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Term Sheet — Thursday, June 25

Random Ramblings

Jumio, a VC-backed mobile identification company whose clients include United Airlines and Airbnb, yesterday said that it had hired a new CEO. This came shortly after we reported  that founder and (now former) CEO Daniel Mattes had left after an internal company investigation into possible financial irregularities.

The Mountain View, Calif.-based company isn’t commenting on Mattes or the investigation, with one source saying that a confidentiality agreement is in place. Mattes did speak with Fortune, however, saying he made a “voluntary decision to resign” because he is better at starting companies and getting them in position to execute toward profitability, than he is at managing said execution. But a source familiar with the situation says that had Mattes not resigned of his own accord, he would no longer be CEO.

Mattes also acknowledged that “at one point” Jumio hired outside auditors to reexamine its books, but says nothing out of the ordinary was found. He adds that he will be available to advise new Jumio CEO Stephen Stuut — who previously ran TruePosition — but he no longer will be a member of Jumio’s board of directors.

As for Jumio’s investors — which include Andreessen Horowitz, Citi Ventures, Pinnacle Ventures and Facebook co-founder Eduardo Saverin — there was radio silence. Maybe that’s because Mattes has some checkered history when it comes to his investors.

Prior to founding Jumio, the serial entrepreneur was best-known for founding Jajah, a VC-backed Internet phone company that was acquired in late 2009 by Telefonica for $209 million (which, at the time, was still a lot of money in Silicon Valley).

Mattes was no longer CEO at the time Jajah was sold, but Delaware court filings show that a fellow entrepreneur named Yair Goldfinger (currently CEO of AppCard) subsequently sued Mattes for alleged fraud related to the private sale of Jajah stock.

In short, Goldfinger claimed that Mattes “needed money” in late 2006 and that his main source of currency was illiquid Jajah stock that had various transfer restrictions attached. So they worked out a sort of secondary loan, in which a certain number of Jajah shares would be placed into a Mattes-controlled holding company, with Goldfinger to get paid if and when there was a change of corporate control (i.e., IPO or acquisition). When Jahjah was ultimately acquired, however, Goldfinger didn’t get paid. Instead, he claims that “his” shares were later sold by Mattes to a pair of other investors — Industry Ventures and existing Jahjah backer Globespan Capital Partners — without his knowledge.

From Goldfinger’s complaint, which came prior to Andreessen Horowitz or Citi Ventures investing in Jumio:

“In a move reminiscent of the Producers, Mattes had sold the rights to the same stock twice in the apparent expectation that the company would fail and no one would ever be the wiser.”

Mattes declined not to answer Goldfinger’s claim in Delaware (although he did appear to answer related accusations in Switzerland), which led to a default judgement for Goldfinger in the amount of $5.84 million. But because the defendant was the holding company, there wasn’t actually any money left to collect.

A source close to Jajah at the time says that the company had been unaware of Goldfinger’s claim on the shares until after the Telefonica deal was announced.

Earlier this year, Mattes and Goldfinger reached an outside settlement that included a confidentiality agreement. Mattes declined to comment on the litigation or its resolution. You can read the Delaware complaint by going here.

• Quid pro whah? Following yesterday’s discussion of allegations that private equity firms shift third-party legal fees at the expense of LPs, a private equity attorney said to me that he laughed when reading it: “They ask us for discounts on everything!” [his emphasis]

• Update #1: According to court filings, fugitive venture capitalist Ifty Ahmed may no longer have legal representation. His attorneys at Willkie Farr & Gallagher and Foley Hoag have requested court approval to withdraw as Ahmed’s counsel, saying Ahmed has “ceased all communication” with them.

From their motion: “Counsel and Mr. Ahmed have developed irreconcilable differences concerning the defense of this matter and have had a complete breakdown in their attorney-client relationship, such that Counsel can no longer effectively represent the defendant.”

• Update #2: In late April, we reported that VC-backed news app Circa was seeking a buyer, after failing to secure additional funding. Yesterday came official word that the sale talks had failed, and that Circa was shutting down. Fortune’s Mathew Ingram provides his analysis here.’

• Recommended reading: One of the great parts about working at Fortune is that I get some affiliation halo from my ridiculously talented colleagues, including Peter Elkind. Today he has published the first part of a six-month investigation into the Sony hack, which you can (and should) read here.


• In memoriam: Matthew Fix, a former partner with Vodafone Ventures and investment director with Intel Capital, has passed away at the age of 42. He leaves behind Olivia, his wife of 15 years, and sons Andrew and Ethan.

Fix joined Intel Capital in 2004, before leaving at the end of 2006 to help relaunch Vodafone’s corporate venture program. His deals included LocalResponse, Caringo, Affirmed, and Skorpios. His family asks that friends and colleagues honor his memory by donating to The American Cancer Society.


• TransUnion, a Chicago-based credit bureau, raised around $665 million in its IPO. The company priced 29.5 million shares at $22.50 per share ($21-$23 offering range), for an initial market cap of approximately $4 billion. It will trade on the NYSE under ticker symbol TRU, while Goldman Sachs served as lead underwriter.

