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CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea

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CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea

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FinanceTerm Sheet

Term Sheet — Monday, July 20

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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July 20, 2015, 10:31 AM ET
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Random Ramblings

Hello, Erin Griffith here filling in while Dan is on vacation. Please direct your story tips, deal announcements and feedback to erin.griffith@fortune.com. I'm also on Twitter at @eringriffith.

• More acquisitive than Marissa Mayer: Today AssuredPartners, an insurance brokerage owned by GTCR, announced it would sell to Apax Partners for an undisclosed amount. If AssuredPartners sounds familiar, it's likely because you've seen one of the company's many deal announcements in Term Sheet over the last four years. The company has completed an eye-popping 101 acquisitions since it was formed in 2011, handily topping Marissa Mayer's streak of 53 deals since she started at Yahoo in 2012.

• Payday for eBay: Today PayPal and eBay made their split official, with PayPal outstripping its former parent company in market value. (Right now PayPal's market cap is around $46.7 billion and eBay's is $33.7 billion. PayPal has $9 billion in revenue -- enough to make it a Fortune 500 company.) My colleague Leena Rao has an in-depth look at eBay's plan to turn around its marketplace business, including a choice quote from former eBay board member Marc Andreessen:

"EBay has all the problems that startups wish they had — billions of dollars in revenue, real growth, and being a public company."

• Mars shots: Do not accuse Marc Lore of going small. That much was clear when he raised $225 million to take on a little company called Amazon. Now, the Wall Street Journal reports he's looking to raise even more money at a $3 billion valuation.

If that doesn't sound crazy to you, keep in mind the company hasn't even launched yet. Oh, and it's losing a not insignificant amount of money on many of its sales in private beta. Lore tells the Journal he'll have to do $20 billion in sales in order to make Jet's business model work, and he's expecting to hit that -- which would make Jet the fourth largest e-commerce company in the U.S. -- in 2020.

This is the era we're in right now. Unicorns and moon shots are so 2014. This looks more like a Mars shot.

• Burn book: Mattermark has a big funding report out this morning, analyzing VC investing trends from 2005 to 2015. I haven't had time to dig into it yet but will do so later today. For now, check it out here.

• 1099 victim: Homejoy, the on-demand cleaning services startup, has shut down. The company said a class-action lawsuit from its workers demanding to be classified as employees was a factor in its decision to close, because it made funding difficult. This spate of class action lawsuits, which have hit startups including Washio, Postmades, Instacart, Shyp, Uber and Lyft, is likely to divide the haves and have-nots in the burgeoning on-demand category. Well-funded startups like Shyp and Instacart quickly reclassified workers as employees.  Homejoy had raised $39.7 million in funding from a long list of investors including First Round Capital, Google Ventures, Redpoint Ventures, and Andreessen Horowitz.

THE BIG DEAL

• Lockheed Martin Corp. will acquire Sikorsky Aircraft, which makes which makes Black Hawk helicopters and is currently owned by United Technologies Corp., for $9 billion in cash. www.sikorsky.com/

VENTURE CAPITAL DEALS

•  SuperAwesome, a UK-based digital marketing platform focused on children, raised $7 million in Series A funding led by IBIS TMT, Twenty Ten Capital, and Sandbox and Co. with participation from existing investors Hoxton Ventures. www.superawesome.tv/

• Made.com, a London-based home goods ecommerce site, has raised $60 million in financing led by from Partech Ventures, which contributed $34 million to the round. The rest of the company's investors were not disclosed. www.made.com/

• Vroom, a New York-based seller of used cars online, has raised $54 million in Series B funding led by Catterton, General Catalyst Partners and T. Rowe Price Associates, Inc. www.vroom.com/

• Freshly, a New York-based meal delivery service, has raised $7 million in Series A funding led by Highland Capital Partners, with participation from White Star Capital and Jason Finger, the co-founder of Seamless. www.freshly.com/

• LivQuik, which operates mobile payments startup QuikWallet, has raised $1.6 million in new funding from Snow Leopard Ventures. www.livquik.com/

• Privitar, a UK-based data privacy startup, has raised $1 million from Tom Glocer, the former CEO of Thomson Reuters, and Peter Job, former CEO of Reuters and other angel investors. www.privitar.com/

• Axial Healthcare, a Nashville-, Tenn.-based pain care company, raised an $8 million Series A round of financing led by .406 Ventures and included prior investors BlueCross BlueShield Venture Partners and Sandbox Industries. axialhealthcare.com/

