| | | | | | | Presented By The Carlos Watson Show | | | | Pro Rata | | By Dan Primack ·Sep 30, 2020 | | 🎧 Axios Re:Cap talks with Cameo CEO Steven Galanis about the business of fame. Plus, a special "cameo" from one of his site's most-requested celebrities. Listen via Apple, Spotify, or Axios. 🚨 Breaking: Global M&A soared 80% between Q2 and Q3, hitting a disclosed value of $1 trillion, according to preliminary data from Refinitiv. Tech and health care deals led. For the year, M&A volume remains well below the first nine months of 2019. - Private equity deal value is off 5.6% year-to-date, but the number of PE deals is up 7.8%. In both cases, PE's percentage of global M&A is higher than through the first three quarters of 2019.
| | | | | | Top of the Morning |  | | | Illustration: Aïda Amer/Axios | | | | My plan was to devote this morning's column to economic and business issues raised during last night's presidential debate. - I wasn't expecting deep, detailed policy discussions, but at least a few breadcrumbs that could lead to consequential conclusions. Something beyond a few misstated manufacturing jobs numbers and a glancing mention of the stalled stimulus bill.
But we all saw what happened. So, instead, I present you with some cat GIFs via Giphy. |     | | | | | | The BFD |  | | | Illustration: Eniola Odetunde/Axios | | | | Palantir, the big data analytics company co-founded by Peter Thiel, is set to go public today via a direct listing. The NYSE has set a $7.25 per share reference price, although the actual opening price might be much different. - Why it's the BFD: This is one of two direct listings today, alongside Asana, which effectively doubles the number of VC-backed tech companies that have gone public this way — following last year's direct listings by Slack and Spotify.
- Details: At $7.25 per share, the company would have a fully diluted market value just north of $15 billion and would be priced lower than where Palantir sold primary shares to private market investors in 2016.
- Bonus: We'll have Palantir co-founder Joe Lonsdale on this afternoon's episode of "Axios Re:Cap."
- The bottom line: Palantir has multiple marks against it, including unprofitability (after 17 years) and what CNBC's Jim Cramer referred to as a "borderline obnoxious" governance structure. But it's also one of the few tech unicorns that doesn't seem to have many startups on its flank — due to both its complexity and its eagerness to service certain clients that are anathema to much of Silicon Valley.
| | | | | | | | Venture Capital Deals | | • VTEX, a New York-based provider of e-commerce solutions for retailers and brands, raised $225 million at a $1.7 billion post-money valuation. Return backers Tiger Global and Lone Pine Capital co-led, and were joined by Constellation, Endeavour Catalyst and SoftBank. http://axios.link/X4yw • Papaya Global, an Israeli provider of cloud-based payroll and HR software, raised $40 million in Series B funding. Scale Venture Partners led, and was joined by Workday Ventures, ClalTech, and return backers Insight Partners, Bessemer Venture Partners, New Era Ventures, Group 11, and Dynamic Loop. http://axios.link/NejG • Inshorts, an Indian news aggregation app, raised $35 million led by Addition. http://axios.link/nbkq Coralogix, an San Francisco-based log management startup, raised $25 million in Series B funding. Red Dot Capital Partners and O.G. Tech Ventures co-led, and were joined by return backers Aleph VC, StageOne Ventures, Janvest Capital Partners, and 2B Angels. www.coralogix.com ☠️ Liquid Death, a Santa Monica, Calif.-based canned water startup, raised $23 million in Series B funding from backers like Pernod Ricard Group, Fat Mike, and return backer Velvet Sea Ventures. http://axios.link/Umgy • Rally, a New York-based fractional investing platform for unique collectibles, raised $17 million from Upfront Ventures, Porsche Ventures, Raptor Group, Global Brain, Relay Ventures, and Alexis Ohanian. http://axios.link/SR8v 🛴 Neuron Mobility, a Singapore-based e-scooter rental company, raised $12 million in Series A funding co-led by Square Peg and GSR Ventures. http://axios.link/mX44 • Cogniac, a San Jose, Calif.-based image and video analytics platform, raised $10 million in Series B funding. Autotech Ventures led, and was joined by Vanedge Capital, Wing Venture Capital, Yellowstone Ventures, and The George Kaiser Family Foundation. http://axios.link/6pHH • Elevate Security, a Berkeley, Calif.