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Term Sheet — Tuesday, June 2

Random Ramblings

Just a few quick notes to kick off your Tuesday:

• Back to the future: Ellen Pao yesterday filed a notice to appeal the March jury verdict finding that venture capital firm Kleiner Perkins Caufield & Byers was not guilty of gender discrimination or harassment against Pao while she was an employee. This is basically a move that lets Pao keep her options open going forward, rather than one that guarantees that she will (or won’t appeal). If she does choose to move forward, Pao would need to file specific grounds for appeal by later this summer.

• In market: Revolution Growth is raising upwards of $450 million for its second fund, per a regulatory filing. It’s technically listed as Revolution Growth III, but that’s only because the original Revolution strategy was to have a single fund do both early and growth-stage investing. Revolution Growth portfolio companies include Sweetgreen and Handy. Its general partners are Steve Case, Ted Leonsis and Donn Davis. GCA Savvian is serving as placement agent.

• Juxtaposition: When searching through IPO filings this morning, I noticed that Wingstop (purveyor of fried chicken wings) and Fitbit (maker of fitness trackers) were listed next to one another. The IPO version of supply and demand…

• Recommended reading: NEA co-managing partner Scott Sandell published a WSJ op-ed yesterday, arguing against pending patent reform legislation. In it, he mirrors many of the concerns previously expressed by the National Venture Capital Association (where he just wrapped up his chairmanship). So this basically is a primer of the industry’s specific objections to a bill that, from a headline perspective, it should support. Read it here.

• Publishing note: Tomorrow’s Term Sheet will be produced and published from 30,000 feet, as I’m flying out to the West Coast for some meetings. That means your morning missive will be dependent on in-flight WiFi, so preemptive apologies if there’s a delay.


• Qunar (Nasdaq: QNUR), a Chinese online travel company, said that it has raised $500 million in via the sale of 2% senior unsecured convertible notes. Silver Lake led the round with a $330 million investment, while an undisclosed investor provided the remaining $170 million. The conversion price is $55 per share, compared to yesterday’s closing price of $46.01.

In related news, Qunar said that it has rejected an unsolicited takeover offer from International (Nasdaq: CTRP). Read more.


• Purch, an Ogden, Utah-based digital content and commerce company, has raised $135 million in Series C equity and debt funding. Canso Investment Counsel led the round.

• Coupa Software, a San Mateo, Calif.-based provider of cloud-based solutions for finance, has $80 million in seventh-round funding at a valuation north of $1 billion. T. Rowe Price Associates led the round, and was joined by Iconiq Capital, Premji Invest and return backers Crosslink Capital, Battery Ventures and El Dorado Ventures. Existing shareholders Meritech Capital Partners, Mohr Davidow Ventures and Blue Run Ventures did not participate. Read more.

• Udemy, a San Francisco-based online education marketplace, has raised $65 million in fourth-round funding. Stripes Group led the round, and was joined by return backers Norwest Venture Partners and Insight Venture Partners. Read more.

• Nantero, a Waltham, Mass.-based provider of carbon nanotube electronics, has raised $31.5 million in Series E funding. Investors included Charles River Ventures, Draper Fisher Jurvetson, Globespan Capital Partners and Harris & Harris Group.

• CounterTack, a Waltham, Mass.-based provider of big data endpoint detection and response solutions, has raised $15 million in Series C funding. TenEleven Ventures led the round, and was joined by EDBI, Mitsui & Co. and unspecified existing investors. The company previously raised more than $20 million from Razor’s Edge Ventures, Goldman Sachs, Siemens Venture Capital and Fairhaven Capital.

• DataScience, a Culver City, Calif.-based provider of corporate data analytics for mid-sized and large companies, has raised $6 million in Series A funding. Greycroft Partners led the round, and was joined by Pelion Ventures Partners, Crosscut Ventures and TenOnTen. The company previously raised $1.5 million in seed funding. Read more.

• Sublime Skinz, a French digital advertising startup, has raised $5 million in growth equity funding from ISAI.

