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Happy Monday, Term Sheet readers.
It’s been a few months of second chances for some assets. Bitcoin has come roaring back after a three year slowdown, rising to over $50,800 as of Monday. And clean tech, which also experienced a boom and bust a decade ago, is now once again roaring back as electric car company Tesla has soared amid the pandemic—offering a bellwether for other green car companies looking to go public.
And now, the two trends have even melded: Tesla recently branched into crypto, buying what was then worth $1.5 billion in Bitcoin, as per a February announcement.
But the irony is that even while the past year’s rise in crypto has mirrored renewed interest in green tech, Bitcoin mining, which tends to surge when the price of Bitcoin rises, leaves an outsized carbon footprint. The University of Cambridge has predicted that Bitcoin production consumes the same amount of electricity in a year as does Sweden or Ukraine.
The issue though is not that it consumes energy, but the kind of power involved. Alex de Vries, founder of Digiconomist, a website that tracks Bitcoin’s energy record, estimates that about 70% of global Bitcoin production is in China, where most of the energy output is based on a not-so-environmentally-friendly source: Coal.
And as more institutional investors look to invest in Bitcoin and its ilk, it’s worth wondering if the price of cryptocurrencies too could dip as environmental, sustainability, and governance concerns come increasingly to the forefront of the investing world. Here’s a fascinating excerpt from the story from my colleague, Shawn Tully:
“Jeff Schumacher, CEO of NAX, an enterprise that packages such holdings as art, insurance, and airline miles into tradeable digital assets, believes a backlash is already building. ‘Institutional money is going into Bitcoin, and those institutions have responsibilities,’ he says. ‘Bitcoin could become like cigarettes or oil. ESG is top of mind for family offices and institutional investors. Any responsible investor caring about ESG is going to have trouble with Bitcoin. We’re already seeing family offices shun it for environmental reasons.’ Schumacher predicts that investors’ growing conviction that Bitcoin is bad for the environment will drive its price significantly below its current level.”
While the issue is undeniably important, for better or for worse, for now, such ESG considerations are largely a blip for most of those seeking to cash in on crypto’s recent surge. The same issue was brought to the fore back in 2017—and while the price of Bitcoin did dip, very few would attribute the selloff to environmental reasons. And just last week, news broke that trading giant Goldman Sachs restarted its cryptocurrency trading desk after a three-year break.
SPAC INSANITY: Here’s a number that captures the seemingly boundless exuberance in SPACs: Electric aircraft startup Archer Aviation was valued at $16 million following a seed round in April. Less than a year later, armed only with commercial contracts to sell a product that is not yet live, the company leapt to a $3.8 billion valuation in its agreement to merge with blank check company, Atlas Crest Investment.
Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com
VENTURE DEALS
- Kraken, a San Francisco-based crypto exchange, has been in talks to raise at a $20 billion valuation after shelving plans to go public via SPAC, per Decrypt. Read more.
- CorVista Health, a Cary, N.C.-based digital health company focused on cardiovascular disease diagnosis, raised $65 million in Series C funding. Ambix Life Science Fund I led the round and was joined by investors including MedVenture Partners.
- Eco, a San Francisco, Calif-based digital crypto app, raised $26 million in funding. Andreessen Horowitz led the round and was joined by investors including Activant Capital, Founders Fund, Coinbase Ventures, Slow Ventures, Tribe Capital, Valor Capital Group, Expa, and Pantera Capital. Read more.
- AgentSync, a Denver-based insurance industry infrastructure company, raised $25 million in Series A funding. Elad Gil and David Sacks’ Craft Ventures led the round and were joined by Marc Benioff, Caffeinated Capital, Operator Collective, and Nine Four Ventures. This brings the company’s valuation to $220 million.
- TripleBlind, a Kansas City, Mo.-based creator of a privacy and API-focused virtual exchange solution, raised $8.2 million in seed funding. Dolby Family Ventures led the round and was joined by investors including Okta Ventures, NextGen Venture Partners, Operator Partners, Wavemaker Three-Sixty Health, AVG Basecamp Fund, Anorak Ventures, and Quiet Capital.
