Skip to Content

Term Sheet — Tuesday, June 12

MOVING ON

Good morning, Term Sheet readers.

ARE YOU KIDDING: For the love of God. The dust from the Theranos saga hasn’t even settled yet, but it appears that founder Elizabeth Holmes is moving on. Holmes is reportedly meeting with investors about raising money for a new startup (!), according to a Vanity Fair interview with John Carreyrou. Question: Who is taking meetings with a founder who 1) was charged with an “elaborate, years-long fraud,” 2) lost $700 million in venture funding, and 3) cannot be a director or officer of a publicly traded company for 10 years?

If you are one of these investors or if you have more information about this, please send info my way. Here is Term Sheet’s anonymous tip box.

NEW MONEY: G2VP, a venture firm that spun out of Kleiner Perkins Caufield & Byers’ green tech-focused investment arm, has raised $350 million for its first fund, including a financial commitment from investor John Doerr.

It plans to invest in companies that are using digital technologies to modernize traditional industries, specifically in the agriculture, energy, logistics, manufacturing, and transportation sectors. Read more.

BUILDING A (VIRTUAL) WALL: We ran a Q&A with Founders Fund partner Trae Stephens last week, in which he detailed his passion for defense tech. In a new Wired feature, we learn why.

Last year, Stephens and Palmer Luckey (the founder of Oculus) quietly co-founded a secretive defense tech startup called Anduril Industries. The company is pitching its technology to the Department of Homeland Security as a complement to — or alternative for — President Trump’s promised physical wall along the border with Mexico. It can detect and identify motion within about a 2-mile radius.

The company calls its border surveillance system “Lattice” and it has helped customs agents catch 55 unauthorized border crossers during a 10-week test period. “If Luckey has his way, the border wall of the future will be Anduril’s,” Wired reports.

In total, Anduril has raised approximately raised $58.5 million in venture funding from investors including Founders Fund, 8VC, General Catalyst, XYZ Ventures, Spark Capital, Rise of the Rest, and SV Angel. Defense tech is an area to keep on your radar.

BOZOMA OUT: Uber executive Bozoma Saint John is leaving the embattled tech giant to become the chief marketing officer at Endeavor, the holding company for talent agencies WME and IMG. She was at Uber for one year. At Endeavor, she will be responsible for connecting talent with brands.

Her departure is not all that shocking as she was hired under the leadership of former CEO Travis Kalanick and Recode reports that she “chafed under the new leadership of COO Barney Harford, who was previously CEO of Orbitz.”

“I want to thank Boz for her contributions over the last year,” Khosrowshahi said in a statement sent to Fortune. “Boz joined Uber at a time when the company was hurting—but her energy, optimism and creativity have been a key part of our ongoing turnaround. Endeavor is lucky to have her, and I’m excited to watch her work in her new role.” Read more.

THE LATEST FROM FORTUNE…

• Ivanka Trump and Jared Kushner Made $82 Million While Working in The White House Last Year (by Alix Langone)

• Electric Vehicle Startup Byton Raises $500 Million in Funding to Meet Production Goals (by Polina Marinova)

• Trump and Kim Signed a 4-Point Peace Pledge at The Summit. Here’s What It Says

• Google Gets Into Groceries (by Brittany Shoot)

VENTURE DEALS

Cohesity, a San Jose, Calif.-based provider of hyperconverged secondary storage, raised $250 million in Series D in funding. SoftBank Vision Fund led the round, and was joined by investors including Cisco Investments, Hewlett Packard Enterprise, Morgan Stanley Expansion Capital and Sequoia Capital.

Pharmapacks, an Islandia, N.Y.-based e-commerce company for health and beauty products, raised $32.5 million. Investors include CPG company RB, McKesson Ventures, Sealed Air, and The Emerson Group.

LOLA, a New York-based feminine care startup, raised $24 million in Series B funding. Alliance Consumer Growth led the round, and was jioned by investors including Spark Capital, Lerer Hippeau, and Brand Foundry Ventures.

Memrise, a London-based language learning platform, raised $15.5 million in Series B funding. Octopus Ventures and Korelya Capital led the round, and were joined by investors including Avalon Ventures and Balderton Capital.

Kin Insurance, a Chicago and Miami-based home insurance startup, raised $13 million in funding. Investors include August Capital.

PRØHBTD, a Los Angeles, Calif.-based cannabis lifestyle media and brand platform, raised $12 million in funding. Investors include Serruya Private Equity, The Delavaco Group and Cresco Capital.

Hipcamp, a San Francisco-based operator of a site for travelers to discover and book camping experiences, raised $9.5 million in Series A funding. Investors include Benchmark.

PolyCera Membranes, a Los Angeles-based developer of membrane technology for industrial wastewater treatment and process separation, raised $9 million in Series A funding. Kairos Ventures led the round.

Jane.ai, a St. Louis-based artificial intelligence platform that makes all of a company’s information accessible through chat, raised $8.4 million in Series A funding. Investors were not named.

Strangeworks, an Austin, Texas-based quantum computing software company, raised $4 million in seed funding. Lightspeed Venture Partners led the round, and was joined by investors including Ecliptic Capital, GreatPoint Ventures, Lux Capital, BoxGroup and Amplify Partners.

