Term Sheet — Tuesday, February 24

A few notes on what is the most remarkable VC-backed exit so far of 2015:

1. Flexus is less than two years old: The company was originally incubated by Kleiner Perkins Caufield & Byers, whose lead healthcare partner (Beth Seidenberg) had worked with the entrepreneurs (Terry Rosen and Juan Jaen) years ago at Amgen. The basic idea was to take an orthogonal approach to cancer immunotherapy – working on molecules that would be additive to what already was on the market from Bristol-Myers and Merck, rather than creating a me-too sort of therapy.

2. Very little investment: Flexus only raised $38 million over two rounds of funding, from KPCB, The Column Group and Celgene. Seidenberg declined to disclose valuations, but a separate source tells me that the firm’s stake in Flexus is around 30%. Or, put another way, a $375 million return on what is likely around $20 million in total investment. Remember when biotech startups were expensive and IT startups were cheap? When's the last time an IT startup raised less than $40 million and was sold for more than $1 billion?

3. Did I say it was young? Flexus does not have a single drug candidate in clinical trials yet.

4. It’s only a partial exit: Bristol-Myers is technically buying all of Flexus, except it isn’t really. Instead, the $1.25 billion is for the company’s Flexus’ IDO/TDO discovery program, while the entire Flexus management team and two other drug programs will be spun out into a new, independent company. Expect the existing venture capital backers to soon back a Series A round for NewCo.

5. What's it do? I asked Seidenberg to explain the appeal of what Flexus is working on, in layman’s terms. Here is what she said: “We know that when cancer arises, in addition to cells multiplying and having genetic abnormalities, the other important part of either controlling the cancer of letting it get out of control is the immune system. When someone has an infection, for example, the immune system goes after it to clear it. When cancer occurs, those are the abnormal cells and the immune system has to clear it. But cancer is very smart and creates substances that dampen the immune system. This drug will revitalize the immune system so that it can do its job and help clear the cells.”

• Data point: There only have been 29 U.S. IPOs so far in 2015, compared to 41 at this point in 2014. That said, there already have been more 2015 IPOs that raised more than $100 million (15) than there were year-to-date in 2014 (13).

• Multiples: I keep hearing from buyout folks about how leverage multiples are coming down due to Federal Reserve pressure, except that averages remain above Fed guidance. Is this the theory of close enough?

• Primary sources: The day I never thought would come is finally here: Opening arguments in the gender discrimination lawsuit brought by Ellen Pao against Kleiner Perkins Caufield & Byers, where she used to be a junior partner (yes, this is a KPCB-heavy Term Sheet). I honestly thought there was a better chance of Yo going public at a $1 billion valuation than this thing ever seeing the inside of a courtroom. But it seems that a settlement was never in the cards.

The judge has set aside nearly an entire month for the trial, and Fortune plans to have reporters in the room. I've also posted the final pre-trial briefs by each side, for those interested in the latest arguments. Find them here.

• Where in the world? Speaking of Pao vs. KPCB, one of the case's central figures is Ajit Nazre, a former KPCB junior partner with whom Pao had an intimate relationship while both were members of the firm. He seemed to fall off the map for a while, but now is back in Silicon Valley as an EVP of digital media services with India-based Reliance Industries Ltd. He also serves as a U.S. venture advisor with London-based Wellington Partners.

• #GetLiquid: I'm looking forward to seeing more than 850 Term Sheet readers tonight at our Boston Liquidity Event, which begins at 6pm at the New England Aquarium. We are sold out and will not have any tickets available at the door (although you always could hang outside the building and watch the sea lions).

An enormous thanks to our sponsors, without whom there would be no open bar nor food. They are: FKA (firm formerly known as Atlas Venture), DraftKings, Citizens Commercial Banking, Murray Devine, Choate Hall & Stewart and .406 Ventures.

THE BIG DEAL

• Bristol-Myers Squibb Co. (NYSE: BMY) has agreed to acquire Flexus Biosciences Inc., a San Carlos, Calif.-based developer of anti-cancer therapeutics. The deal could be valued at upwards of $1.25 billion, including $800 million upfront.

Flexus was founded less than two years ago, and has raised $38 million in VC funding from Kleiner Perkins Caufield & Byers, The Column Group and Celgene Corp. www.flexusbio.com

VENTURE CAPITAL DEALS

• Postmates, a San Francisco-based on-demand delivery service, has raised $35 million in Series C funding from return backer Spark Capital. Read more.

• HomeLane, an Indian provider of new home furnishing and fixture installment services has raised $4.5 million in Series A funding. Sequoia Capital led the round, and was joined by Aarin Capital. Read more.

