SoFi flies in SPAC-tacular Nasdaq debut
Good morning, all. This is Fortune finance reporter Rey Mashayekhi, filling in again for Lucinda.
There’s only one place to start as far as the capital markets were concerned Tuesday: the much-hyped—and, so far, rather successful—debut of SoFi Technologies as a publicly traded company.
SoFi’s stock climbed 12% in its first day on the Nasdaq (ticker: SOFI), a buoyant start for the online personal finance startup. SoFi, of course, went public via a merger with a special purpose acquisition company, or SPAC, run by Silicon Valley investor-turned-Reddit cult hero Chamath Palihapitiya. In that regard, the fintech firm’s impressive debut is a needed bit of validation at a time when many so-called blank-check companies have taken a beating—not least those backed by Chamath himself—and regulatory scrutiny has ramped up around this expedited manner of taking companies public.
The SPAC deal, which valued SoFi at $8.65 billion, so far bodes well for the company and its private-market investors. SoFi netted around $2.4 billion in cash proceeds through the transaction—dry powder that will help the company in its quest for expansion within the rapidly digitizing realm of financial services. Investors are also licking their chops; one early-stage investor, Silicon Valley venture firm DCM, notes that its investment in SoFi “is expected to be nearly a fund returner” at this point. Even at a $21 share price (which is below the $22.65 where SoFi closed on Tuesday), the company’s market capitalization stands at $15.5 billion, according to DCM—around 87 times what it was when the VC firm cut its first check in 2012.
Of course, it’s still early days. A good opening-day performance on the market—even an exceptional one—is no guarantee of future returns, and this current generation of SPACs have thus far proven exceptionally prone to such flakiness. That said, SoFi was up nearly 3% in pre-market trading Wednesday morning—so, as ever, we’ll have to wait and see.
That’s all from me; you’ll find today’s deals below. Lucinda will be back in the driver’s seat tomorrow. Have a wonderful Wednesday.
- Project44, a Chicago-based supply chain logistics platform, raised $202 million in Series E funding, valuing it at $1.2 billion. Goldman Sachs Asset Management and Emergence Capital led the round and were joined by investors Girteka and Lineage Logistics.
- Exabeam, a Foster City, Calif.-based cybersecurity analytics company, raised $200 million in Series F funding, valuing it at $2.4 billion. Blue Owl Capital led the round and was joined by investors Acrew Capital, Lightspeed Venture Partners, and Norwest Venture Partners.
- Yieldstreet, a New York City-based digital alternative investment platform, raised $100 million in Series C funding. Tarsadia Investments led the round and was joined by investors Kingfisher Investment, Top Tier Capital Partners, Gaingels, Edison Partners, Soros Fund Management, Greenspring Associates, Raine Ventures, Greycroft, and Expansion Venture Capital.
- Malt, a Paris-based job opportunities platform for freelance tech workers, raised 80 million euros ($97 million) in funding, valuing it at 400 million euros ($489 million). Goldman Sachs Growth Equity and Euraze led the round and were joined by investors Isai and Serena.
- Kushki, an Ecuador-based digital payments infrastructure startup, raised $86 million in Series B funding, valuing it at $600 million. SoftBank led the round and was joined by investors DILA Capital, Kaszek, Clocktower Technology Ventures, and Magma Partners.
- Sennder, a Berlin-based digital freight forwarding startup, raised $80 million in a Series D extension, taking the total round to $240 million and valuing the firm at more than $1 billion. Baillie Gifford led the extension and was joined by initial Series D investors Hedosophia, Accel, Lakestar, HV Capital, Project A, and Scania.
- Spruce, a New York City-based digital real estate transactions startup, raised $60 million in Series C funding. Zigg Capital led the round and was joined by investors Bessemer Venture Partners and Scale Venture Partners.
- Spiff, a Salt Lake City-based provider of sales commission software, raised $46 million in Series B funding. Lightspeed Venture Partners led the round and was joined by investors Salesforce Ventures, Stripes, and Norwest Venture Partners.
- Cognigy, a Dusseldorf, Germany-based conversational A.I. platform, raised $44 million in Series B funding. Insight Partners led the round and was joined by investors DN Capital, Global Brain, Nordic Makers, and Inventures.
