| | | | | | | Presented By Forge Global | | | | Axios Pro Rata | | By Dan Primack ·Oct 29, 2021 | | | | | | Top of the Morning |  | | | Illustration: Aïda Amer/Axios | | | | One-click checkout company Bolt Financial made headlines earlier this month by announcing new funding at around a $6 billion valuation. Now it's already back in market with a deal that could nearly double that price, Axios has learned from several sources. Why it matters: This is emblematic of how the growth equity market is a sea of easy cash, in which investors don't worry much about what happens if the tide goes out. For startups, it's about striking while the swimmers are still naked. The ask: San Francisco-based Bolt is seeking to raise $777 million in Series E funding at a pre-money valuation of between $10 billion and $11 billion. There is outreach to new investors but, like last time around, Bolt itself is setting the terms. - Bolt signaled its intentions for a quick follow-on round in its Series D term sheet, dated in late July, which included a "future round option" whereby major investors had the right to invest up to 2x their Series D outlay. That option, however, is unlikely to be applied to the Series E, as it doesn't kick in until either two years from the Series D closing or when Bolt raises at a $20 billion pre-money valuation.
The big question, of course, is how a company gains so much value in so little time. - The answer being given to prospective investors is that Bolt recently added a number of big new customers, including a large social media network, that could triple its business. This also helps make Bolt employees feel a bit better about the recent dilution at a "low" price, since Bolt would argue that the customer wins were partially a result of the Series D infusion.
- Investors also are getting the basic pitch about how Bolt could win the one-click checkout war — i.e., be the button above that Apple or Google autofill, or what Shopify offers but outside the Shopify ecosystem.
- Bolt declined comment, natch.
The real answer, though, doesn't have too much to do with new accounts or competitive advantage. Instead, it's that a smart entrepreneur is pouring FOMO over dry powder, and waiting for the predictable VC reaction. |     | | | | | | BFD |  | | | | Zendesk (NYSE: ZEN) agreed to buy Momentive (Nasdaq: MNTV), the parent company of SurveyMonkey, for around $4.13 billion in stock. - Why it's the BFD: Investors reacted very poorly, with Zendesk shares plummeting around 16% in after-hours trading. It's too early to say this will be another Zoom/Five9 situation, in which stock price depreciation scuttled a major enterprise software merger. But it's not too early to think about it.
- Bonus: Thoma Bravo this morning announced the competition of its $6.4 billion take-private buyout of SurveyMonkey rival Medallia.
- The bottom line: "For Zendesk, which offers a platform that connects brands with customers ... the purchase appears to be a play for a larger slice of the expanding customer analytics market." — Kyle Wiggers, VentureBeat
| | | | | | | | Venture Capital Deals | | • ProLogium Technology, a Taiwanese EV battery maker, raised $326 million from backers like dGav Capital, Primavera Capital and SB China VC. http://axios.link/DPZ9 • Persefoni, a Tempe, Ariz.-based climate accounting platform, raised $101 million in Series B funding. Prelude Ventures and TPG Rise Climate co-led, and were joined by Clearvision Ventures, Parkway Ventures, Bain & Co., EDF, SMBC, The Ferrante Group, Alumni Ventures, New Valley Ventures and insiders NGP and Sallyport Investments. http://axios.link/1PnI • Cover, an L.A.-based modular home startup, raised $60 million in Series B funding. Gigafund led, and was joined by Valor Equity Partners, Founders Fund, General Catalyst, Lennar, Fifty Years, Naval Ravikant, Lowercase Chris Sacca and Bruce Richards. http://axios.link/Sapf • Anomalo, an S.F.-based AI data verification startup, raised $33 million in Series A funding. Norwest Venture Partners led, and was joined by Two Sigma Ventures, Foundation Capital, First Round Capital and Village Global. http://axios.link/kWur • SlashNext, a Pleasanton, Calif.