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Term Sheet — Friday, October 27

October 27, 2017, 1:38 PM UTC


It’s (finally) Friday!

Here’s a rundown of some things to have on your radar before you head into a Term Sheet-free weekend.

GETTING AMAZON’D: CVS is in talks to buy health insurer Aetna for more than $66 billion “as the drugstore giant scrambles to fortify itself against looming competition from,” according to The Wall Street Journal. Imagine having the power to shake up industries you haven’t even entered yet. In response, CVS is going on the offensive in case the tech giant ever enters the pharmacy business. And there are rumors that Amazon really might be sniffing around CVS’s turf — it reportedly hired a new manager to develop a strategy for breaking into the pharmacy market & obtained wholesale pharmacy licenses from several states. The takeaway? Amazon is a market beast & no one is safe from its wrath.

THE WOMEN OF DFJ: Another venture firm has been rocked by allegations of sexual harassment after The Information reported that DFJ is investigating allegations against founding partner Steve Jurvetson. No other details about the investigation were disclosed, but the firm said it became aware of “indirect and second-hand allegations” about Jurvetson earlier this summer. On Tuesday, RawScience founder Keri Kukral wrote in a Facebook post that “women approached by founding partners of Draper Fisher Jurvetson should be careful. Predatory behavior is rampant.”

Now, the women of DFJ are pushing back on the “predatory behavior” claims. Heidi Roizen, a partner at the firm, wrote a blog post on her personal Tumblr page yesterday, refuting the allegations. She said:

“In the past week, a single Facebook post also accused DFJ of having a culture that is predatory to women. I don’t need an investigation to state with certainty that this is patently wrong. I am too grizzled and old to write bullshit about a company to please my boss. I’m writing this because I believe it to be true. I value my own personal reputation and integrity above any firm, and simply put, I would not work for DFJ if I felt the culture was not one of high integrity and opportunity for all — including women. Including me.”

Two other women (former DFJ employees) have come to the firm’s defense. My take? Allegations of sexual harassment are serious and should not be made or taken lightly. A good way to start addressing some of these problems plaguing the venture community would be to shed light on what Cheryl Yeoh calls, the “black box of inappropriateness.” For instance, was the investigation launched due to reports of an inappropriate comment? Or was it because of solicitation of sexual activity? At this point, we don’t know. Clearly defining levels of misconduct will help “raise the awareness of the issue and catch it before it becomes an unspoken norm,” Yeoh writes.

PEOPLE MOVES: Foundation Capital is adding two new entrepreneurs-in-residence this month in order to double down on emerging technologies: artificial intelligence and blockchain. Ashu Garg, a general partner at the firm, said, “We recruit EIRs who are experts in areas that we’re interested in investing in, as part of our process for getting smart on a specific sector.”

Natalia Burina is joining Foundation Capital to help scale startups focused on enterprise AI, consumer mobile, and marketplace. Previously, Burina was a director of product at Salesforce and the founder of Parable (acquired by Samsung).

Nick Soman joined the firm to work on blockchain-related projects. Previously, he led growth and data at Gusto & founded Reveal Chat (acquired by Napster).


Saudi Arabia will invest $1B in Virgin Galactic (by Keshia Hannam)

The iPhone X sold out in minutes, but it doesn’t mean it’s a hit (by David Meyer)

Trump releases some JFK assassination files (by John Patrick Pullen)

Jeff Bezos might be the world’s richest man — again (by Lucinda Shen)


Clariant and Huntsman terminate planned merger. SEC fines Zenefits and former CEO for misleading investors. Inside Managed by Q’s ‘good jobs strategy.’ Opioid billionaire arrested on racketeering charges. GE’s turnaround plan. How Wall Street scored its big win in Congress.


Carousell, a Singapore-based e-commerce startup, raised between $70-$80 million in Series C funding, according to TechCrunch. Read more.

Templum, LLC, a New York-based blockchain startup, raised $2.7 million in seed funding. Investors include Raptor Group, Galaxy Investment Partners, Blockchain Capital and

&pizza, a Washington D.C.-based pizza chain, raised funding of an undisclosed amount of funding from RSE Ventures.


