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TPG and Brookfield add billions to the climate-tech coffers

July 28, 2021, 3:03 PM UTC

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As interest in climate-tech grows, so are the mega war chests.

Growth equity and buyout investor TPG announced earlier this week that it had raised $5.4 billion to invest in climate solutions, while Canada’s Brookfield Asset Management followed up Tuesday by raising $7 billion upon the first close of its fund aimed at companies seeking to reach carbon neutrality.

Earlier this month, private market investor General Atlantic created a strategy focused on climate change that is reportedly looking to raise about $4 billion. According to Pitchbook, investors around the world have already closed as many climate-focused funds as were raised in the past five years.

Perhaps it should be of little surprise the mega dollars being set up for deployment. After all, some of these projects can be extremely costly, with battery recycling startup Redwood Materials on Wednesday raising $700 million in a single round of funding with T. Rowe Price at the helm.

But it’s not just carbon-capture technology or electric car makers that are fitting the bill for funds. Sustainable bets have also encompassed marketplaces for refurbished electronics like Back Market (backed by Al Gore’s Generation Investment Management) and clothing resellers like Thrilling, which is backed by impact-focused Congruent Ventures.

Which means investors are effectively betting on a sea-change in behavior from the way consumers eat (plant-based burgers, for instance) and dress, to how businesses source their power or make financial decisions.

TIGER BETS ON BARBERSHOP DIGITIZATION: Just under a year since it raised its Series C round of funding, barbershop software company Squire Technologies has raised $60 million at a $750 million valuation led by Tiger Global. The round itself came together over the course of a week, and, in-line with its playbook, Tiger will not be taking a board seat. At a time when many investors point to their operating skills as an advantage — making many founders worry instead about too many cooks in the kitchen — this hands-off strategy has helped Tiger win deals. 

“Tiger,” said Squire President and Cofounder Dave Salvant, “wins deals because they are able to move fast so that founders can optimize — they get out of the way and let you just run the company.” It’s also a seller’s market, so to speak, as record venture capital funding fuels a hiring spree. And Squire is aware of that issue: The company is taking the unusual step of moving parts of its Eastern European team to Canada as it seeks to stay ahead of any attrition. Read more of that story here.

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

Jessica Mathews compiled the IPO and SPAC sections of this newsletter.

VENTURE DEALS

- PsiQuantum, a Palo Alto, Calif.-based quantum computing company, raised $450 million in Series D funding. BlackRock led the round and was joined by investors including Baillie Gifford, M12, Blackbird Ventures, and Temasek. 

- iCapital Network, a New York City-based marketplace connecting investors to alternative asset managers, raised $440 million. Temasek led and was joined by investors including Owl Rock, MSD Partners, Noah Holdings, and Golub Capital. The deal values the company at around $4 billion.

- Fireblocks, a New York City-based digital asset custody company, raised $310 million in Series D funding valuing the business at $2 billion. Sequoia Capital, Stripes, Spark Capital, Coatue, DRW VC, and SCB 10X

- DataRobot, a Boston-based A.I. provider, raised $300 million in Series G funding valuing it at $6.3 billion. Altimeter Capital and Tiger Global led the round and was joined by investors including Counterpoint Global, Franklin Templeton, ServiceNow Ventures, and Sutter Hill Ventures. 

- Gupshup, a San Francisco-based messaging startup, raised $240 million. Investors include Fidelity Management and Research Company, Tiger Global, Think Investments, Malabar Investments, Harbor Spring Capital, Neuberger Berman Investment Advisers, White Oak, and Neeraj Arora.

- At-Bay, a Mountain View, Calif.-based insurance company, raised $185 million in Series D funding. Icon Ventures and Lightspeed Venture Partners led the round valuing it at $1.4 billion. 

- Contentful, a content management platform, raised $175 million in Series F funding valuing it at $3 billion. Tiger Global led the round and was joined by investors including Base10 Advancement Initiative and Tidemark.

