources.

• GSX Techedu, a Beijing, China-based K-12 online tutoring platform, raised $208 million in an IPO of 19.8 million ADSs priced at $10.50 apiece. It posted revenue of $59.2 million in 2018 and loss of $2.9 million. Credit Suisse, Deutsche Bank, Barclays, and CLSA are underwriters. It plans to list on the NYSE as “GSX.” Read more.

• Fiverr International, a Tel Aviv-based online marketplace for freelancers, plans to raise $100 million in an IPO of 5.3 million shares priced between $18 to $20. It posted $75.5 million in sales in 2018 and loss of $19.3 million. Bessemer, Accel, and Square Peg back the firm. J.P. Morgan, Citi, BofA Merrill Lynch, and UBS are underwriters. It plans to list on the NYSE as “FVRR.”

• Inhibrx, a La Jolla, Calif.-based maker of cancer and rare diseases therapies, filed for an $75 million IPO. The firm posted revenue of $8.6 million and loss of $31.2 million in 2018. RA Capital Funds and Viking Global back the firm. Evercore ISI, Barclays and Nomura Securities are underwriters. It plans to list on the Nasdaq as “INBX.” Read more.

EXITS

• Warburg Pincus agreed to acquire Pregis LLC, a protective packaging materials and automated systems manufacturer, from Olympus Partners. Financial terms weren't disclosed.

• Imperva, a portfolio company of Thoma Bravo, agreed to acquire Distil Networks, a provider of bot management solutions. Financial terms weren't disclosed. Distil had raised approximately $60 million in venture funding from investors including Bessemer Venture Partners, Triangle Peak Partners, MI Ventures, Foundry Group, TechStars, ff Venture Capital, IDEA Fund Partners and Correlation Ventures.

FIRMS + FUNDS

• Advent International, a Boston-based private equity firm, raised $17.5 billion for Advent International GPE IX Limited Partnership.

• Warburg Pincus LLC, a New York-based private equity and venture capital firm, is nearing the final close of an at least $4.25 billion private equity fund focusing on Chinese and Southeast Asian investments, according to Reuters. Read more.

• Third Rock Ventures, LLC, a Boston-based venture capital firm, raised $770 million for its fifth fund, Third Rock Ventures V.

• Elsewhere Partners, an Austin, Texas-based venture capital firm, raised $70 million for its debut fund, according to an SEC filing.

• Cresco Capital Partners, a private equity investment firm focused solely on making strategic investments in the legal cannabis market, raised $60 million for its fund, CCP Fund II.