| | | | | | | Presented By Goldman Sachs | | | | Pro Rata | | By Dan Primack ·Nov 18, 2020 | | 🎧 Axios Re:Cap digs into Airbnb and the future of travel with Skift CEO Rafat Ali. Listen via Apple, Spotify or Axios. | | | | | | Top of the Morning |  | | | Illustration: Sarah Grillo/Axios | | | | "We wanted flying cars, instead we got 140 characters." Peter Thiel wrote those words in 2011, as part of a manifesto for Founders Fund. - It was intended to highlight venture capital's shift away from transformational technologies, but was quickly appropriated — and de-nuanced — by a cottage industry of critics who were eager to spread the gospel of founder frivolity.
One year earlier, Moderna Therapeutics was founded in the conference room of Massachusetts-based venture capital firm Flagship. - It raised $2.1 million in first-round funding at an $8.4 million pre-money valuation.
- The company is currently valued at around $37 billion, and may have just created a vaccine that will defeat the most devastating global health crisis in more than a century.
Two years later, Lucira Health was founded in Emeryville, California. - It joined the StartX accelerator program, and later raised first-round funding from firms like DCVC, Seraph Group, Danhu Capital and individuals like Pierre Lamond.
- Yesterday it became the first company to receive FDA approval for a COVID-19 test that can be self-administered at home. It only will be available via prescription, at least for now, but this may be the bleeding edge of innovation that helps school and offices reopen.
Why it matters: It's certainly true that plenty of garbage startups have been funded over the past decade, including a couple of outright frauds. And tech innovation doesn't always move as linearly as we'd like, or replicate the future as imagined by TV scriptwriters. - But while startups and their investors were being bashed on social media, at least a few of them were laying the building blocks for technologies that could help let humanity recover its, well... humanity. Our ability to work, play and spend time with loved ones.
- We all hope to never again experience anything like this pandemic. Chances are, though, that some currently unknown founders and investors are preparing for it anyway.
|     | | | | | | Also... |  | | | Illustration: Sarah Grillo/Axios | | | | Edelman is out with a special "Trust Barometer" report that surveyed 600 global institutional investors, collectively managing over $20 trillion in assets, about their views toward environmental, social and corporate governance (ESG) issues. - The top takeaway among U.S. investors was that ESG has been deprioritized during the pandemic, among both the investors (79%) and the companies in which they invest (77%). The vast majority expect ESG to be reprioritized in the future. Read the full report.
SF scoop: Jay Simons, former president of Atlassian, is joining late-stage venture firm Bond as a general partner and head of enterprise investing, Axios has learned. SPAC saga: In July we wrote about how a SPAC led by ex-Citi dealmaker Michael Klein agreed to buy MultiPlan for $11 billion, making it the largest-ever SPAC merger. - The deal subsequently closed, with existing MultiPlan backers Hellman & Friedman and General Atlantic rolling over most of their stakes.
- Then, last week, short-seller Muddy Waters Capital issued a research report arguing that MultiPlan was way overvalued. Not because of some sort of fraud, but rather because its largest client, UnitedHealthcare, is launching a rival product that will cause MultiPlan to bleed business.
- MultiPlan argued that Muddy Waters doesn't understand what it's talking about, and got some bank analyst buy-in — thus helping the stock recover a bit, although it remains well below what Klein's SPAC paid.
- The bottom line: Muddy Waters' accusation and MultiPlan's defense are both much less important than what UnitedHealth might say. It could settle this short scuffle, but thus far it's kept quiet.
| | | | | | | | The BFD |  | | | Illustration: Sarah Grillo/Axios | | | | Headway, a New York-based software platform that helps therapists accept insurance and helps patients find those therapists, raised $26 million in Series A funding led by Thrive Capital. - Why it's the BFD: Many therapists don't take insurance because of low reimbursement rates, which has built a colossal barrier to mental health access. Headway's software doesn't quite make up the difference, but narrows it significantly by automating administrative tasks like looking up benefits, credentialing, and appointment booking. The cost is paid by insurers, not by patients or providers.
- Other investors include GV and return backers Accel, GFC and IA Ventures.
