Axios Pro Rata: A record-shattering year

Plus, baseball card bonanza. | Thursday, September 30, 2021

Open in app View in browser   Presented By Forge Global   Axios Pro Rata By Dan Primack ·Sep 30, 2021 🚑 Please join Axios' Sam Baker and Tina Reed today at 12:30pm ET for a virtual event on how COVID exacerbates America's opioid crisis. Guests include Sen. Shelley Moore Capito (R-W.Va.) and Dr. Nora Volkow, director of the National Institute on Drug Abuse. Sign up.     Top of the Morning Illustration: Megan Robinson/Axios   The deal-making story of 2021 is up and to the right. Driving the news: Global M&A activity is shattering all-time records through the first three quarters of 2021, according to preliminary data from Refinitiv. By the numbers: Deal volume topped $4.3 billion, nearly double the year-to-date period for 2020. It's also 34.4% higher than 2007, which was the prior record-holder and one of only two years in which $3 trillion was topped through the end of September. The 2021 data includes $1.52 billion for Q3, which also is an all-timer. Not just for a third quarter, but for any quarter. Q3 also reflected higher average deal sizes, or at least higher disclosed deal sizes, as the number of deals was hundreds below any of the prior four quarters. Geographically, European deal volume for Q3 is double 2020, while the U.S. is up 32% and Asia-Pacific climbed 21%. U.S. volume comprised 44.9% of global M&A year-to-date, and 36.9% for Q3. Tech continued to lead all other industry sectors, with a 20.7% market share YTD, followed by financials (12%), industrials (11.3%) and energy (10%). What's happening? Animal spirits. What's the fear? Did you miss the reference to 2007? The bottom line: This isn't just a deal-making boom. It's a deal-making boom in the context of a global pandemic and expectations of tax and interest rate hikes. Yes, cycles will eventually reassert themselves. But, for now, the economic Teflon is unprecedented.     The BFD Illustration: Aïda Amer/Axios   Fanatics Trading Cards, a new collectibles unit of sports merchandise retailer Fanatics, raised $350 million at a $10.4 billion valuation from Silver Lake, Insight Partners and Endeavor. Why it's the BFD: This is an extraordinary valuation for a consumer products company that hasn't made anything yet. The justification, per a source, is that the current trading card market generates around $1 billion in EBITDA and that FTC — which recently beat out incumbents Topps and Panini for long-term licensing rights with top pro sports leagues and players' associations — can use Fanatics' vertical commerce model to increase both top and bottom lines. Comps: Topps was to be valued at $1.3 billion in a SPAC deal that collapsed after it lost out on the MLB and MLBPA licenses to Fanatics. Panini reportedly would have been valued north of $3 billion in SPAC talks that dissolved after it got beat out by Fanatics for the NBA and NBAPA. Old school: FTC has the rights to create digital trading cards, but Fanatics itself will handle NFTs (via a new platform called Candy Digital). In other words, the $10.4 billion is largely a bet on cardboard. The bottom line: "Management plans to build a one-stop-shop for sports memorabilia and will add services including financing, grading and storage." — Kim Bhasin, Bloomberg     Venture Capital Deals • Meesho, an Indian social e-commerce company, raised $570 million in Series F funding at a $4.9 billion valuation. B Capital Group and Fidelity co-led, and were joined by Prosus Ventures, SoftBank, Facebook, Good Capital, Symphony International Holdings Limited and Trifecta Capital. http://axios.link/9w8i • Perfect Day, a Berkeley, Calif.-based animal-free dairy, raised $350 million in Series D funding at around a $3.5 billion valuation. Temasek and CPPIB co-led, and were joined by Bob Iger. http://axios.link/LnkJ • OfBusiness, an Indian raw material aggregator and procurement finance provider, raised $207 million in Series F funding at a $3 billion valuation, per TechCrunch. Tiger Global led, and was joined by SoftBank and Alpha Wave. http://axios.link/oUb0 • Ola Electric, an Indian e-scooter maker, raised over $200 million at a $3 billion valuation co-led by Falcon Edge Capital and SoftBank. http://axios.link/dXyw • AlphaSense, a New York-based market intelligence and search platform, raised $180 million in Series C funding. Viking Global Investors led, and was joined by Goldman Sachs, Morgan Stanley, Citi, Bank of America, Barclays, Wells Fargo Strategic Capital, Cowen and AllianceBernstein. www.alpha-sense.com • ContractPodAi, a London-based legal contract lifecycle management platform, raised $115 million in Series C funding led by SoftBank. www.contractpodai.com • Konfio, a Mexican small business lender backed by SoftBank, raised $110 million in new Series E funding at a $1.3 billion valuation led by Tarsadia Capital and QED Investors. http://axios.link/NFpj • Alloy, a New York-based identity operating system for the financial sector, raised $100 million in Series C funding at a $1.35 billion valuation. Lightspeed Venture Partners led, and was joined by Canapi Ventures, Bessemer Venture Partners, Avid Ventures and Felicis Ventures. http://axios.link/mx1W • Buckle, a Jersey City, N.J.