- Koinz, an Egypt-based customer engagement company, raised $4.8 million in Seed funding. Justin Mateen led the round and was joined by investors including 4DX Ventures.
- DocJuris, a Houston, Texas-based maker of contract negotiating tool for in-house counsels and procurement teams, raised $3.2 million in seed funding. RTP Seed led the round and was joined by investors including Watertower Ventures, Crossbeam, Seed Round Capital, and Remote First Capital.
- Full Speed Automation, a Los Gatos, Calif.-based maker of manufacturing software, raised $3.2 million. HCVC led the round and was joined by investors including Catapult Venture Capital, Seedcamp, Serena Capital, Kima Ventures, and Diaspora Ventures. Read more.
- Venus Aerospace, a Houston, Mass.-based-based high-speed transportation startup, raised $3 million in seed funding. Prime Movers Lab led the round and was joined by investors including Draper Associates, Boost VC, Saturn Five, and X-Factor Ventures.
- Infarm, a Berlin-based indoor farming startup, raised $100 million in debt and equity financing. Investors include Hanaco Ventures and Atomico, per Bloomberg. Read more.
PRIVATE EQUITY
- TDR Capital and I Squared Capital agreed to acquire Aggreko (LON: AGK), a U.K.-based supplier of portable power generators, for about 2.3 billion-pound ($3.2 billion).
- NYDIG, a New York-based provider of technology and investment solutions for Bitcoin, raised $200 million. Investors included Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, FS Investments, Bessemer Venture Partners and FinTech Collective.
- Questel, backed by Eurazeo and IK Investment Partners, agreed to acquire NovumIP, a patents annuities and trademarks renewals company. Eurazeo Capital, IK Investment Partners, and RAISE Investissement will invest to finance the acquisition of NovumIP. Eurazeo and the IK IX uFnd will each invest about €150 million and will continue to hold a majority stake in Questel. Paragon Fund III, an affiliate of NovumIP’s majority shareholder, will invest and become a financial investor of Questel.
- Accelerant Holdings, backed by Altamont Capital, acquired Commonwealth Insurance Company of America, a Delaware-domiciled admitted insurance carrier, from Brit Group, a subsidiary of Fairfax Financial (TSX: FFH). Financial terms weren't disclosed.
- TA Associates invested in BetaShares, an Australian ETF manager with more than $16 billion in assets under management. Financial terms weren't disclosed.
- Therapeutic Research Center, a portfolio company of Levine Leichtman Capital Partners, acquired CE Resources, a Roseville, Calif.-based continuing education platform focused on the healthcare industry. Financial terms weren't disclosed.
- The Carlyle Group acquired a majority stake in disguise, a U.K.-based provider of extended reality tech. Financial terms weren't disclosed.
- T-street Capital invested in Hyperlite Mountain Gear, a manufacturer of high-tech, ultralight gear including backpacks, tents, and accessories. Financial terms weren't disclosed.
- Quantic Electronics, a portfolio company of Arcline Investment Management, acquired Planar Monolithics Industries, a manufacturer and tester of hybrid monolithic microwave integrated circuit components and subsystems. Financial terms weren't disclosed.
- Warburg Pincus will invest $110 million in Adani Ports and Special Economic Zones, an Indian port business.
EXITS
- Medallia (NYSE: MDLA) agreed to acquire Decibel, a London-based digital experience analytics company for about $160 million in cash. Decibel investors include Eight Roads.
- Amwins, backed by investors including SkyKnight Capital, acquired Worldwide Facilities, a Los Angeles-based wholesale insurance broker backed by Genstar Capital. Financial terms weren't disclosed.
- Hyland Software agreed to acquire Nuxeo Group, a New York-based content management platform maker, from investors including Goldman Sachs Growth Equity and Kennet Partners. Financial terms weren't disclosed.
- Platinum Equity acquired NDC, a Nashville, Tenn.-based healthcare supply chain company and distributor of consumable healthcare supplies, from an affiliate of Court Square Capital Partners. Financial terms weren't disclosed.