- The bottom line: "The defining problem in this industry is access. When I moved to New York I tried to find a therapist who took insurance, so I could afford to see them, but I totally failed. It's not at all a problem unique to me." — Andrew Adams, CEO of Headway, to Axios
| | | | | | | | A message from Goldman Sachs | | Committed to closing investing gaps | | |  | | | | Through Launch With GS, Goldman Sachs continues to increase access to capital and facilitate connections for women, Black, Latinx and other diverse entrepreneurs. Learn more. | | | | | | Venture Capital Deals | | 🚑 D3 Bio, a Shanghai-based precision medicine startup led by ex-AstraZeneca R&D exec George Chen, raised $200 million in Series A funding from Boyu Capital, Matrix Partners China, Sequoia Capital China, Temasek and WuXi AppTec. http://axios.link/r2Tm • Klaviyo, a Boston-based marketing automation firm, raised $200 million in Series C funding at a $4.15 billion valuation. Accel led, and was joined by Summit Partners. http://axios.link/EgT8 • Heyday, a startup focused on accelerating consumer product brands on digital marketplaces like Amazon, raised $175 million in Series A funding from General Catalyst, Khosla Ventures and Arbor Ventures. www.heyday.co 🚑 Manus Bio, a Cambridge, Mass.-based developer of "complex natural products through advanced fermentation," raised $75 million in Series B funding led by BBGI. http://axios.link/6N4y 🚑 Elevation Oncology, a New York-based biotech focused on genomically defined cancers, raised $65 million in Series B funding. VenBio Partners and Cormorant Asset Management co-led, and were joined by Boxer Capital, Janus Henderson, Samsara Biocapital, Vivo Capital and return backers Aisling Capital, Vertex Ventures HC, Qiming Venture Partners USA, Driehaus Capital Management and BVF Partners. www.elevationoncology.com Abnormal Security, a San Francisco-based email security startup, raised $50 million in Series B funding. Menlo Ventures led, and was joined by return backer Greylock. http://axios.link/WlsG Cogito, a Boston-based provider of "real-time emotional intelligence solutions," raised $25 million. GS Growth led, and was joined by Salesforce Ventures. www.cogitocorp.com • Yubo, a French social media app focused on live-streaming, raised $47.5 million in Series C funding from Gaia Capital Partners, Idinvest Partners, Iris Capital, Alven and Sweet Capital. http://axios.link/rpww 🚑 K Health, a New York-based digital primary care startup, raised $42 million in Series D funding. Valor Equity Partners led, and was joined by Marcy Venture Partners, Atreides Management, PICO Venture Partners, 14W and Max Ventures. www.khealth.ai • True Balance, a payments app for underbanked consumers in India, raised $28 million in Series D funding from SoftBank Ventures Asia, Naver, BonAngels, Daesung Private Equity, and Shinhan Capital. http://axios.link/qZPy • Realync, a Chicago-based virtual leasing platform for multifamily real estate, raised $22 million from Susquehanna Growth Equity. www.realync.com • Tourlane, a Germany-based online travel-booking platform for multi-day tours, raised $20 million in new Series C funding (round total $67m) from existing backers Sequoia Capital, Spark Capital, DN Capital and Holtzbrinck Ventures. http://axios.link/BXrW • CloudBolt Software, a Bethesda, Md.-based self-service hybrid cloud platform, raised $15 million from Insight Partners. It also secured $20 million in debt. http://axios.link/UzeZ • OpenPhone, a San Francisco-based business phone app, raised $14 million in Series A funding. Craft Ventures led, and was joined by Slow Ventures, Kindred Ventures, YC, Garage Capital and Chapter One Ventures. www.openphone.co 🚑 Levels, developer of a biowearable metabolic sensor, raised $12 million in seed funding led by Andreessen Horowitz. http://axios.link/CFW7 • Seldon, a British provider of dev tools for optimizing machine learning, raised £7.1 million in Series A funding. AlbionVC and Cambridge Innovation Capital co-led, and were joined by return backers Amadeus Capital Partners and Global Brain. http://axios.link/rYa1 • Build.security, an authorization policy management startup with offices in Israel and Silicon Valey, raised $6 million in seed funding led by YL Ventures. http://axios.link/Id5j • GoStudent, a Vienna-based digital tutoring platform, raised €5 million