Term Sheet — Friday August 17, DoorDash, Sloth and Gluttony, and Crypto Venture Funds
Good morning Term Sheet readers. Lucinda here temporarily taking over until Polina’s return Monday. Read me here: Lucinda.firstname.lastname@example.org.
“We have a thesis at Sequoia that good investing addresses one of the seven deadly sins. Tony addressed two of them: Sloth and Gluttony,” Alfred Lin of Sequoia said of DoorDash CEO Tony Xu during Fortune’s Brainstorm Tech conference.
That round valued DoorDash at $1.4 billion. Now a mere five months later, even more investors may just be lusting after the company. DoorDash raising $250 million from investors including Coatue Management, DST Global, and several existing investors on Friday, valuing the company at $4 billion. And according to Xu, that raise was a result of “multiple inbound [inquiries.] We were not looking.”
It’s strange to think that in 2016, the company struggled to enter the unicorn club amid concerns about the food delivery market had grown saturated. And that’s not necessarily changed. Today, the company still contends with rivals such as Postmates and Caviar, as well as Uber and GrubHub also in the space.
It remains to be seen if the food delivery company can, well, deliver, with DoorDash currently unprofitable. Though according to the company, deliveries on on the rise, up about 250% in June, compared to the same time last year.
“We can turn on profitability whenever we want or need to,” Xu told Fortune’s Andrew Nusca.
Bitcoin VC: Bitcoin carnage aside, cryptocurrency hedge fund Pantera Capital is still fundraising. Most recently, Pantera raised about $100 million in funding of $175 million targeted for its third venture capital fund. The fund’s most prominent investment, and the only one it is currently disclosing, is Bakkt, a startup backed by the Intercontinental Exchange that hopes to offer a federally regulated market for Bitcoin.
With the most recent fundraise, Pantera Partner Paul Verdittakit estimates that all the firm’s funds, which includes quant crypto and venture funds, now hold about $500 million to $600 million. Though when Bitcoin reached its peak in December, it may have held around $1 billion.
At the same time, all its ICO and crypto funds are down for 2018, with its Bitcoin fund shedding 48% through July based on letters to investors.
So in comparison, venture capital is apparently resembling a safer investment.
“Institutional investors are more familiar and more comfortable in venture than right now investing in funds or projects that are issuing tokens,” said Verdittakit, adding thought: “We are believers in both venture and ICOs.”
CORRECTION: This article previously stated that Pantera had raised $145 million in its third venture fund. It has raised about $100 million so far.
• Cargomatic, a Long Beach, Calif.-based app connecting truck drivers with companies, raised $35 million in Series B funding. Warburg Pincus led the round and was joined by investors including Canaan, Genesee & Wyoming, Xplorer Capital, and Muse Family Enterprises. Read more.
• Common Networks, a San Francisco-based provider of enterprise-grade internet service, raised $25 million in Series B funding. General Catalyst led the round, and was joined by investors including Eclipse Ventures and Lux Capital.
• Arcadia Power, a Washington D.C.-based energy platform using clean energy, raised $25 million in Series B funding. G2VP led the round and was joined by investors including ValueAct Spring Fund, McKnight Foundation, Energy Impact Partners, Cendana Capital, Wonder Ventures, and BoxGroup.
• Instaclustr, a Palo Alto, Calif.-based provider of managed solutions for scalable, open source technologies, raised $15 million. Level Equity led the round.
• Carbyne, a Tel Aviv and New York-based provider of public safety solutions, raised $15 million in Series B funding. Elsted Capital Partners led the round and was joined by Founders Fund.
• Datatrak International, a Cleveland, Oh. and College Station, Texas-based provider of cloud-based technologies for the life sciences industry, raised $8 million in funding. TabaFund was the investor.
• BabelBark, a Newton, Mass.-based developer of pet-related software, raised $4.5 million in Series A funding.
• myLAB Box, a Los Angeles-based at-home STD testing service, raised $1.56M in seed funding. K5 Ventures and Texas HALO Fund led the round,and was joined by investors including Morgan Stanley, Pasadena Angels, Pipeline Angels, and Sand Hill Angels.
• Excelero, a San Jose-based block storage firm, raised an undisclosed amount of funding from Western Digital Capital. It brings the total VC funds invested in Excelero to $35 million.
• Freeletics, a Munich-based fitness startup, raised an undisclosed amount of funding from investors including Courtside Ventures, Elysian Park Ventures, Causeway Media Partners, JAZZ Venture Partners, and ward.ventures.
HEALTH AND LIFE SCIENCES DEALS
• Blueberry Therapeutics, a U.K.-based developer of nanomedicines for skin and nail infections, raised 10 million pounds ($12.3 million) in Series B funding. China Medical Venture Investment and A&B were investors.
PRIVATE EQUITY DEALS
• CeriFi, a portfolio company of Leeds Equity Partners, acquired Pass Perfect, a provider of Financial Industry Regulatory Authority license exam training. Financial terms weren’t disclosed.
• Hammond, Kennedy, Whitney & Company acquired Indigo Wild, a Kansas City, Mo.-based maker of bath, skin, home, and cleaning products. Financial terms weren’t disclosed.
• An affiliate of LightBay Capital invested in Boardroom Salon for Men, a Southlake, Texas-based men’s salon operator. Financial terms weren’t disclosed.
• TAS Environmental Services, a portfolio company of TEAM Partners, acquired Donovan Industrial Service and ROTAP, two Texan environmental service companies. Financial terms weren’t disclosed.
• Prism Spectrum Holdings, a portfolio company of White Oak, acquired Environmental Holdings Group, a Raleigh, N.C.-based environmental and demolition contractor. Financial terms weren’t disclosed.
• Providence Strategic Growth acquired a majority stake in ExakTime, a Calabasas, Calif.-based provider of digital time and attendance solutions for construction and field services. Financial terms weren’t disclosed.
• Resource Label Group, a portfolio company of First Atlantic Capital and TPG Growth, acquired Paragon Label, a Petaluma, Calif.-based provider of labeling solutions for the wine sector. Financial terms weren’t disclosed.
• Keter Group, a portfolio company of BC Partners, acquired Adams Manufacturing, a US-based manufacture of resin garden furniture. Financial terms weren’t disclosed.
• Lagardere travel retail, a division of French conglomerate Lagardere, agreed to acquire Hojeij Branded Foods, a U.S.-based airport restaurant company, for $330 million.
• Intel acquired Vertex.AI, a Seattle-based deep learning firm. Financial terms weren’t disclosed. Read more.
• CooTek, the Shanghai-based maker of an input method for mobile devices, filed for a $100 million IPO. Qiming Funds (18.2%), Sequoia (17.9%), and SIG China (14.2%) back the firm. Credit Suisse, BofA Merrill Lynch and Citi are underwriters in the deal. It plans to list on the NYSE as “CTK.” No pricing terms were disclosed. Read more.
• Waud Capital Partners, appointed Chase Edmonds as Vice President of Healthcare Services, and Karan Sabharwal as Vice President of Business and Technology Services.
• Accordion hired Tiberius Vadan as Managing Director. Vadan was previously at IBM and KPMG.
• Wynnchurch Capital hired Michael MacKay as a senior associate. Previously, MacKay was a senior associate at Pritzker Group Private Capital.