Axios Pro Rata: OnlyFans CEO's next act

Plus, snap, crackle and split. | Tuesday, June 21, 2022

Open in app View in browser   Presented By THE NORTHERN TRUST INSTITUTE   Axios Pro Rata By Dan Primack · Jun 21, 2022     Top of the Morning Illustration: Aïda Amer/Axios   Tim Stokely knows this is a fraught moment to talk up his new web3 startup, a celebrity digital collectables platform called Zoop. And he doesn't particularly want to discuss OnlyFans, the pornographic social media juggernaut he built and led before abruptly leaving last December. But when it comes to next acts, passion tops timing. Why it matters: OnlyFans grew a multi-billion dollar business that not only leveraged sex, but also a keen understanding of how influencers and fans interact. Stokely and partner RJ Phillips, a onetime Morgan Stanley trader who later became an OnlyFans finance exec, believe they can apply those lessons to Zoop. They also believe Zoop will be more amenable to outside investors, including a $4 million round that's expected to close imminently. To date the company has been funded by Phillips and Stokley, who says he no longer has an equity stake in OnlyFans (he declined to disclose details of his exit package). What it does: Zoop will create digital avatar NFTs, beginning with series of popular influencers and A-list celebrities, which users can buy, trade and use in third-party games. It will include a play-to-earn model, and plans to keep prices low so as to encourage large collections and for users to join relevant fan communities. Avatars will be created in licensed collaboration with the celeb or influencer, who will receive 70% of primary sale proceeds. Moving forward, less "known" individuals (e.g., college athletes, etc.) can create Zoop avatars, using an authentication system that sounds pretty similar to how OnlyFans verifies its models. Timing: Stokely and Phillips say the app is ready, and was scheduled to launch during this week's big NFT event in New York. But they've decided to push back at least a month, given the raging crypto blizzard. "We're really not concerned about the drop in crypto asset values, or even what's happened to some other play-to-earn environments, because we'll always be a dollar exchange despite our tokens," Phillips says. "But we want to make sure there's some segregation from everything going on right now." The bottom line: This isn't a team to sleep on, even if so many NFT projects go straight from grand ambition to the scrap heap. Stokely and Phillips claim to already have a bunch of top influencers and celebs signed and, if true, Zoop could be standing tall when the thaw arrives.     The BFD Illustration: Brendan Lynch/Axios   Kellogg (NYSE: K) agreed to split into three independent public companies, via tax-free spinoffs of its North American cereal and plant-based food businesses. It also said it would consider a sale of the plant-based food business, which is best known for the Morningstar brand. Why it's the BFD: It's hard to think of a corporate split that includes more iconic consumer brands. Cheez-Its, Eggo, Pop-Tarts, Pringles, Corn Flakes, Rice Krispies, Froot Loops, etc. Details: No new names have been disclosed for the units being spun off, with Kellogg being retained for the core snacks business that generated $11.4 billion in 2021 sales. Kellogg's North American cereals unit generated $2.4 billion and plant-based snared $340 million. Also, and this is very important: Special K will live on in both the snacking and cereal companies, as it's apparently become a transcendent brand. Flashback: Kellogg faced sustained worker strikes at its cereal plants last year. Investor reax: Kellogg shares have (corn) popped more than 4% in early Tuesday trading. The bottom line: "Over the last year, spinoffs have been a popular way for companies to unlock value for investors because they theoretically allow the pieces of a corporation to trade at higher valuations than they would if trapped inside the company. But spinoffs are rarely straightforward, and can take years to execute, and even longer for the spun off company to start making significant returns." — Sabrina Escobar, Barron's     Venture Capital Deals • LeadSquared, an Indian CRM startup, raised $153m in Series C funding at a $1b post-money valuation. WestBridge Capital led, and was joined by insider Gaja Capital. http://axios.link/WRLP • Platform.sh, a Paris-based provider of web app development tools, raised $140m in Series D funding. Morgan Stanley Expansion Capital, Revaia and Digital Partners co-led, and were joined by BGV, Eurazeo, Hiinov, Eurozeo and Partech. http://axios.link/uAl2 • Magic Eden, an NFT-marketplace company built on Solana, raised $130m in Series B funding at a $1.6b valuation co-led by Electric Capital and Greylock. http://axios.link/EAuf • Omio, a German travel search and booking platform, raised $80m in Series E funding from Lazard Asset Management, Stack Capital Group, NEA, Temasek and Goldman Sachs. http://axios.link/Aj5Z • Openly, a Boston-based homeowners