- Algolia, a San Francisco-based search platform, raised $150 million in Series D funding. Lone Pine Capital led the round valuing it at $2.3 billion. Investors also included Fidelity Management & Research Company, STEADFAST Capital Ventures, Glynn Capital, Twilio, Accel, and Salesforce Ventures

- Class, a virtual classroom integrating with Zoom, raised $105 million. SoftBank Vision Fund 2 led the round.

- SonderMind, a Denver-based mental health company, raised $150 million in Series C funding. Drive Capital and Premji Invest led the round and were joined by investors including General Catalyst, Partners Group, Smash Ventures, Kickstart, and F-Prime Capital.   

- Pendo, a Raleigh-based customer analytics startup, raised $150 million Series F at a $2.6 billion valuation. B Capital Group led the round and was joined by investors including Silver Lake Waterman.

- Genomatica, a San Diego, Calif.-based maker of sustainable materials, raised $118 million in Series C funding. Novo Holdings led the round and was joined by investors including Viking Global Investors and Casdin Capital.

- Ring Therapeutics, a Cambridge, Mass.-based gene therapy company founded by Flagship Pioneering, raised $117 million in Series B funding. Investors included Invus, Altitude Life Science Ventures, Partners Investment, UPMC Enterprises, and T. Rowe Price Associates.

- LogicGate, a Chicago-based risk and compliance solution, raised $113 million in Series C funding. PSG led the round.

- Dixa, a Danish customer service solution, raised $105 million in Series C funding. General Atlantic led the round and was joined by investors including Notion Capital Project A and Seed Capital. 

- 1Password, a Canadian password management provider, raised $100 million in funding led by Accel. The deal values the business at $2 billion.

- Bubble, a New York City-based programming platform, raised $100 million in Series A funding. Insight Partners led the round and was joined by investors including SignalFire, Neo, BoxGroup, and ThirdKind.

- Atera, a Tel Aviv-based IT management company, raised $77 million in Series B funding. General Atlantic led the round and was joined by investors including K1 Investment Management.

- HappyFresh, an Indonesian on-demand grocery app, raised $65 million in Series D funding. Naver Financial and Gafina led the round and were joined by investors including STIC, LB, and Mirae Asset Indonesia and Singapore.

- FRISS, a fraud prevention and detection solutions for insurers, raised $65 million in Series B funding. Accel-KKR led the round.

- Eco, a San Francisco-based, crypto-focused digital wallet platform, raised $60 million in Series B funding. Activant Capital and L Catterton led the round.

- Replicated, a West Hollywood, Calif.-based company focused on software delivery and management, raised $50 million in Series C funding. Owl Rock led the round and was joined by investors including Lead Edge Capital, Headline, Two Sigma Ventures, Amplify Partners, BoldStart, Ridgeline, and Heavybit

- Veda, a Madison, Wis.-based healthcare administration and payments startup, raised $45 million in Series B funding. Oak HC/FT led the round.

- Blameless, a platform for engineers, raised $30 million in Series B funding. Third Point Ventures led the round and was joined by investors including Accel, Decibel, and Lightspeed Venture Partners.

- Orum, a San Francisco-based customer chat company, raised $25 million in Series A funding. Craft Ventures led the round.

- MedRhythms, a Portland, Me.-based therapeutics company using sensors and music, raised  $25 million in Series B funding. Morningside Ventures and Advantage Capital led the round and was joined by investors including Werth Family Investment Associates. 

- Cyolo, a Tel Aviv-based maker of a secure login system, raised $21 million in Series A funding. Glilot Capital Partners led the round and was joined by investors including National Grid Partners, Merlin Ventures, Flint Capital, Global Founders Capital, and Differential Ventures.

- Valora, a mobile digital wallet, raised $20 million Series A funding. Investors included Andreessen Horowitz, Polychain Capital, SV Angel, Nima Capital, NFX, and Valor Capital.

- Behalf, a New York and Israel-based provider of buy-now-pay-later, raised $19 million in funding. Migdal Insurance and La Maison Partners led the round and were joined by investors including MissionOG, Viola Growth, Viola Credit, and Vintage Investment Partners.  