-based phishing defense startup, raised $26 million in Series B funding from Tom and Matt Gallo, Telia Group, Ayala and insiders Norwest Venture Partners, Wing VC and Alter Ventures. http://axios.link/WKrC • Swap, São Paulo-based banking-as-a-service startup, raised $25 million in Series A funding. Tiger Global led, and was joined by Endeavor, DST Global partners, ONEVC, Global Founders Capital and Flourish Ventures. http://axios.link/oOjj • Rallyware, a Mountain View, Calif.-based performance enablement platform, raised $22 million from PeakSpan Capital. www.rallyware.com • SocialChat, a social commerce startup, raised $6 million co-led by Race Capital and Gradient Ventures. www.socialchat.ai • Beta Finance, a DiFi protocol for shorting crypto assets, raised $5.8 million. Sequoia Capital India led, and was joined by ParaFi Capital, DeFiance Capital, Spartan Group, GSR, Delphi Digital and Multicoin Capital. http://axios.link/593u 🚑 NeuraLight, an Israeli developer of neurology drug development software, raised $5.5 million in seed funding from MSAD, Kli, Tuesday, Operator Partners and VSC Ventures. http://axios.link/UAQG • Atlys, an S.F.-based travel visa application startup, raised $4.3 million in seed funding led by Andreessen Horowitz. http://axios.link/KAWc • Deliverr, an S.F.-based e-commerce fulfillment platform, is in talks to raise $250 million in a Tiger Global-led round at a $2 billion valuation, per Bloomberg. http://axios.link/4Ii4 🍔 Impossible Foods, a Redwood City, Calif.-based alt meat company, is in talks to raise around $500 million at a $7 billion valuation, per Bloomberg. For context, Beyond Meat (Nasdaq: BYND) closed trading yesterday with a $6.3 billion market cap. http://axios.link/Hiso | | | | | | | | A message from Forge Global | | How companies can retain star talent during the Great Resignation | | |  | | | | Companies are having to come up with unprecedented solutions to find and keep critical talent as 4.3 million people quit their jobs in August alone. This could signal a longer-term shakeup in compensation models as we've known them – across both public and private markets. Your company's next move | | | | | | Private Equity Deals | | • American Water Works (NYSE: AWK), a Camden, N.J.-based water and wastewater utility, agreed to sell its homeowner services group to Apax Partners for nearly $1.3 billion. www.amwater.com ⚡ Macquarie Asset Management agreed to buy Thyssengas, Germany's second-largest gas pipeline operator, from DIF and EDF Invest. http://axios.link/ADNF • Platinum Equity bought Cosmic Pet, a Wichita-based pet products distributor, from Guardian Capital Partners. www.cosmicpet.com • Temasek is leading a US$2.5 billion takeover offer for Singaporean media and real estate firm Singapore Press Holdings, rivaling an offer from Keppel Corp. http://axios.link/6OYP | | | | | | | | Public Offerings | | 🚑 AirSculpt Technologies, a Beverly Hills-based provider body contouring procedures, raised $77 million in is IPO. It priced at the low end of its downwardly-revised $11-$12 range, for a $612 million market value, will list on the Nasdaq (AIRS) and is backed by Vesey Street Capital Partners. http://axios.link/VmGR 🚑 Agendia, an Irvine, Calif.-based provider of genetic tests for breast cancer, filed for a $75 million IPO. It plans to list on the Nasdaq (AGDX) and reports a $15 million net loss on $40 million in revenue for the first nine months of 2021. The company raised nearly $180 million from firms like Norgine Ventures, Athyrium and Korys Investments. http://axios.link/mfIK 🚑 Aura Biosciences, a Cambridge, Mass.-based biotech focused on ocular and urologic solid tumors, raised $76 million in its IPO. It priced at the low end of its $14-$16 range, for a $428 million fully diluted value, will list on the Nasdaq (AURA) and raised over $200 million from firms like Medixi, Matrix Capital, Citadel, Advent Life Sciences, Lundbeckfond, Arix Bioscience, Chiesi Ventures and Ysios Capital. http://axios.link/hFJw 🚑 Candela Medical, a Marlborough, Mass.