The company reports a $4.4 million net loss on $1.3 billion in revenue for 2014, compared to a $28.2 million net loss on $1.18 billion in revenue for 2013. Shareholders include Advent International (48.9% pre-IPO stake) and Goldman Sachs (48.9%).


• WeWork, a New York-based, has raised $400 million in new funding led by Fidelity at a $10 billion valuation. Existing backers include J.P. Morgan, Harvard Corp., Benchmark, T. Rowe Price, Goldman Sachs, Wellington Management and Mort Zuckerman. Read more.

• Checkmarx, an Israel-based provider of software application security, has raised $84 million in equity funding from Insight Venture Partners.

• Conga, a Broomfield, Colo.-based provider of document generation and reporting applications for Salesforce customers, has raised $70 million from Insight Venture Partners.

• Clementia Pharmaceuticals Inc., a Montreal-based drug company focused on rare diseases like fibrodysplasia ossificans progressiva, has raised US$60 million in new funding. New Enterprise Associates led the round, and was joined by UCB, RA Capital Management, Rock Springs Capital Management, EcoR1 Capital, Janus Capital Management and return backers OrbiMed Advisors and BDC Capital Healthcare Venture Fund.

• Matterport, a Mountain View, Calif.-based provider of cloud-based 3d models of interior spaces, has raised $30 million in Series C funding. Qualcomm Ventures led the round, and was joined by fellow return backers Lux Capital, DCM Ventures, Felicis Ventures, Greylock Partners, Navitas Capital, AMD Ventures, AME Cloud Ventures, iGlobe Partners and Rothenberg Ventures. Read more.

• Curbside, a Palo Alto, Calif.-based provider of “curbside pickup” for retailers, has raised $25 million in Series B funding. Sutter Hill Ventures led the round, and was joined by return backers Index Ventures, AME Cloud Ventures and Qualcomm Ventures. Read more.

• Automatic Labs, a San Francisco-based connected car startup, has raised $24 million in Series B funding. USAA, CDK Global and Comcast Ventures were joined by return backers Y Combinator, RPM Ventures, Anthemis Group, Amicus Capital and individual angels.

• BitSight Technologies, a Cambridge, Mass.-based provider of “security ratings,” has raised $23 million in Series B funding. Comcast Ventures led the round, and was joined by Globespan Capital Partners, Menlo Ventures, Commonwealth Capital Ventures, Shaun McConnon and Flybridge Capital Partners.

• Redis Labs (f.k.a. Garantia), an Israel-based in-memory SQL database startup, has raised $15 million in Series B funding co-led by Bain Capital Ventures and Carmel Ventures.

• PayRange, a Portland, Ore.-based developer of connected vending machines, has raised $12 million in new VC funding led by Matrix Partners. Read more.

• Sebacia Inc., a Duluth, Ga.-based developer of topical therapies for the treatment of dermatological conditions, has raised $12 million in Series C equity funding from return backers Accuitive Medical Ventures, Domain Associates, Versant Ventures and Partners Innovation Fund. The company also secured a $10 million credit facility from Square 1 Bank.

• Radiant, a new PC games maker, has raised $4.5 million in new VC funding from Andreessen Horowitz, General Catalyst and London Venture Partners. Read more.

• Yieldify, a UK-based abandonment and conversion analytics platform, has raised $11.5 million in Series A funding from Google Ventures and SoftBank Capital. Read more.

• Lost My Name, a London-based publisher of personalized picture books for children, has raised $9 million in Series A funding. Google Ventures led the round, and was joined by Greycroft, Allen & Co., The Chernin Group and Cris Conde. Read more.

• Zumper, a San Francisco-based apartment rental platform, has raised $6.35 million in Series A-1 funding from return backers Goodwater Capital and Kleiner Perkins Caufield & Byers.

• Autonomic Technologies Inc., a Redwood City, Calif.-based developer of a microstimulator to treat severe headaches, has raised $5.5 million in new Series D funding from HBM Healthcare Investments. The round total is now $43.2 million, including past investments from Edmond de Rothschild Investment Partners (lead), Forbion Capital Partners, Naarden, Kleiner Perkins Caufield and Byers, InterWest Partners, Aberdare Ventures, Novatis Venture Funds and Cleveland Clinic.

• TextMaster, a Belgium-based online platform for platform for content translation, has raised $5 million in new VC funding. Serena Capital led the round, and was joined by return backer Alven Capital.

• Brazen ( Brazen Careerist), an Arlington, Va.-based engagement platform that connects organizations with their stakeholders, has raised $4.7 million in new VC funding. Osage Venture Partners led the round, and was joined by Randstad Innovation Fund and return backers Militello Capital and Kegonsa Capital Partners.

• Tesora (f.k.a. ParElastic), a Cambridge, Mass.-based provider of an on-demand system for managing database capacity, has raised $4.5 million in new VC funding. Rho Canada Ventures led the round, and was joined by return backers CommonAngels, General Catalyst and Point Judith Capital. Read more.

• Whittl, a Chicago-based online platform for scheduling and paying for local services, has raised $3.3 million in Series A funding. Origin Ventures and KGC Capital co-led the round, and were joined by Mike Evans, Drummond Road Capital and seed backers OCA Ventures and Amicus Capital.

