| | | | | Ribbit Capital steps up at pivotal moment for Robinhood | |  | | NYSE's trading floor (Spencer Platt/Getty Images) | | | Meyer "Micky" Malka, managing partner of venture firm Ribbit Capital, once said his firm had a "boring" strategy of driving financial innovation across banking, brokerages and insurance.
But things have gotten decidedly less boring in recent days for Ribbit.
The firm stepped up to lead $3.4 billion in emergency funding for Robinhood to help the online brokerage weather a day-trading frenzy that has upended the financial markets. Ribbit's sizable and hasty response to the trading crisis is shaping up as a pivotal moment for Malka's firm, which is younger, smaller and lesser known than some Robinhood backers like Sequoia or Andreessen Horowitz. | | | | | | | | | | How mobility tech's SPAC exit surge could revive early-stage funding | | 2020 was marked by a surge in SPACs, and the mobility tech industry was along for the ride. Last year, 26 companies in the sector merged or began the process of merging with a blank-check company, representing a combined valuation of over $100 billion.
The wave of mobility SPACs underscores the exit potential for venture-backed companies, and it's likely to drive capital back to early-stage startups that have lost out due to the pandemic, according to our Q4 2020 Emerging Tech Research report on mobility tech. Other highlights include: - VCs poured $10.5 billion into mobility tech companies in Q4, a drop of 7.5% compared with Q4 2019, though the annual investment total remained nearly flat
- The flurry of SPAC debuts has validated the path to exit for mobility companies, while a 31.6% drop in median early-stage valuations presents opportunities to invest
- Emerging areas such as autonomous driving, micromobility and electric air taxis are poised to shepherd in future investment dollars
| | | | | | | | | | A message from Silicon Valley Bank | | | | Solid fundamentals leave innovation economy, venture well positioned for 2021 | | As the world shifted in 2020, so did the innovation economy. Proprietary research in Silicon Valley Bank's new Q1 2021 State of the Markets Report sheds light on the resilience of the innovation ecosystem in the face of a difficult year. Once-struggling industries became winners almost overnight, seeing revenue skyrocket. After coming to terms with the new normal, investors picked up their investment pace. Global VC AUM reached a new height of $1.3 trillion, driven by record VC fundraising and investment, and buoyed by sustained interest from limited partners. While the future is uncertain, strong fundamentals driving the innovation economy paint a hopeful picture for 2021.
Read Silicon Valley Bank's Q1 2021 State of the Markets Report to learn about SVB's perspective and 2021 outlook. | | | | | | | | | | Moonpig stock soars amid appetite for UK IPOs | |  | | Moonpig's IPO is the second-largest in the UK so far this year. (Courtesy of Moonpig) | | | Online greeting card company Moonpig saw its shares jump 25.7% on its stock market debut, continuing the resurgence of the UK's IPO market.
The London-based company priced its shares at 350 pence each, valuing it at £1.2 billion (around $1.6 billion), and the stock opened at 440 pence when trading began. The float saw Moonpig raise £20 million in new capital, while existing shareholders, including Exponent Private Equity, sold 134.6 million shares worth over £491 million.
Moonpig's IPO is London's second-largest this year, following Permira-backed shoe brand Dr. Martens, which went public on Jan. 29 at 370 pence per share, giving it a market cap of around £3.7 billion. Since then, the company's shares have gone up over 20%.
Several high-profile listings are expected to be in the pipeline this year, including TransferWise and Deliveroo, as well as BrewDog and cybersecurity business Darktrace.
The UK has been working hard to entice listings in the wake of Brexit. The government announced last year that it would review the rules around IPOs, including the allowance of dual-class share structures and giving founders more influence over their companies upon listing. | | | | | | | | | | Uber set to snap up alcohol delivery startup Drizly for $1.1B | |  | | (pidjoe/Getty Images) | | | Uber has agreed to pay $1.1 billion in cash and stock for Drizly as the ridehailing giant seeks to diversify its business through last-mile delivery. The purchase of the alcohol delivery startup opens up a new marketplace for both customers and delivery drivers on the Uber Eats app, which will integrate Drizly's offerings. Uber expects 90% of the transaction to consist of stock, with the remainder to be paid in cash. Drizly will become an Uber subsidiary and continue to operate its own app.
Like many other delivery startups, Drizly has gained popularity during the pandemic, with year-over-year gross bookings rising more than 300% during 2020. The Boston-based startup is profitable and has received backing from investors including Atlas Venture, Avenir Growth Capital, Polaris Partners and Continental Investors. Operating in more than 1,400 cities across the US, it was valued at $73 million following a funding in 2017, according to PitchBook data.
