| | | | | | | | | | | Pro Rata | | By Dan Primack ·Jan 06, 2021 | | 🎧 Axios Re:Cap speaks with Sen. Amy Klobuchar (D-Minn.) about today's presidential vote certification process, as she'll lead her party's response to objections in the Senate. Listen via Apple, Spotify or Axios. ✍️ 170 business leaders signed a public letter asking Congress to certify Joe Biden's victory. Included were private equity bigs Henry Kravis (KKR), Jonathan Gray (Blackstone), Bill Ford (General Atlantic), Kewsong Lee (Carlyle) and James Zelter (Apollo). - It reads, in part: "Attempts to thwart or delay this process run counter to the essential tenets of our democracy."
| | | | | | Top of the Morning |  | | | Illustration: Aïda Amer/Axios | | | | President Trump last night signed an executive order prohibiting transactions with eight Chinese apps, including Ant Group's Alipay, arguing they pose a national security threat. - Why it matters: This is the latest example of ratcheting up economic tensions with China, using private companies as pawns.
- Why it might not matter: The EO doesn't become effective for 45 days, which is 30 days after Trump departs the White House. Plus, prior Trump EOs against TikTok and WeChat — largely on the same grounds — have been temporarily blocked the courts.
Behind the scenes: A source familiar with the situation says the White House seriously considered including TikTok in this new EO, despite the injunctions. But it didn't make the final cut (yet another win for David Urban). - The Trump administration hasn't been terribly successful in its China tech policies, at least based on stated objectives. But it has caused big headaches for Chinese tech companies, some of which also find themselves under novel scrutiny from their own government.
- In quasi-related news, the New York Stock Exchange says it will delist three Chinese telecom companies in compliance with a different White House EO. NYSE last week said it would delist the companies, then reversed its decision on Monday before reversing it yet again this morning.
What a senior administration official is saying: "The Chinese Communist Party's mil-civ fusion strategy explicitly aims to either co-opt or, in cases, even coerce civilian enterprises into assisting with modernization and development of the People's Liberation Army. " - "We don't think necessarily that, you know, Americans' sensitive information and data, either from companies or individuals, should be contributing to that cause."
The big unknown is what Biden will do with the existing EOs, plus the CFIUS order on TikTok. At the very least, their existence should push his administration to set its markers early. |     | | | | | | Also... | | The U.S. Small Business Administration today is expected to release interim final rules for the new round of PPP loans. - Multiple sources tell me the tentative plan is to launch a phased rollout next week. Smaller lenders would open up first, possibly only for first-time borrowers, with larger lenders to open a couple days later.
- SBA declined comment, and all of this remains very fluid.
| | | | | | | | The BFD |  | | | Illustration: Aïda Amer/Axios | | | | Neil Young sold a 50% stake in his songbook interests to the Hipgnosis, a London-listed music royalties fund led by longtime music manager Merck Mercuriadis, for a reported $150 million. - Why it's the BFD: "Selling out" has become classic rock's hottest trend, with Neil Young following similar deals by contemporaries like Bob Dylan, Stevie Nicks and Lindsey Buckingham.
- Caveat: Young has never licensed his songs for commercial use, and Mercuriadis suggested that won't change.