- Belvo, a Barcelona-based open finance API platform targeting the Latin American market, raised $43 million in Series A funding. Investors included Future Positive, Kibo Ventures, FJ Labs, Kaszek, MAYA Capital, Venture Friends, Sebastian Mejia, Harsh Sinha, and David Velez.
- Mynd, an Oakland, Calif.-based owner and manager of single-family rental properties, raised $40 million in funding, valuing it at around $300 million. Invesco Real Estate led the round and was joined by investors Thomvest, Common Fund, Squarepoint, Assurant, DivcoWest, and Jackson Square Ventures.
- Ajax Therapeutics, a New York City-based biotech company developing treatments for hematologic malignancies, raised $40 million in funding. EcoR1 Capital led the round and was joined by investors Boxer Capital, Inning One Ventures, Schrodinger, Memorial Sloan Kettering Cancer Center, and NYU Langone Health.
- Nayya, a New York City-based digital health insurance benefits platform, raised $37 million in Series B funding. SVB Capital and ICONIQ Growth led the round and were joined by investors Bow Capital, Felicis Ventures, Social Leverage, SemperVirens, Guardian Strategic Ventures, Unum Business Ventures, and CNO Financial Group.
- Standard Bariatrics, a Cincinnati-based bariatric surgery medical device company, raised $35 million in Series B funding. U.S. Venture Partners led the round and was joined by investors River Cities Capital, RiverVest Venture Partners, Hatteras Venture Partners, Queen City Angels, and Emergent Medical Partners.
- Synctera, a San Francisco-based fintech startup that connects community banks with digital finance applications, raised $33 million in Series A funding. Fin VC led the round and was joined by investors Mastercard, Gaingels, Lightspeed Venture Partners, Diagram Ventures, SciFi Ventures, and Scribble Ventures.
- Divido, a London-based retail finance startup, raised $30 million in Series B funding. HSBC and ING led the round and were joined by investors Sony Innovation Fund by IGV, SBI Investment, OCS, Global Brain, DG Daiwa Ventures, DN Capital, Dawn Capital, IQ Capital, and Amex Ventures.
- Red 6, a Santa Monica, Calif.-based augmented reality air combat training technology company, raised $30 million in Series A funding, valuing it at $130 million. Snowpoint Ventures led the round.
- DealHub.io, an Austin, Texas-based enterprise sales platform, raised $20 million in Series B funding. Israel Growth Partners led the round and was joined by Cornerstone Venture Partners.
- Myra Vision, a Campbell, Calif.-based maker of a glaucoma treatment device, raised $17 million in Series A funding. The Capital Partnership led the round and was joined by Cormorant Asset Management and angel investors from Shifamed.
- LambdaTest, a San Francisco-based cross-browser testing platform, raised $16 million in Series B funding. Sequoia Capital led the round and was joined by investors Telstra Ventures, and Wamda Capital.
- PrizePool, a Palo Alto-based savings account provider that awards cash prizes, raised $10 million in Series A funding. M13 led the round and was joined by investors Accomplice, Bling Capital, World Innovation Labs, and Coatue.
- Opopop, a Denver-based popcorn brand, raised $5 million in Series A funding. Valor Siren Ventures led the round and was joined by investors Peter Rahal, Litani Ventures, Tiesto, Jimmy Chin, and Batshit Crazy Ventures.
- Molecule.one, a Poland-based biotech company focused on A.I.-enabled drug discovery, raised $4.6 million in funding. Atmos Ventures led the round and was joined by investors AME Cloud Ventures, Cherubic Ventures, Firlej Kastory, Inventures, Luminous Ventures, and Sunfish Partners.
- Blackstone Group and Starwood Capital Group increased their buyout offer for Extended Stay America, a Charlotte-based operator of extended-stay hotels, by $1 per share, to $20.50 per share.
- Invesco Real Estate committed up to $5 billion of investment in Mynd, an Oakland, Calif.-based owner and manager of single-family rental properties.
- TPG Capital’s The Rise Fund invested $100 million in Climavision, a weather services and intelligence platform formed out of Alabama-based Enterprise Electronics Corporation.
- Trilantic Capital Partners acquired the on-demand manufacturing business of 3D Systems, a South Carolina-based 3D printing company, for $82 million. The unit will be known as QuickParts post-closing.
- Eldridge invested in Illuminarium Experiences, an Atlanta-based experiential entertainment company. Financial terms were not disclosed.
- General Atlantic invested in Buff City Soap, a Dallas-based maker of bath and personal care products. Financial terms were not disclosed.
- Millpond Equity Partners invested in Financial Aid Services, an Atlanta-based provided of outsourced services to financial aid and bursars' offices at colleges and universities. Financial terms were not disclosed.
- Clearlake Capital Group invested in BeyondTrust, an Atlanta-based provider of privileged access management software for businesses. Financial terms were not disclosed.
- Cerberus Capital Management acquired a majority stake in Red River Technology, a New Hampshire-based network technology provider, from Acacia Partners. Financial terms were not disclosed.
- CVC Capital Partners acquired a majority stake in Business Integration Partners (BIP), a Milan, Italy-based management consulting firm, from Apax Partners. Financial terms were not disclosed.
- Searchlight Capital Partners acquired Care Advantage, a Richmond, Va.-based provider of in-home care services, from BelHealth Investment Partners. Financial terms were not disclosed.
- Accenture has agreed to acquire Nell’Armonia, a Paris-based technology consulting firm specializing in enterprise performance management solutions. Additionally, Accenture’s government-focused subsidiary, Accenture Federal Services, has agreed to acquire Novetta, a McLean, Va.-based advanced analytics firm serving U.S. federal agencies. Financial terms of the two transactions were not disclosed.
- Grant Avenue Capital acquired QHR Health, a Tennessee-based shared services provider for hospitals and health systems, from Quorum Health Corp. Financial terms were not disclosed.
- Marqeta, an Oakland, Calif.-based payments startup, is aiming to raise more than $1 billion in an IPO that would value the company at more than $12 billion, per regulatory filings. It plans to sell around 45.4 million shares priced between $20 and $24 per share. Marqueta would list on the Nasdaq under the symbol MQ.
- Monday.com, an Israel-based project management platform, is seeking to raise more than $500 million in a U.S. listing that would value the company at more than $6 billion, per regulatory filings. It plans to sell 3.7 million shares priced between $125 and $140 per share. Monday.com would list on the Nasdaq under the symbol MNDY.
- LifeStance Health Group, a Scottsdale, Ariz.-based mental health care provider, is looking to raise up to $680 million in an IPO that would value the company at nearly $6.4 billion, per regulatory filings. It plans to sell 40 million shares priced between $15 and $17 per share. LifeStance would list on the Nasdaq under the symbol LFST.
- Zeta Global Holdings, a New York City-based marketing technology company, is seeking to raise more than $270 million in an IPO that would value the company at up to $2.3 billion, per regulatory filings. It plans to sell around 22.7 million shares priced between $10 and $12 per share. Zeta would list on the New York Stock Exchange under the symbol ZETA.
- Krispy Kreme, a Winston-Salem, N.C.-based doughnut chain, filed for a $100 million IPO, according to a preliminary regulatory filing. The company did not disclose how many shares it plans to offer nor its offering price. Krispy Kreme would list on the Nasdaq under the symbol DNUT.
- Confluent, a Mountain View, Calif.-based data software firm, filed for a $100 million IPO, according to a preliminary regulatory filing. The company did not disclose how many shares it plans to offer nor its offering price. Confluent would list on the Nasdaq under the symbol CFLT.
- SeaTown Holdings, an investment firm backed by the government of Singapore, has raised a $1 billion fund to invest in growth-stage opportunities globally.
- Unicorn Capital Partners, a Hong Kong-based venture capital fund-of-funds manager, has raised $450 million for a fund focused on the technology and health care sectors in China.
- Ally Capital, a Shanghai-based private equity firm, has raised 500 million yuan ($78.5 million) for its Fund III.
- Uncle Nearest Premium Whiskey, a Tennessee-based whiskey brand, has launched a $50 million venture fund targeting investments in minority-owned spirit brands.
- Kevin Jacques and Ben Malka have joined Cota Capital as partners. Jacques was previously at Visa Ventures, while Malka was formerly at Fidelity Investments.
- Jamie Rosen, Jeremy Zhu, and Nina Gerson were all promoted to vice president at CapitalG, Alphabet’s independent growth fund.
- Jeffrey Yau has joined BioStar Capital as an entrepreneur in residence. He was formerly vice president of data science, data engineering, and platform engineering at Walmart’s global technology division.
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