Top of the Morning | Friday, January 15, 2021
 
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Pro Rata
By Dan Primack ·Jan 15, 2021

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Top of the Morning
Illustration of a Black hand holding a pile of money.

Illustration: Aïda Amer/Axios

 

Venture capital last summer began finally reckoning with its lack of Black investors, as part of the country's broader conversation on racial inequities.

  • The relative handful of existing Black venture capitalists were deluged with recruiting calls from brand-name firms, both to poach and to solicit introductions.
  • But many felt there was a pipeline problem. Not a lack of qualified Black candidates, but too few Black professionals in traditional feeder industries (tech, banking, etc.) who viewed VC as a viable career path, or who had venture capitalists in their personal networks.

A group called BLCK VC, in partnership with Anthemis and Lerer Hippeau, responded by creating what it called the NYC Path Program, described as an "on-road for Black professionals to discover jobs in venture capital."

  • More than 300 applications came in, with 21 selected for the debut cohort.
  • The eight-week program launched last October. On Thursday nights, a VC firm partner like Rebecca Kaden of USV or Nikhil Sachdev of Insight Partners would gave an overview of a different topic, such as early-stage due diligence vs. later-stage due diligence or post-investment responsibilities. Then, on Fridays, participants split into smaller groups with their mentor, typically a VC firm principal or senior associate.
  • Jillian Williams, a principal with Anthemis, says that many participants were surprised by how early-stage investing is much more qualitative than quantitative.
  • The program then created a "look book" to show firms that came calling for candidates, as the majority of participants came away with interest in the industry (some, of course, decided it wasn't for them).

What next: BLCK VC is in the process of determining how the program will evolve.

  • Expectations are to host the program twice per year in New York, once in the spring and once in the fall, with broader geographic roll-0ut still being discussed.
  • Cohorts will be kept small so that individuals can more effectively engage with VCs and each other. She adds that

Bottom line: The first step toward rectifying a problem is recognizing that there is a problem. Much of venture capital seems to have done so. The second step is launching and encouraging efforts like the Path Program, so that the industry doesn't backslide, once the socio-political spotlight dims.

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The BFD
Source: Giphy

Alimentation Couche-Tard (TSX: ATD), the Canadian operator of Circle K convenience stores, is running into French government opposition to its $20 billion takeover approach for supermarket operator Carrefour (Paris: PA).

  • Why it's the BFD: Carrefour is France's largest private employer, with around 100,000 workers, and also its largest food retailer.
  • Bottom line: French government officials have signaled concerns about both labor protections and food security, with Finance Minister Bruno Le Maire saying: "The no is polite but it's a clear and final no." Bloomberg, however, reports that the opposition could soften once it has a formal offer from Couche-Tard to examine and negotiate against.
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Venture Capital Deals

ThoughtWorks, a Chicago-based software consultancy, raised $720 million from GIC, Siemens, Fidelity and Mubadala Investment Co. www.thoughtworks.com

Oqton, an additive manufacturing software provider with offices in Belgium and San Francisco, raised over $40 million in Series A funding from Fortino Capital, PMV and Sandvik. http://axios.link/457c

Carbyne, an Israeli developer of a cloud platform for emergency services communications, raised $25 million in B1 funding. Hanaco Ventures and Elsted Capital Partners co-led, and were joined by David Petraeus, Founders Fund and FinTLV. http://axios.link/hV84

DecisionLink, an Atlanta-based provider of customer cost-benefit analyses for business services, raised $18.5 million led by Accel. http://axios.link/iFYu

Mosaic, a San Diego-based strategic finance platform, raised $18.5 million in Series A funding. General Catalyst led, and was joined by Felicis Ventures, Village Global and XYZ Ventures. http://axios.link/Qr8o

Lumiata, a San Mateo, Calif.-based predictive analytics startup for healthcare, raised $14 million from Defy.vc and AllegisNL Capital. http://axios.link/6JKw

Own Up, a Boston-based home mortgage marketplace, raised $12 million. Brand Foundry Ventures led, and was joined by Link Ventures, Listen Ventures and TechStars. www.ownup.com

X1 Card, a credit card startup that bases decisions on income, raised $12 million led by Spark Capital. http://axios.link/Zmpy

Flockjay, a San Francisco-based tech sales training platform, raised $11 million in Series A funding. E.ventures led, and was joined by Lightspeed Venture Partners, Salesforce Ventures, Impact America, Cleo Capital, Coatue, Gabrielle Union, Serena Williams and Will Smith. http://axios.link/6swN

