Andreessen Horowitz gears up for more mega crypto bets

Venture capitalists caught the crypto crazies in 2021, with funding to blockchain-related startups in the first quarter of the year alone exceeding the amount raised in the entirety of 2020.

Now venture capital firm Andreessen Horowitz is set to keep pushing the records higher. Among the most active and earliest investors in the blockchain space, a16z announced its third dedicated crypto fund with $2.2 billion on Thursday, per my colleague, Robert Hackett. 

For a taste of how enormous that fund (which Newcomer first got a whiff of back in May) is: At $2.2 billion, it clocks in just a smidgen below to the total amount of funding that went to crypto startups in all of 2020, and about four times the size of its last dedicated blockchain fund.

Bitcoin, the de facto bellwether for crypto assets at large, may be down from its all-time highs, but the volatility is nothing a16z hasn’t stomached before. The firm spun up its first blockchain-focused fund in the crypto winter of 2018. Not to mention, it’s had one major bet in the space pay off recently: Cryptocurrency exchange Coinbase went public and is now valued at about $48 billion.

What is also extremely worth watching is how the structure of a16z’s cryptocurrency arm differs from the more typical venture model, and how that may impact its returns. Granted, it’s been the case since the firm’s first crypto fund. Per my colleague’s article:

“The firm’s cryptocurrency arm, dubbed ‘a16z crypto,’ is structured more like a hedge than a venture capital fund. The legal framework enables it to move in and out of positions quicker than a traditional VC firm, which faces lockups before an ‘exit’ like an IPO or sale, might.”

SILVER LININGS IN CAPITAL GAINS: Here is Blackstone’s CEO noting that the potential for increased U.S. capital gains taxes has led to an explosion of potential acquirees as corporate backers look to avoid a potential tax bill later down the line by selling now. Read more.

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

Jessica Mathews compiled the IPOs section of the newsletter.

VENTURE DEALS

- Lucid, a South Jordan, Ut.-based provider of visual collaboration software, sold $500 million worth of shares in a secondary sale valuing the business at $3 billion. Investors included Alkeon Capital, Tiger Global, and STEADFAST Capital Ventures.

- Firebolt, an Israel-based maker of a cloud data warehouse, raised $127 million in Series B funding. Investors included Dawn Capital and K5 Global as well as Zeev Ventures, TLV Partners, Bessemer Venture Partners, and Angular Ventures.

- Chainalysis, a New York City-based blockchain data platform, raised $100 million in Series E funding. Coatue led the round, valuing it at $4.2 billion. Benchmark, Accel, Addition, Dragoneer, Durable Capital Partners, and 9Yards Capital also increased their investments.

- SmartAsset, a New York City-based maker of a site for financial advice, raised $110 million in Series D funding valuing it at over $1 billion. TTV Capital led the round and was joined by investors including Javelin Venture Partners, Contour Venture Partners, Citi Ventures, New York Life Ventures, North Bridge Venture Partners, and CMFG Ventures.

- Illumio, a Sunnyvale, Calif.-based cybersecurity company, raised $225 million in Series F funding valuing it at $2.8 billion. Thoma Bravo led the round and was joined by investors including  Franklin Templeton, Hamilton Lane, and Owl Rock.

- JW Player, a New York City-based video software and data insights platform, raised $100 million in Series E funding from LLR Partners. 

- Habi, a Colombia-based maker of a residential real estate platform, raised $100 million in Series B funding. SoftBank Latin America Fund led the round and was joined by investors including Inspired Capital, Tiger Global, Homebrew, and 8VC.

- Tvardi Therapeutics, a Houston-based clinical-stage biopharmaceutical company, raised $74 million in Series B funding. Slate Path Capital, Palkon Capital, ArrowMark Partners, and 683 Capital led the round.

- Snackpass, a San Francisco-based e-commerce platform for restaurants, raised $70 million in Series B funding. Craft Ventures led the round and was joined by investors including Andreessen Horowitz, General Catalyst, and Y Combinator. 

- ShipHero, a New York City-based fulfillment technology company, raised $50 million. Riverwood Capital led the round.

- Deserve, a Palo Alto, Calif.-based fintech company focused on credit cards, raised $50 million in Series D funding. Mission Holdings, Mastercard, and Ally Ventures led the round and were joined by investors including Goldman Sachs Asset Management and Sallie Mae.

- Tonkean, a San Francisco-based maker of a business operations platform, raised $50 million in Series B funding. Accel led the round.

- Sanity, a San Francisco-based content platform, raised $39 million in Series B funding. ICONIQ Growth led the round and was joined by investors including Lead Edge Capital, Threshold Ventures, Heavybit, and Alliance Venture.

- Anjuna, a Palo Alto, Calif.-based provider of a cloud platform focused on security, raised $30 million in Series B funding. Insight Partners led the round.