- Agentero, an Oakland, Calif.-based digital insurance network, raised $13.5 million in Series A funding. Alma Mundi Ventures led the round and was joined by investors including Foundation Capital, Union Square Ventures, Financial Venture Studio, and Two Culture Capital.

- Hightouch, a San Francisco-based customer data syncing software company, raised $12.1 million in Series A funding. Amplify Partners led the round and was joined by investors including Bain Capital Ventures, Y Combinator, and Afore Capital.

- Lumanu, an Oakland, Calif.-based platform for creators, raised $12 million in Series A funding. Origin Ventures led the round and was joined by investors including Alumni Venture Group, Gaingles, and 500 Startups.

- IMIDomics, a San Francisco-based drug discovery company, raised $16.5 million in Series A funding. DNS Capital led the round and was joined by investors including Bristol Myers Squibb, The Pritzker Organization, and Tao Capital.

- Connie Health, a Boston-based medicare platform, raised $13 million in Series A funding. Khosla Ventures and Pittango Healthtech led the round.

- Avaline, a Los Angeles-based wine brand, raised $9.5 million in Series A funding. Greycroft and Sonoma Brands led the round and were joined by investors including Nicole Richie and Gwenyth Paltrow.

- Biconomy, a Singaporean blockchain company, raised $9 million. DACM and Mechanism Capital led the round and was joined by investors including Coinbase Ventures, Coinfund, True Ventures, Bain Capital, NFX, Proof Group, Ledgerprime, Huobi Innovation Labs, Primitive Ventures, Genblock, and Rarestone Capital.

- Spark, a Canada-based real estate software platform, raised $6.3 million in Series A funding. BDC Capital and Pender Ventures led the round and were joined by investors including Groundbreak Ventures.

- Norby, a Brooklyn-based marketing platform for creators, raised $3.8 million in seed funding. Gradient Ventures led the round and was joined by investors including Bungalow Capital, BBG Ventures, Charge VC, and Notation.

- Quansa, a Brazilian financial benefits company, raised $3.6 million in seed funding. Valor Capital Group led the round and was joined by investors including Pear VC, Canary, Norte, Magma, and Sequoia Scouts.

PRIVATE EQUITY

- Nordic Capital agreed to invest 450 million euros ($535 million) in LEO Pharma, a Danish dermatology firm.

- Kingsway Capital invested $125 million in Genesis Digital Assets, New York City-based bitcoin mining operator.

- Altacrest Capital recapitalized Big Blanket Co, a Springfield, Mo.-based online seller of blankets. Financial terms weren't disclosed.

- Altamont Capital Partners invested in Horizon Investments, a Charlotte, N.C.-based investment adviser. Financial terms weren't disclosed.

- Arcline Investment Management acquired a controlling stake in Dwyer Instruments, a Michigan City, In.-based designer and manufacturer of sensors for building management. Financial terms weren't disclosed.

- Boston Trade Interior Solutions, backed by Blackford Capital, has acquired Design Environments, a Marietta, Ga.-based interior design and interior architecture firm. Financial terms weren't disclosed.

- Clearlake Capital Group agreed to acquire Springs Window Fashions, a Montgomery, Pa.-based window coverings company, from AEA Investors and British Columbia Investment Management. Financial terms weren't disclosed.

- Cresset Asset Management acquired Asset Management Advisors, a Houston-based boutique family office. Financial terms weren't disclosed.

- NielsenIQ, backed by Advent, acquired Cornerstone Capabilities, a Toronto-based provider of revenue management software. Financial terms weren't disclosed.

- Revinate, backed by Serent, acquired NAVIS, a Bend, Ore.-based provider of sales agents and marketing software. Financial terms weren't disclosed.

- Tonka Bay Equity Partners invested in Professional, a Vancouver, Wash.-based provider of accounts receivable management services. Financial terms weren't disclosed.

- Wellington Management invested in Thriveworks, a Fredericksburg, Va.-based mental health provider. Investors include Fidelity Management & Research Company, RA Capital Management, Redmile Group, and Transformation Capital. 

