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Term Sheet — Tuesday, May 24

Random Ramblings

Some quick notes to kick off your National Scavenger Hunt Day:

• Leaving London: We still don’t know if Brexit will become anything more lasting than a clever word combo (the geopolitical equivalent of Bennifer), but private equity firms aren’t taking any chances. Several firms are preparing for a UK departure from the EU, which could strip certain pan-European benefits (e.g., AIFM passports) from firms that base some of their fund structures and compliance operations in London.

Dow Jones, for example, reports that KKR is planning to move certain compliance staff to Ireland or mainland Europe in the case of a pro-Brexit vote. And then there was this comment to Bloomberg from Thomas van Koch, managing partner of Sweden-based EQT Partners: “Our industry hates uncertainty and we haven’t opened a fund there since the vote was announced… The U.K. is on ice for us.”

Is your firm taking steps to prepare for a possible Brexit? Or do you think it’s overblown? Either way, please let me know.

• New firm alert: Marc Michel is quietly moving on from Metamorphic Ventures, the New York-based VC firm he co-founded in 2006. His plan is to launch a new firm called Runway Venture Partners, which will raise a fund focused on seed extension rounds (i.e., providing more runway). He’ll continue to manage out Metamorphic’s two existing funds, but will not participate on any future funds (which will be led by co-founder David Hirsch).

• Coming attractions: Andreessen Horowitz is expecting LP commitments (non-friends/family) for its fifth flagship fund (including an opportunities sidecar) by the second week of June, according to a source familiar with the process. The firm is seeking a total of around $1.5 billion, which is the same as it raised back in 2014, and all signs point toward a full subscription (if not an oversubscription).

• Hey grandma: Saw a press release this morning from AIG about how it’s now providing crowdfunding investor insurance. Haven’t dug into the details yet, but I’d expect this to become widespread…

• Quiz Time: Can you identify the big secondaries direct sale that it being complicated by a former manager of the seller (and, more specifically, how the seller doesn’t want him involved with the buyer)?

• Building a different wall: There was a lot of consternation last week at Fortune Brainstorm E, when word came down that presumptive GOP presidential nominee Donald Trump would seek to “renegotiate” the Paris climate accord. Many of the attendees believed that Paris was vital to the renewable energy sector — not only because of its specific requirements, but also because  it was a rare show of global consensus.

Trump, of course, has publicly suggested that global warming is a hoax thought up by the Chinese government to harm U.S. manufacturers. In his business life, however, Trump has a decidedly different opinion. Specifically, he has applied for zoning approval to build a seawall at his Ireland golf course, due to “global warming and its effects” (per Politico). Not sure this will make the Brainstorm E attendees feel too much better, but at least they now know that Trump’s climate change position is little more than political posturing…


• Behrman Capital has agreed to sell Data Device Corp., a Bohemia, N.Y.-based provider of connectivity, power, and control solutions for aerospace, defense and industrial applications, from Transdigm Group Inc. (NYSE: TDG) for approximately $1 billion.


• Clover Health, a San Francisco-based health insurance startup, has raised $165 million in Series C funding. Greenoaks Capital led the round, and was joined by AME Cloud Ventures, Casdin Capital, Floodgate, Nexus Ventures, Refactor Capital, Spark Capital and return backers Arena Ventures, First Round Capital, Sequoia Capital, Social Capital and Wildcat Ventures. Read more.

• vArmour, a Mountain View, Calif.-based provider of multi-cloud enterprise security solutions, has raised $41 million in Series D funding. Backers include Redline Capital and Australia’s Telstra. Read more.

• SigFig, a San Francisco-based wealth management technology company, has raised $33 million in new equity funding. Eaton Vance Corp. led the round, and was joined by New York Life, Santander, UBS, InnoVentures, Bain Capital Ventures, DCM Ventures, Nyca Partners and Union Square Ventures. The company also secured $7 million in new debt funding from Comerica Bank.

• Agari, a San Mateo, Calif.-based provider of email and other cybersecurity solutions, has raised $22 million in Series D funding. Norwest Venture Partners led the round, and was joined by return backers Greylock Partners, Alloy Ventures, Battery Ventures, First Round, Scale Venture Partners and Scott Baninster. Read more.