• Inspirock, an online travel platform that automates the creation of custom itineraries, has raised $3 million in seed funding from existing backer MakeMyTrip and individual angels. Read more.

• Andela, a New York-based software training platform for people in Africa that connects them remotely with global companies, has raised an undisclosed amount of Series A funding. Spark Capital led the round, and was joined by Omidyar Network and LearnCapital.


• Bolder Healthcare Solutions, a Louisville, Ky.-based portfolio company of The Edgewater Funds and JZ Capital Partners, has acquired ROI Companies, a provider of healthcare revenue cycle management services. No financial terms were disclosed.

• Burning Glass Technologies, a Boston-based provider of job market analytics, has raised an undisclosed amount of private equity funding from Providence Equity Partners.

• Orion Corp., a listed Korean snackmaker, said that it has entered a preliminary bid to purchase the South Korean unit of troubled British retailer Tesco PLC (LSE: TSCO), in what could be a $6 billion deal. According to a local news report, other first-round bidders reportedly include private equity firms Affinity Equity Partners, The Carlyle Group, CVC Capital Partners, Goldman Sachs Capital Partners, MBK Partners and TPG Capital. Read more.

• Rutland Partners has acquired Gardman Group Ltd., a UK-based home and garden products provider, from TPG Capital and Goldman Sachs. No pricing terms were disclosed for the all-stock deal.

• Tengram Capital Partners is in talks to acquire Joe’s Jeans (Nasdaq: JOEZ), a Commerce, Calif.–based apparel retailer that has been threatened with delisting, according to Dow Jones. The company has a current market cap of $13.1 million.


• GC Aesthetics, an Ireland-based breast implant maker focused on non-U.S. markets, has filed for a $75 million IPO. It plans to trade on the Nasdaq, with BofA Merrill Lynch, Deutsche Bank and Cowen & Co. serving as underwriters. The company reports an $89 million net loss on $52.8 million in revenue for 2014. Shareholders include Montreux Equity Partners (48% pre-IPO stake), Oyster Capital Partners (8.7%) and OrbiMed Advisors (8.2%).

• IAC/InterActiveCorp (Nasdaq: IACI) said that it is planning a spinoff  IPO for The Match Group, the dating conglomerate behind such sites as, OkCupid, and Tinder. Read more.

• Lantheus Holdings, a Billerica, Mass.-based maker of diagnostic medical imaging agents and products, raised $65 million in its IPO. The company priced 10.8 million shares at $6 per share, compared to original plans to offer 7.9 million shares at between $8.50 and $10.50 per share. It will trade on the Nasdaq under ticker symbol LNTH, while Citigroup servedas lead underwriter. The company is owned by Avista Capital Partners, which will hold more than a 60% post-IPO stake.

• Milacron LLC, a Cincinnati-based provider of plastics processing technologies and metalworking fluids, raised $286 million in its IPO. The company priced 14.3 million shares at $20 per share (low end of range), for an initial market cap of approximately $1.33 billion. It will trade on the NYSE under ticker symbol MCRN, while BofA Merrill Lynch, Barclays and J.P. Morgan served as lead underwriters. The company reports a $15 million net loss on $1.21 billion in revenue for 2014, compared to a $25 million net loss on $1.03 billion in revenue for 2013. Milacron was acquired in 2012 by CCMP Capital Partners, which was expected to retain a post-IPO ownership stake of more than 60%.


• Konica Minolta (Tokyo: 2602) has agreed to acquire Radiant Vision Systems LLC, a Redmond, Wash.–based provider of test and measurement solutions to the flat panel display industry, from Evergreen Pacific Partners. No financial terms were disclosed.


• The British government today announced plans to begin privatizing Green Investment Bank, which was formed in 2012 to support the UK’s green infrastructure sector. Read more.

• Deliv, a Palo Alto, Calif.-based same-day delivery startup for mall-based retailers, has acquired WeDeliver, a Chicago-based provider of same-day delivery services for local merchants. No financial terms were disclosed. Deliv has raised over $11 million in VC funding from Upfront Ventures, RPM Ventures, Macerich General Growth Properties, Simon Property Group and Westfield. WeDeliver was seeded by such firms as JumpStart Ventures.

• Molycorp Inc. (NYSE: MCP), a Greenwood Village, Colo.-based rare earth miner that once had a $6 billion market cap, has filed for Chapter 11 bankruptcy protection. Read more.

• Simplilearn, an India-based provider of certification courses to professionals, has acquired Market Motive, a Scotts Valley, Calif.–based digital marketing training company, for $10 million. Simplilearn recently raised $15 million in Series C funding from Mayfield, Kalaari Capital and Helion Venture Partners.

• Spotify has acquired Seed Scientific, a New York-based provider of personalization and recommendation solutions. No financial terms were disclosed. Spotify has raised more than $1 billion in VC funding. Read more.


No firm or fund news this morning.


• Darya Fuks is joining Israeli co-investment platform iAngels as portfolio manager. She previously was a vice president of investment banking with J.P. Morgan.

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