-based provider of insurance and credit products to gig workers, raised $60 million in Series B funding. Volery Capital Partners led, and was joined by Eldridge, Assurant Ventures and HSCM Bermuda. www.buckleup.com • Semios, a Vancouver-based crop risk analytics startup, raised US$100 million led by Morningside Group. http://axios.link/Exkp • Betterment, a New York-based robo-advisor, raised $60 million in Series F funding at nearly a $1.3 billion valuation. Treasury led, and was joined by Aflac Ventures, ID8 Investments and insiders Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and Private Shares Fund. It also secured a $100 million credit facility. http://axios.link/DDrz • Avo, a same-day delivery startup, raised $45 million in Series B funding. Insight Partners led, and was joined by insiders Kleiner Perkins and JLL Spark. http://axios.link/NocX • Reachdesk, a London-based B2B gifting marketplace, raised $43 million in Series B funding. Highland Europe led, and was joined by Highland Capital, HubSpot Ventures and RLC Ventures. http://axios.link/OovS • Tonic.ai, an S.F.-based synthetic data set creation startup, raised $35 million in Series B funding. Insight Partners led, and was joined by GGV Capital, Bloomberg Beta, Heavybit and Silicon Valley CISO Investments. http://axios.link/Yolb • Zero Hash, a Chicago-based digital assets infrastructure startup, raised $35 million in Series C funding. Point72 Ventures led, and was joined by NYCA Partners and DriveWealth. http://axios.link/LjnP • Parafin, an S.F.-based cash advance startup focused on small businesses, raised $34 million co-led by Ribbit Capital and Thrive Capital. http://axios.link/U8Y0 🚑 Found, a weight management startup, raised $32 million in seed and Series A funding from GV, Define Ventures and founding investor Atomic. http://axios.link/34uj • MaestroQA, a New York-based provider of omnichannel quality assurance software for support teams, raised $25 million in Series A funding. Base10 Partners led, and was joined by SaaStr and Talkdesk Ventures. www.maestroqa.com • QC Ware, a Palo Alto-based quantum computing startup, raised $25 million in Series B funding. Koch Disruptive Technologies and Covestro co-led, and were joined by Samsung Ventures and insiders Citi, D. E. Shaw and Pegasus Tech Ventures. www.qcware.com • Read AI, a Seattle-based meeting productivity startup, raised $10 million in seed funding. Madrona Venture Group led, and was joined by PSL Ventures. http://axios.link/xMoz • VertoFx, a cross-border B2B payments platform for SMEs, raised $10 million in Series A funding. Quona Capital led, and was joined by Treasury, Middle East Venture Partners, TMT Investments, Unicorn Growth Capital, Zrosk Investments and P1 Ventures. http://axios.link/I5MH • Heyflow, a German developer of no-code tools for customer interactions, raised $6 million in seed funding. Project A Ventures led, and was joined by Atlantic Labs. http://axios.link/eebL • Prometheus Alternative Investments, an LA-based social network for investment pros, raised $5 million in seed funding led by 8VC. www.prometheusalts.com • Incident.io, a London-based incident management startup, raised $4.7 million co-led by Index Ventures and Point Nine. www.incident.io • GrayMatter Robotics, an LA-based maker of manufacturing robots, raised $4.1 million in seed funding. Stage Venture Partners and Calibrate Ventures co-led, and were joined by 3M Ventures, OCA Ventures, Pathbreaker Ventures and B Capital Group. www.graymatter-robotics.com 🚑 Toothfairy, a British telemedicine app for cosmetic dentistry, raised £3 million in seed funding from ADA Ventures, Slingshot, Seedcamp, All Iron and Haatch Ventures. http://axios.link/ICNE     A message from Forge Global As unicorns multiply, so does demand for access to their value creation     More unicorns are being minted than ever, causing investors to rush to the private markets to get early access to fast-growing late-stage companies. The result: There are more opportunities for employees and shareholders looking to leverage their equity pre-IPO and feed investor appetite.     Private Equity Deals • Apollo Global Management agreed to buy Mitsubishi Chemical's (Tokyo: 4188) thermal and emission control protection materials business for $759 million. http://axios.link/JVVz • KKR is in advanced talks to buy Australian outsourcing company Probe Group for A$1.2 billion, per Bloomberg. Sellers would include Quadrant Private Equity and Five V Capital. http://axios.link/9YZj • L Squared Capital Partners bought Heggerty, an Oak Park, Ill.-based early childhood literacy solutions provider. www.heggerty.org • Nolan Capital acquired Apollo Technologies, a Rancho Santa Margarita, Calif.-based water treatment service contractor. www.apollotechnologiesinc.com • North Branch Capital invested in Summit Hydraulics, a Phoenix-based provider of aftermarket hydraulic kits for the ag and construction markets. www.summit-hydraulics.com 🏈 Silver Lake invested in Pro Football Focus, a Cincinnati-based sports data firm owned by ex-NFL player Chris Colinsworth. http://axios.link/uLj9     Public Offerings Source: Giphy • Claire's, a Hoffman Estates, Ill.