• Bidtellect, a Delray Beach, Fla.-based native advertising company, raised $22.35 million in Series B funding led by Blue Chip Venture Company with participation from G20 Ventures Valhalla Partners. www.bidtellect.com/

• Tango, a Dallas-based provider of in-store software for retailers, has raised $30 million from Frontier Capital. tangoanalytics.com/

• Shocard, a Palo Alto-based blockchain company, has raised $1.5 million in funding from Morado Ventures Partners, AME Cloud Ventures,Enspire Capital and Digital Currency Group. www.shocard.com/

 

PRIVATE EQUITY DEALS

• AssuredPartners Inc., a Lake Mary, Fla.-based insurance brokerage firm owned by private equity firm GTCR, will sell a majority stake to Apax Partners. Terms were not disclosed. assuredptr.com/

• Thoma Bravo is considering a bid for Duluth, Ga.-based ATM company NCR Corp., Reuters reported. The deal would value NCR at $9 billion. Previous reports noted that Blackstone Group and Carlyle Group had also expressed interest in acquiring the company, which has been exploring strategic options since April.  www.ncr.com/

 

IPOs

• Apptio, a Bellevue, Wash.-based cloud software company, is planning to go public at a $1 billion valuation, the Wall Street Journal reported. Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and Bank of America Corp. will lead the offering. Apptio is backed by Janus Capital, the Hillman Company, T. Rowe Price Group, Andreessen Horowitz, Greylock Partners, Madrona Venture Group and Shasta Ventures. www.apptio.com/

• SiteOne Therapeutics, a Bozeman, Montana-based provider of a non-opioid acute and chronic pain treatment platform, has raised an undisclosed investment from Next Frontier Capital with participation by Sears Capital Management, Biobrit LLC, Mission Bay Capital and Z Investments. www.site1therapeutics.com/

EXITS

• Thrillist, a New York-based media and commerce company, is in talks to sell itself to Viacom, Recode reported. The company did $90 million in sales last year and has raised $13 million from Oak Investment Partners at a $150 million valuation in 2012. www.thrillist.com/

• Permira Advisers is considering the sale of Spanish pizza-delivery chain Telepizza SAU and clothing retailer Cortefiel SA, for more than 1 billion euros each, according to Bloomberg. Permira owns less than 30% of Cortefiel and a third of Telepizza.

•  Adallom, an Israeli-based cybersecurity startup, is reportedly nearing a deal to sell itself to Microsoft for $320 million, according to news first reported Israeli publications Globes and Calcalist. Read more.

• Carlyle Group hired Morgan Stanley to help it exit European budget hotel operator B&B Hotel Group, according to Les Echos. The company acquired 80% of the company in 2010 for approximately €480 million. Montefiore Investment holds at 15% stake. The exit could come in the form of an IPO or sale. www.hotel-bb.com/

• Private equity firm Nimbus will sell Stork Food & Dairy Systems B.V., an Amsterdam-based service provider to the food and beverage industry, to Chicago-based JBT Corporation.  www.sfds.eu/

Motor Fuel Group, a UK-based gas station operator, has completed its sale to Clayton, Dubilier & Rice LLC for approximately £500 million, from prior owner Patron Capital. www.motorfuelgroup.com/

OTHER DEALS

• Vivint Solar, a provider of residential solar systems, will sell to SunEdison, Inc. for $2.2 billion. As part of the deal, TerraForm Power will acquire Vivint Solar's rooftop solar portfolio from SunEdison. www.vivintsolar.com/

FIRMS & FUNDS

• Yuri Milner, founder of DST Capital,  has dedicated $100 million to a team of researchers at University of California, Berkeley to search for signs of intelligent alien life. 

• Newark Venture Partners is seeking to raise $50 million for its first fund. Newark companies Audible.com and Prudential Financial will serve as anchor investors in the vehicle, according to the Wall Street Journal. www.newarkventurepartners.com/

• The Oxford Endowment Fund, run by the University of Oxford, has increased its investments in private equity from 8% of its assets in 2012 to 18%, according to the Financial Times.

• Birch Hill Equity Partners raised more than $1 billion Canadian in funding for its fifth buyout fund, according to the Wall Street Journal. The firm plans to cap the vehicle at $1.25 billion Canadian. www.birchhillequity.com/

MOVING IN, UP, ON & OUT

 

• Bruce Ou has been promoted to Managing Partner at Grove Street Advisors, a Wellesley, Mass.-based private equity fund investor. www.grovestreet.com/

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