CEO DailyCFO DailyBroadsheetData SheetTerm Sheet

DoorDash seeks an even higher valuation

December 4, 2020, 3:16 PM UTC

This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers. Sign up to get it delivered free to your inbox. 

Wow. The IPO love continues.

Food delivery giant DoorDash now plans to raise as much as about $3.1 billion from its upcoming IPO, a boost from the $2.8 billion it was previously seeking. On Friday, the San Francisco-based business said it planned to sell about 33 million shares priced somewhere between $90 to $95, up from the $75 to $85 range it initially sought.

Valued at $16 billion in its last private round of funding, the business could be minted with a $30.2 billion price tag based on the high end of the new range, or as much as $35.7 billion on a fully diluted basis.

At that high end of the range, SoftBank Vision Fund’s stake would be worth nearly $6 billion, while Sequoia Capital’s holding would be worth about $4.9 billion.

Demand for DoorDash’s services have soared amid the pandemic, with the company managing to maintain its lead as top meal-delivery company in the U.S. by sales and even grow its own market share. The Wall Street Journal has a good story breaking down why DoorDash has been able to dominate when so many other businesses are fighting to send food to you and me: In short, it got a lot of funding and focused on areas its competitors had eschewed. And while other SoftBank-backed companies burned through their capital irresponsibly, DoorDash was able to harness the millions from the Japanese business and outmaneuver its competitors.

But DoorDash, even now, still faces questions about whether the food-delivery market actually can provide the high profits investors seek—and how much of the pandemic boost it can maintain.

IN CASE YOU MISSED IT: In recent months, there’s been many a founder flameout and controversy—all standard in the business world. But what’s been peculiar about many of the executives at the center of these blowups: Many, many have been women. My colleague Maria Aspan dug into the difficult issue in a recent magazine piece and offers a nuanced look. Read it here.

Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com

VENTURE DEALS

- Versatile, a San Francisco-based company startup using A.I. in the construction process, raised $20 million in Series A funding. Insight Partners and Entree Capital led the round and were joined by Robert Bosch Venture Capital GmbH, Root Ventures, Conductive Ventures, Leigh Jasper, and Rob Phillpot. 

- NUBURU, a Centennial, Colo.-based blue laser tech company, raised $20 million in Series B funding. Anzu Partners led the round.

- Pockit, a London-based fintech focused on underserved customers, raised £15 million ($20 million) in Series B funding. Investors included Concentric, Jatania Family, Harold Mechleynck, Perscitus and Sir Alex Ferguson (former manager of Manchester United).

- Pave, a San Franciscob-ased compensation benchmarking company, raised $16 million in Series A funding. Andreessen Horowitz led the round.

- Rubedo Life Sciences, a Sunnyvale, Calif.-based biopharmaceutical company focused on age-related diseases, raised $12 million in seed funding. Khosla Ventures led the round and was joined by investors including Longevity Fund, Refactor Capital, and Shanda.

- Fisdom, an India-based investment advisory, raised $7 million in a Series B extension led by PayU. PayU was joined by Quona Capital and Saama Capital.

- MedArrive, a San Francisco-based care management software maker, raised $4.5 million in seed funding. Kleiner Perkins and Define Ventures led the round.

- Esports One, a Los Angeles-based esports platform, raised $4 million. Investors included XSeed Capital, Eniac Ventures, and Chestnut Street Ventures.

- Hydra Studios, a New York-based network of wellness studios, raised $3.8 million in seed funding. Investors included Slow Ventures, Company Ventures, Courtside Ventures, CityRock Venture Partners, Hatzimemos/Libby, and Fifth Wall

- Avant, a Hong Kong-based non-meat protein maker, raised $3.1 million in seed funding. Investors include China Venture Capital, AngelHub, and ParticleX, as well as Lever VC, CPT Capital, Loyal VC, Artesian, 208 Seed Ventures, PTG Food, and Markus Haefeli (Chairman of Regal Springs).

- Loop Health, an India-based health insurance startup, raised $2.3 million in seed funding funding. Sierra Ventures led the round and was joined by investors including  Y Combinator and Soma Capital.

- Jitsu, a maker of software for data integration, raised $2 million. Costanoa Ventures  led the round and was joined by investors including Y Combinator, The House Fund, and SignalFire.

- Rheaply, a Chicago-based resource management company, raised $1 million from Revolution, Opportunity Hub, 100 Black Angels & Allies, and Morgan Stanley’s Multicultural Innovation Lab

- Fattmerchant, an Orlando-based payments company, raised an undisclosed amount of funding from Greater Sum Ventures.

PRIVATE EQUITY

- Nesco agreed to acquire Custom Truck One Source, a provider of truck and heavy equipment solutions for $1.5 billion. 

