Good morning, Term Sheet readers.
NEW FUND ALERT: It’s been previously reported that Fred Destin (formerly of Accel) and Harry Stebbings (the founder and host of the popular “The Twenty Minute VC” podcast) had teamed up to form a new venture fund.
We now know that the firm, Stride.VC, has raised approximately £40 million ($53.5 million) for its debut fund, according to TechCrunch. The fund’s target is ~£50 million. Stride.VC will focus on seed stage startups “with a strong focus on the U.K.” It will remain “sector agnostic,” however, and is looking to partner with “contrarian entrepreneurs” who are attempting to reshape various industries.
To focus on the U.K. startup ecosystem appears to be a smart strategy. Deal sizes continue to grow as the European venture community matures and firms begin raising larger funds.
…MEANWHILE IN ASIA, Singapore-based ride-hailing startup Grab announced the launch of a new innovation arm. Grab Ventures will act as an accelerator and investment arm. The six-year-old company has already made investments and acquisitions — backing startups like Drive.ai and buying Indonesian payments service Kudo. It seeks to partner with 8-10 growth-stage startups over the next 24 months and may invest in a few. Read more.
FLASH SALE: Rue La La is buying New York-based flash-sale site Gilt Groupe from Hudson’s Bay. This marks the second acquisition of Gilt Groupe in two years. Gilt was once valued at $1 billion, but the flash-sales frenzy failed to take off the way investors expected. Hudson’s Bay Company purchased Gilt Groupe in 2016 for $250 million.
Hudson’s Bay told Fortune in a statement:
“As part of the actions taken to strengthen the foundation of the Company and position HBC for profitable growth, we have made the decision to divest Gilt. We are pleased to have found homes for the Gilt businesses in the U.S. and Japan that are more synergistic with Gilt’s core operating model. These transactions will allow us to focus time and resources on growth drivers that will have the greatest impact on our results.”
SUMMER READING: It’s almost summer (unless you’re in New York, where I’m pretty sure we’re still experiencing winter), so I want to crowdsource a summer reading list. Last year, Term Sheet readers helped me compile a comprehensive list of the best business books of all time.
Now, I’m looking for your favorite business biographies. Email me at firstname.lastname@example.org or tweet me @polina_marinova with your recommendations, and I’ll compile a list featuring the best ones.
• OutSystems, a Portugal-based low-code rapid application development company, raised $360 million in funding. Investors include KKR and Goldman Sachs.
• Vetsource, a Portland, Ore.-based healthcare services company with a platform focused on veterinarians, raised $50 million in Series D. Bain Capital Ventures led the round.
• Marqeta, an Oakland, Calif.-based open API payment card issuing platform, raised $45 million in funding. ICONIQ Capital led the round, and was joined by investors including Goldman Sachs.
• Tamara Mellon, a New York-based direct-to-consumer women’s luxury footwear brand, raised $24 million in Series B funding. New Enterprise Associates led the round, and was joined by investors including Quadrille Capital.
• Stocard, a Germany-based mobile loyalty wallet, raised $20 million. Investors include Macquarie Capital, Shortcut, Alstin, Silicon Valley based Rocketship, HTGF, and Engelhorn.
• EV Hive, an Indonesia-based provider of coworking spaces, raised $20 million in Series A funding. Softbank Ventures Korea led the round.
• PerfectStay, a Paris-based B2B tour operator, raised 15 million euros ($17.5 million) in funding. Investors including Partech and Felix Capital.
• FinCompare, a Germany-based fintech company, raised 10 million euros ($11.7 million) in Series A funding. ING Ventures led the round, and was joined by investors including Speedinvest and UNIAQ Ventures.
• DocAuthority, an Israel-based data management company, raised $10 million in Series A funding. Raine Ventures led the round, and was joined by investors including Greycroft, ffVC, Differential VC in the U.S., 2B Angels and Plus Ventures.
• Raken, a Cardiff-by-the-Sea, Calif.-based daily reporting app and field management solution for the construction industry, raised $10 million in Series A funding. U.S. Venture Partners led the round, and was joined by investors including Tao Capital Partners, Eniac Ventures, Rincon Venture Partners and Spider Capital.
• Boxbot, an Oakland, Calif.-based developer of autonomous delivery robots, raised $7.5 million in funding. Artiman Ventures led the round, and was joined by investors including Pear Ventures, Afore Capital, Ironfire Ventures and The House Fund.
• Mews, a hotel property management platform, raised €6 million ($7 million) in Series A funding. Notion.vc Capital led the round, and was joined by investors including HenQ and Thayer Ventures.
• Parachute Health, a New York-based healthcare technology platform, raised $9.5 million in funding. Insight Venture Partners led the round, and was joined by investors including GNYHA Ventures and Anthony Welters.
• Genetesis, a Cincinnati, Ohio-based medical device company, raised $7.5 million in Series A funding. CincyTech led the round, and was joined by investors including Mark Cuban’s Radical Investments, Ohio Innovation Fund, and Raptor Group.
• Packlane, a Louisville-based startup focused on custom packaging and online design, raised $4 million in Series A funding. Breakout Capital led the round, and was joined by investors including Draper Associates.