• Apixio Inc., a San Mateo, Calif.-based data science company for healthcare, has raised $19.3 million in Series D funding. SSM Partners led the round, and was joined by First Analysis and Bain Capital Ventures.

• NuTomy, a Cambridge, Mass.-based MIT spinout focused on self-driving taxis, has raised $16 million in Series A funding. Highland Capital Partners led the round, and was joined by EDBI (Singapore), Fontinalis Partners, Signal Ventures and Samsung Ventures. Read more.

• Entelo, a San Francisco-based provider of “enterprise software for data-driven recruiting,” has raised $12 million in Series B funding. Shasta Ventures led the round, and was joined by return backer Battery Ventures.

• Konfio, an online Mexican lending platform, has raised $8 million in new VC funding. Accion Frontier Inclusion Fund led the round, and was joined by Quona Capital, QED Investors, Kaszek Ventures, and Jaguar Ventures.

• TourRadar, an Austria-based online marketplace for multi-day travel tours, has raised $6 million in VC funding. Cherry Ventures and Hoxton Ventures co-led the round, and were joined by AWS Founders Fund and Speedinvest. Read more.

• Sensifree, a Cupertino, Calif-based developer of electromagnetic sensors for collecting continuous biometric data without touching the human body, has raised $5 million in Series A funding. TransLink Capital led the round, and was joined by UMC Capital and an undisclosed strategic investor.

Take The Interview, a New York-based provider of cloud-based interview management solutions, has raised $5 million in Series B funding. 3TS Capital Partners led the round, and was joined by return backers StarVest Partners and Rittenhouse Ventures.

• Jirnexu (f.k.a. Saving Plus), a Malaysia-based provider of customer acquisition technology solutions, has raised $3 million in Series A funding. DMP (Singapore) led the round, and was joined by Celebes Capital, NTT DOCOMO Ventures, Nullabor, Tuas Capital Partners and Anfield Equities.

• Nucleix, an Israel-based developer of urine tests for the monitoring of bladder cancer, has raised $3 million in new VC funding led by Aurum Ventures.

• Rover, a developer of location-based mobile marketing using beacons, has raised $1.1 million in seed funding from backers like BDC Venture Capital and 500 Startups.

• Penny, a mobile personal finance app, has raised $1.2 million in seed funding from Social Capital. Read more.

• Medasense Biometrics, an Israel-based developer of pain monitoring devices, has raised an undisclosed amount of new Series B funding from Baxter Ventures. The company previously announced an $8 million first close on the round led by Benslie International Ltd.

• SilverVue, a San Francisco-based provider of patient transitional care technologies, has raised an undisclosed amount of new VC funding. Pritzker Group Venture Capital and GE Ventures co-led the round, and were joined by Epic Ventures.


• Asset International, a New York-based business intelligence company owned by Genstar Capital, has acquired Market Metrics (Boston) and Matrix Solutions (London), both data and research firms for advisor-sold investments and insurance, from FactSet (NYSE: FDS). No financial terms were disclosed.

• General Atlantic has agreed to acquire a majority stake in Argus Media, a UK-based oil-price reporting agency. No financial terms were disclosed, but an earlier Reuters report suggested that Argus was seeking around a $1.3 billion enterprise value.

• MSouth Equity Partners has acquired Southern Air & Heat Holdings, a provider of HVAC repair, service and installation in Florida and North Carolina, from Pulte Capital Partners. No financial terms were disclosed.

• Polycom Inc. (Nasdaq: PLCM) said that it has received a revised takeover offer from an undisclosed private equity suitor, which could be considered a superior bid to its existing $2 billion takeover agreement with Mitel Networks Corp. (Nasdaq: MITL). Read more.

• Reliance Gathering LLC, a crude oil gathering affiliate of Permian Basin-focused Reliance Energy, has secured an undisclosed amount of private equity funding from Metalmark Capital (which partnered on the deal with portfolio company Monarch Natural Gas Holdings).

