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Term Sheet — Wednesday, December 10

Random Ramblings

Fund placement agency Probitas Partners has released the results of an LP survey aimed at uncovering expected fundraising trends for 2015. Some highlights:

  • For non fund-of-funds respondents: 29% are below their PE target allocations and plan to make new commitments to achieve target, compared to just 16% in that position last year. Six percent is at target and considering an increase, compared to 7% last year. No respondents said they were seeking to reduce their target allocations, as opposed to 2% last year.
  • Only 26% of respondents are “actively pusuing” relationships with new managers, while 63% are evaluating follow-ons with existing managers.
  • The top five sub-sectors of interest are: U.S. middle-market buyouts (71%), European middle-market buyouts (58%), U.S. small-market buyouts (46%), growth capital (40%) and pan-European buyouts (39%).
  • Interest in U.S. venture capital has rebounded (to 30%) from last year’s nadir, but only really from North American LPs. Those in Europe and Asia remain nonplussed.
  • Interest in Chinese funds also rebounded – albeit not to the level of 2010 or 2011 highs – while political unrest in (and around) Russia and Turkey has caused LPs to pull back in those markets.

• Answer key: Yesterday I asked you to name the New York City-based startup that just raised around $400 million in new VC funding at a multi-billion dollar valuation? Your hint is that it is not a media or retail company.

A bunch of you got it right, even though my details were a bit off. The company I was looking for was WeWork, a communal and collaborative office-space operator for startups and other small businesses. Since writing the blind, I’ve learned that the round is likely to be south of $400 million (but more than $300m) and some final documents still need to be signed.

All of this comes a bit earlier than expected, given a recent Forbes article suggesting that WeWork would “be out raising another round next year that could easily fetch a valuation north of $6 billion.” Previously, the New York-based company had raised over $157 million in private funding, including a reported $150 million round this past February from J.P. Morgan , Harvard Corp., Benchmark and Mort Zuckerman.

No word yet on the lead investor, except that the process was competitive with multiple term sheets.

WeWork currently operates spaces in 20 locations in seven cities. According to the Forbes piece, WeWork plans to expand to 60 locations by this time next year, and increase its annual revenue from $150 million to more than $400 million. It currently has around 15,000 workers, or “members,” inside of its spaces, including around 10,000 in New York City. No comment on the fundraising from a company spokesman.

• Speaking of deals in progress: I’m hearing that Glassdoor, a Sausalito, Calif.-based jobs and career community, is finalizing a large new insider round that could value the company at nearly $1 billion.

• Quiz Time: Can you name the ex-Google exec who just raised more than $30 million in first-round funding for his stealthy startup? Hint: The new  company may challenge an existing Google product.

• For the record: Uber shopped its convertible note private placement opportunity to several Wall Street banks before reaching an agreement with Goldman Sachs. Also, Bloomberg has reported some additional details, including that the notes carry a coupon that increases over time if Uber hasn’t gone public within four years.

• Where in the World? I’ll be heading down to NYC tonight and be attending the NY Times Dealbook Conference tomorrow (well, at least once Term Sheet is published). Hope to see some of you there.

THE BIG DEAL

• Coupang, a South Korean online retailer, has raised $300 million in new private funding. BlackRock Private Equity Partners led the round, and was joined by Wellington Management Co. and return backers Greenoaks Capital Management and Rose Park Advisors. Other existing shareholders include Sequoia Capital. www.coupang.com

VENTURE CAPITAL DEALS

• Didi Dache, a Chinese taxi e-hail app, has raised more than $700 million in new funding from Temasek Holdings, DST Global and Tencent Holdings. Read more.

• BuildDirect, a Vancouver–based online marketplace for heavy weight building materials like flooring and decking, has raised C$50 million in third-round funding. Backers include Mohr Davidow Ventures, OMERS and BMO Capital Markets. www.builddirect.com

• Optoro Inc., a Lanham, Md.-based provider of asset recovery solutions for distressed inventory, has raised $50 million in Series C funding. Kleiner Perkins Caufield & Byers led the round, and was joined by Generation Investment Management and return backers Revolution Growth, Grotech Ventures and SWaN & Legend Venture Partners. www.optoro.com

• eToro, a social investment network, has raised $27 million in new private equity and debt funding. Ping An Ventures and SBT Venture Capital were joined by return backers Spark Capital and BRM Group. The debt portion was provided by Silicon Valley Bank. www.etoro.com

• Helium Systems, a San Francisco platform for connecting smart devices without WiFi or Bluetooth, has raised $16 million in new VC funding. Khosla Ventures led the round, and was joined by Digital Garage, FirstMark Capital, SV Angel, Slow Ventures and Marc Benioff. Read more.