• Risalto Health, a New York City-based healthcare data science and technology company, raised $1.5 million. Health Catalyst Capital led the round.
PRIVATE EQUITY DEALS
• Tyson Foods Inc will sell Sara Lee Frozen Bakery and three other non-protein brands to Kohlberg & Co, according to Reuters. Read more.
• Warburg Pincus agreed to invest in Reorg Research, a New York-based provider of real-time news, analysis and commentary on issues affecting the distressed debt, event-driven and leveraged finance markets. Financial terms weren’t disclosed.
• Vista Equity Partners will acquire Integral Ad Science, a New York-based media valuation platform that enables digital buyers and sellers to assess the value of advertising opportunities. Financial terms weren’t disclosed.
• Australis Partners agreed to acquire a “significant” minority stake in Vitalmex, a Mexico-based provider of medical healthcare services. Financial terms weren’t disclosed.
• Intren, which is backed by One Equity Partners, will acquire Miller Construction Company, a Indiana-based full-service electrical contracting company. Financial terms weren’t disclosed.
• H.I.G. Capital made an investment in Eze Castle Integration Inc, a Boston-based provider of managed IT services and cloud solutions to financial service firms.
• Sentinel Capital Partners sold RotoMetrics, a Eureka, Miss.-based provider of rotary cutting tools and products. Financial terms weren’t disclosed.
• Adyen, a Dutch fintech firm, said it plans to raise between 922 million euros to 947 million euros ($1 billion to $1.1 billion) in an offering of 4.2 million shares between 220 euros to 240 euros ($257 to $280). Index Ventures and Iconiq Capital back the firm. It plans to list on the Euronext Amsterdam as “ADYEN.” Read more.
• Banco Agibank, the Brazil-based online lender, plans to raise 2.5 billion reais ($660 million) in an IPO pricing shares between 13.87 to 16.96 reais ($3.68 to $4.50). Read more.
• U.S. Xpress Enterprises, a Chattanooga, Tenn.-based trucking firm, said it plans to raise $344 million in an IPO of 18.1 million shares priced between $18 to $20. The firm posted revenue of $1.6 billion in 2017. BofA Merrill Lynch, Morgan Stanley, J.P. Morgan, and Wells Fargo Securities are underwriters in the deal. The firm plans to list on the NYSE as “USX.” Terms have yet to be announced. Read more.
• New Frontier, a Hong Kong-based blank check company seeking a business in healthcare, tech, or education sectors in China, filed for a $200 million IPO of 20 million warrants priced at $10 apiece. New Frontier Group’s Carl Wu is CEO of the firm. Credit Suisse and UBS are underwriters. It plans to list on the NYSE as “NFC.U.” Read more.
• Avalara, a Seattle Wash.-based cloud-based tax compliance software maker, said it plans to raise $150 million in an IPO of 7.5 million shares priced between $19 to $21. The company posted revenue of $213.2 million in 2017. Battery Ventures (9.9%), Warburg Pincus (24.4%), and Sageview Capital Masters (27.1% pre-offering) back the firm. Goldman Sachs, J.P. Morgan, and BofA are underwriters in the deal. The firm plans to list on the NYSE as “AVLR.” Read more.
• Tridica, a San Francisco-based biotech firm for kidney diseases, filed for a $150 million IPO. It has yet to post a revenue. Orbimed (36.9% pre-offering), Sibling Capital (23.4%), and Longitude Venture Partners (10.1%) back the firm. Goldman Sachs, J.P. Morgan, and Cowen & Company are underwriters. The firm plans to list on the Nasdaq as “TCDA.” Read more.
• Akasol, a German battery maker, is planning for an IPO of between 100 million to 125 million euros ($117 million to $147 million), Reuters reports citing sources. Read more.
• Verrica Pharmaceuticals, a West Chester, Penn.-based clinical stage dermatology firm focused on molluscum contagiosum, said it plans to raise $75 million in an IPO of 5 million shares, priced between $14 to $16. It has yet to post a revenue. PBM Capital(58.4% pre-offering), Perceptive Life Sciences (12.1%), and OrbiMed (6.4%) back the firm. BofA, Jefferies, and Cowen are underwriters in the deal. The firm plans to list on the Nasdaq as “VRCA.” Read more.
• Branford Castle acquired Drew Foam Companies, a Monticello, Ark.-based provider of polystyrene foam products. The seller was Gladstone Investment Corp. Financial terms weren’t disclosed.
• Gryphon Investors acquired Shermco Industries, an Irving, Texas-based provider of electrical testing, maintenance, and repair services in North America, from funds managed by Oaktree Capital Management, L.P.’s Power Opportunities Group.
FIRMS + FUNDS
• Hamilton Lane (NASDAQ: HLNE) raised approximately $900 million for its fourth fund, Hamilton Lane Strategic Opportunities Fund IV.
• Meritech Capital Partners, a Palo Alto, Calif.-based private equity and venture capital firm, raised $630 million targeted for its sixth venture fund.
• March Capital, a Santa Monica, Calif.-based venture capital firm, raised more than $108 million for its second fund. The fund’s target is $150 million.
• Eleanor “Nori” Welles-Gertz joined ParkerGale Capital as an associate.