- The bottom line: "Mercuriadis believes hit songs have become an asset class that will generate reliable revenues from consumers who are treating music as essential and signing up to streaming services like Spotify. Hipgnosis now co-owns ten of the streaming platform's top 30 most-played songs." — Thomas Seal, Bloomberg
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Learn more. | | | | | | Venture Capital Deals | | 🚑 Hinge Health, a San Francisco-based provider of musculoskeletal pain solutions, raised $310 million in Series D funding co-led by Coatue and Tiger Global at a $3 billion valuation. http://axios.link/VUDr • Udaan, an Indian B2B marketplace, raised $280 million in new Series D funding at a post-money valuation north of $3.1 billion, per TechCrunch. Octahedron Capital and Moonstone Capital co-led, and were joined by insiders Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent. http://axios.link/CagI • Divvy, a Draper, Utah-based corporate spend management solutions, raised $165 million at a $1.6 billion valuation from Hanaco, Schonfeld, PayPal Ventures and Whale Rock. http://axios.link/M0me 🚑 Ikena Oncology, a Boston-based cancer drug developer, raised $120 million in Series B funding. Omega Funds led, and was joined by Fidelity and return backers Atlas Venture, OrbiMed and Bristol Myers Squibb. http://axios.link/y5ku 🚑 Senti Biosciences, a South SF-based gene circuit startup, raised $105 million in Series B funding. Leaps by Bayer led, and was joined by Matrix Partners China, Mirae Asset Capital, Ridgeback Capital, Intel Capital and insiders 8VC, Amgen Ventures and Lux Capital. www.sentibio.com • Boat, an Indian consumer electronics company, raised $100 million in Series B funding from Warburg Pincus. http://axios.link/DIvt • SalesLoft, an Atlanta-based sales software company, raised $100 million in Series E funding at a $1.1 billion valuation. Owl Rock Capital led, and was joined by return backers Insight Partners, HarbourVest and Emergence Capital. http://axios.link/0XDi • Starburst Data, a Boston-based SQL query engine, raised $100 million at a $1.2 billion valuation. Andreessen Horowitz led, and was joined by Salesforce Ventures and insiders Coatue and Index Ventures. http://axios.link/UwGg • Pax8, a Denver-based cloud software marketplace for IT pros, raised $96 million. Catalyst Investors and Sageview Capital co-led, and were joined by insiders Blue Cloud Ventures and Liberty Global Ventures. www.pax8.com 🚑 Terns Pharma, a Foster City, Calif.-based biotech focused on non-alcoholic steatohepatitis and other liver diseases, raised $87 million in Series C funding. Deerfield Management led, and was joined by Eli Lilly, OrbiMed, Lilly Asia Ventures, Vivo Capital, Samsara Capital and Suvretta Capital Management. http://axios.link/oa5w • Boston Metal, a Woburn, Mass.-based sustainable metal production startup, raised $50 million of a round that could total $60 million, per an SEC filing. Existing backers include Breakthrough Energy Ventures. http://axios.link/rn1L • Perfect, a Taiwan-based virtual try-on platform for cosmetics, raised $50 million in Series C funding led bty Goldman Sachs. http://axios.link/LfsK 🚑 Oxbotica, a British developer of autonomous driving software for industrial applications, raised $47 million in Series B funding. BP Ventures led, and was joined by BGF, Halma, HostPlus, IP Group, Tencent, Venture Science and Doxa Partners. http://axios.link/lV03 • Chronosphere, a Bellevue, Wash.-based cloud native monitoring tool, raised $43.4 million in Series B funding from General Atlantic, Greylock, Lux Capital and Lee Fixel. http://axios.link/P8O4 • Bibit, an Indian robo-advisor, raised $30 million from Sequoia Capital India and return backers East Ventures, EV Growth, AC Ventures and 500 Startups. http://axios.link/Rh7N 🚑 Volta Medical, a French biotech focused on cardiac arrhythmias, raised $28 million. Gilde Healthcare led, and was joined by return backer Pasteur Mutualité. http://axios.link/sCJF 🦐 New Wave Foods, a New York-based developer of plant-based shrimp, raised $18 million in Series A funding. NEA led, and was joined by Evolution VC Partners and Tyson Ventures. http://axios.link/sKoi • Thistle, a plant-based meal delivery startup, raised $10.3 million in Series B funding. PowerPlant Ventures led, and was joined by Siddhi Capital, Alumni Ventures Group and Rich Products Corp. www.thistle.co • Tsu, a New York-based social media startup focused on creator monetization, raised over $10 million co-led by TerraCap Ventures and Hilco Global. http://axios.link/Gk5x • Kyte, a car rental startup, raised $9 million co-led by DN Capital and Amplo VC. http://axios.link/banG • Omnivor, a Seattle-based 3D holographic content startup, raised $2.75 million in seed funding. Sway Ventures led, and was joined by Kernal Labs. http://axios.link/S92d • Coral Vita, a Goleta, Calif.