• Nanosys Inc., a Milpitas, Calif.–based developer of energy-efficient displays, has raised an undisclosed amount of VC funding from Samsung Venture Investment Corp.


• American Industrial Partners has completed ite previously-announced acquisition of the fasteners business of Anixter International Inc. (NYSE: AXE) for $380 million in cash. The group makes and distributes fasteners for customers in the heavy truck, power train, luxury automotive, agriculture, construction and recreational vehicle verticals.

• Blackthorne Partners has acquired Schaefer Brush Manufacturing, Waukesha, Wis.-based maker of industrial brushes that was founded in 1905. No financial terms were disclosed.

• Clearview Capital has acquired Advanced Medical Personnel Services Inc., a Port Orange, Fla.-based provider of staffing solutions for the healthcare and education industries. No financial terms were disclosed.

• FeraDyne Outdoors LLC, a Cartersville, Ga.-based hunting equipment maker owned by Snow Phipps Group, has acquired FL Archery Holdings LLC, a Superior, Wisc.-based provider of archery targets and accessories. No financial terms were disclosed.

• HighJump, a Colorado Springs, Colo.-based provider of supply chain management solutions, has acquired Nexternal, a Carlsbad, Calif.–based cloud ecommerce platform provider. No financial terms were disclosed. HighJump backers include Accel-KKR.

• Humana Inc. (NYSE: HUM) has completed its previously-announced $1.055 billion sale of Concentra Inc., an Addison, Texas-based provider of urgent care and physical therapy, to a joint venture between Select Medical Holdings Corp. (NYSE: SEM) and Welsh, Carson, Anderson & Stowe.

• LenderLive, a Denver-based mortgage services provider backed by Aquiline Capital Partners, has acquired Walz Group LLC, a Temecula, Calif.–based provider of regulatory compliance solutions, document fulfillment and certified mail automation solutions. No financial terms were disclosed.

• Pritzker Group Private Capital has acquired Entact, a Westmont, Ill.-based provider of environmental remediation services to the private sector, from Austin Ventures and TGF Management Corp. No financial terms were disclosed.

• Quadrant Private Equity has agreed to acquire V.I.P. Petfoods (Aust) Pty Ltd., an Australian provider of chilled pet foods, for A$410 million.

• Sun Capital Partners has acquired the downstream oil & gas business units of Curtiss-Wright Corp. (NYSE: CW), including DeltaValve, TapcoEnpro International and GROQUIP. No financial terms were disclosed.

• Waud Capital Partners has made an investment in CyberGrants, an Andover, Mass.–based provider of SaaS solutions around employee engagement, grants management and corporate social responsibility. No financial terms were disclosed.


• At Home Stores, a Plano, Texas-based home decor chain, has hired Goldman Sachs and BofA Merrill Lynch to lead its IPO, according to Reuters. The company is owned by AEA Investors, and could be valued at around $1 billion by the public markets. Read more.

• Axovant Sciences Ltd., a Bermuda-based developer of an Alzheimer’s therapy acquired from GlaxoSmithKline, has set its IPO terms to 17.9 million shares being offered at between $13 and $15 per share. It would have an initial market cap of around $1.3 billion, were it to price in the middle of its range. The company plans to trade on the NYSE under ticker symbol AXON, with Jefferies, Evercore ISI and RBC Capital Markets serving as lead underwriters.

• Fitbit, a San Francisco-based maker of fitness tracking devices, has set its IPO terms to 29.85 million shares being offered at between $14 and $16 per share. It would have an initial market cap of around $3.07 billion, were it to price in the middle of its range. The company plans to trade on the NYSE under ticker symbol FIT, with Morgan Stanley, Deutsche Bank and BofA Merrill Lynch serving as lead underwriters. It reports nearly $132 million in net income on $745 million in revenue for 2014, compared to a $52 million net loss on $271 million in revenue for 2013. Fitbit has raised over $80 million in VC funding since its 2007 founding, from firms like Foundry Group (28.9% pre-IPO stake), True Ventures (22.4%) and SoftBank Capital (5.6%), Sapphire Ventures, Qualcomm Ventures and Felicis Ventures.

