| | | | | Last-mile delivery pushes supply chain VC funding past $3B | | Supply chain tech companies in Europe and North America raised $3.1 billion in venture funding last quarter, an uptick both quarter-over-quarter and year-over-year. With demand for home delivery skyrocketing amid the pandemic, last-mile companies like DoorDash and Instacart have become a focal point for investors.
COVID-19 has reshaped supply chain tech in other ways as well, accelerating the growth of decentralized fulfillment and shining a light on the need for analytics and real-time monitoring. Other findings from our Q3 Emerging Tech Research report: - Pre-money valuations of late-stage startups have surged this year, rising 61% to $169 million
- VCs have pulled back from investing in digital freight brokerage platforms, which face steep competition from incumbents in a low-margin industry
- Investment in warehousing tech and risk management is gaining traction as companies seek to pandemic-proof their supply chains
| | | | | | | | | | Stripe teams up with Goldman, Citi on banking services | |  | | (Westend61/Getty Images) | | | Stripe has joined forces with major banks to offer business customers checking accounts and other services, marking the payment giant's latest move to expand its digital reach in the finance sector.
Big banks such as Citibank, Goldman Sachs and Barclays have teamed up with Stripe to provide these services through ecommerce providers like Canada's Shopify. With Shopify Balance, merchants can manage their finances under accounts held by Evolve Bank & Trust.
Dubbed Stripe Treasury, this latest offering aims to shake up the traditional modes businesses do their banking. Stripe said its customers prefer digital banking over going to a bank in person to sign up for an account.
Stripe, which accepts online payments for businesses and ecommerce platforms, has see its user base surge during the pandemic. Over 500,000 businesses have signed up for the San Francisco-based company's services since March, The Wall Street Journal reported.
Stripe expanded into Africa with its purchase of Nigeria-based Paystack in October. It is also reportedly in talks to raise more funds at a valuation of up to $100 billion. | | | | | | | | | | A message from SS&C Intralinks | | | | How tech is helping M&A dealmakers conduct remote due diligence | | How can you keep deals moving when dealmaking has moved online? Many M&A pros are turning to technology solutions to execute the critical due diligence phase.
The question on everyone's mind, of course, is this: Can digital solutions measure up to the complexity and nuance of this traditionally hands-on process, enable compliant and productive work, and deliver optimal value?
Download our new report, featuring interviews with six noted dealmakers, for insight into maintaining the personal touch in our new no-touch environment. Read about: - Adjustments dealmakers need to make—from tech to culture
- Challenges and opportunities of remote due diligence
- Best practices for analyzing opportunities remotely
- What "new normal" looks like for M&A teams
Download this special report now | | | | | | | | | | Flutter to take near-total control of FanDuel at $11.2B valuation | |  | | (Scott Olson/Getty Images) | | | Irish sports betting specialist Flutter has agreed to pay nearly $4.18 billion to acquire a 37.2% holding in New York-based FanDuel, a deal that will take Flutter's total stake in the fantasy sports and sports betting company to 95%. That price implies an overall valuation for FanDuel of some $11.2 billion.
That's a steep rise from the reported $465 million price that Flutter, then known as Paddy Power Betfair, paid to acquire control of FanDuel from KKR and Shamrock Capital Advisors in 2018. It's also a number that will likely rankle some of FanDuel's early shareholders and employees.
Earlier this year, a group of FanDuel investors, co-founders and employees filed a lawsuit against KKR and Shamrock, alleging the two colluded to undervalue FanDuel in the deal with Paddy Power and prevent the plaintiffs from receiving any profits from the sale. The terms of KKR and Shamrock's investment reportedly called for the firms to receive all proceeds from a sale up to $559 million, with common shareholders entitled to any proceeds beyond that amount. The suit is believed to still be pending.