- Investors including The Carlyle Group and Hellman & Friedman invested $1 billion in Vantage Group Holdings, a New York-based reinsurance firm. Financial terms weren't disclosed. 

- Battery Ventures invested in DomainTools, a Seattle-based domain name and DNS-based predictive threat intelligence company. Financial terms weren't disclosed.

- Caisse de dépôt et placement du Québec invested in IEX Group, a New York City-based  stock exchange operator. Financial terms weren't disclosed.

- Exterro, backed by Leeds Equity Partners, acquired AccessData, an Orem, Yt.-based provider of digital forensic investigation software. Financial terms weren't disclosed.

- Hg invested in Benevity, a Calgary-based cloud software company. Financial terms weren't disclosed. Benevity’s current investors, General Atlantic and JMI Equity will remain as investors.

- MFG Partners invested in Storage Solutions, a Westfield, In.-based industrial storage equipment company. Financial terms weren't disclosed.

- Motion Dynamics, a portfolio company of Vance Street Capital, acquired ViaMed, an Easton, Mass.-based  maker of components for the medical device industry.Financial terms weren't disclosed.

- Thoma Bravo acquired a majority stake in Flexera, an Itasca, Ill.-based maker of IT management software. TA Associates and Ontario Teachers’ Pension Plan Board will continue to hold a stake. Financial terms weren't disclosed.

- Serent Capital invested in Procurement Partners, a Brookfield, Wis.-based provider of procure-to-pay solutions for healthcare providers. Financial terms weren't disclosed.

- VLS Recovery, backed by Aurora Capital Partners, acquired JBR Environmental Services, a Spartanburg, S.C.-based provider of waste management. Financial terms weren't disclosed. 

- Prospect Partners recapitalized ProClip USA, a Madison, Wis.-based ProClip designer and distributor of mounting devices for electronics. Financial terms weren't disclosed.

EXITS

- Flutter (LOND: FLTR) has agreed to buy about 37% of FanDuel, a New York-based betting company, for about $4.2 billion from Fastball Holdings (a consortium with CapitalG, Comcast Ventures, KKR, Verizon Ventures, NBC Sports, and Shamrock). The consortium will still hold a stake.

- CVC Capital Partners agreed to acquire RiverStone Europe, an insurer, from Fairfax Financial and OMERS for about $750 million. Fairfax Financial  may also receive as much as $235.7 million after the deal is completed.

- Google agreed to acquire Actifio, a Waltham, Mass.-based startup specializing in data backup and disaster recovery services. Actifio investors have included Andreessen Horowitz, Crestline Investors and 83North, per PitchBook.

- Starcity acquired Ollie, a New York-based maker of a co-living space platform. Ollie investors have included Bullpen Capital and Peak State Ventures.

- Affirm agreed to acquire PayBright, a Toronto-based provider of installment payment plans for about C$340 million ($264.5 million) Paybright is backed by Canadian Business Growth Fund.

- Olive acquired Verata Health, a Minneapolis, Minn.-based authorization solution for healthcare providers and payers. Bessemer and 3M backed Verata. 

OTHER

- Ansys acquired Analytical Graphics, an Exton, Pa.-based maker of modeling, simulation, testing and analysis software for aerospace and defense organizations, for $700 million.

- Rakuten Americas, the North American division of Rakuten, acquired Fillr, an Australia-based provider of an autofill service. Financial terms weren't disclosed.

SPACS

- Dyal Capital Partners and  Owl Rock Capital are in talks to merge with Altimar Acquisition, a SPAC. The combined company would be valued at about $13 billion, per the Wall Street Journal. Read more.

F+FS

- OTV, an Israeli digital health focused venture capital firm, raised $170 million.

- Scale Venture Partners closed Scale Venture Partners Fund VII with $600 million in committed capital. 

IPOs

- Petco Health and Wellness, a San Diego-based pet goods retailer, filed for an $100 million IPO. Canada Pension Plan Investment Board and CVC back Petco. Read more.

- Certara, a Princeton, N.J.-based maker of biosimulation software, plans to raise $500 million in an offering of 24.3 million shares (about 40% sold by existing shareholders). EQT Investor and Arsenal Investors back the firm. Read more.

- Kinnate Biopharma, a San Diego, Calif.-based oncology biotech, raised $240 million. Its backers include Foresite Capital, OrbiMed, and RA Capital Management. Read more.

SPACs

- Jaws Spitfire Acquisition Corp., the second blank check company by Starwood Capital founder Barry Sternlicht, raised $300 million.

- Far Peak Acquisition, the second SPAC by former NYSE President Tom Farley, raised $550 million.

PEOPLE

- Cultivian Sandbox named Taryn Goodman Gallery as a managing director.