• ToyTalk, a San Francisco-based developer of technology that enables digital apps and physical toys to have interactive conversations with young children, has raised $15 million in new VC funding. Khosla Ventures led the round, and was joined by return backers Greylock Partners, First Round Capital and True Ventures. Read more.

• Qubole, a Mountain View,Calif.-based provider of a cloud platform for analyzing and processing data sets, has raised $13 million in new VC funding led by Norwest Venture Partners. www.qubole.com

• HashiCorp., a San Francisco-based provider of a dev/ops marketplace for datacenters, has raised $10 million in Series A funding. Mayfield led the round, and was joined by GGV Capital and True Ventures. www.hashicorp.com

• Canvas, a Reston, Va.-based provider of mobile apps for collecting and sharing business information, has raised $9 million in new VC funding. River Cities Capital Funds was joined by return backers Osage Venture Partners and Camber Capital. www.gocanvas.com

• Adagene Inc., a Chinese developer of antibody therapeutics, has raised $8 million in Series A funding. Backers include Fidelity Biosciences,Fidelity Growth Asia and WuXi Venture Fund. www.adagene.com

• Area 1 Security, a Menlo Park, Calif.-based cybersecurity startup focused on social engineering attacks, has raised $8 million in Series A funding led by Kleiner Perkins Caufield & Byers. www.area1security.com

• TrackMaven, a Washington, D.C.-based provider of marketing content tracking solutions, has raised $8 million in new VC funding from return backers Bowery Capital and New Enterprise Associates. The company also secured $6 million in debt funding from Silicon Valley Bank. Read more.

• Blue Ridge, a Marietta, Ga.–based provider of supply chain planning and analytics solutions, has raised $6 million in new VC funding led by Vocap Investment Partners. www.blueridgeinventory.com

• Integrate, a Scottsdale, Ariz.-based provider of marketing software, has raised $5 million in new financing from Trinity Capital Investment. www.integrate.com

• Routehappy, a New York-based “product differentiation platform” for air travel companies, has raised $3.3 million in new VC funding. iNovia Capital led the round, and was joined by PAR Capital Ventures and return backers High Peaks Venture Partners, Contour Venture Partners and Vocap Investment Partners. Individual investors include Mike Lazerow, Seth Brody, David Sandberg and Porter Gale. www.routehappy.com

• Virtuix, a Houston-based developer of a virtual reality treadmill, has raised $2.7 million innew VC funding. Backers include Radical Investments, Scout Ventures, Scentan Ventures, Western Technology Investment, Tekton Ventures and 2020 Ventures. www.virtuix.com

• Wagepoint, a Canadian provider of online payroll solutions, has raised C$2 million in seed funding. Extreme Venture Partners led the round, and was joined by Business Development Bank of Canada, Atlantic Canada Opportunities Agencies and individual angels. www.wagepoint.com

• Switch, an anonymous job discovery platform, has raised $1.4 million in seed funding. Rhodium and Metamorphic Ventures co-led the round, and were joined by BAM Ventures, SG VC and individual angels. www.switchapp.com

• AviNetworks, a Sunnyvale, Calif.-based provider of cloud application delivery solutions, today came out of stealth-mode and announced that it previously raised $33 million over two rounds of VC funding from Greylock Partners, Lightspeed Venture Partners and Menlo Ventures. www.avinetworks.com

PRIVATE EQUITY DEALS

• Catterton Partners has agreed to acquire a minority stake in Italian cosmetics and beauty supplier Intercos SpA, according to an FTC filing and Dow Jones. No financial terms were disclosed. www.intercos.com

• Cinven and EQT Partners are among expected suitors for German cargo handling company Telair, which is being sold by AAR Corp. (NYSE: AIR) for approximately €800 million, according to Reuters. Citigroup is managing the process. Read more.

