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Term Sheet — Tuesday, September 20

Random Ramblings

Some items to kick off your Tuesday…

• Coming attractions: Tintri, a Mountain View, Calif.-based provider of VM-aware storage for virtualization and cloud environments, has filed confidential IPO docs with the SEC, according to multiple sources. Word is that current plans are for an early 2017 offering.

The company ― which is a bit similar to upcoming IPO issuer Nutanix ― has raised around $260 million in equity funding, most recently a $125 million Series F round in July 2015 at a $785 million post-money valuation. Shareholders include Silver Lake Kraftwerk, Insight Venture Partners, Lightspeed Ventures, Menlo Ventures and New Enterprise Associates. A Tintri spokesman declined comment, natch.

• Well, that was unexpected: Unilever yesterday announced that it will acquire Seventh Generation, a Vermont-based maker of “green” household products like laundry detergent and diapers. A handful of notes on this one:

1. No financial terms were disclosed, but two sources familiar with the deal says that Unilever is paying between $600 million and $700 million in cash.

2. This was inbound interest rather than an auction, with Seventh Generation not engaging in takeover talks with any other company.

3. Seventh Generation has been around for over 30 years, and currently has private equity backing from such firms as Catamount Ventures, Generation Investment Management and Schooner Capital.

4. The timing is downright bizarre, given the recent reports that Unilever has been in talks to buy Honest Company. And I’m pretty sure the only people who know what’s really going on are on the Unilver deal team (of which there is only one in North America). For starters, a source close to Seventh Generation says that Unilever never told it about a possible Honest Company deal (which would be a strange omission at the beginning of a partnership). Moreover the source doesn’t believe a Unilever/Honest deal makes much sense, given that Unilever already just shelled out for a direct-to-consumer platform with Dollar Shave (7G mostly sells via retail partners). On the other hand, multiple sources familiar with Honest insist that there have indeed been serious negotiations about a tie-up (perhaps as part of a “corner the market” strategy from a product perspective). Got to wonder how much of what’s going on might be banker posturing…

• That’s fine: First Reserve is the latest private equity firm to settle with the SEC over inadequate fee disclosures to its limited partners (plus some conflict of interest misdeeds), agreeing to pay out $3.5 million.

• Recommended reading: We’ve written a lot about the appalling lack of women in decision-making roles within the U.S. venture capital and private equity industries. But the same problem is not true of China (at least within VC). Bloomberg‘s Shai Oster and Selina Wang have the story.

• Fraudsters: I’m still reporting out the Sienna Ventures scam but, in the interim, feel obliged to offer up the following warning: If you receive an email from anyone at Sienna Ventures, Renaissance Recruiting or Prelude Recruiting, do not engage with them. They are not who they say they are. And if you have received such a message, please let me know (your confidentiality is assured). From what I can tell, this one is a bigger problem than “Asenqua Ventures.”


• Grab, a Singapore-based ride-hailing company, has raised $750 million in new equity funding led by Softbank. Read more.


• Vlocity, a provider of cloud software for specific industries like insurance and telecommunications, has raised $50 million in new VC funding. Sutter Hill Ventures led the rund, and was joined by Salesforce Ventures, New York Life Insurance and return backer Accenture. Read more.

• Vroom, a Grand Prairie, Texas-based online platform for used car purchases, has raised $50 million in Series E funding. T. Rowe Price led the round, and was joined by Altimeter Capital, Foxhaven Asset Management and return backers L. Catterton, General Catalyst Partners and Allen & Co. Read more.

• 4C Insights Inc., a Chicago-based provider of “data science and media technology with solutions for multi-screen convergence,” has raised $26 million in Series C funding. Kayne Partners led the round, and was joined by return backers Jump Capital and Prime Ventures.

• Bitmovin, a Palo Alto, Calif.-based online media streaming platform, has raised $10.3 million in Series A funding led by Atomico.

• StarOfService, a French search platform for local services (i.e., Thumbtack for Europe), has raised $10 million in new VC funding from ENERN Investments, Point Nine Capital, Andrea Piccioni and Silvio Pagliani. Read more.

• FoodChéri, a French food preparation and delivery startup, has raised €6 million in Series A funding from 360 Capital Partners, Breega Capital and Samaipata Ventures. Read more.

• ACV Auctions, a New York-based wholesale purchasing platform for used-car dealers, has raised $5 million in Series A funding. Tribeca Venture Partners led the round, and was joined by SoftBank Capital NY, Armory Square Ventures and Rand Capital. The company also named George Chamoun, founder of Synacor (Nasdaq: SYNC), as CEO.