insurance startup, raised $75m in Series C funding from Advance Venture Partners, Clocktower Ventures, Obvious Ventures, Gradient Ventures, PJC Ventures, Techstars and Mtech. www.openly.com • Stashfin, a Singapore-based neobank, raised $70m in Series C equity funding. Uncorrelated Ventures, Abstract Ventures and Fasanara Capital were joined by insiders Altara Ventures, Kravis Investment Partners and Snow Leopard. The company also secured $200m in new debt funding. http://axios.link/kss4 • CloudNC, a London-based precision parts manufacturing automation startup, raised $45m in Series B funding. Autodesk led, and was joined by Lockheed Martin, British Patient Capital and insiders Atomico, Episode 1 Ventures and QVentures. www.cloudnc.com • Wingcopter, a German delivery drone developer, raised $42m in new Series A funding from REWE Group, Itochu, Salvia, XAI, Futury Capital and Xplorer Capital. www.wingcopter.com • Huspy, a Dubai-based online mortgage platform, raised $37m in Series A funding. Sequoia Capital India led, and was joined by Founders Fund, Fifth Wall, Chimera Capital, Breyer Capital, VentureFriends, COTU, BY Venture Partners and Venture Souq. http://axios.link/hfKm 🚑 Carbon Biosciences, a Boston-based developer of cystic fibrosis treatments, raised $38m in Series A funding led by Agent Capital. http://axios.link/i4dO • Fido, a Ghanian mobile credit startup, raised $30m in Series A equity funding. Fortissimo Capital led, and was joined by Yard Ventures. http://axios.link/578E 🚑 Abacus Insights, a Boston-based payer-facing health care data management company, raised $28m in Series C funding. MultiPlan Corp. led, and was joined by insiders Blue Venture Fund, CRV, .406 Ventures, Horizon Healthcare Services Inc. and Echo Health Ventures. www.abacusonsights.com • &Open, an Irish corporate gifting platform, raised $26m in Series A funding. Molten Ventures led, and was joined by First Round Capital and LocalGlobe. www.andopen.co • LogRocket, a Boston-based app analytics startup, raised $25m in Series C funding co-led by Battery Ventures and Delta-V Capital. http://axios.link/bvcS 🚑 Rivet, a Salt Lake City-based healthcare billing startup, raised $20.5m in Series B funding led by Catalyst Investors. www.rivethealth.com • Bardeen, an SF-based workflow automation startup, raised $15.3m in Series A funding. Insight Partners led, and was joined by insiders 468 Capital and FirstMark Capital. http://axios.link/eJyB ⚡ Connected Energy, a British provider of energy storage systems based on retired EV batteries, raised £15m from Volvo Group, Caterpillar, Hinduja Group, Mercuria and OurCrowd. http://axios.link/yoiu • Neuron7.ai, a San Jose, Calif.-based provider of customer and field service software, raised $10m in Series A funding co-led by Battery Ventures and Nexus Venture Partners. www.neuron7.ai 🚑 Nibble Health, a New York-based enterprise healthcare payments startup, raised $8.5m in seed funding co-led by Tiger Global and Wing VC. www.nibblehealth.com • Saltalk, a Santa Clara, Calif.-based cloud kitchen startup, raised $8m in Series A funding led by Foothill Ventures. http://axios.link/pM7L • Tingono, an SF-based revenue retention and expansion automation startup, raised $6.7m in seed funding. Foundation Capital led, and was joined by Pathbreaker Ventures, Xfund and Flying Fish Partners. www.tingono.com • Amy, an Israeli enterprise sales AI startup, raised $6m in seed funding co-led by Next Coast Ventures and Lorne Abony. http://axios.link/dHMq • zCloak Network, a U.K.-based provider of zero-knowledge proofs for public blockchains, raised $5.8m from Coinbase Ventures, Bixin Ventures, Matrixport Ventures, DFG, Sancus Ventures, KuCoin Ventures, Sanctor Capital, Hash Global and Jump Capital. http://axios.link/I86V • Mewt, an Indian super app for SMEs, raised $4.8m in seed funding. Quona Capital led, and was joined by Beenext, DG Daiwa Ventures, Goodwater Capital and Allin Capital. www.mewt.in • Reduced, a Danish maker of food ingredients and products from food waste, raised €2.9m. Vækstfonden and VÅR Ventures co-led, and were joined by Rockstart and Pollen Capital. http://axios.link/pe4K • Sonrai Analytics, a British AI cloud data analytics startup, raised £2m in seed funding led by Forward Partners. www.sonraianalytics.com     A message from THE NORTHERN TRUST INSTITUTE Balancing public and private investments     With new private investment opportunities emerging across a range of asset classes, is now the time to reevaluate the role of private investments in your portfolio? A new report offers research-backed insights to weigh your options. Learn more.     