The deal follows Uber's acquisition of Postmates in December, and comes amid other shakeups to the food delivery sector as a whole. DoorDash went public at the end of last year, and London-based Deliveroo is also reportedly planning an IPO. | | | | | | | | | | The pressure to take ESG investing seriously is mounting for the private equity industry. [Institutional Investor]
Sports gambling is demonstrating a grip on American culture and a capacity to assault the senses. [The New York Times]
A look at how PE firms are targeting value when it comes to complex deals like carveouts. [Private Equity News] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 577 Deals | 1656 People | 477 Companies | 37 Funds | | | | | | | | | | | | | | | | | | | | 2014 Vintage Global Real Estate Funds | | | | | | | | | | | | | Divvy Homes takes in $110M to help future homeowners | | | Divvy Homes has raised $110 million in a round led by Tiger Global, with participation from GGV Capital, Moore Specialty Credit, Jaws Ventures and others. Founded in 2017, the San Francisco-based company purchases homes and then leases them to prospective homeowners, letting them build equity as they rent. Divvy, which currently operates across 16 major US metro areas, was valued at $163 million in 2019, according to PitchBook data. | | | | | | | | | | | | | | | Andreessen Horowitz leads $50M round for Valon | | | | | | | | | Honeycomb buzzes with $20M | | | Honeycomb has raised a $20 million Series B led by E.Ventures Growth. The company is a developer of observability software intended to help customers such as HelloFresh, Intercom and Slack debug and manage production systems. Honeycomb was valued at $38 million in 2019, according to PitchBook data. | | | | | | | | Transgender health specialist banks $14M | | | Plume has raised $14 million in a Series A round led by Craft Ventures, with participation from General Catalyst, Slow Ventures and Town Hall Ventures. The Denver-based company is the creator of a healthtech platform focused on providing care to transgender patients. Launched in 2019, Plume offers affordable patient care, monitors lab reports and delivers medicines, among other services. | | | | | | | | | | Carlyle, Brighton Park to inject $200M in Indegene | | | The Carlyle Group and Brighton Park Capital have agreed to invest $200 million for minority stakes in Indegene, a Bangalore-based provider of healthcare software and services. Funds for the investment will be used for possible acquisition opportunities and to expand the company globally. | | | | | | | | Cerberus rejected in latest takeover bid | | | A pair of shareholders in Dorel, a Canadian maker of bicycle parts, have rejected a revised offer from Cerberus Capital Management to purchase the company for C$16 (about $12.50) per share after the firm increased a previous offer to buy it for C$14.50 apiece, or roughly C$470 million. Dorel's stock price fell some 4% Tuesday, dropping to C$15 per share. | | | | | | | | Huron backs insurance add-on | | | | | | | | | | | Blackstone-backed Bumble eyes $5.8B IPO | | | Bumble, an Austin-based dating app provider, has set its upcoming IPO terms at between $28 and $30 per share, giving the business a $5.8 billion fully diluted valuation if it priced in the middle of its proposed range. Blackstone has backed Bumble since acquiring a majority stake in parent company MagicLab for around $3 billion in 2019. | | | | | | | | COVID-19 test creator sets IPO terms | | | Lucira Health has plans to raise as much as $132.8 million in its initial public offering on the Nasdaq by selling more than 7.8 million shares at $15 to $17 apiece. The company is the developer of a rapid at-home testing kit for COVID-19 that was authorized by the Food and Drug Administration last November. Lucira's top shareholders are Epiq Capital (34.4% pre-IPO stake), Eclipse Ventures (22.1%) and Seraph Group (8.1%). | | | | | | | | Rocket startup Astra lands $2.1B SPAC deal | | | Space rocket manufacturer Astra has lined up a deal to go public via a merger with blank-check company Holicity. Astra makes rockets that can carry payloads weighing up to 330 pounds into orbit. Backed by investors such as Airbus Ventures, Canaan Partners and Acme Capital, the startup would be valued at $2.1 billion in the SPAC deal. | | | | | | | | Bolt Biotherapeutics aims to raise $158M+ in Nasdaq IPO | | | Bolt Biotherapeutics has set terms for a public debut that could raise nearly $158.9 million. The company is planning to sell over 8.8 million shares for between $16 and $18 each. Bolt, which is a clinical-stage developer of immuno-oncology therapeutics, has raised around $158 million in prior VC backing, reaching a valuation of $258.5 million last year, according to PitchBook data. The startup is backed by investors such as Novo Holdings (17.9% pre-IPO stake), Vivo Capital (15%) and Sofinnova Venture Partners (10%). | | | | | | | | | | Kohlberg brings in $3.4B for latest flagship vehicle | | | Kohlberg & Company has closed its ninth flagship private equity fund on $3.4 billion, surpassing a predecessor that raised $2.2 billion in 2016. Founded in 1987 and based in New York, Kohlberg typically makes investments of between $100 million and $500 million in middle-market companies across the industrial manufacturing, consumer products, business services, financial services and healthcare services industries. | | | | | | | | PSG collects $1.5B for Europe-focused fund | | | PSG has closed its debut Europe-focused fund on €1.25 billion (about $1.5 billion). Founded in 2014 by Providence Equity Partners, PSG makes growth investments in the lower-middle-market software and tech-enabled services sectors. The firm has backed more than 65 companies. | | | | | | | | Kindred Ventures reels in $100M for latest fund | | | Kindred Ventures has raised $100 million to invest in seed and pre-seed startups and support the incubation of new companies. The San Francisco-based firm is an active fintech and blockchain investor, but has not specified an industry focus for the new vehicle, which is its second fund consisting of outside capital. Kindred is led by Steve Jang and Kanyi Maqubela, and it has backed startups like Coinbase, Postmates and Poshmark. | | | | | | | | | | Hormel eyes $3B deal for Planters | | | Hormel Foods is nearing an agreement to acquire the Planters snacks division of food conglomerate Kraft Heinz in a deal that would value Planters at some $3 billion, according to The Wall Street Journal. Hormel's stock jumped around 4% Tuesday, closing at $48.75 per share. | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | | | | | | |
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