• Siris Capital Group has agreed to acquire Xura Inc. (Nasdaq: MESG), a Wakefield, Mass.-based maker of communications software, for $643 million, or $25 per share (19% premium to Friday’s closing price).

• Spire Capital Partners has acquired On Campus Marketing, a Ewing, N.J.-based provider of affinity programs for universities and colleges, from Dominus Capital. No financial terms were disclosed.

• TA Associates has acquired a majority equity stake in Professional Datasolutions Inc., a Temple, Texas-based provider of ERP software and services to the convenience retail and petroleum wholesale marketer industries. No financial terms were disclosed. Sellers include Luminate Capital Partners.

• Tall City Exploration II LLC, a Midland, Texas-based oil and gas exploration and production company, has raised $300 million in equity commitments from Denham Capital.

• Warburg Pincus and Centerbridge Partners reportedly are among the private equity investors in talks to acquire a “sizable stake” in struggling Italian lender Banca Popolare di Vicenza though, which currently is controlled by Italian rescue bank Atlante. Read more.

• Wincove Private Holdings has sponsored a recapitalization of Bluff Holdings, a Fort Worth, Texas-based provider of industrial equipment for loading docks and warehouses. No financial terms were disclosed.


No IPO news this morning.


• eBay (Nasdaq: EBAY) has acquired Spanish ticket marketplace Ticketbis, which will be rolled into eBay’s StuHub platform. No financial terms were disclosed, although TechCrunch puts the price-tag at around $165 million. Ticketbis had raised around $17 million in VC funding from firms like Active Venture Partners, and Gestión de Capital Riesgo Del País Vasco. Read more.

• Evergreen Pacific Partners has sold Thermal Dynamics International, an Ontario, Calif.-based supplier of heat exchangers for the automotive, heavy truck and off-highway industries, to China’s Zhejiang Yinlun Machinery Co. Ltd. (SZSE: 002126). No financial terms were disclosed.

• Goldman Sachs, via its investment management unit, has acquired Honest Dollar, an Austin, Texas-based online retirement savings platforms. No financial terms were disclosed. Honest Dollar had raised $3 million in VC funding from Expansive Ventures, Formation 8, Core Innovation Capital and Aaron Patzer, the founder of Mint.

• KKR has agreed to sell WMF, a German maker of coffee machines and silverware, to SEB SA (Paris: SK) for around €1.6 billion (including €600m of assumed debt). Read more.

• Unilever, Henkel & Co and L’Oréal are among the first-round bidders for Vogue International LLC, an Orlando, Fla.-based shampoo maker that is 49%-owned by The Carlyle Group, according to Reuters. The deal could be worth between $2 billion and $3 billion. Read more.


• Dyal Capital Partners, a unit of Neuberger Berman, has secured around $2.5 billion in capital commitments for an evergreen private equity fund focused on acquiring minority stakes in closely-held businesses, according to Dow Jones.

• March Capital Partners, a new tech VC firm based in Santa Monica, has closed its debut fund with $240 million in capital commitments. The firm’s founding partners are Jim Montgomery (founder and CEO of Montgomery & Co.), Gregory Milken (founder and ex-COO of AltEgo), and Sumant Mandal and Jim Armstrong (ex-Clearstone Venture Partners).

• Newark Venture Partners, an early-stage VC firm founded by Don Katz (founder and CEO of Audible), has held a $23 million first close on its debut fund, which is targeting a total of $50 million. The fund’s managing partners are Tom Wisniewski (ex-RosePaul Investments) and Dan Borok (ex-Millennium Technology Value Partners). LPs include Audible (now owned by Amazon), Dun & Bradstreet and Prudential Financial.


• Stephen Blyth, CEO of the Harvard Management Co., has gone on medical leave for an undisclosed ailment. He will be replaced, on an interim basis, by existing HMC chief operating officer Robert Ettl. Read more.

• Sam Brasch has joined Kaiser Permanente Ventures as a senior managing director. He had been with the firm as a managing director until 2014, when he left to become a venture partner with New Leaf Venture Partners.

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