• Legend Holdings, a Chinese conglomerate with large tech and real estate holdings, plans to ask Hong Kong regulators to approve an IPO that could raise upwards of $2 billion, according to the WSJ. An earlier report had suggested the float could raise nearly $3 billion. Legend is the largest shareholder in PC maker Lenovo Group. Read more.

• Natera Inc., a San Carlos, Calif.-based provider of non-invasive genetic testing solutions, has filed for a $100 million IPO. It plans to trade on the Nasdaq under ticker symbol NTRA, with Morgan Stanley, Piper Jaffray and Cowen & Co. serving as lead underwriters. The company reports a $5 million net loss for 2014 on around $159 million in revenue. It has raised over $150 million in VC funding, from firms like Sequoia Capital (20.2% pre-IPO stake), Claremont Creek Capital (19.3%), Lightspeed Venture Partners (10.4%), Sofinnova Ventures (6.1%), Capital Research and Management, Franklin Templeton Investments, Jennison Associates, RA Capital Management, Healthcor Partners and OrbiMed Advisors.

• Wingstop Inc., a Dallas, Texas-based chicken-wing chain owned by Roark Capital Group, has set its IPO terms to 5.8 million shares being offered at between $12 and $14 per share. It would have an initial market cap of around $372 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol WING, with Morgan Stanley, Jefferies and Baird serving as lead underwriters. Wingstop reports nearly $9 million of net income on $67.5 million in revenue for 2014.


• Charlesbank Capital Partners and HGGC have completed their previously-announced $800 million sale of Citadel Plastics Holdings, a Chicago-based provider of thermoplastic and engineered composite compounds, to A. Schulman (Nasdaq: SHLM).

• Gryphon Investors has agreed to sell Sheplers Inc., a Wichita, Kansas-based retailer of western wear, to Boot Barn Holdings Inc. (NYSE: BOOT) for an undisclosed amount.

• Microsoft (Nasdaq: MSFT) has agreed to acquire 6Wunderkinder, a German developer of cloud-based productivity applications, according to the WSJ. The sale price is reported to be between $100 million and $200 million. 6Wunderkinder had raised around $24 million in VC funding from firms like Atomico, Earlybird Ventures and Sequoia Capital. Read more.


• Ashley Furniture Industries Inc., an Arcadia, Wisc.-based home furniture maker, has hired Goldman Sachs to find a buyer for the company, according to the WSJ. A deal could be valued at more than $3 billion, with private equity firms expected to have interest. Read more.

• Avalara, a Bainbridge Island, Wash.-based provider of cloud-based software for sales tax and other transactional tax compliance, has acquired EZtax, an Overland Park, Kansas–based provider of tax compliance solutions for the telecom industry. No financial terms were disclosed. Avalara shareholders include TCV and Warburg Pincus.


 Harbert Management Corp. has closed its debut European private debt fund with €122 million in capital commitments.

• Silverfleet Capital, a European mid-market private equity firm, has closed its second fund with €850 million in capital commitments.


• Robert Lake has joined Hercules Technology Growth Capital as chief credit officer. He previously was executive director of Oxford Finance.

• Jeffrey Mazer has joined Aequitas Capital as a senior managing director of capital markets and treasury. He previously spent more than four years with BofA Merrill Lynch as a director of global liquidity investment solutions.

• Arthur Minson is stepping down as chief financial officer of Time Warner Cable (NYSE: TWC), in order to join office-space startup WeWork as president and chief operating officer. He will remain in an advisory capacity with TWC through the completion of its pending $56 billion takeover by Charter Communications (Nasdaq: CHTR). Read more.

• Andrew Palmer will step down as deputy chief investment officer with the Tennessee Consolidated Retirement System, in order to become CIO of the Maryland State Retirement and Pension System.

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