Y-mAbs Therapeutics Inc, a New York City and Denmark-based developer of cancer treatments, raised $50 million in funding. The investors included HBM Healthcare Investments.


Togetherwork, which is backed by Aquiline Capital Partners LLC, acquired two synagogue-focused software providers Chaverware and Congregation Connect. Financial terms weren't disclosed.

Vista Equity Partners agreed to acquire Datto, a Norwalk, Conn.-based provider of data protection solutions for businesses. Financial terms weren't disclosed. Vista is planning on merging Datto with portfolio company Autotask.

Prime Risk Partners Inc, which is backed by Thomas H. Lee Partners, acquired Gunn, Steers & Company, a New York City-based insurance broker focused on financial institutions and asset management firms. Financial terms weren't disclosed.

Marlin Equity Partners acquired Logi Analytics, a McLean, Va.-based provider of embedded business intelligence and analytics software solutions. Financial terms weren't disclosed.

New MainStream Capital recapitalized GrapeTree Medical Staffing, a Milford, Iowa-based healthcare staffing agency. Financial terms weren't disclosed.


AngelMD made an investment of an undisclosed amount in Artoss, a Minnesota and Germany-based bone biologic startup. Financial terms weren't disclosed.

TransCanada, plans to sell its solar energy portfolio for C$540 million($426 million).


Nexa Resources, a spin off of Sao Paulo-based Votorantim Metais Holding(VM Holding) which produces base metals, raised $496 million in an offering of 31 million shares(34% insider) at $16 a piece, below the company’s previously stated range of between $18 to $21 a piece. VM Holding posted revenue of $1.9 billion and earnings of $110.5 million in 2016. J.P. Morgan, BMO, Morgan Stanley and Credit Suisse have been named global coordinators in the deal. BofA Merrill Lynch, Citigroup, Scotiabank, Bradesco BBI, and Credicorp Capital are joint bookrunners in the deal. The company plans to list on the NYSE as “NEXA.”

ForeScout Technologies, a San Jose, Calif.-based cybersecurity company, raised $116 million by offering 5.3 million shares at $22 a piece. In 2016, the company posted revenue of $166.8 million and loss of $74.8 million. Accel(15.2% pre-IPO), Amadeus Capital(19.6%), Meritech Capital Partners(13.4%), Pitango(14%), and Wellington Management(7.7%) back the company. Morgan Stanley, J.P. Morgan, and Citigroup are joint bookrunners in the deal. ForeScout plans to list on the Nasdaq as “FSCT.”

Metropolitan Bank Holding, A New York City-based bank , said it plans to raise $101 million in an IPO of 3.1 million shares between $31 to $34 a piece. The company posed assets of $1.6 billion by mid-2017, with income of $5 million in 2016. J.P. Morgan, Keefe, Bruyette & Woods, and Piper Jaffray are underwriters in the deals. Metropolitan plans to list on the NYSE as “MCB.”

Merchants Bancorp, a Carmel, In.-based bank focused on FHA loans, said it raised  $100 million in an offer of 6.3 million shares at $16 a piece. The company posted assets of $3.1 billion by mid 2017. For 2016, Merchants posted revenue of $82.5 million. Sandler O’Neill + Partners, Stephens, Raymond James, and SunTrust Robinson Humphrey are joint bookrunners in the deal. The company plans to list on the Nasdaq as “MBIN.”

Zscaler, a San Jose, Calif.-based cybersecurity company, has reportedly filed confidentially for an IPO, according to TechCrunch. Lightspeed Ventures, Alphabet’s Capital G, and TPG back the company. Read more.


VetPronto, a San Francisco-based mobile veterinary service, is shutting down operations, according to a blog post. The company had raised approximately $1.3 million in venture funding from investors including Funders Club and YCombinator.

Sverica Capital Management LLC agreed to sell Syscon Justice Systems Ltd to N. Harris Computer Corp, a unit of Constellation Software. Financial terms weren't disclosed.


FPE Capital LLP, a U.K.-based growth private equity firm, raised 100 million pounds ($131 million) for its debut fund.


Amita Schultes joined Perella Weinberg Partners Agility as a managing director.

David G. DeWalt joined Allegis Capital as a managing director.


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Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here.