-based human risk management platform, raised $8.25 million in Series A1 funding. Foundry Group led, and was joined by Salesforce Ventures, Shasta Ventures, and return backers Costanoa Ventures and Defy. www.elevatesecurity.com 🚑 Siren, a San Francisco-based developer of smart textiles for patient monitoring, raised $9 million in Series B funding. Anathem Ventures led, and was joined by DCM, Khosla Ventures, 500 Startups and Founders Fund. www.siren.care • Strigo, an Israeli collaborative training platform, raised $8 million in Series A funding. Velvet Sea Ventures led, and was joined by return backers Greycroft and Hanaco. www.strigo.io • Fluree, a blockchain-based data management startup in Winston-Salem, N.C., raised $6.5 million. 4490 Ventures led, and was joined by Rise of the Rest, Good Growth Capital, Engage Ventures, and Ray Rothrock. http://axios.link/hwu0 • Adlumin, a Washington, D.C.-based, raised $6 million in Series A funding. Leawood VC led, and was joined by the ICBA. www.adlumin.com • Retirable, a New York-based retirement planning startup, raised $4.7 million in seed funding. Vestigo Ventures led, and was joined by Diagram Ventures and Primetime Partners. http://axios.link/2dHb • Emjoy, a Barcelona-based audio app for women's sexual empowerment, raised $3 million in seed funding. JME Ventures led, and was joined by Nauta Capital. http://axios.link/N752 | | | | | | | | A message from The Carlos Watson Show | | Burst your bubble this election season with Carlos Watson | | |  | | | | The time to talk is now. Carlos Watson hosts meaningful discussions with diverse voices, from Andrew Yang to Tomi Lahren, on The Carlos Watson Show, named YouTube's "fastest-growing talk show" by GMA. Watch now. | | | | | | Private Equity Deals | | • Silver Lake, the tech-focused private equity firm, secured a $2 billion investment from Mubadala that will endow a new long-term investment strategy. Mubadala also secured a massive minority stake in Silver Lake from Dyal Capital Partners, which will retain part of its sub-10% position. http://axios.link/70cK • Caesars Entertainment (Nasdaq: CZR) agreed to buy British bookmaker William Hill (LSE: WMH) for £2.9 billion, beating out a rival bid from Apollo Global Management. http://axios.link/jTLC • General Atlantic agreed to invest nearly $500 million for a 0.84% stake in India's Reliance Retail, per a filing. http://axios.link/UYPs • Snow Phipps acquired Prototek, a Contoocook, N.H.-based provider of rapid prototyping services, from Core Industrial Partners. www.prototek.com | | | | | | | | Public Offerings | | • Boqii, a Chinese online pet supplies retailer, raised $70 million in its IPO. The company priced at $10 (low end of range), for an initial market cap of around $680 million. It will list on the NYSE (BQ), used Roth Capital as lead underwriter, and reports a $220 million net loss on $804 million in revenue for the year ending March 31, 2020. Shareholders include China Merchants Bank and Goldman Sachs. http://axios.link/f8iZ • ChinData Group, a Chinese data center operator owned by Bain Capital, raised $540 million in its IPO. The company priced 40 million shares at $13.50 (high end of range), for an initial value of around $4.9 billion. It will list on the Nasdaq (CD), used Morgan Stanley and Citi as lead underwriters, and reports a $4 million net loss on $115 million in revenue for the first half of 2020. http://axios.link/oHM8 • Datto, a Norwalk, Conn.-based data protection software company owned by Vista Equity Partners, filed for an IPO that Renaissance Capital estimates could raise $400 million. It plans to list on the NYSE (MSP) with Morgan Stanley as lead underwriter, and reports $10 million of net income on $249 million in revenue for the first half of 2020. http://axios.link/R8CW | | | | | | | | SPAC Stuff | | • Climate Change Crisis Real Impact I Acquisition, a SPAC led by the former CEOs of Green Mountain Power and NRG Energy, raised $200 million in its IPO. http://axios.link/7JbW • FG New America Acquisition, an insuretech/fintech-focused SPAC led by TD Ameritrade chairman Joseph Moglia, raised $225 million in its IPO. http://axios.link/mo5a • Horizon Acquisition II, a media/entertainment-focused SPAC led by Todd Boehly (Eldridge Industries), filed for a $500 