-based developer of coral restoration techniques, raised $2 million in seed funding led by Builders Collective. http://axios.link/g6vd • Uprising, a Detroit-based superfood bakery, raised $1.25 million led by Trousdale Ventures. http://axios.link/PMLK • Rivian, a Plymouth, Mich.-based electric truck-maker, is raising new funding at a $25 billion valuation, per Bloomberg. Over the summer it secured $2.5 billion from T. Rowe Price, Soros Fund Management, Fidelity, Baron Capital, Amazon and BlackRock. http://axios.link/5AnK | | | | | | | | Private Equity Deals | | 🚑 The Carlyle Group agreed to buy Rigaku, a Japanese maker of X-ray testing tools, for around $1 billion. http://axios.link/gjT9 ⛽ The Carlyle Group invested $374 million in Amp Energy, a Canadian energy transition platform. www.amp.energy • Circle Graphics, a Longmont, Colo.-based portfolio company of H.I.G. Capital, acquired Graphik Dimensions, a High Point, N.C.-based provider of customized framed wall décor products. www.circlegraphicsonline.com • Gen Cap America acquired Frontier Packaging, a Tukwila, Wash.-based maker of seafood packaging. www.frontierpackaging.com • IQ-EQ, a Luxembourg-based portfolio company of Astorg Partners, acquired Constellation Advisors, a New York-based co-sourced and outsourced investment management firm. www.iqeq.com • Odyssey Investment Partners acquired Service Champions, a Brea, Calif.-based provider of residential HVAC and plumbing services., from CenterOak Partners. www.servicechampions.com 🍩 Peak Rock Capital acquired Shipley Do-Nuts, a Houston-based quick-service restaurant franchisor. http://axios.link/68Xl • Pritzker Private Capital acquired Indianapolis-based specialty chemicals company Vertellus. Sellers include Black Diamond Capital Management, BlueBay Asset Management, Sixth Street Partners, Calvert Street Capital Partners, Merifin Capital and Brightwood Capital Advisors. www.vertellus.com • Revelstoke Capital Partners acquired a majority stake in Empire, a franchisee and sub-franchisee of 42 Orangetheory studios in the Tri-State area. • Sagewind Capital invested in Sigma Defense Systems, a Perry, Ga.-based provider of airborne intelligence, surveillance and reconnaissance services. www.sigdef.com 🚑 Varsity Healthcare Partners invested in Peak Dental Services, a Colorado Springs-based dental services organization. www.peakdentalservices.com 🚑 Water Street Healthcare Partners invested $100 million in Southern Scripts, a Natchitoches, La.-based pharmacy benefit management company. www.southernscripts.net | | | | | | | | Public Offerings |  | | | Illustration: Annelise Capossela/Axios | | | | • Affirm, a San Francisco-based provider of personal installment loans for online purchases, set IPO terms to 24.6 million shares at $33–$38 per share. It would have a fully diluted market value of $10.6 billion, were it to price in the middle. http://axios.link/I1qn • NSO Group, the controversial Israeli cybersurveillance company, reportedly is considering a Tel Aviv IPO that could value the business at around $2 billion. Backers include Novalpina Capital. http://axios.link/qr5t • Nykaa, an Indian cosmetic e-commerce company, is prepping an IPO at a valuation north of $3 billion, per Mint. Backers include TPG Growth, Fidelity, Steadview Capital Management and Lexdale International. http://axios.link/Y1Iz • Poshmark, a P2P used clothing marketplace, set IPO terms to six million shares at $35–$39 per share. It would have a $2.7 billion market cap, were it to price in the middle. The Redwood City, Calif.