- Sendle, a Seattle-based shipping carrier focused on carbon neutrality and small business, raised $35 million in Series C funding. AP Ventures led the round and was joined by investors including Federation, Full Circle, and NRMA. 

- Lessen, a Scottsdale, Ariz.-based marketplace platform for property owners and service professionals, raised $35 million in Series A funding. Fifth Wall led the round.

- Solfácil, a Brazil-based solar fintech, raised $30 million in Series B funding. QED Investors led the round and was joined by investors including Valor Capital Group.

- Atom Finance, a New York City-based consumer-focused finance information platform, raised $28 million in Series B funding. SoftBank Latin America Fund led the round and was joined by investors including General Catalyst and Base Partners.  

- Drata, a San Diego, Calif.-based  security and compliance automation company, raised $25 million in Series A funding. GGV Capital led the round and was joined by investors including Okta Ventures, Silicon Valley CISO Investors, Cowboy Ventures, and Leaders Fund. 

- Kaiko, a Paris-based cryptocurrency market data provider, raised $24 million in Series A funding. Anthemis and Underscore VC led the round and were joined by investors including Point Nine, Alven, and Hashkey Capital.

- Electric Hydrogen, a Boston and San Francisco-based renewable energy startup, raised $24 million in Series A funding. Breakthrough Energy Ventures led the round and was joined by investors including Prelude Ventures and Capricorn’s Technology Impact Fund. 

- SafeAI, a Milpitas, Calif.-based autonomous heavy equipment startup, raised $21 million in Series A funding. Builders VC led the round.

- Rasgo Intelligence, a New York City-based machine learning engineering company, raised $20 million in Series A funding. Insight Partners led the round and was joined by investors including Unusual Ventures. 

- Orbion Space Technology, a Houghton, Mich.-based developer of electric propulsion solutions, raised $20 million in Series B funding. Inventus Capital Partners led the round and was joined by investors including Material Impact, Beringea, and Wakestream Ventures. 

- Graylog, a Houston-based log management solution, raised $18 million. Harbert Growth Partners and Piper Sandler Merchant Banking led the round and were joined by investors including Mercury Fund, High-Tech Gruenderfonds, and Integr8d Capital.

- env0, a workflow management company, raised $17 million in Series A funding. M12 led the round and was joined by investors including Boldstart Ventures, Grove Ventures, and Crescendo Ventures.

- Sealed, a New York City-based HVAC startup, raised $16 million in Series B funding. Fifth Wall led the round and was joined by investors including FootPrint Coalition Ventures, Cyrus Capital, and CityRock Ventures.

- OROS, a Portland-based performance apparel brand, raised $14.5 million in Series A funding. Elizabeth Street Ventures and Enlightenment Capital led the round.

- CoreTigo, an Israel-based industrial wireless company, raised $13 million in Series B funding. Cardumen Capital led the round and was joined by investors including Verizon Ventures, Lenovo Capital, Magma Venture Partners, Meron Capital, Qualcomm Ventures, and Sierra Ventures. 

- Neurala, a Boston-based Vision A.I. software maker, raised $12 million in funding. Zebra Ventures and Pelion Venture Partners led the round and were joined by investors including Draper Associates, Friulia, AddValue, 360 Capital Partners, Idinvest Partners, Cougar Capital, IMA, and Antares Vision.

- xCures, an Oakland, Calif.-based healthtech predictive modeling startup, raised $12.7 million in Series A funding. Boehringer Ingelheim Venture Fund led the round and were joined by investors including Vanedge Capital, Harmonix Fund, and Metaplanet.

- DrChrono, a Sunnyvale, Calif.-based maker of tech for medical practices, raised $12 million from ORIX Corporation USA’s Growth Capital team.

- FIGUR8, a Boston-based med tech startup focused on wearable musculoskeletal technology, raised $12 million in Series A funding. Taiwania Capital led the round and was joined by investors including MIT-affiliated E14 Fund, Phoenix Venture Partners, and P5 Health Ventures.

- Tiny Organics, a New York City-based childhood nutrition company, raised $11 million in Series A funding. Springdale Ventures led the round and was joined by investors including InvestEco, Silas Capital, Human Ventures, VegInvest, Babylist, Gaingels, XFactor Ventures, Natureza and Howard Morgan.

- Deduce, a New York City-based cybersecurity company, raised $10 million in Series A funding. Foundry Group led the round and was joined by investors including True Ventures. 

- EquityMultiple, a New York City-based commercial real estate investment and technology firm, raised $4.8 million. Ken Pasternak of Knight Capital Group led the round and was joined by investors on AngelList.

- Electra Vehicles, a Boston-based battery optimization software startup, raised $3.6 million in seed funding. BlackBerry Limited and LIFTT S.p.A. invested.

PRIVATE EQUITY

- ArchiMed acquired Stragen Pharma, a Swiss maker of generic drugs for the treatment of patients with life-threatening conditions. Financial terms weren't disclosed.