Swimm, an Israeli coding software startup, raised $5.7 million in seed funding. Pitango led, and was joined by TAU Ventures, Axon Ventures and FundFire. http://axios.link/qXrV

Humanz, an Israeli platform for micro-influencer campaigns, raised $3 million in seed funding co-led NGN Partners and the Buffett Group. www.humanz.com

Capsule, a video Q&A platform for brands, raised $2 million in seed funding. Array Ventures led, and was joined by Bloomberg Beta. http://axios.link/0dj4

Picky, a content platform for the global beauty industry, raised $1.3 million in seed funding led by NLVC. www.gopicky.com

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A message from JPMorgan Chase Commercial Banking

Executives remain optimistic as they plan for 2021
 
 

61% of business leaders named economic uncertainty as their top challenge in 2021, but they remain confident their business will thrive.

The reason: COVID-19 has created a backdrop of uncertainty, but it’s also sparked ingenuity, resilience and optimism across industries.

Explore more.

 
 
Private Equity Deals

AA PLC (LSE: AA) shareholders approved a £2.8 billion takeover of the British roadside assistance provider by Warburg Pincus and TowerBrook Capital Partners. http://axios.link/ivVv

AmeriLife, a Clearwater, Fla.-based portfolio company of THL Partners and Cannae Holdings, acquired Senior Market Advisors, a Nashville, Tenn.-based provider of sales tools for insurance agents. www.amerilife.com

BC Partners and EQT are among those circling a stake in Italian soccer club Inter Milan, which could be valued at up to €900 million, per FT. http://axios.link/Q0uy

BV Investment Partners acquired a majority stake in Talent, a New York-based provider of tech-enabled career services. www.talentinc.com

GTCR and Reverence Capital Partners are in exclusive talks to buy the asset management unit of Wells Fargo (NYSE: WFC), per Reuters. http://axios.link/dVvP

OneWeb, a London-based developer of low-orbit satellite constellations for internet connectivity, raised $1.4 billion in new funding from SoftBank and Hughes Network Systems. It had raised $4.5 billion from SoftBank and others before filing for bankruptcy last year. http://axios.link/SBgM

Spectrum Equity invested $51 million for a minority stake in Quantile Technologies, a London-based provider of portfolio optimization services. http://axios.link/YChz

TPG paid $500 million for a majority stake in Greenhouse, a New York-based HR software provider, per Forbes. Sellers include VC firms Benchmark and Thrive Capital. http://axios.link/SU26

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Public Offerings

Driven Brands, a Charlotte-based auto services franchisor owned by Roark Capital, raised $700 million in its IPO. It priced 38 million shares at $22, versus plans to offer 38 million shares at $17-$20, for a fully-diluted market value of $3.6 billion. The company will list on the Nasdaq (DRVN), and owns such brands as Maaco and Meineke. http://axios.link/EAXJ

Playtika, an Israeli mobile gaming company, raised $1.9 billion in its IPO. It priced at $27 per share (above $22-$24 range), for an initial market cap of $11.14 billion, and will list on the Nasdaq (PLTK). The company had been acquired in 2016 for $4.4 billion by a Chinese investor group that included Shanghai Giant Network Technology, Jack Ma, Yunfeng Capital, China Oceanwide Holdings Group, China Minsheng Trust, CDH China HF Holdings, Netmarble Games and Hony Capital. http://axios.link/TCU9

RLX Technology, a Chinese e-cigarette maker, set IPO terms to 1116.5 million shares being offered at $8-$10. It would have a market cap of $14 billion, were it to price in the middle, plans to list on the NYSE (RLX) and reports $16 million of net income on $324 million in revenue for the first nine months of 2020. Backers include Sequoia Capital China (4.9% pre-IPO stake). http://axios.link/4IkZ

Viant Technology, an Irvine, Calif.-based provider of programmatic ad software, filed for a $150 million IPO. It plans to list on the Nasdaq (DSP), and reports $8 million of net income on $109 million in revenue for the first nine months of 2020. http://axios.link/Sp4c

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SPAC Stuff

26 Capital Acquisition, a SPAC formed by SpringOwl Asset Management, raised $240 million in an upsized IPO. http://axios.link/dhKn

Authentic Equity Acquisition, a consumer business-focused SPAC formed by Authentic Equity, raised $200 million in its IPO. http://axios.link/gXor

