Term Sheet — Friday, February 2


Good morning, Term Sheet readers.

So much for an Airbnb IPO in 2018.

In an executive shakeup, Airbnb said its CFO, Laurence “L.T.” Tosi will be leaving the company and CEO Brian Chesky’s longtime deputy Belinda Johnson, would be elevated to the new role of COO. The company also said it would not go public this year.

Tosi, who joined Airbnb in 2015 from his post as CFO of Blackstone, was expected to lead the company to its IPO. But according to a report from The Information, Tosi was seeking to become either COO or president of the company’s core homes division. The report also said the two clashed over some of Chesky’s bold ideas, like expanding into flights and other new initiatives that required a longer-term path to profitability.

My colleague Leigh Gallagher reports:

Chesky, in a rare specific statement on the timing of the company’s IPO plans, said in the announcement that it would not take the company public this year. “I know people will ask what these changes mean for a potential IPO,” he said. “Let me address this directly. We are not going public in 2018.”

Chesky has always insisted that the company would go public on its own timetable and not for a while; in early 2017, he told Fortune he saw the process of getting ready for an IPO to be a two-year project and that at the time they were “halfway.” But once ready, he stressed, the company would be patient and deliberate about picking its moment. Last week, he articulated in a blog post his vision to make Airbnb a “21st Century Company,” one with an “infinite time horizon.”

Alas, the unicorn backlog continues.

CRYPTO PLUNGE: Nothing like waking up and realizing that Bitcoin’s price dipped below $8,000 early this morning.The market value of all main cryptocurrencies in circulation dropped $100 billion in the last 24 hours. It takes a special kind of investor to be able to stomach these kinds of price swings. Read more at Fortune.

NEW FUNDING: Looks like HQ Trivia, the company behind the popular trivia game show app, will manage to raise a round, after all. Despite reports that the company was facing fundraising roadblocks, HQ is set to raise $15 million in venture funding at a reported valuation of more than $100 million. The round will be led by Founders Fund. According to Recode, the company was out fundraising since at least November, but it has had trouble raising money after investors learned of alleged bad behavior by one of the company’s founders, Colin Kroll. From the story:

Given the recent and frequent allegations of sexual harassment against influential men in numerous industries, Silicon Valley investors are being more being more careful about which founders they support. Some firms that considered the deal did their own investigations into the founders’ history, including Founders Fund, the sources said.


Google Is Hiring Thousands More People Across the U.S. (by David Meyer)

How Apple CEO Tim Cook and CFO Luca Maestri Gave Apple a $50 Billion Boost (by Aaron Pressman)

Commentary: How We Can Bring Health Care to the World’s Underserved (by Joseph Jimenez & Raj Panjabi)

A Bitcoin Conference Rented a Miami Strip Club for 'Networking'


BigBasket, an India-based online grocer, raised $196.7 million in Series E funding, according to Reuters. Alibaba.com Singapore Ecommerce Pvt Ltd led the round, and was joined by investors including Sands Capital Pvt Growth Ltd, International Finance Corp and Abraaj Basket I Pvt Ltd. Read more.

INSIGHTEC, a Israel-based commercial-stage medical technology company, raised $150 million in Series E funding. Koch Disruptive Technologies led the round..

Harmless Harvest, a San Francisco-based progressive food & beverage company, raised $30 million in funding. Danone Manifesto Ventures led the round, and was joined by investors including Mousse Partners, and AccelFoods.

Bespin Global, a South Korea-based cloud management company, raised $27 million in funding. ST Telemedia led the round.

Figma, a San Francisco-based open design platform, raised $25 million in Series B funding. Kleiner Perkins led the round, and was joined by investors including Greylock Partners and Index Ventures.

Convercent, a Denver, Colo.-based company that provides ethics and compliance software to businesses, raised a $25 million in funding, according to TechCrunch. Rho Ventures led the round, and was joined by investors including Sapphire Ventures and Tola Capital. Read more.

Organica Water, a Hungary-based provider of wastewater treatment and recycling solutions, raised $21 million in Series D funding. CITIC Capital Silk Road Fund led the round.

Owl, a Palo Alto, California-based developer of an automobile security camera, raised $18 million in funding. Investors include Defy, Khosla Ventures, Menlo Ventures, Sherpa Capital, Moment Ventures, Maniv Mobility and CSAA Insurance Group. T

Platterz Inc, a Canada-based corporate catering platform, raised $15 million in Series A funding. Aleph Capital led the round, and was joined by existing investors including AltaIR Capital and Globalive Capital.

Igneous Systems, a Seattle-based provider of hybrid cloud backup and archive solution for unstructured data, raised $15 million in funding. Investors include Vulcan Capital and Orca Bay Capital.

Joymode, a Los Angeles-based item rental subscription service, raised $14.4 million in Series A funding. Naspers Ventures led the round.

Honeycomb, a San Francisco-based observability provider for software engineers, raised $11.5 million in Series A funding. Investors include e.ventures, Storm Ventures, NextWorld Capital and Merian Ventures.

Wildmoka, a France-based startup that wants to streamline video editing during live events, raised $8 million in Series A funding. Alven Capital led the round, and was joined by investors including Apicap.

Blueday Inc., a Boston-based provider of the Store Revenue Management system for retail, raised $6 million in funding. Investors include Radian Capital.

Prodigy, a San Francisco-based automotive company that offers a new system of transaction for modern car dealership, raised $5.4 million in seed funding. Investors include 8VC, Battery Ventures, SV Angel and CrunchFund.

SaaSOptics, a Peachtree Corners, Ga.-based B2B subscription management platform, raised $5 million in Series A funding. Fulcrum Equity Partners led the round.