- BDT Capital Partners will acquire a 10.7% stake in Brunswick Group, a U.K.-based public relations firm, in a deal valuing it at about 500 million pounds ($697.9 million), per Reuters.

- Team ITG, backed by Equistone Partners Europe, acquired a majority stake Storyteq, an Amsterdam-based automation company. Financial terms weren't disclosed.

- Mobileum, backed by Audax Private Equity, acquired Convene Networks, an Allen, Tx.-based provider of network solutions. Financial terms weren't disclosed.

- The Riverside Company acquired a controlling stake in Cryptomathic, a Danish provider of hardware agnostic secure server solutions. Financial terms weren't disclosed.

- Synergy IOM, a portfolio company of Monument MicroCap Partners, recapitalized Vigilant Neuromonitoring, a Newport Beach, Calif.-based provider of intraoperative neuromonitoring and neuro diagnostic services. Financial terms weren't disclosed.

EXITS

- PAI Partners agreed to acquire Pasubio, an Italy-based provider of leather for the automotive industry, from CVC Capital Partners. Financial terms weren't disclosed.

- Brenntag agreed to acquire JM Swank, a North Liberty, Ia.-based maker of food ingredients including spices, from Platinum Equity. Financial terms weren't disclosed.

OTHERS

- GlaxoSmithKline (LON:GSK) plans to spin off its consumer healthcare arm into a separate business that could raise about 8 billion pound ($11 billion) for the company.

- Electronic Arts (Nasdaq: EA) agreed to buy Playdemic, a U.K.-based games maker, from AT&T’s Warner Bros. Games for $1.4 billion in cash.

- Authentic Brands Group agreed to acquire PVH Corp.’s (NYSE:PVH) Heritage Brands businesses including IZOD, Van Heusen, ARROW, and Geoffrey Beene for about $220 million. 

- Stash acquired PayGrade, a financial literacy startup aimed at kids. Financial terms weren't disclosed.

IPOS

- Confluent, a Mountain View, Calif.-based data infrastructure company, raised $828 million in an IPO of 23 millions shares priced at $36 per share. It reported a net loss of $229.8 million in 2020. Benchmark Capital Management and Index Ventures back the firm.

- Clear Secure, a New York City-based travel security tech company, plans to raise about $355.5 million in an offering of 13.2 million shares priced between $27 to $30 per share. It reported a net loss of $9.3 million in 2020. T. Rowe Price and General Atlantic back the firm.

- EverCommerce, a Denver-based service commerce platform, now plans to raise $324 million in an IPO of 19.1 million shares priced between $16 to $18 per share. It reported a net loss of $60 million in 2020. Providence Strategic Growth and Silver Lake back the firm.

- Intapp, a Palo Alto, Calif.-based firm management software company, now plans to raise $278.3 million in an IPO of 10.5 million shares priced at $25 to $28 per share. It reported gross profit of $115.6 million in the 12 months ending in June 2020. Temasek and Great Hill Partners back the firm.

- Monte Rosa Therapeutics, a Boston-based biotechnology company, raised $222.3 million in an IPO of 11.7 million shares priced at $19 per share. It reported a net loss of $35.9 million in 2020. Versant Ventures and New Enterprise Associates back the firm.

- Torrid Holdings, a California-based curvy apparel company, now plans to raise $156 million in an IPO of 8 million shares priced between $18 to $21 per share. It reported a net loss of $5,000 in 2020. Sycamore Partners backs the firm.

- CVRx, a Minneapolis-based developer of neuromodulation therapies for cardiovascular diseases, now plans to raise $100.8 million in an IPO of 6.3 million shares priced between $15 to $17 per share. It reported a net loss of $14.1 million in 2020. Johnson & Johnson and New Enterprise Associates back the firm.

- Elevation Oncology, a New York City-based genomic test drug company, now plans to raise $100.8 million in an IPO of 6.3 million shares priced between $15 to $17 per share. It reported a net loss of $17.3 million in 2020. Aisling Partners backs the firm.

- Sight Sciences, a Menlo Park, Calif.-based eye disease medical device company, filed to raise $100 million in an IPO.

- Aerovate Therapeutics, a Boston-based biotechnology company that develops drugs for cardiopulmonary disease, plans to raise $100.8 million in an IPO of 7.2 million shares priced between $13 to $15 per share. It has not yet made any revenue to-date. The firm is backed by Sofinnova Partners and Atlas Venture.

- Soulgate, a Chinese social networking app, said it would halt its IPO in the U.S. The firm had previously filed to sell 13.2 million shares in the U.S. at $14 per share, and it is backed by Tencent Holdings.

F+FS

- Vida Ventures, a Boston and Los Angeles-based life sciences venture firm, raised $875 million for Vida Ventures III.

- Leta Capital, a London-based venture firm, raised $100 million for its third fund.

PEOPLE

- CRV, a Palo Alto, Calif.-based venture firm, announced Matt Garratt will join as a general partner in July. He was previously at Salesforce Ventures.