- A consortium led by TDR Capital are considering exit options for LeasePlan, a Dutch vehicle group, per Bloomberg. That could include a sale or partial sale, valuing the business at $10 billion or more. Read more.
OTHER
- GE Capital Aviation Services, General Electric’s aircraft-leasing business, is nearing a merger with AerCap Holdings, an Irish rival, per the Wall Street Journal. The deal is valued at about $30 billion-plus. Read more.
- Betterment acquired Wealthsimple’s U.S. book of business. Canada-based Wealthsimple is backed by investors including TCV and Allianz X. Financial terms weren't disclosed.
BANKRUPTCY
- Alama Drafthouse, the Texas-based cinema chain, filed for bankruptcy and will sell its assets to Altamont Capital and Fortress.
IPO
- Coursera, a Mountainview, Calif.-based online education platform, filed for an IPO. It posted revenue of $293.5 million and a loss of $66.8 million in 2020. Its investors include NEA, G Squared, and Kleiner Perkins Caufield & Byers. Read more.
- Cheplapharm Arzneimittel, a German drugmaker, is weighing an IPO that could value it at $9.5 billion or more, per Bloomberg. Read more.
- Fix Price, a Russian dollar-store chain, raised $1.7 billion in its IPO in Moscow and London. Read more.
- Agiliti, a Minneapolis-based provider of medical equipment rental and maintenance services, filed to raise up to $100 million. Read more.
- Design Therapeutics, a Carlsbad, Calif.-based biotech, filed to raise up to $100 million. Investors include SR One Capital. Read more.
- JD Technology, the fintech unit of JD.com, is likely to withdraw IPO plans in Shanghai, per the South China Morning Post. Read more.
F+FS
- Cazoo, a U.K.-based used-car online platform, is weighing merging with Ajax I, a SPAC, in a deal that could value it at 6 billion pounds ($8.3 billion), per Sky News. Read more.
- IonQ, a College Park, Md.-based quantum computing startup, agreed to go public via merger with dMY Technology Group III, a SPAC. The transaction will value the combined business at $2 billion.
- Cipher Mining, a newly formed subsidiary of blockchain company Bitfury, will go public via merger with Good Works Acquisition, a SPAC. The deal values the combined business at about $2 billion.
- Wejo, a U.K.-based auto data startup, is nearing a deal to go public with a SPAC, per Reuters. A deal would value the business at $2 billion. Read more.
- Evolv Technology, a Waltham, Mass.-based security company, agreed to go public via merger with NewHold Investment, a SPAC, in a deal valued at $1.7 billion. Evolv’s investors include Bill Gates and General Catalyst.
- Airspan Networks, a Boca Raton, Fla.-based software and hardware for 5G network solutions, agreed to go public via merger with New Beginnings Acquisition, a SPAC. The combined business is expected to be valued at nearly $822 million.
- Shutterfly, a Redwood City, Calif.-based photo company backed by Apollo Global Management, is in talks to go public via merger with Altimar Acquisition II, a SPAC, per the Wall Street Journal. Read more.
- Logistics Innovation Technologies, a SPAC targeting the logistics industry, filed to raise $400 million. Alan Gershenhorn, former Chief Commercial Officer at UPS, is among the company’s leaders.
- Climate Real Impact Solutions III Acquisition, a SPAC backed by PIMCO, filed to raise up to $300 million. David Crane, former CEO of NRG Energy, helps lead the firm.
- Inflection Point Acquisition, a consumer and tech-focused SPAC formed by Kingstown Capital, filed to raise $300 million.
- Victory Acquisition, a media, sports, and entertainment-focused SPAC led by Dallas Stars Executive Chairman James Lites, filed to raise $250 million. Singer Sammy Hagar is also among its leadership.
- Lerer Hippeau Acquisition, a SPAC led by Lerer Hippeau focused on technology-enabled businesses, raised $200 million.
PEOPLE
- Swander Pace Capital, a private equity investment firm, promoted Tyler Matlock to managing director. It also promoted Alex Litt to senior vice president and Amy Li to vice president.