• Fauna Inc., a San Francisco-based developer of an adaptive operational database, has raised $4.5 million in seed funding. Charles River Ventures led the round, and was joined by Data Collective, Quest VP, the Webb Investment Network, Ulu Ventures and individual angels like Scott McNealy.

• Vestwell, a New York-based white-labeled retirement platform for the RIA community, has raised $4.5 million in new VC funding. FinTech Collective led the round, and was joined by F-Prime Capital, Primary Venture Partners and Commerce Ventures. • 

• Solar Analytics, an Australian developer of residential smart solar management products, has raised A$4.4 million in new VC funding from backers like AGL Energy Ltd., David Griffin and John Clifford. Read more.

• Cornami, a Santa Clara, Calif.-based high performance computing startup, has raised $3 million in Series B funding led by Impact Venture Capital.

• Insider, Turkey-based unified online marketing platform, has raised $2.2 million in Series A funding. 212 led the round, and was joined by Wamda Group, Oncu GSYO and return backer Galata Business Angels. Read more.

• AdStage, a San Francisco-based cross-channel advertising suite, has raised $2 million in new VC funding from existing backer Verizon Ventures.

• Hostmaker, a London-based provider of hospitality management software, has raised $1.1 million in new VC funding. Initial Capital led the round, and was joined by DN Capital and DSG Consumer Partners.

• IRYStec Software Inc., a Montreal-based provider of perceptual display processing technology, has raised an undisclosed amount of Series A funding from firms like BDC Capital, Purple Angels Tandemlaunch.

• Norsk Titanium AS, a Norwegian provider of structural titanium components, has raised an undisclosed amount of VC funding from Applied Ventures.


• Apollo Global Management reportedly may have interest in acquiring the assets of Community Health Systems Inc. (NYSE: CYH), a $1.4 billion U.S. hospital chain that said it is exploring strategic options that could include a sale. Read more.

• General Electric (NYSE: GE) has received three private equity bids for its 43% stake in Hyundai Card, a South Korean credit card joint venture, according to a local media report. The deal could be valued at more than $535 million. Bidders include Affinity Equity Partners and PAG, with Goldman Sachs and Morgan Stanley managing the process. Read more.

• Graphite Capital has acquired Beck & Pollitzer, a UK-based provider of industrial machinery installation and relocation services, from Bridgepoint Development Capital. No financial terms were disclosed.

• JenCap Holdings LLC, a New York-based insurance brokerage platform backed by The Carlyle Group, has agreed to acquire M. J. Kelly Co., a Springfield, Mo.-based managing general agency and wholesale insurance brokerage. No financial terms were disclosed.

• New Mountain Capital has invested in Island Medical Management LLC, a Hauppauge, N.Y.-based provider of outsourced healthcare practice management services to emergency departments, hospitalist programs and hospital-based urgent care centers. No additional terms were disclosed.

• Patricia Industries, a portfolio company of Investor AB, has completed its previously-announced acquisition of Laborie Medical Technologies, an Ontario-based provider of medical devices for urological, pelvic health and gastrointestinal applications. No financial terms were disclosed. The seller was Audax Private

• Reimagine Holdings Group, a New Canaan, Conn.-based holding company focused on consumer insights and marketing services companies, has secured an undisclosed amount of new equity funding from BV Investment Partners.

• Thomas H. Lee Partners has agreed to acquire System One, a Pittsburgh-based provider of specialized workforce solutions and integrated services, from MidOcean Partners. No financial terms were disclosed.

• Wendel has agreed to acquire South Africa-based Tsebo Solutions Group, a pan-African facilities services provider, for approximately €331 million. Sellers include Rockwood Private Equity.


• Fulgent Genetics Inc., a Temple City, Calif.-based provider of genetic testing services, has set its proposed IPO terms to 4.6 million shares being offered at between $12 and $14 per share. It would have an initial market cap of around $227 million, were it to price in the middle of its range. The company. The company plans to trade on the Nasdaq under ticker symbol FLGT, with Credit Suisse and Piper Jaffray serving as lead underwriters. The company reports a $5 million net loss on $7.4 million in revenue for the first six months of 2016.

• Tabula Rasa HealthCare Inc., a Moorestown, N.J.-based provider of patient-specific medication management technology, has set its proposed IPO terms to 4.3 million shares being offered at between $13 and $15 per share. It would have an initial market cap of around $217 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol TRHC, with Wells Fargo and UBS serving as lead underwriters. Tabula Rasa reports a $77,000 net loss on $42.6 million in revenue for the first half of 2016. Shareholders include Originate Ventures (18% pre-IPO stake), Radius Ventures (11.5%) and Emerald Stage2 Ventures (6.2%).