PRIVATE EQUITY DEALS

CVC Capital Partners invested about $150 million in PT GarudaFood Putra Putri Jaya, an Indonesia-based snack food maker, according to Bloomberg. Read more.

Serent Capital made an investment in KORE Software, a company focused on sports and entertainment CRM and business management software. Financial terms weren’t disclosed.

Chicagoland Smile Group, a portfolio company of Shore Capital Partners, acquired Advanced Family Dental and Orthodontics, an Illinois-based provider of dentistry services. Financial terms weren’t disclosed.

WebMD Health Corp, which is owned by Internet Brands, acquired Jobson Healthcare Information, a New York City-based provider of information, education and marketing services in key healthcare markets. Financial terms weren’t disclosed. Internet Brands is a portfolio company of KKR and Temasek.

Smart Care Equipment Solutions, which is backed by Audax Private Equity, acquired Restaurant Equipment Maintenance Corporation, a Pelham, Ala.-based equipment parts and repair company. Financial terms weren’t disclosed.

• The Evans Network of Companies, which is backed by Calera Capital, acquired New Age Transportation, Distribution & Warehousing Inc, a Palatine, Ill.-based provider of third-party freight services. Financial terms weren’t disclosed.

Mainsail Partners invested $60 million in FairWarning, a Clearwater, Fla.-based provider of software to protect the health, wealth, and personal information for healthcare, financial services and other businesses.

Equistone Partners Europe agreed to sell a majority of Karl Eugen Fischer, a Germany-based maker of cord-cutting machines for the tire industry, to Deutsche Beteiligungs AG. Financial terms weren’t disclosed.

OTHER DEALS

Fresenius Medical Care acquired a 19% stake in Humacyte, a Morrisville, N.C.-based medical research and development company, for $150 million.

Genpact agreed to acquire Commonwealth Informatics, Inc, a Boston, Mass.-based provider of cloud-based drug safety analytics products and services for medical research. Financial terms weren’t disclosed.

IPOs

Nant, an experimental biotech for cancer treatments backed by Patrick Soon-Shiong, has begun to hire bankers ahead of an IPO later this year. Read more.

i3 Verticals, a Nashville, Tenn.-based payments software firm, plans to raise $80 million in an IPO of 6.7 million shares priced between $11 to $13. The firm posted revenue of $293 million in the 12 months ending March. Front Street Equities, Harbert Management, and Capital Alignment Partners back the firm. Cowen, Raymond James, and KeyBanc are underwriters in the deal. It plans to list on the Nasdaq as “IIIV.” Read more.

Avrobio, a Cambridge, Mass.-based clinical stage gene therapy firm focused on rare diseases, plans to raise $75 million in an IPO of 4.4 million shares priced between $16 to $18. The firm has yet to post a revenue. Atlas Venture (26.6%), Clarus Life Sciences (16.6%), and SV Life Science (15.3%) back the firm. Morgan Stanley, Cowen, Wells Fargo, and Wedbush are underwriters. The firm plans to list on the Nasdaq as “AVRO.” Read more.

Aptinyx, a Evanston, Ill.-based clinical stage biotech treating brain and nervous system disorders, plans to raise $80 million in an offering of 5.3 million shares priced between $14 to $16. The company posted revenue of $4,962 in 2017 from collaborations and grants. Adam Street Partners (14.9%), New Leaf Ventures (11.6%), Longitude Venture Partners (11.6%), Frazier Life Sciences (11.6%), and Bain Capital (7%) back the firm. J.P. Morgan, Cowen, Leerink Partners, and BMO Capital Markets are underwriters in the deal. Read more.

Xeris Pharmaceuticals, a Chicago-based Glucagon pen maker, plans to raise $75 million in an offering of 5 million shares priced between $14 to $16. Palmetto Partners (14% pre-offering), Deerfield Management (12.3%), and Redmile Group (12.3%) back the firm. Jefferies, Leerink Partners, RBC Capital, and Mizuho Securities are underwriters in the deal. The company plans to list on the Nasdaq as “XERS.” Read more.

EXITS

Workday Inc agreed to acquire Adaptive Insights, a Palo Alto, Calif.-based provider of on-demand business performance management software, for about $1.55 billion. Adaptive Insights had raised approximately $176 million in funding from investors including Bessemer Venture Partners, Founders Circle Capital and Norwest Venture Partners. Read more at Fortune.

Blue Sage Capital sold Marine Accessories Corporation, a Maryville, Tenn.-based provider of custom tower and canvas products, to Patrick Industries. Financial terms weren’t disclosed.

Alsco Inc acquired Clean Linen Services, a U.K.-based commercial laundry operator. Financial terms weren’t disclosed. MML Capital Partners was the seller.

FIRMS + FUNDS

TPG, a Fort Worth, Texas-based private equity and venture capital firm, is seeking $1.5 billion to invest in companies that are delaying going public, according to Bloomberg.

BuildGroup, a software holding company that invests in leadership teams, raised $330 million in funding.

Govtech Fund, a San Francisco-based venture capital firm, raised $25 million for its second fund.

PEOPLE

Bryan Antman joined JCR Capital as managing director. Previously, Antman was Argosy Real Estate.

SHARE TODAY’S TERM SHEET

View this email in your browser.

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