• Q4 Web Systems, a Canadian provider of SaaS-based investor relations solutions for public companies, has raised C$5 million in new funding. Plaza Ventures led the round, and was joined by Atlas Venture. The round also includes an unspecified amount of debt financing from Silicon Valley Bank. www.q4websystems.com

• LocoMotive Labs, a Berkeley, Calif.-based developer of “assistive and play-based educational apps for young learners,” has raised $4 million in Series A funding. Softbank Ventures Korea and TAL Education Group co-led the round, and were joined by return backers K9 Ventures, Kapor Capital, NewSchools Venture Fund, Joe Gleberman, D3Jubilee and Jerry Colonna. www.LocoMotiveLabs.com

• Mack Weldon, a New York-based menswear brand, has raised $4 million in Series A funding. Return backers include RiverPark Ventures, Bridge Investments and Lyrical Partners. www.mackweldon.com

• Knowmail, an Israel-based provider of an SaaS-based personal assistant for employee communication and collaboration, has raised $1.2 million in seed funding. Backers include Plus Ventures, 2B Angels, AfterDox and INE Ventures. www.knowmail.me

PRIVATE EQUITY DEALS

• 3i Group has acquired Aspen Pumps, a UK-based maker of HVAC pumps, from Inflexion Private Equity for £105 million. The deal represents a 14x return for Inflexion. www.aspenpumps.com

• LEHR, a portfolio company of Solis Capital Partners, has acquired EnviroGard, a Charlotte, N.C.–based provider of propane fuel system technology for small engines. No financial terms were disclosed. www.golehr.com

• Pretium Packaging, a Chesterfield, Mo.–based portfolio company of Genstar Capital Partners, has acquired Intertech Corp., a Greensboro, N.C.–based manufacturer of stock, custom, and proprietary plastic bottles. www.intertechcorp.com

• Snow Phipps Group has acquired a majority stake in Cascade Environmental Services LLC, a Woodinville, Wash.-based provider of environmental and geotechnical services including subsurface investigation, high resolution site characterization and remediation. No financial terms were disclosed. www.cascadedrilling.com

• Transporeon Group, a German provider of web-based logistics services, has acquired Advanced InfoData Systems, a German provider of mobile order management software. No financial terms were disclosed. Transporeon is a portfolio company of The Riverside Company. www.transporeon.com

IPOs

• MaxPoint Interactive Inc., a Morrisville, N.C.-based provider of business intelligence and marketing automation software, has set its IPO terms to 6.5 million shares being offered at between $10.50 and $12.50 per share. The company would have an initial market cap of approximately $294 million, were it to price in the middle of its range. It plans to trade on the Nasdaq under ticker symbol MXPT, with Goldman Sachs and Deutsche Bank serving as lead underwriters. Shareholders include Trinity Ventures (32.3% pre-IPO stake), Madrona Venture Group (23.6%) and Performance Equity Management (16.3%). www.maxpoint.com

EXITS

• Arle Capital has backed off on a process to sell Spanish zoo and water park operator Parques Reunidos, according to Reuters. The company could be worth around €2 billion. Read more.

• Baker & Taylor Inc., a Charlotte, N.C.-based portfolio company of Castle Harlan, has sold its U.S. marketing services and publishing group businesses to Readerlink Distribution Services LLC for an undisclosed amount. www.baker-taylor.com

• High Road Capital Partners has sold All Current Electrical Sales Inc., a Pennsauken, N.J.–based reseller of electrical components, to EBSCO Industries Inc. No financial terms were disclosed. www.allcurrent.com

• Onex Corp. has hired Goldman Sachs to find a buyer for Sitel Worldwide Corp., a Nashville, Tenn.–based call center operator, according to Reuters. The deal could be worth nearly $1 billion, including debt. Read more.

OTHER DEALS

• Grupo FerroAtlántica SA of Spain has agreed to merge with Miami-based Globe Specialty Metals Inc. (Nasdaq: GSM), in order to form a $3.1 billion silicon-metal producer that would be controlled by FerroAtlántica shareholders. Read more.

• Stifel Financial Corp. (NYSE: SF) has agreed to acquire Sterne Agee Group Inc., a Birmingham, Ala.-based financial services term with approximately 730 financial advisors and independent representatives managing over $20 billion in client assets. The deal is valued at approximately $150 million in cash and stock. Read more.

• ThredUp, a San Francisco-based online consignment store, has acquired Kindermint.com, a Tampa, Fla.-based online resale store that specializes in used kids’ clothes. No financial terms were disclosed. ThredUp has raised around $50 million in VC funding from Highland Capital Partners, Redpoint Ventures, and Trinity Ventures. www.thredup.com

FIRMS & FUNDS

• Engineering Capital, a new early-stage VC firm launched by ex-Foundation Capital partner Ashmeet Sidana, has closed its debut fund with $32 million in capital commitments. Read more.

MOVING IN, UP, ON & OUT

• H.I.G. Growth Partners has promoted Nik Shah to managing director. He had joined the firm in 2007, and focuses on opportunities in the technology, digital media and business services sectors. www.higgrowth.com

• Stuart McMinnies has joined Duke Street, a UK-based mid-market private equity firm, as a partner. He previously was a senior partner with 3i Group. www.dukestreet.com

• Paul Pryzant has joined Seyfarth Shaw LLP as an M&A and capital transaction-focused partner in the law firm’s Houston office. He previously was a partner with Burleson LLP. www.seyfarth.com

Share today's Term Sheet:
http://fortune.com/2015/02/20/term-sheet-friday-february-20