CanvasPop, a Las Vegas-based provider of canvas printing and photo gifting services for photographers, digital artists, interior designers and consumers, raised $3.3 million in funding. Investors include Celtic House Venture Partners and BDC’s Growth & Transition Capital.

Tamatem, a Jordan-based startup creates localised versions of popular games so that they resonate better with users in Arabic-speaking countries, raised $2.5 million in Series A funding. Wamda Capital led the round, and was joined by investors including Discovery Nusantara Capital, Raed Ventures, Vision Venture Capital, and Seed Equity Venture Partners.

Factmata, a U.K.-based anti-fake-news startup, raised seed funding of an undisclosed amount. Investors include Biz Stone and Craig Newmark.


Moderna Therapeutics, a Cambridge, Mass.-based biotechnology firm that is developing drugs that work on a genetic messaging system that is essential to all living cells, raised $500 million in Series G funding at a $7.5 billion valuation. Investors include Abu Dhabi Investment Authority (ADIA), BB Biotech AG, Julius Baer, Singapore-based EDBI, Sequoia Capital China, Fidelity Management & Research Company, Pictet, Viking Global Investors, ArrowMark Partners and Alexandria Venture Investments.

Partner Therapeutics Inc, a Boston-based oncology company, raised $60 million in funding. Investors include Perceptive Advisors, Adams St. Partners and MidCap Financial.

Avrobio, a Cambridge, Mass.-based developer of gene therapies for rare diseases, raised $60 million in Series B funding. Cormorant Asset Management and Surveyor Capital led the round, and were joined by investors including Aisling, Brace Pharma Capital, Eventide Asset Management, Morningside, Atlas Venture, SV Health Investors and Clarus Ventures.


Regatta Medical Holdings LLC, a portfolio company of GTCR, invested in Resonetics, a Nashua, N.H.-based medical device contract manufacturing company. Sverica Capital Management will retain a minority stake in Resonetics. Financial terms weren't disclosed.

Sunstone Partners made an investment in ProgenyHealth, a Conshohocken, Penn.-based company focused on neonatal intensive care unit. Financial terms weren't disclosed.

Sentinel Capital Partners sold Huddle House, an Atlanta-based franchisor of family dining restaurants in the Southeast. Financial terms weren't disclosed.

Agiletech Partners, Inc. acquired Quisitive, an Irving, Texas-based digital technology consulting firm. Financial terms weren't disclosed.

PeopleAdmin Inc, a portfolio company of Vista Equity Partners, acquired Performance Matters LLC, a Utah-based provider of education software. Financial terms weren't disclosed.

Bomgar, which is backed by Thoma Bravo, acquired Lieberman Software, a Los Angeles, Calif.-based provider of privileged identity and credential management software. Financial terms weren't disclosed.

IntegriChain, a portfolio company of Accel-KKR, acquired Medical Communication Technologies Inc, a provider of government pricing and contracting software and services. Financial terms weren't disclosed.

Pamlico Capital acquired Connexin Software, Inc. dba Office Practicum, a Fort Washington, Penn.-based provider of electronic health records. Financial terms weren't disclosed.

Marlin Equity Partners acquired Bazaarvoice, an Austin, Texas-based provider of consumer-generated content, advertising and personalization solutions, for $521 million.


Dell Technologies Inc and VMware Inc (NYSE:VMW) have decided to explore options that could include a potential merger of the two companies, according to Reuters. Read more.

Motorola Solutions Inc (NYSE:MSI) will buy Avigilon Corp (TSX:AVO) for C$1.2 billion ($978 million) in cash. Motorola’s offer of C$27 per Avigilon share represents a premium of 18.3% to Avigilon’s Thursday closing price. Read more.

Soothe acquired Melt, a Los Angeles-based on-demand massage company. Financial terms weren't disclosed.

Advanced Energy Industries, Inc. (NASDAQ: AEIS) acquired Trek, a Tokyo and New York based designer and manufacturer of high voltage power supplies and electrostatic measurement tools used in the semiconductor, aerospace, automotive and medical, applications, for approximately $12 million.


FTS International, a Fort Worth, Texas-based fracking firm, raised $351 million in an IIPO of 19.5 million shares priced at $18 a piece, at the high end of its range. Temasek and Chesapeake Energy back the company. Credit Suisse and Morgan Stanley are underwriters in the deal. The firm plans to list on the NYSE as “FTSI.”

Corporación América Airports S.A., a Luxembourg-based airport operator, raised $486 million in an IPO of 28.6 million shares priced at $17 a piece. Oppenheimer & Co., BofA Merrill Lynch, Citi and Goldman Sachs are the joint bookrunners on the deal. It plans to list on the NYSE as ”CAAP.”

Adaptive Insights, a U.S.-based financial software firm, hired Morgan Stanley to lead an IPO later this year, PEHub reports citing sources. Read more.


Shutterfly (Nasdaq: SFLY) agreed to acquire Lifetouch, an Eden Prairie, Minn.-based company focused on school photography, for $825 million in cash.

CI Capital Partners sold Galls, a Lexington, Ky.-based distributor of uniform and equipment to public safety personnel, to Charlesbank Capital Partners. Financial terms weren't disclosed.

Industrial Growth Partners sold FMH Aerospace, an Irvine, Calif.-based maker of complex solutions for the aerospace, defense, and space industries, to Ametek Inc for $235 million. Financial terms weren't disclosed.


Further Global Capital Management, a New York-based private equity and venture capital firm, is seeking to raise $1.25 billion for its new fund, according to SEC filings. Financial terms weren't disclosed.

Science Inc, a Santa Monica, California-based incubator and venture firm, raised $75 million for its second fund, according to an SEC filing.


Alison Bush Delgado joined SeventySix Capital as a managing director.

Bessemer Venture Partners promoted Talia Goldberg from vice president to principal.


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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.

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