in new Series A funding co-led by Left Lane Capital and DN Capital. http://axios.link/RFKH • OpsLevel, a "microservice track" platform for developers, raised $5 million in seed funding. Vertex Ventures led, and was joined by S28 Capital, Webb Investment Network and Union Capital. http://axios.link/WQ5v • Food Market Hub, a Malaysian inventory management platform for the food and beverage market, raised $4 million in Series A funding from Go-Ventures. http://axios.link/a4oV • Autochek, a Nigerian auto sales and services platform, raised $3.4 million in seed funding co-led by TLcom Capital and 4DX Ventures. http://axios.link/hnWD WattBuy, a New York-based online electricity marketplace, raised $3.25 million in Series A funding. Evergy Ventures led, and was joined by Updater, Avesta Fund, Fort Ventures, Techstars Ventures and Powerhouse Ventures. www.wattbuy.com • Nozzle.ai, a London-based e-commerce and ad optimization platform for Amazon merchants, raised £2 million from Parkwalk Advisors, Angel CoFund and UCL Tech Fund. http://axios.link/I1x4 🚀 Relativity Space, a Los Angeles-based 3D printer of rockets and provider of satellite launch services, is raising $500 million in Series D funding at a $.3 billion valuation, per CNBC. Last year it raised $140 million co-led by Bond and Tribe Capital. http://axios.link/pFnA | | | | | | | | Private Equity Deals | | • Belcan, a Cincinnati-based portfolio company of AE Industrial Partners, acquired Avista, a provider of software engineering services to OEMs in end markets like aerospace and defense. www.avistainc.com • The Carlyle Group's credit platform led a preferred equity investment in Apex Group, a Genstar Capital-backed provider of fund administration and financial services to the asset management and corporate sectors. www.theapexgroup.com • Cerberus Capital Management offered to buy British lender The Co-operative Bank for an undisclosed amount. http://axios.link/Raxh • Clearlake Capital Group agreed to acquire WellPet, a Tewksbury, Mass.-based natural petfood company, from Berwind Corp. www.wellpet.com 🚑 KKR agreed to buy a majority stake in New Zealand-based animal health firm Argenta from Tomlinson Group for around $100 million. http://axios.link/lyPF • OMERS Private Equity acquired Turnpoint, a Louisville, Ky.-based HVAC, plumbing and electrical services firm, from Trivest Partners. www.turnpoint.com 🚑 Shore Capital Partners invested in Women's Health Group, an obstetrics and gynecology provider with nine locations in the Denver area. www.whg-pc.com 🚑 Sun Capital Partners agreed to buy Miami Beach Medical Group, a provider of health care services to Medicare Advantage plan members in South Florida, from Gauge Capital. www.mbmedicalgroup.com | | | | | | | | Public Offerings | | 🚑 4D Molecular Therapeutics, an Emeryville, Calif.-based gene therapy company, refiled for an IPO. This one is for $75 million, after recently withdrawing a $100 million registration. The company raised over $180 milion from firms like Viking Global Investors (16.9% pre-IPO stake), Pfizer (9.7%) and Biotechnology Value Fund (5.4%). http://axios.link/LPyz • Epidemic Sound, a Swedish music licensing business, is considering a sale or initial public offering at a valuation north of €1 billion, per Bloomberg. Backers include DS Asset Management, EQT, Atwater Capital and Creandum. http://axios.link/6T1H • Ozon, a Russian e-commerce platform, set IPO terms to 30 million shares at $22.50-$27.50. It would have an initial market value of $4.4 billion, were it to price in the middle, and plans to list on the Nasdaq with Morgan Stanley and Goldman Sachs as lead underwriters. The company reports a $13 million net loss on $67 million in revenue for the first nine months of 2020, while backers include Baring Vostok Private Equity (45.1% pre-IPO stake), Index Ventures (6%) and Princeville Global (5.6%). http://axios.link/FuRs • Robinhood, the no-fee trading app valued by VCs at $11.7 billion, is speaking with banks about a Q1 2021 IPO, per Bloomberg. http://axios.link/p3eo | | | | | | | | SPAC Stuff | | • Arrival, a London-based maker of electric commercial vehicles, agreed to go public via a reverse merger with CIIG Merger Corp. (Nasdaq: CIIC). It values Arrival at $5.4 billion, including a $400 million PIPE from Fidelity, Wellington Management, and BNP Paribas. Arrival has raised $230 