-based company raised around $160 million in VC funding from Mayfield (26.5% pre-IPO stake), Menlo Ventures (15.8%), Inventus Capital (10.4%), GGV Capital (7.9%), Uncork Capital, Temasek, NFX, and Union Grove Ventures. http://axios.link/L8JH | | | | | | | | SPAC Stuff | | • Atlas Crest Investment II, a SPAC formed by Moelis & Co., filed for a $250 million IPO. http://axios.link/kqOn • Kairos Acquisition, an insurance-focused SPAC led by Peter Bang (ERG Capital Partners), raised $240 million in its upsized IPO. http://axios.link/cF6o • Poema Global Holdings, a tech-focused SPAC focused on Europe and Asia, raised $300 million in its upsized IPO. http://axios.link/g1Ol • Sports Ventures Acquisition, a sports/media-focused SPAC, raised $200 million in its IPO. http://axios.link/9sKg • Star Peak Corp. II, a sustainability-focused SPAC formed by Magnetar Capital, raised $350 million in its IPO. http://axios.link/sZnA | | | | | | | | Liquidity Events | | • Allegion (NYSE: ALLE) acquired Yonomi, a Boulder, Colo.-based IoT cloud platform company that raised around $12 million from firms like Allegion and Gentex. www.allegion.com ⛽ EIG Global Energy Partners agreed to sell its 27.5% stake a Brazil-Bolivia pipeline operator TBG to Fluxys (Brussels: FLUX). http://axios.link/BRCn 🚑 Hologic (Nasdaq: HOLX) will pay around $230 million to buy San Diego-based cancer diagnostics company Biotheranostics, a San Diego-based cancer diagnostics maker that raised around $40 million in VC funding from MVM Partners, Health Capital and HealthQuest Capital. http://axios.link/YjCm • Hootsuite, a Canadian social media marketing company, acquired Sparkcentral, a New York-based provider of conversational marketing SaaS. Sparkcentral raised around $38 million from LRM, Group MC, Jackson Square Ventures and Split Rock Partners. www.sparkcentral.com • Procter & Gamble (NYSE: PG) terminated its agreement to buy women's razor maker Billie, following an FTC antitrust lawsuit. Billie has raised around $35 million from firms like Goldman Sachs, Lakehouse Ventures, ACME Capital, Female Founders Fund, Serena Ventures and Silverton Partners. http://axios.link/uaXD 🚑 Stryker (NYSE: SYK) acquired OrthoSensor, a Dania Beach, Fla.-based digital knee replacement developer that raised over $150 million from firms like Ziegler Healthcare Capital and Bridger Healthcare. http://axios.link/bZFb | | | | | | | | More M&A | | 🚑 AmerisourceBergen (NYSE: ABC) agreed to buy Alliance Healthcare, a European pharma wholesaler, from Walgreens Boots Alliance (Nasdaq: WBA) for about $6.5 billion in cash and stock. http://axios.link/n1xq 🎮 Nintendo (Tokyo: 7974) acquired Next Level Games, a Canadian gaming studio whose titles include Luigi's Mansion 3. http://axios.link/4b1e • Tikkurila, a listed Finnish paintmaker, agreed to a sweetened €1.24 billion takeover offer from PPG Industries (NYSE: PPG). http://axios.link/pwcg • Sucafina, a Swiss coffee trader, agreed to buy a 75% stake in Complete Coffee, supplier to British coffee chain Costa Coffee. http://axios.link/vVPc 🚑 UnitedHealth Group (NYSE: UNH) agreed to buy Change Healthcare (Nasdaq: CHNG) for $7.84 billion in cash, or $25.75 per share (41.2% premium to yesterday's closing price). http://axios.link/t6XD • Wheels Up, a membership-based private jet service, acquired Mountain Aviation, a charter fleet with bases in Denver, Teterboro, and Southern California. http://axios.link/UfAP | | | | | | | | Fundraising | | • Access Holdings, a Baltimore-based mid-market private equity firm, raised $340 million for its debut fund. www.accessholdings.com • Mekong Capital, a Vietnamese private equity firm, raised $246 million for its fourth fund. http://axios.link/Ixzn • Montana Capital Partners of Switzerland raised €1.3 billion for its fifth private equity secondaries fund. http://axios.link/ROwL • Oak Hill Capital Partners raised around $3.8 billion for its fifth flagship fund. www.oakhill.com | | | | | | | | It's Personnel | | ⛽ Martin Copeland stepped down as a European energy investment banker with RBC, in order to join London-based Kirk Lovegrove & Co. http://axios.link/uFmS 🚑 Hongjie Hu joined Cathay Capital as managing partner of health care investments, per his LinkedIn. He previously spent 11 years with Temasek. http://axios.link/adCF • Michael Chia joined private equity firm Siris as a principal focused on investor relations. He previously was with Adams Street Partners. www.siris.com | | | | | | | | Final Numbers |  | | | | | | | | A message from Axios | | AxiosHQ: A better way to communicate with your employees | | | | | | | | What's new: AxiosHQ is a simple writing tool — perfected by Axios writers and machine learning — that helps you write with clarity and efficiency. - Why it matters: Users are seeing better alignment through more efficient internal communications.
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