• Comvest Partners has acquired Old Time Pottery, a Murfreesboro, Tenn.-based discount retailer of home décor products. No financial terms were disclosed. www.oldtimepottery.com

• H-D Advanced Manufacturing Co. has acquired Intellifuse Coating Technologies, a Houston–based maker of coatings used in “demanding situations” like radial bearings used in mud motors for oil and gas drilling. No financial terms were disclosed. H-D is a Pittsburgh-based portfolio company of The Riverside Co., Hicks Equity Partners and Weinberg Capital Group. www.intellifusecoating.com

• Palladium Equity Partners has made a “significant investment” in Raben Holdings LLC, an Evansville, Ind.–based tire dealer and automotive services provider. www.rabintire.com

• Periscope Holdings, an Austin, Texas-based portfolio company of Parthenon Capital Partners, has acquired BidSync, an American Fork, Utah–based provider of cloud-based procurement and bid notification solutions for the public sector. No financial terms were disclosed. www.periscopeholdings.com

• Ranger Offshore Inc., a marine and subsea construction portfolio company of SunTx Capital Partners, has acquired the U.S. diving assets of Technip for an undisclosed amount. www.rangeroffshoreinc.com

• The Riverside Company has acquired Drex-Chem Malaysia, a Kuala Lumpur-based specialty chemical distributor. No financial terms were disclosed. www.riversidecompany.com

IPOs

• There is no IPO news this morning.

 

EXITS

• Battery Ventures has agreed to sell Industrial Safety Technologies, a The Woodlands, Texas–based provider of gas and flame detection solutions, to Tyco International (NYSE: TYC) for $329.5 million in cash. www.industrialsafetytechnologies.com

• Thoma Bravo has agreed to sell Tripwire, a Portland, Ore.-based provider of IT security and compliance management solutions, to Belden Inc. (NYSE: BDC) for $710 million in cash. www.tripwire.com

 

OTHER DEALS

• Kabam Inc., a San Francisco-based mobile gaming company, has completed a secondary share offering in excess of $40 million. This is its second such deal in the past 18 months. No information was provided on the buyers or sellers. Kabam previously raised over $240 million from backers like Alibaba, Google Ventures, Intel Capital, Redpoint Ventures, Canaan Partners and Performance Equity Management. www.kabam.com 

• Mitsui & Co. has agreed to purchase a 14% stake in the Moatize coal mine in Mozambique from listed Brazilian mining company Vale for approximately $950 million. Read more.

• Twitch, a video game broadcasting network acquired earlier this year by Amazon (Nasdaq: AMZN), has purchased Germany-based game tournament operator GoodGame for an undisclosed amount. www.goodgame.org

FIRMS & FUNDS

• Endless LLP, a British turnaround investment firm, has closed its fourth fund with £525 million in capital commitments. It had raised the £220 million for its third fund in 2011. www.endlessllp.com

• McKesson Corp. (NYSE: MCK) has launched an in-house strategic venture capital group called McKesson Ventures. It will be led by Tom Rogers, who previously led VC activities for Cambia Health. www.mckesson.com

• Medina Capital, a Miami-based tech private equity firm, has closed its debut fund with $182 million in capital commitments. www.medinacapital.com

• Strategic Value Partners has closed its third special situations fund with $1.31 billion in capital commitments, plus another $250 million of “reserved capacity for a ‘fund-of-one’ limited partner relationship.” www.svpglobal.com

• Versant Ventures has closed its fifth healthcare-focused VC fund with $305 million in capital commitments. www.versantventures.com

 

MOVING IN, UP, ON & OUT

• Sandro Galfetti has joined Park Hill Group as a London-based principal in the firm’s private equity secondary advisory practice. He previously was a director with Capital Dynamics. www.parkhillgroup.com

• Ron Gura has joined Israeli venture capital firm Aleph as an entrepreneur-in-residence. He previously was head of the eBay Innovation Center and co-founder of The Gifts Project. Aleph’s prior EIR, Eran Shir, is leaving the firm to launch his own company. www.aleph.vc

• Reto Schwager has agreed to joined RobecoSAM as head of Robeco’s private equity business, according to Dow Jones. He previously was with Partners Group. Current Robeco private equity boss Andrew Musters said in June that he would leave at year-end, in order to “to pursue other professional goals.” www.robeco.com

• Christopher White has joined HealthCare Royalty Partners as chief operating officer. He previously was a managing director and head of investment banking at Janney Montgomery Scott. www.healthcareroyalty.com

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