The sale came after a planned 2017 merger between FanDuel and rival DraftKings fell through. FanDuel had previously raised multiple rounds of VC at unicorn valuations, peaking at a $1.1 billion private valuation in 2016. The company's prospects have brightened in the ensuing years as a growing number of states in the US have voted to legalize sports gambling. | | | | | | | | | | Facial recognition technology has profound potential. And it's already being used to answer some of the biggest questions of our age. For instance: Did Wyatt Earp look like Ringo Starr? [The Wall Street Journal]
Nearly 100,000 restaurants in the US have closed since the start of the pandemic. But a vegan restaurateur named Matthew Kenney thinks it's the perfect time for new locations to open up. [Bloomberg]
Not many people leave ultra-Orthodox Jewish communities. What happens when they do? [The New Yorker] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 502 Deals | 1571 People | 443 Companies | 28 Funds | | | | | | | | | | | | | | | | | | | | 2013 Vintage Global Debt Funds | | | | | | | | | | | | | Everlywell snags $175M for at-home medical tests | | | Healthtech startup Everlywell has raised a $175 million Series D backed by BlackRock, TCG, Foresite Capital, Lux Capital and others. Bloomberg reported in October that the Austin-based company was seeking new funding at a valuation of more than $1 billion. Everlywell sells at-home medical test kits for COVID-19, fertility, allergies and other uses. It raised $50 million in April 2019. | | | | | | | | BioAge brings in $90M for age-related disease treatment | | | BioAge has raised a $90 million Series C co-led by Andreessen Horowitz and angel investor Elad Gil. The Richmond, Calif.-based biotech company is a developer of therapeutics that target aging and age-related health problems such as Alzheimer's and cardiovascular disease. Founded in 2015, the startup plans to use the funding to advance clinical trials of two therapies in 2021. BioAge raised $23 million at an $85 million valuation in January 2019. | | | | | | | | Construction tech startup secures $20M | | | | | | | | | Pave lands $16M round led by a16z | | | Trove has rebranded as Pave and raised a $16 million Series A led by Andreessen Horowitz. The San Francisco-based company is the developer of a compensation and equity benchmarking data platform. Kristina Shen, a general partner at a16z, will join the company's board, with Marc Andreessen becoming a board observer. | | | | | | | | | | | | Platinum Equity to support $1.5B equipment pact | | | Specialty equipment company Nesco has agreed to acquire Custom Truck One Source, a Kansas City, Mo.-based provider of specialized truck and heavy equipment products, from Blackstone and other shareholders for roughly $1.48 billion. As part of the deal, Platinum Equity will invest more than $850 million for newly issued shares of Nesco for $5 apiece, while Blackstone and CTOS management will invest about $100 million in Nesco at the same share price. | | | | | | | | Carlyle, H&F launch Vantage with $1B in backing | | | The Carlyle Group and Hellman & Friedman have launched insurance provider Vantage and its subsidiary Vantage Risk, a provider of property catastrophe re-insurance services. The firms have partnered with company management to provide $1 billion to Vantage. Funds for Carlyle's investment came via the firm's seventh flagship fund, which closed on $18.5 billion in 2018, while H&F's capital came from its ninth flagship effort, which brought in $16.5 billion the same year. | | | | | | | | CVC to pay $750M for RiverStone Europe | | | CVC Capital Partners has agreed to acquire insurance company RiverStone Europe from Fairfax Financial for a purchase price of around $750 million. Fairfax Financial could receive as much as $235.7 million after the deal is completed, based on a contingent value instrument. Funds for CVC's investment will come from the firm's second strategic opportunities vehicle, which typically holds companies for a longer investment horizon. OMERS has also exited its stake in RiverStone as part of the deal. | | | | | | | | Altair fastens onto deal with Nordson | | | Altair Investments has agreed to purchase the screws and barrels product line from the polymer processing systems division of Nordson, a publicly traded manufacturer of coatings, plastics and a wide range of other materials that is based in Ohio. Altair is a lower-middle-market firm focused on niche manufacturing companies. | | | | | | | | AE Industrial backs BigBear add-on | | | NuWave Solutions, a provider of data management and analytics services for the US government, has acquired San Diego-based BigBear, which provides