Term Sheet — Thursday, September 15


Random Ramblings

Some assorted notes to kick off your Thursday:

 Diabetes deal: We've previously discussed Intarcia, the Boston-based biotech startup focused on cutting down Type II diabetes treatments to once or twice per year. This morning the company announced $215 million in new equity funding, but didn't provide additional details (except that it's expecting a "significant" second tranche in Q4). Fortunately, we have them:

Baillie Gifford led the round, and was joined by such new investors as The Pritzker Organization and Luxin (China). Return backers include Baupost, Fidelity Investments, Foresite Capital and RA Capital Management. The subsequent close is expected to bring the round total to between $500 million and $600 million.

The round comes at a $3.5 billion pre-money valuation. That’s a significant boost from the $1.5 billion pre-money Intarcia received on its $200 million Series DD round in early 2014. But wait, says rhetorical reader, I thought Intarcia was valued at $5.5 billion? That figure was tied to a synthetic royalty deal signed in mid-2015. Per terms of the royalty arrangement, the investors will be entitled to 1.5% of Intarcia’s lead candidate sales (once it’s on the market next year, FDA willing), but the investors also have an option to return the royalty in exchange for equity at the $5.5 billion (post-money) figure.

 Full-time VC: Phil Libin is stepping down as executive chairman of digital note-keeping "unicorn" Evernote, as we first reported yesterday on the website. Also leaving the company’s board of directors will be Max Levchin, the former PayPal executive who has been with Evernote for more than a decade.

Libin joined Evernote as CEO after it launched in 2007 but is credited as a company co-founder. Last year he transitioned to the executive chairman role with former Google executive Chris O’Neill taking over as CEO. At the time, Libin said that Evernote needed a “professional CEO… who is going to be better than me at it.”

He would then go on to join venture capital firm General Catalyst as a general partner, while retaining his Evernote responsibilities. While with General Catalyst, Libin's deals so far have included Begin.com, GrowBot and Butter.ai.

Answer key: No, not yet. Tomorrow. But lots of you thought yesterday's Quiz Time referred to Kobe Bryant's new VC firm. It didn't.

 UpdateDow Jones is reporting (behind a paywall) that FanDuel has raised $55 million in new financing from existing investors. You might recall that in my critique of that giant ESPN piece on daily fantasy, I quoted author Don Van Natta Jr. as saying on TV that FanDuel and DraftKings currently “can’t raise any more money… it’s almost impossible for them to raise money."

Since then, both companies have raised more money. When I pointed that out to Van Natta Jr. via Twitter earlier today, he denied having said it (and insulted me for good measure). Check the tape Don.

 Oh, I get it nowThe Huffington Post this morning reports that Peter Thiel has told friends that he would be Donald Trump's first nominee for The Supreme Court. For those who have wondered why the noted libertarian investor has been so supportive of the big government Republican nominee for president, perhaps it's now beginning to make more sense... On the other hand, Trump also has suggested that he'd likely nominate justices who would reverse last year's gay marriage ruling. So let's table this for a little bit.

 Speaking of Trump: In a recent speech, Donald Trump reportedly said: "The inner cities... they're crime-ridden. There's no jobs, there's no nothing." So it's probably a good time to mention that Fortune just published its list of the 100 fastest-growing inner city businesses. You can find it here.


 MidOcean Partners and Wasserstein & Co. have agreed to sell Penton Media, a New York-based professional information services company, to Informa PLC (LSE: INF) for $1.56 billion. A source close to MidOcean says that the deal represents a 3.5x gross return on investment. Read more.


 Ripple, a San Francisco-based provider of financial settlement solutions, has raised $55 million in Series B funding. New backers include Standard Chartered, Accenture Ventures, SCB Digital Ventures (VC unit of Siam Commercial Bank), SBI Holdings, Santander Innoventures, CME Group, Seagate Technology and Venture 51. Existing shareholder include Google Ventures, Andreessen Horowitz, IDG Capital Partners and AME Cloud Ventures. Read more.

 BitSight, a Cambridge, Mass.-based cybersecurity ratings startup, has raised $40 million in Series C funding. GGV Capital led the round, and was joined by Flybridge Capital Partners, Globespan Capital Partners, Menlo Ventures, Comcast Ventures, Liberty Global Ventures and Singtel Innov8. Read more.

 The Drone Racing League has raised $12 million in new VC funding co-led by Lux Capital and RSE Ventures. Other backers include MGM, Sky Prosieben, Hearst Ventures, CAA Ventures, Vayner/RSE, Courtside Ventures, Sierra Maya Ventures and individual angels. www.multivu.com

 ViSenze, a Singapore-based developer of AI-based visual technology for ecommerce and other digital businesses, has raised US$10 million in Series B funding. Rakuten Ventures and eSpire Capital co-led the round, and were joined by SPH Media Fund, FengHe Fund Management, Raffles Venture Partners, Phillip Private Equity and UOB Venture Management. www.visenze.com

 Ellevest, a digital investment platform focusing exclusively on women, has raised $9 million in second-round funding. Backers include Aspect Ventures, Ulu Ventures and Venus Williams. Read more.