million IPO. http://axios.link/0oAw • Northern Star Acquisition, a consumer-focused SPAC led by magazine vet Joanna Coles and New York Islanders co-owner Jonathan Ledecky, filed for a $300 million IPO. http://axios.link/h1B5 • Qell Acquisition, a sustainable tech-focused SPAC led by ex-GM executive Barry Engle, raised $330 million in its IPO. http://axios.link/LmWE 🚑 SCP & Co Healthcare Acquisition, a health care-focused SPAC formed by Skyway Group Private Equity, filed for a $200 million IPO. http://axios.link/xZ91 🚑 Vesper Healthcare Acquisition, a health care-focused SPAC led by former Allergan CEO Brenton Saunders, raised $400 million in its IPO. http://axios.link/avyy | | | | | | | | Liquidity Events | | • The Blackstone Group sold its 36% stake in Rothesay Life for nearly $2.6 billion to GIC and MassMutual, which each now will hold a 49% stake in the British insurer and annuity provider. http://axios.link/Nbrs • GTCR hired Harris Williams and William Blair to find a buyer for Transaction Data Systems, an Orlando, Fla.-based pharmacy management software company, per PE Hub. http://axios.link/CF0T 🚑 SK Capital Partners is seeking a buyer for Niacet, a Niagara Falls, N.Y.-based food preservatives and drug ingredient maker that could fetch upwards of $1 billion, per Bloomberg. http://axios.link/5iPL | | | | | | | | More M&A | | • Covestro (DE: 1COV) of Germany agreed to buy the resins unit of Dutch rival DSM (AS: ASMN) for €1.6 billion. http://axios.link/ZLWJ 🚑 Lonza (Swiss: LONN), a Swiss contract pharma company, is seeking a buyer for its specialty ingredients business, which could fetch upwards of $3.8 billion, per Reuters. http://axios.link/Qn9o 🚑 Orgenesis (Nasdaq: ORGS) agreed to buy Koligo Therapeutics, a Covington, Ky.-based regenerative medicine company. http://axios.link/N7r3 🚑 Pfizer (NYSE: PFE) agreed to buy a 9.9% stake in Chinese immuno-oncology company CStone Pharma (HK: 2616) for around $200 million. http://axios.link/HOhl 🚑 Smith & Nephew (LSE: SN) agreed to acquire Integra LifeSciences' (Nasdaq: IART) orthopedics business, which focuses on upper and lower extremities, for $240 million in cash. http://axios.link/fQMV • TP ICAP (LSE: TCAPI) is in advanced talks to buy New York-based electronic trading network Liquidnet Holdings for between $600 million and $700 million, per Reuters. http://axios.link/8QOr | | | | | | | | Fundraising | | • BAM Venture Partners of Los Angeles is raising $50 million for its third fund, per an SEC filing. • Crosslink Capital of Menlo Park is raising $275 million for its ninth VC fund, per an SEC filing. www.crosslinkcapital.com • Symphony Technology Group is raising $1.85 billion for its sixth fund, per SEC filings. www.stgpartners.com | | | | | | | | It's Personnel | | • Providence Equity Partners said that founder and CEO Jonathan Nelson will transition into an executive chairman role at the beginning of 2021. New firm leadership will consist of four senior managing directors: David Noell and David Phillips (co-heads of North America) and Andrew Tisdale and Karim Tabet (co-heads of Europe). www.provequity.com • Canada Pension Plan Investment Board named Dushy Sivanithy as head of its private equity secondaries business, per Secondaries Investor. http://axios.link/4FVc • Katherine Park joined Grafine Partners as a managing director. She previously was with Goldman Sachs. http://axios.link/G7VO • Scott Rubin joined VC firm Lux Capital as chief marketing officer. He previously led communications for Atlassian, and several years back was at Andreessen Horowitz. www.luxcapital.com • Adam Stulberger joined Newlight Partners as a partner, per his LinkedIn page. He previously spent 17 years as a partner with Tailwind Capital. www.newlightpartners.com | | | | | | | | Final Numbers |  Data: Yahoo Finance; Chart: Axios Visuals | | | | | | | | A message from The Carlos Watson Show | | The Carlos Watson Show: The talk show that meets the moment | | |  | | | | Discover trendsetters and tastemakers who are ahead of their time and worthy of yours, from Andrew Ross Sorkin to Gabrielle Union. Tune into the Carlos Watson Show — every day on YouTube. Watch now. | | | | ✔️ Thanks for reading Axios Pro Rata! Please ask your friends, colleagues, and horrified voters to sign up. | | | | Axios thanks our partners for supporting our newsletters.
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