analytics to the national security community. The deal marks NuWave's first acquisition since it was purchased by AE Industrial Partners in June. | | | | | | | | Hg does latest software deal | | | British software investor Hg has made an investment in Benevity, a Canadian developer of software used by other companies to manage charitable donations. Existing Benevity backers General Atlantic and JMI Equity will both retain stakes in the company. | | | | | | | | York Capital stakes F1 Payments | | | York Capital Management has made a growth investment in F1 Payments and recapitalized the Austin-based provider of payments technology for financial agents, merchants and institutions. As part of the deal, F1 president Chad Anselmo has been named the company's CEO, industry veteran Sunil Kappagoda has joined as chairman of the board of directors and F1 founder Shane Hibbeler has retired. | | | | | | | | | | | | Certara sets range for PE-backed debut | | | Certara and its stockholders have revealed plans to sell nearly 24.4 million shares for between $19 and $22 apiece in the company's coming IPO, with a midpoint pricing set to raise about $500 million. EQT owns a 64.6% pre-IPO stake in the company and expects to retain a majority of its voting shares upon the completion of the offering. New Jersey-based Certara creates simulation software and other technology used in drug discovery and development. | | | | | | | | Google set to acquire data unicorn Actifio | | | Google has agreed to acquire Actifio, a startup specializing in data backup and disaster recovery services that was valued at $1.3 billion with its most recent round of venture funding in 2018. Terms of the deal were not disclosed. Massachusetts-based Actifio has raised more than $350 million in total venture capital from firms including Andreessen Horowitz, Crestline Investors and 83North, according to PitchBook data. | | | | | | | | Olive nabs VC-backed Verata Health | | | | | | | | | Co-living startup Starcity buys New York-based rival | | | Starcity, a San Francisco-based startup that operates co-living spaces in North America and Europe, has purchased Ollie, a fellow provider of a co-living platform that's based in New York. Ollie offers co-living spaces in locations like Los Angeles, Boston and New York City. Starcity has received backing from the likes of Bullpen Capital, Peak State Ventures and NEA, while a previous TechCrunch report indicated that Ollie has received support from investors including Currency M and Employees Retirement System of Texas. | | | | | | | | Affirm to buy Canadian rival for $264M | | | Fintech startup Affirm has agreed to acquire Toronto-based PayBright for around C$340 million (about $264 million). The two companies both offer customers a way to finance online purchases through installment payments. San Francisco-based Affirm is expected to go public this month. | | | | | | | | | | Scale Venture Partners lands $600M for new fund | | | Scale Venture Partners has closed its seventh namesake fund with $600 million in committed capital, surpassing the $400 million the firm raised for its previous flagship vehicle in 2018. Based in Foster City, Calif., Scale plans to use the funds to continue its strategy of investing in cloud and SaaS software companies. The firm's portfolio includes JFrog, DroneDeploy and Cognata. | | | | | | | | OTV locks in $170M for latest fund | | | OTV (formerly Olive Tree Ventures) has closed a $170 million fund focused on digital health companies. The firm, which has offices in New York and Tel Aviv, has also hired a new head of Asia-Pacific, a region in which it hopes to expand operations. Founded in 2015, OTV has a portfolio that includes TytoCare and Lemonaid Health, which both offer telehealth and prescription services. | | | | | | | | Bling Capital collects $113M for new funds | | | Former Khosla Ventures GP Ben Ling has landed $113 million in commitments across two new funds for his firm, Bling Capital, according to TechCrunch. Ling struck out on his own, creating the firm in 2018. San Francisco-based Bling closed its previous two funds on $60 million and $33.7 million, according to PitchBook data. | | | | | | | | | | Macquarie unit set for $1.7B takeover | | | Australia's Macquarie Asset Management, a division of Macquarie Group, has agreed to buy Waddell & Reed Financial for $1.7 billion, with the price of $25 per share representing a 48% premium to the company's closing stock price on Dec. 1. Founded in 1937, Waddell & Reed is a wealth and asset manager based in the Kansas City, Mo., metro area. | | | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | | | | | | | | | | |
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