 Axine Water Technologies, a Vancouver-based provider of, has raised C$8 million in Series B funding. Asahi Kasei Corp. led the round, and was joined by Chrysalis Energy Venture Capital, BDC Energy Venture Capital and Roda Group. www.axinewater.com

 Klara, a healthcare messaging startup with offices in Berlin and New York, has raised $3 million in seed funding. Lerer Hippeau Ventures and Project A Ventures co-led the round, and were joined by return backers Atlantic Labs and Groupe Arnault. www.klara.com

 FastPay, a provider of lending and financial workflow solutions to digital businesses, has raised an undisclosed amount of strategic funding from Citi Ventures. www.fastpay.com

 PlumSlice Labs, a San Francisco-based developer of collaborative cloud applications for digital commerce ecosystems, has raised an undisclosed amount of Series A funding led by Kinetic Ventures. www.plumslice.com


 Abraaj Capital is in talks to purchase the Dubai campus of UK-based Middlesex University for between $55 million and $70 million, according to Reuters. Read more.

 Baird Capital has acquired a majority stake in R2integrated, Baltimore-based digital market agency, for an undisclosed amount. Read more.

 Golfsmith International Holdings Inc., an Austin, Texas-based golf and tennis equipment retailer OMERS Private Equity, has filed for Chapter 11 bankruptcy protection. Fairfax Financial Holdings Ltd. and CI Investments have jointly offered to buy the company’s Canadian assets. Read more.

 Lincoln Investment Capital, a portfolio company of Lovell Minnick Partners, has agreed to acquire Legend Group Holdings LLC, a Florida-based provider of investment and retirement planning services to employer groups, from broker-dealer network Cetera Financial Group. www.legendgroup.com

 Lucid Software, a Salt Lake City, Utah-based provider of cloud-based visual productivity applications, has raised $36 million in growth equity funding. Spectrum Equity led the round, and was joined by return backers Kickstart Seed Fund and Grayhawk Capital. www.golucid.co

 Madison Dearborn Partners has acquired Intermedia.net Inc., a Mountain View, Calif.-based provider of cloud business applications like Microsoft Exchange email, from shareholders like Oak Hill Capital Partners. No financial terms were disclosed. www.intermedia.net

 McDonald’s Corp. (NYSE: MCD) has received at least three final bids of nearly $3 billion for its China and Kong Kong restaurants, according to Reuters. Suitors include British retail group Sanpower, The Carlyle Group working with CITIC Group and TPG Capital working with Wumart Stores. Read more.

 Perimeter Healthcare, a portfolio company of Ridgemont Equity Partners, has acquired WoodRidge Behavioral Care, owner and operator of five psychiatric residential treatment facilities and three acute hospital programs serving adolescent and geriatric patients in Tennessee, Arkansas and Missouri. No financial terms were disclosed. www.woodridgecare.com

IPOs (energy edition)

 Extraction Oil & Gas LP, a Denver-based oil and gas company focused primarily on the DJ Basin in Colorado, has filed for a $500 million IPO. It plans to trade on the NYSE under ticker symbol XOG, with Credit Suisse listed as left lead underwriter. Shareholders include Yorktown Energy Partners, BlackRock and affiliates of Neuberger Berman.

 Noble Midstream Partners LP, a Houston, Texas-based spinout of NobleEnergy Inc. (NYSE: NBL) that will focus on domestic midstream energy infrastructure assets, raised $281 million in its IPO. The company priced 12.5 million shares at $22.50 per share (above $19-$21 range), and will trade on the NYSE under ticker symbol NBLX. Barclays was listed as left lead underwriter. www.nobleenergyinc.com

 Philadelphia Energy Solutions, a Philadelphia-based owner of two crude oil refineries and a rail terminal in Philadelphia, has withdrawn registration for a $250 million IPO. Also withdrawing IPO registration was an affiliated master limited partnership called PES Logistics Partners. Both are owned by The Carlyle Group. www.carlyle.com


 CVC Capital Partners has retained Goldman Sachs to explore a sale of German smart meter company Ista International, according to Bloomberg. CVC paid €3.1 billion to purchase the company in 2013, and “is expected to get significantly more.” Read more.

 Kainos Capital has sold InterHealth Nutraceuticals, a Benicia, Calif.-based maker of ingredients for dietary supplements and functional foods, to Switzerland-listed Lonza Group Ltd. for upwards of $300 million (including an earn-out). www.interhealthusa.com

 New Capital Partners said that it has sold Realtime Electronic Payments, an Atlanta-based provider of electronic transaction processing services, to an undisclosed buyer. www.repayonline.com

 Nordic Capital has hired Morgan Stanley to find a buyer for Itiviti AB, a Sweden-based provider of financial technology and services to the capital markets, according to Reuters. The deal could be valued at around $500 million. Read more.

 TCC Global, a Dutch retail marketing company, has acquired Summit, a UK-based provider of digital marketing programs for retailers that generated over £47 million in 2015 revenue. No financial terms were disclosed. Sellers include Rcapital. www.tccglobal.com


 Torreal SA has hired Citigroup and Lazard to find buyers for its 23% stake in Spanish audiovisual company Imagina Media Audiovisual SL at an enterprise value of upwards of €2 billion, according to Bloomberg. Read more.


 Ardian has closed its sixth mid-market buyout fund with €4.5 billion in capital commitments. www.ardian.com


 Thomas Emmons has joined Pegasus Capital Advisors as a partner focused on mezzanine capital in the renewable energy and clean infrastructure sectors. He previously was a managing director with Rabobank. www.pcalp.com

 Dave Johnson has joined Israeli venture capital firm Gilot Capital Partners as chairman of its “board of experts.” Johnson is a senior advisor to The Blackstone Group, where he previously was a senior managing director focused on tech investments. www.gilotcapital.com

 Boris Okuliar has joined Ares Management as a London-based partner, according to Reuters. The former UBS banker had been with The Carlyle Group since 2014, focused on credit investment opportunities. Read more.

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