million from firms like BlackRock, Hyundai Motor, Kia Motors, and UPS. http://axios.link/sYu5 • Adara Acquisition, a consumer products-focused SPAC, filed for a $100 million IPO. http://axios.link/2vAA • Genesis Park Acquisition, an aviation-focused SPAC led by David Siegel (Apollo advisor, airline exec) and Paul Hobby (private equity firm Genesis Park), cut its IPO size from $200 million to $150 million. http://axios.link/OKbz • Jaws Spitfire Acquisition, the second SPAC led by Barry Sternlicht, filed for a $250 million IPO. His initial SPAC last week agreed to buy Cano Health. http://axios.link/wR3T • Omnichannel Acquisition, a retail-focused SPAC led by RSE Ventures CEO Matt Higgins, cut its IPO size from $350 million to $250 million. http://axios.link/Hbab 🚑 Population Health Investment, a therapeutics-focused SPAC formed by former The Medicines Co. and Pfizer execs, raised $150 million in its IPO. http://axios.link/Suz0 | | | | | | | | Liquidity Events | | • Deutsche Börse agreed to acquire an 80% stake in proxy firm Institutional Shareholder Services from Genstar Capital at a $2.28 billion valuation. http://axios.link/8gt2 • Eurazeo Capital agreed to sell its majority stake in Spanish fragrances and flavors business Iberchem to Croda (LSE: CRDA) at an €820 million enterprise value. http://axios.link/heab • Insight Partners is seeking to sell its majority stake in Fenergo, an Irish provider of regulatory software to financial institutions, at around a $2 billion valuation, per Barron's. http://axios.link/d9uI • Mars, the Virginia-based candy maker, agreed to buy energy bars maker Kind North America for an estimated $5 billion. Sellers include BDT Capital Partners and Swan & Legend Venture Partners. http://axios.link/uusH • Omers Private Equity is considering a sale process for ERM Group, a London-based sustainability consultancy that could fetch up to $2.5 billion, per Bloomberg. http://axios.link/d3Cz 🚑 Talkspace, a New York-based online therapy company, is seeking a buyer in a deal that could be valued at around $1 billion, per Bloomberg. The company has raised over $100 million from Revolution Growth, Norwest Venture Partners, Qumra Capital, Spark Capital and Compound Ventures. http://axios.link/NPct | | | | | | | | More M&A | | • Intact Financial (TSX: IFC) and Tryg (CPSE: TRYG) agreed to buy British insurer RSA Insurance Group (LSE: RSA) for £7.2 billion, in what would be the year's largest acquisition of a London-listed company. http://axios.link/Iv9H • News Corp. (Nasdaq: NWSA) plans to enter the takeover auction for book publisher Simon & Schuster, vying with Bertelsmann and Harper Collins in a deal expected to fetch more than $1.7 billion, per the FT. Simon & Schuster is currently owned by ViacomCBS (Nasdaq: VIAC). http://axios.link/3JTC | | | | | | | | Fundraising | | 🚑 Council Capital, a Nashville-based health care private equity firm, raised $200 million for its fourth fund. www.councilcapital.com • Quid raised $320 million for a startup employee loan fund, using employee stock as collateral. http://axios.link/A4sf • Round Hill Music Royalty Partners raised $291 million for its third fund. www.rhmusicroyaltypartners.com • Searchlight Capital Partners raised $3.4 billion for its third private equity fund. www.searchlightcap.com | | | | | | | | It's Personnel | | • Judy Shelton's nomination by President Trump to be a Federal Reserve governor was rejected by the U.S. Senate, on a 49-47 vote. Two GOP senators sat out the vote because they are quarantining, while Majority Leader Mitch McConnell voted nay, in order to preserve the possibility of a subsequent vote. http://axios.link/nCwp 🚑 Cherrill Farnsworth joined WindRose Health Investors as an operating partner. She was CEO of former WindRose portfolio company HealthHelp. www.windrose.com • Sanjiv Kalevar and Peter Weed joined OpenView Venture Partners as partners. Kalevar previously was a principal with Battery Ventures, while Weed was a partner with Lumia Capital. www.openviewpartners.com | | | | | | | | Final Numbers |  Data: Newswhip, The COVID Tracking Project; Chart: Naema Ahmed/Axios | | | | | | | | A message from Goldman Sachs | | Supporting diverse management teams | | |  | | | | Launch With GS is Goldman Sachs' $500 million investment strategy grounded in diversity. 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