-based girl's fashion jewelry retailer, filed for an IPO. It plans to list on the NYSE (CLRS) and reports a $108 million net loss on $629 million in revenue for the first half of 2021. Backers include Elliott Management, Monarch Alternative Capital, Goldman Sachs and JPMorgan Chase. http://axios.link/ODAG 🚑 Ensemble Health Partners, a Cincinnati-based provider of revenue cycle management software owned by Golden Gate Capital, filed for an IPO that Renaissance Capital estimates could raise $500 million. It plans to list on the Nasdaq (ENSB) and reports $34 million of net income on $401 million in revenue for the first half of 2021. http://axios.link/EeH8 • Hexion Holdings, a Columbus, Ohio-based specialty chemicals company, filed for an IPO that Renaissance Capital estimates could raise $250 million. It plans to list on the NYSE (HXN) and reports a $2 million net loss on $878 million in revenue for the first half of 2021. Shareholders include Goldentree Asset Management, Blackstone Group, Monarch Alternative Capital, Davidson Kempner, Oak Hill Advisors and Capital Research & Management Co. http://axios.link/1Lkf • Milan Laser, an Omaha-based hair-removal company backed by Leonard Green & Partners, hired Goldman Sachs and Jefferies to prep a U.S. IPO that would value the company at around $1 billion, per Bloomberg. http://axios.link/wBHg • Olaplex, a Santa Barbara, Calif.-based hair products company owned by Advent International, raised $1.5 billion in its IPO. It priced 73.7 million shares at $21 (above upwardly-revised range), for a $13.6 billion market value. The company will list on the Nasdaq (OLPX) and reports $95 million of net income on $270 million in revenue for the first half of 2021. http://axios.link/aHLM • Rakuten (Tokyo: 4755) said it will list its online banking unit. http://axios.link/ukRP 🚑 Ventyx Biosciences, an Encinitas, Calif.-based biotech focused on autoimmune and inflammatory conditions, filed for an IPO. The pre-revenue company plans to list on the Nasdaq (VTYX) and raised from New Science Ventures (42.5% pre-IPO stake), VenBio Partners (11.9%), Third Point Ventures (8.5%) and Citadel (5.2%). http://axios.link/br3n     SPAC Stuff 🚑 Amicus (Nasdaq: FOLD) agreed to sell its gene therapy unit to ARYA Sciences Acquisition Corp IV (Nasdaq: ARYD), a SPAC formed by Perceptive Advisors, at a $600 million implied valuation. http://axios.link/hIwd • TMT Acquisition, an Asia SPAC led by Dajiang Guo (Revere Securities), filed for a $50 million IPO. http://axios.link/UXl0     Liquidity Events • KKR is seeking a buyer for Koki, a Japanese power tool and life science equipment maker that could fetch more than $2 billion, per Bloomberg. http://axios.link/Gpbz • Thoma Bravo agreed to sell Pathwire, a San Antonio-based email delivery platform, to Stockholm-listed Sinch for around $1.9 billion in cash ($925m) and stock. http://axios.link/yNW0     More M&A • Eutelsat (Paris: ETL), a French satellite operator, rebuffed a takeover offer from telecom billionaire Patrick Drahi. http://axios.link/kNdK 🚑 Walgreens (Nasdaq: WBA) is considering a takeover offer for Evolent Health (NYSE: EVH), an Arlington, Va.-based healthcare IT firm whose market cap jumped past $2.5 billion on the report from Bloomberg. http://axios.link/niCD     Fundraising 🌎 The Carlyle Group and CalPERS created the ESG Data Convergence Project, a standardized set of ESG metrics for comparative GP reporting. http://axios.link/FFtM 🚑 AllyCorp launched a $100 million early-stage VC fund and incubator focused on health. www.allycorp.com • Benhamou Global Ventures raised $110 million for its fourth fund. http://axios.link/tOdP 🌎 Investible, an Australian VC firm, raised A$100 million for a climate tech fund. http://axios.link/4oWT • Resolute Ventures is raising $115 million for its fifth fund, per an SEC filing. www.resolute.vc     It's Personnel • Andrew Cocks (ex-Blackstone) and Mark Tucker (ex-HSBC Alternative Investments) joined KKR to lead a new EMEA private wealth team. http://axios.link/MX23 • Jason Droege (ex-Uber Eats, currently with Popshop Live) is joining Benchmark as a venture partner. • William Gilmore is leaving Swiss placement firm AXON Partners to join advisory firm Time Partners as a managing director. • Scott Soussa is joining Angelo Gordon as chief strategy officer, focused on buying GP stakes, after 18 years with The Blackstone Group. http://axios.link/IZSJ     Final Numbers Source: Refintiiv. Data through Sept. 27, 2021     A message from Forge Global Why the traditional IPO is dead     Companies ready to go public have more options to create the bespoke exit experience they want — and to choose who will benefit from their success. Foundational structures associated with traditional IPO paths are changing, and with that, comes a need for more transparency and data. Learn more.   🙏 Thanks for reading Axios Pro Rata! Please ask your friends, colleagues and baseball card collectors to sign up at GetProRata.axios.com. Like this email style and format? Learn more about Axios HQ. It'll help you deliver employee communications more effectively.   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. 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