-based maker of medical devices for aesthetic procedures, postponed an IPO designed to raise around $250 million. The Apax Partners-owned planned Nasdaq (CDLA) and reports $15 million of net income on $209 million in revenue for the first half of 2021. http://axios.link/klXL 🚑 Entrada Therapeutics, a Boston-based developer of therapies for rare neuromuscular diseases, raised $182 million in its IPO. The preclinical company priced in the middle of its $19-$21 range, foe a $636 million market value, and will list on the Nasdaq (TRDA). It raised over $200 million from backers like MPM Capital (20.7% pre-IPO stake), 5AM Ventures (20%), Roche (13.5%) and MRL Ventures (8%). http://axios.link/jAPn 🚑 Healthcare Royalty, a Stamford, Conn.-based investment firm that buys royalty interests in biopharmaceuticals, withdrew registration for a $750 million IPO. http://axios.link/Ydvk • HireRight, a Nashville-based provider of background screening and identity verification services, raised $422 million in its IPO. It priced at $19 (below $21–$24 range), for a $1.5 billion market value, and will list on the NYSE (HRT). Backers include General Atlantic and Stone Point Capital. http://axios.link/cX0L • Kurly, a South Korean online grocer, says it plans to go public by next June at around a $5.9 billion valuation. http://axios.link/WiXs • Rhodium Enterprises, a Wilmington, Del.-based bitcoin miner, filed for an IPO. http://axios.link/JHbd • Sonendo, a developer of acoustic-based root canal technology, raised $94 million in its IPO. It priced at $12 (below $15-$17 range), for a $340 million fully dilited value. It will list on the NYSE (SONX) and raised $290 million from firms like General Atlantic, OrbiMed, Meritech Capital Partners and EW Healthcare. http://axios.link/gJdU • Udemy, an S.F.-based marketplace for online educational courses, raised $421 million in its IPO. It priced at the high end of its $27-$29 range, for a $4.4 billion fully diluted value, and will list on the Nasdaq (UDMY). Udemy reports a $29 million net loss on $251 million in revenue for the first half of 2021, and raised $250 million in VC funding from firms like Insight Partners (34.1% pre-IPO stake), Prosus (13.9%), Norwest Venture Partners (10.1%) and Stripes (5.6%). http://axios.link/ui6m | | | | | | | | SPAC Stuff |  | | | Illustration: Annelise Capossela/Axios | | | | • Terran Orbital, an Irvine, Calif.-based small satellite company, agreed to go public at an implied $1.58 billion valuation via Tailwind Two (NYSE: TWNT), a SPAC chaired by Casper Sleep CEO Philip Krim. The deal includes a $50 million PIPE from Lockheed Martin, AE Industrial Partners and Beach Point Capital. http://axios.link/ZhAj | | | | | | | | Liquidity Events | | • Dropbox (Nasdaq: DBX) agreed to buy Command E, an SF-based universal search startup that was seeded by Craft Ventures and Bain Capital Ventures. www.getcommande.com • Linden Capital Partners hired Harris Williams to find a buyer for Evolution Research Group, a Watchung, N.J.-based network of neuroscience clinical research sites. http://axios.link/p1ro | | | | | | | | More M&A | | 🎵 300 Entertainment, a Google-backed record label whose artists include Megan Thee Stallion, is seeking a buyer for at least $400 million, per Bloomberg. http://axios.link/d5m3 • Coca-Cola (NYSE: KO) is in talks to buy a control stake in Whitestone, N.Y.-based sports drink maker BodyArmor at an $8 billion valuation, per Bloomberg. Coke invested $300 million in 2018, and reportedly was in failed takeover talks earlier this year. http://axios.link/VYmz 🎵 David Bowie's estate is in talks to sell his songwriting catalog, with bids coming in at around $200 million, per the FT. http://axios.link/telC • SK Hynix agreed to buy Key Foundry, a South Korean contract manufacturer of semiconductors, for around $492 million. http://axios.link/CEuP | | | | | | | | Fundraising | | • PAG, an Asia-focused buyout firm, is raising $9 billion for its fourth fund, per Reuters. http://axios.link/G5IT | | | | | | | | Final Numbers |  Data: Yahoo Finance; Chart: Axios Visuals | | | | | | | | 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 ghouls, goblins and Squid Game cosplayers to sign up. |  | | 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.
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