• Trade Desk Inc., a Ventura, Calif.-based self-serve digital ad platform, has increased its proposed IPO price range from $14-$16 per share to $16-$18 per share. It still plans to offer 4.67 million shares, and now would have initial market cap of approximately $650 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol TTD, with Citigroup serving as left lead underwriter. Trade Desk reports $6.6 million of net income on $76 million in revenue for the first six months of 2016, compared to 5.7 million of net income on $42 million in revenue for the year-earlier period. Investors include IA Ventures (19.8% pre-IPO stake), Founder Collective (14.1%), Wellington Management (11.5%) and Highwind (7%).


• Bow River Capital Partners has sold Professional Pediatric Home Care, a provider of home care services and therapy to medically fragile children and their families in Colorado, to Atlanta-based PSA Healthcare. No financial terms were disclosed.

• Columna Capital has hired Evercore to find a buyer for Datamars, a Swiss animal tagging company that could be worth over $300 million, according to Reuters. Read more.


• Etsy (Nasdaq: ETSY) has acquired Blackbird Technologies, an AI and machine learning startup focused on search. No financial terms were disclosed. Read more.

• Facebook (NYSE: FB) has acquired Nascent Objects, a San Carlos, Calif.-based modular electronics platform, for an undisclosed amount. Read more.

• Renault and Nissan Motor have agreed to acquire French software development company Sylpheo for an undisclosed amount. Read more.

• Tech Data Corp. (Nasdaq: TECD) has agreed to acquire the Technology Solutions business of Avnet Inc. (NYSE: AVT) for approximately $2.6 billion (including $2.4 billion in cash). Read more.

• Twilio (NYSE: TWLO) has acquired the “proprietary WebRTC media processing technologies developed by the same team that also originally built the Kurento open source WebRTC media server,” per TechCrunch, which adds that it also has hired the team. No financial terms were disclosed. Read more.


• Dundee Venture Capital, an Omaha-based seed-stage VC firm, has closed its third fund with $20 million in capital commitments.

• Mubadala Development Co., a sovereign wealth fund in Abu Dhabi, has hired Campbell Lutyens & Co. for a strategic review that could include “moving some of its $2 billion private equity portfolio to another vehicle as part of the creation of an investment fund,” according to Bloomberg. Read more.

• Spectrum 28, a Menlo Park, Calif.-based VC firm co-founded by Kent Ho (ex-Harbor Pacific Capital) and Lyon Wong (ex- Lightspeed Venture Partners) has closed its debut fund with $170 million in capital commitments.

• Walgreens Boots Alliance (Nasdaq: WBA) reportedly has shuttered its corporate venture capital arm, B&B Investment Partners.

• Wasserstein & Co. has closed its fourth mid-market private equity fund with $790 million in capital commitments.


• Rich Boyle and Joydeep Bhattacharyya have joined Canaan Partners as San Francisco-based partners. Boyle previously was an operating partner with Khosla Ventures, and before that was CEO of Bhattacharyya last was a principal with Shasta Ventures.

• Great Hill Partners has promoted Nick Cayer, Rafael Cofiño and Peter Garran to partner. Cayer joined in 2006 and serves on the boards of AffiniPay, Chrome River, NMI, Vanco, and BlueSnap. Cofiño joined in 2012 and serves on the boards of Qualifacts and RxBenefits. Garran came in 2008 and sits on the boards of CliqStudios, PuppySpot, Momondo, YogaWorks, The Shade Store and Educaedu.

• Amit Jain has joined Frazier Healthcare Partners as an operating partner on the firm’s growth buyouts team. He previously was an SVP and head of business operations at Omnicare Inc.

• Robert Swan, the former eBay CFO who has been serving as an operating partner with private equity firm General Atlantic, has joined Intel Corp. (Nasdaq: INTC) as chief financial officer. Swan will replace Stacy Smith, who will remain with Intel is a new role leading sales, manufacturing and operations. Read more.

• Marshall Taylor has joined Houlihan Lokey as a Dallas-based managing director and national healthcare leader for transaction advisory services. He previously was with Alvarez & Marsal.

• Frank Witney has joined Ampersand Capital Partners as an operating partner. He previously served as president and CEO of genomics and cell biology products company Affymetrix (acquired earlier this year for $1.3 billion by Thermo Fisher Scientific).

• Paul Yang has joined KKR has head of Greater China, effective January 2017. He currently serves as president and CEO of China Development Financial Corp.

• Craig Zaph has joined Cowen Group as head of debt capital markets. He previously spent 18 years with Jefferies, most recently as a managing director and head of energy and shipping leveraged finance.

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