CC Neuberger Principal Holdings III, the latest SPAC from Chinh Chu's CC Capital and Neuberger Berman, filed for a $350 million IPO. http://axios.link/Kh8I

Class Acceleration Corp., a digital education-focused SPAC led by Michael Moe (ex-CEO of ThinkEquity Partners), raised $225 million in its IPO. http://axios.link/hRUi

Edify Acquisition, an education-focused SPAC formed by Colbeck Capital Management, raised $240 million in an upsized IPO. http://axios.link/euHq

Group Nine Acquisition, a media-focused SPAC formed by Group Nine Media, raised $200 million in its IPO. http://axios.link/Sz8Q

Hennessy Capital Investment V, a SPAC targeting a U.S. sustainable industrial tech/infrastructure company, raised $300 million in an upsized IPO. http://axios.link/CCXL

Kernal Group, a tech infrastructure-focused SPAC led by Mark Gross (ex-CEO of Supervalu), filed for a $250 million IPO. http://axios.link/21JY

MDH Acquisition, a SPAC formed by McLarty Diversified Holdings, filed for a $200 million IPO. http://axios.link/5e4E

OCA Acquisition Corp., a SPAC formed by Olympus Capital, raised $130 million in its IPO. http://axios.link/jQbE

Rotor Acquisition, a SPAC led by Brian Finn (Nyca Partners), raised $240 million in an upsized IPO. http://axios.link/EO7u

Thoma Bravo Advantage, a software-focused SPAC formed by Thoma Bravo, raised $900 million in its IPO. http://axios.link/i8Bw

Thunder Bridge Capital Partners III, a financial services-focused SPAC, filed for a $300 million IPO. http://axios.link/MPrD

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Liquidity Events

Medium agreed to buy Glose, a Paris-based social book-reading app that had been seeded by Expon Capital and Kima Ventures. http://axios.link/pQmN

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More M&A
Illustration of the A from the Alphabet logo, the right-side diagonal stroke of the letter A has a Fitbit on it and is being held up as if the A is looking at it.

Illustration: Aïda Amer/Axios

 

Alphabet, the parent company of Google, completed its $2.1 billion acquisition of fitness tracker company Fitbit. http://axios.link/JbkL

Acacia Communications (Nasdaq: ACIA), a Maynard, Mass.-based optical components maker, and agreed to be acquired by Cisco Systems (Nasdaq: CSCO) for $4.5 billion. That’s a 70% premium to a prior agreement with Cisco that Acacia later tried to walk away from, sparking a court fight. http://axios.link/yVMp

Applied Systems, a University Park, Ill.-based company backed by firms like CapitalG and JMI Equity, agreed to buy EZLynx, a Lewisville, Texas-based provider of real-time comparative rating and one of the fastest growing agency management systems. www.ezlynx.com

Fitch Group, backed by Hearst Communications, agreed to buy CreditSights, a New York-based provider of credit research. http://axios.link/Lss6

🚑 Thermo Fisher Scientific (NYSE: TMO) acquired Henogen, a Belgian viral vector manufacturer, for around €725 million. http://axios.link/GrmV

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Fundraising

🚑 Heritage Group, a Nashville-based healthcare PE firm, raised over $300 million for its third fund. http://axios.link/nP23

Roark Capital Group is targeting $5 billion for its fifth flagship fund, per the WSJ. http://axios.link/1H3Z

Tiger Global is raising $3.75 billion for its fourteenth flagship fund, per TechCrunch. http://axios.link/fIPk

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It's Personnel

The American Investment Council named The Riverside Co.'s Pam Hendrickson as vice chair of its board of directors. http://axios.link/DNCR

George Mashini joined Welsh, Carson, Anderson & Stowe as an operating partner. He previously was chief revenue officer and CTO of WCAS portfolio company Quick Base. www.wcas.com

🚑 Sandbox Industries, a healthcare-focused VC firm, promoted Kelsey Maguire and Binoy Bhansali to managing directors. www.sandboxindustries.com

Värde Partners promoted COO Brendan Albee to partner, and Ria Nova (head of Americas BD/IR) and global finance head Michael Reimler to senior managing directors. www.varde.com

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Final Numbers
Data: FactSet; Chart: Axios Visuals
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A message from JPMorgan Chase Commercial Banking

Four key opportunities to focus on during an M&A
 
 

Using data, companies can uncover treasury synergies in four critical areas, including:

  • Liquidity and visibility.
  • Vendors and customers.
  • Systems and processes.
  • Employees.

Find out how they can shape your mergers and acquisitions.

 

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