EXIT

- Partners Group agreed to acquire Reedy Industries, a Deerfield, Ill.-based heating, ventilation and air conditioning provider, from Audax Private Equity. The deal is estimated to be worth $1 billion, per Bloomberg.

- TowerBrook Capital Partners acquired a majority stake in Bruneau, an online distributor of office furniture and supplies in Europe, from Equistone Partners Europe. Financial terms weren't disclosed.

- Klarna acquired APPRL, a Swedish influencer marketing company. Financial terms weren't disclosed. Investors including ATM Venture Capital and Spintop Ventures back APPRL.

OTHER

- APi Group (NYSE: APG) agreed to buy Chubb Fire & Security, a provider of burglar alarms and fire extinguishers, from Carrier Global (NYSE: CARR).  The deal values the latter at $3.1 billion including debt. Blackstone and Viking will invest $800 million in APi.

IPO

- Duolingo, a Pittsburgh-based language learning app company, raised $520.8 million in an offering of 5.1 million shares priced at $102—higher than the $510.6 million it had planned to raise. The company generated $161.7 million in revenue in 2020, and reported a net loss of $15.8 million. Union Square Ventures, CapitalG, and General Atlantic back the firm.

- WCG Clinical, a Princeton, N.J.-based clinical trial solutions company, plans to raise up to $765 million in an offering of 45 million shares priced between $15 and $17 per share. The company generated $463.4 million in 2020 and reported a net loss of $95.3 million. Leonard Green & Partners and Arsenal Capital Partners back the firm.

- PowerSchool Holdings, a Folsom, Calif.-based K-12 education technology company, raised $710.5 million in an offering of 39.5 million shares priced at $18 per share. The company generated $434.9 million in total revenue in 2020 and reported a net loss of $46.6 million. Vista Equity Partners and Onex Partners back the firm.

- Dole, an Ireland-based fruit production company, now plans to raise up to $515.2 million in an offering of 30.3 million shares priced between $16 and $17—it had previously planned to raise up to $598 million. The company posted $9 billion in revenue in 2020 and reported net income of $100 million. 

- MeridianLink, a Costa Mesa, Calif.-based cloud-based product company, raised $343.2 million in an offering of 13.2 million shares priced at $26—higher than its previous plans to raise up to $312 million. The company posted $199.3 million in net revenue in 2020 and net income of $9.2 million. Thoma Bravo and Serent Capital back the firm.

- Cadre Holdings, a Jacksonville, Fla.-based security products company, plans to raise up to $135.7 million in an offering of 7.1 million shares priced between $16 and $19 per share. The company posted $404.6 million in net sales in 2020 and $38.5 million in net income.

- RxSight, an Aliso Viejo, Calif.-based intraocular lens company, plans to raise up to $132.3 million in an offering of 7.4 million shares priced between $16 and $18 per share. The company reported $14.7 million in sales in 2020 and a gross profit of $1.7 million. Longitude Capital and H.I.G. BioHealth Partners back the firm.

- Stronghold Digital Mining, a Kennerdell, Pa.-based eco-friendly Bitcoin mining company, filed for an IPO.  The company generated $4.1 million in total operating revenue in 2020 and reported a net loss of $145,000. 

- Hello, a Shanghai-based bike sharing company, withdrew its plans for an IPO in the U.S.

- Conductor, a Brazilian payments company, has hired banks for an IPO in the U.S. per Reuters.

OTHER

- PerkinElmer (NYSE: PKI) agreed to acquire BioLegend, a San Diego-based maker of reagents and antibodies used in medical research, for about $5.3 billion. 

- RBC Bearings agreed to acquire Dodge, the power transmission unit of Swiss engineering company ABB, for $2.9 billion.

F+FS

- Pritzker Private Capital, a Chicago-based family investment firm, closed PPC III at $2.7 billion. 

- Energy Impact Partners, a New York City-based energy transition investor, has raised about half of a planned $120 million for its Elevate Future Fund focused on diverse founders.

PEOPLE

- Castle Island Ventures, a Boston-based investor, named Sean Judge as a partner.

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