Private Equity Deals • Align Capital Partners invested in Schneider Geospatial, an Indianapolis-based provider of public access land management SaaS. www.schneidergis.com • Ardian agreed to buy a majority stake in Aire Networks, a Spanish telecom services firm. www.airenetworks.es • Ares Management agreed to buy SLR Consulting, a British EGS and sustainability consultancy, from Charterhouse. www.slrconsulting.com 🚑 Astorg agreed to buy Avania, a Dutch contract research organization specializing in medical devices, as first reported by Axios Pro. http://axios.link/3ffS • Astorg and Empiris approached financial publisher Euromoney Institutional (LSE: ERM) about a £1.6b buyout. http://axios.link/mgQ7 • Great Hill Partners is invested €180m to support the merger of Echobot, a Germany-based European sales intelligence firm, and Leadfeeder, a Finland-based web visitor intelligence platform. http://axios.link/P3kR • Incline Equity Partners agreed to buy Raney's, an Ocala, Fla.-based e-commerce distributor of aftermarket heavy-duty truck parts and accessories. www.ranyestruckparts.com • Solera Holdings, a Texas-based portfolio company of Vista Equity Partners, offered A$639m to buy Australian auto software provider Infomedia (ASX: IFM), topping existing bids from Battery Ventures and TA Associates. http://axios.link/yxWY • Thoma Bravo agreed to acquire a majority stake in Grayshift, an Atlanta-based digital forensics firm. www.grayshift.com 🚑 TPG agreed to buy Convey Health Solutions (NYSE: CNVY), a Fort Lauderdale, Fla.-based health plan tech company, for around $1.1b or $10.50 per share. http://axios.link/yUDq 🚑 West Dermatology, a Newport Beach, Calif.-based portfolio company of Sun Capital Partners agreed to merge with Platinum Dermatology Partners, whose owner Sterling Partners will retain a minority stake in the combined company, per Axios Pro. http://axios.link/kmaU     Public Offerings ⚡ Ivanhoe Electric, a Vancouver-based minerals exploration company, plans to break the IPO dry spell this week, with a $174m offering that would list the company in both Toronto and New York. http://axios.link/fpO9     SPAC Stuff 🚑 Human Longevity, a San Diego-based genome sequencing company, agreed to go public at an implied $1b valuation via Freedom Acquisition 1 Corp. (NYSE: FACT), a SPAC led by led by ex-Credit Suisse CEO Tidjane Thiam. http://axios.link/qINA 🚑 Zura Bio, a British autoimmune drug developer, agreed to go public at an implied $215m enterprise value via JATT Acquisition Corp. (NYSE: JATT). http://axios.link/4lt8     Liquidity Events • Equistone sold OneOcean, a British provider of voyage compliance and safety solutions, to Lloyd's Register. www.oneocean.com ⚡ Quantum Energy Partners is seeking a buyer of U.S. natural gas producer THQ Appalachia I, which could fetch more than $5b, per Reuters. http://axios.link/x2GY     More M&A • BNP Paribas (Paris: BNPP) has signaled interest in buying state-owned bank ABN Amro (Ams: ABNd), although the Dutch government has no current interest in selling, per Reuters. http://axios.link/Gu8A • FTX agreed to acquire Bitvo, a Calgary-based crypto exchange. http://axios.link/zyrq ✈️ JetBlue (Nasdaq: JBLU) has again sweetened its takeover offer for budget carrier Spirit Airlines (NYSE: SAVE) to $33.50 per share, as it tries to fend off Frontier Airlines (Nasdaq: ULCC). http://axios.link/jMyq • Mondelez International (Nasdaq: MDLZ) today agreed to buy energy bar maker Clif Bar for $2.9b. http://axios.link/tiK5 🚑 Optum UK, a unit of UnitedHealth Group (NYSE: UNH) agreed to buy British healthcare software firm EMIS Group (LSE EMIS) for £1.24b in cash. http://axios.link/Bklj • Paya (Nasdaq: PAYA), an Atlanta-based payments tech company with around a $710m market cap, is seeking a buyer, per Bloomberg. http://axios.link/psab • Twitter (NYSE: TWTR) said in an SEC filing that its board unanimously recommends that shareholders accept the $44b takeover offer from Elon Musk, but hasn't yet scheduled the vote.     Fundraising • Matrix Partners India is raising $450m for its fourth fund, per TechCrunch. http://axios.link/5BNI 🚑 Patient Square raised around $3b for its debut healthcare PE fund, hitting its original target, and upped its fundraising goal to $4b, per Buyouts. http://axios.link/pzxH     It's Personnel • Jason Hogg, former CEO of both Aon Cyber Solutions and B2R Finance, joined Great Hill Partners as an executive-in-residence. www.greathillpartners.com • Andy Silvernail, former chair and CEO of Madison Industries and IDEX Corp., joined KKR as an executive adviser. www.kkr.com • David Taylor, former chair and CEO of Procter & Gamble, joined Clayton Dubilier & Rice as a senior operating adviser. www.cdr-inc.com     Final Numbers Data: CFRA; Chart: Nicki Camberg/Axios Go deeper: Not all recessions are created equal     A message from THE NORTHERN TRUST INSTITUTE Create value from values     Do ESG investments deliver on their promise? Investors worry about sacrificing returns or whether their investments will make a difference. Okay, but: Northern Trust can build a plan that reflects your values and achieves what's most important to you. Learn more.   ✔️ Thanks for reading Axios Pro Rata! Please ask your friends, colleagues and Toucan Sam to sign up. Go deeper with Axios Pro: Deals, featuring hyper-relevant news and analysis across PE, VC and M&A.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Suite 1300, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: