| | In today's Daily Pitch, you'll find: - A breakdown of the US VC trends in emerging markets compared with bigger, more established hubs.
- Restaurant software startup Toast has upped the price range for its IPO, which could potentially result in a fully diluted valuation of $20 billion.
- The latest episode of the "In Visible Capital" podcast, featuring a discussion about the future of pro sports investing.
| | | | | | | | | | Dominant venture hubs drive the trends. What does the rest of US VC look like? | |  | | Denver is among the emerging venture ecosystems whose data tells its own story. (Lightvision, LLC/Getty Images) | | | The Bay Area, New York, Boston and Los Angeles are unquestionably the premier venture hubs in the US. Their outsized influence means these four metros shape the story that has come to define US VC, and activity in smaller markets is typically lumped in with that narrative—whether or not it fits.
Our newest analyst note breaks out the data by ecosystem to evaluate disparities between the four hubs and emerging venture markets around the US. Topics covered include: - The differences in median deal sizes across investment stages.
- How that deal size spread affects valuations, percentage stakes acquired and more.
- The impacts of other factors, including cost of living, industry and local network size.
| | | | | | | | | | Toast ups IPO price range, eyes $20B valuation | |  | | (Image courtesy of Toast) | | | Toast, the provider of a mobile ordering app and other software for restaurants, has raised the estimated price range for its initial public offering, setting up a deal that could value the company at almost $20 billion in its upcoming NYSE debut. - Boston-based Toast has raised almost $900 million in private funding, reaching a valuation of $4.9 billion in February 2020, according to PitchBook data.
- Its prospectus lists top institutional shareholders as Tiger Global, with a 12.8% pre-IPO stake, Bessemer Venture Partners (12.5%), Technology Investment Dining Group (11.7%), T. Rowe Price (5.9%) and TCV (5.5%).
- In a new regulatory filing, Toast said it intends to sell 21.7 million shares at $34 to $36 apiece, up from an initial range of $30 to $33. If the company prices at the midpoint of that revised range, it would raise around $760 million and be valued at nearly $20 billion on a fully diluted basis.
- Other big IPOs expected this week include business software provider Freshworks, home and beauty products seller Knowlton Development, and mobile money transfer specialist Remitly.
| | | | | | | | | | A message from InCloudCounsel | | | | Guide: The top 10 terms in side letters | | In this guide, InCloudCounsel has outlined key side letter terms, highlighted some of the challenges in complying with those terms and assessed the potential operational impact for GPs.
While these are just a handful of the most important provisions commonly found in side letters, GPs often deal with thousands of individual obligations to multiple LPs across multiple funds all at the same time.
How are you staying on top of it all?
Download the guide today | | | | | | | | | | On the podcast: Soccer clubs, the Super League and the future of sports investing | | The fervent backlash to a proposed Super League of European soccer clubs caused that organization to suspend operations, and cast doubt on the viability of new ownership structures within those clubs.
One investor is approaching investments in the space with that in mind. On this episode of "In Visible Capital," Andrew Woodman interviews Joe DaGrosa of DaGrosa Capital Partners and Kapital Football Group to share his perspective on how to successfully invest in sports. Topics include: - Why current valuations present an intriguing near-term opportunity for investors.
- How investing in players fits into DaGrosa's strategy.
- How shifting audience behaviors will impact investments in professional sports.
| | | | | | | | | | Why a hiring boom for compliance regulators within the SEC may be on the way. [Forbes]
As restaurants struggle to hire employees, many are raising pay. But some are looking to take things a step further. [The New York Times]
Taking cues from more aggressive peers like Tiger Global, Insight Partners is slowly emerging as a powerful force in venture capital. [The Information] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 381 Deals | 1517 People | 368 Companies | 12 Funds | | | | | | | | | | | | | | | | | | | | 2008 Vintage North American Real Estate Funds | | | | | | | | | | | A message from NetSuite and ContinuServe | | | | NetSuite and ContinuServe join forces to deliver carveouts at deal speed | | ContinuServe uses NetSuite technology to deliver carveouts in a new solution that brings the leading cloud-based enterprise resource planning solution together with a premier business process outsourcing provider.
ContinuServe acquires NetSuite on behalf of the client and drives the technology carveout using proprietary tools to stand up a functional enterprise class NetSuite solution faster than comparable solutions. Once the business is operational, ContinuServe seamlessly transitions ownership of the system without a need for reimplementation or data migration, reducing risk and financial strain on both the private equity firm and the carveout.
NetSuite's preconfigured industry-specific ERP solution is the leading cloud-native solution and the No. 1 solution for carveouts.
To learn more about this new solution and how it drives value, download this compelling white paper. | | | | | | | | | | | | Vista Equity Partners names trio of senior operating leaders | | | Private equity firm Vista Equity Partners has named three software industry veterans as senior operating leaders. Craig Hayman was named operating advisor for Vista's Flagship Fund; Angela Pecoraro was named operating managing director for the firm's ESG practices across funds; and Dirk Wakeham was named operating managing director for Vista's Foundation Fund. | | | | | | | | | | | | Fivetran hits $5.6B valuation in a16z-led round, announces HVR acquisition | | | Fivetran, a provider of automated data integration for cloud applications, databases, event logs and more, has raised a $565 million Series D from lead investor Andreessen Horowitz and other backers including General Catalyst, Matrix Partners and D1 Capital Partners. The new funding values the California-based company at $5.6 billion. Fivetran has also announced plans to acquire HVR, a provider of enterprise data replication technology. | | | | | | | | India's Cars24 raises $450M | | | Cars24, an Indian online marketplace for used cars and bikes, has raised a $450 million Series F round. The funding includes $340 million in equity led by DST Global, Falcon Edge and SoftBank Vision Fund 2 and $110 million in debt. Cars24 raised a $200 million Series E in November, with reports at the time indicating a valuation of more than $1 billion. | | | | | | | | ArrowMark leads $250M round for SmartLabs | | | Boston-based SmartLabs has raised a $250 million Series B led by ArrowMark Partners, with support from Winslow Capital Management, Onex Falcon and others. Operating out of four locations in Massachusetts and one location in California, the company offers customizable lab and office spaces for research groups. SmartLabs plans to scale its operations to 2 million square feet within five years. | | | | | | | | Airwallex valuation leaps to $4B | | | | | | | | | Proptech startup snags $180M in debt and equity | | | Blueground, the provider of a housing platform for renters around the world, has raised a $180 million Series C. The round consisted of $140 million in equity financing led by WestCap, and an additional $40 million in debt funding from Silicon Valley Bank. Geolo Capital, VentureFriends and Prime Ventures also participated in the equity portion of the round. Based in New York, Blueground offers fully furnished rentals and access to other services like apartment cleanings and grocery delivery. | | | | | | | | Israeli video and photo editing app developer lands $130M | | | Lightricks, the creator of a variety of photo and video editing apps like Facetune and Filtertune, has reportedly collected $100 million in primary financing and $30 million in secondary financing in a round led by Insight Partners and Hanaco Venture Capital. The round is said to value the startup at $1.8 billion. Based in Jerusalem, Lightricks was valued at over $1 billion with a $135 million round in 2019, according to PitchBook data. The company is reportedly seeking potential acquisitions. | | | | | | | | Good Meat scores $97M in additional funds | | | Good Meat, a developer of lab-grown meat, has collected $97 million in new funding, adding to the $170 million it raised in May. New and previously announced backers include UBS O'Connor and Graphene Ventures. The startup is a division of Eat Just, a foodtech company using tech and science to create healthier, more sustainable food. Earlier this month, Good Meat announced that it plans to build a cultivated meat facility in the Middle East and North Africa region. | | | | | | | | Neobank Flobiz raises $31M | | | | | | | | | Boom Entertainment bags $15M | | | | | | | | | | | | | Thomas H. Lee Partners to buy division of Brooks Automation for $3B | | | Thomas H. Lee Partners has agreed to acquire Brooks Automation's Semiconductor Solutions Group business for $3 billion. The division provides vacuum robots and systems as well as contamination control solutions to the global semiconductor industry. The semiconductor unit reported around $613 million in revenue in the last twelve months ending June 30, 2021. The deal is expected to close in the first half of 2022. | | | | | | | | FountainVest Partners to buy New Zealand's Ziwi Pets | | | Hong Kong-based FountainVest Partners has agreed to acquire New Zealand pet food business Ziwi Pets, valuing the company at around NZ$1.5 billion (about $1.05 billion), Bloomberg reported. Ziwi produces air-dried and wet pet food in addition to other sustainably made products for cats and dogs. | | | | | | | | BlackRock takes control of Summit Companies | | | BlackRock Long Term Private Capital has acquired a majority stake in Summit Companies, a Minnesota-based fire and life safety service and installation company. Founded in 1999, Summit Companies today serves 90,000 customers across 20 states. | | | | | | | | Advent stakes India's Eureka Forbes | | | Advent International has acquired a controlling stake in Eureka Forbes. The company is an Indian manufacturer of vacuum cleaners, water purifiers and other products with a retail presence in over 20,000 outlets. | | | | | | | | Boyne Capital lands cannabis specialist | | | Boyne Capital has acquired A&A Global Imports, a California-based supplier of child-resistant, government-regulated packaging for cannabis cultivators, processors and sellers. | | | | | | | | | | | | SEC charges TruCrowd in fraud case | | | The Securities and Exchange Commission has charged TruCrowd, CEO Vincent Petrescu, three related individuals, and one issuer in connection with an alleged scheme to sell nearly $2 million in unregistered securities through crowdfunding offerings via two cannabis and hemp companies. The complaint alleges that the related individuals diverted investor funds for personal use, and that TruCrowd and Petrescu violated crowdfunding rules and failed to address red flags regarding the criminal history of one of the related individuals. TruCrowd, an equity crowdfunding portal operator, is backed by Digital Asset Monetary Network, a hybrid accelerator. | | | | | | | | | | OVHcloud targeting $469M in Paris debut | | | KKR and TowerBrook Capital Partners-backed French cloud storage provider OVHcloud plans to raise up to €400 million (about $469 million) in a Paris IPO, in a move that could value the company at over €4 billion, The Wall Street Journal reported. OVHcloud operates data centers in Europe, North America, Australia and Singapore in order to provide hosting and server solutions to its customers. | | | | | | | | | | Rubicon eyeing $2B for next fund | | | Rubicon Technology Partners is seeking $2 billion for its fourth flagship fund, Buyouts reported. The vehicle will focus on enterprise software companies. The Boulder, Colo.-based firm closed its third namesake fund at $1.2 billion in 2020. | | | | | | | | LLCP closes third lower-middle-market fund at nearly $1.4B | | | Los Angeles-based Levine Leichtman Capital Partners has closed its third lower-middle-market fund at $1.38 billion. LMM III will target US-based lower-middle-market companies with less than $50 million in revenue. The new vehicle is more than double the size of its predecessor, which closed at $615 million in 2016. LLCP typically backs companies in sectors like business services, education and engineered products. | | | | | | | | Addition plans third venture fund | | | Addition, a VC firm launched by former Tiger Global investor Lee Fixel in 2019, is raising a third fund of $1.3 billion or more, roughly the same amount that each of the firm's two previous funds raised, The Wall Street Journal reported. Addition invests in early- and growth-stage technology companies. | | | | | | | | Blumberg locks in $225M for Fund V | | | Blumberg Capital has raised $225 million for its fifth flagship fund, which will be used to back companies developing AI, big data and other tech. The vehicle surpasses its predecessor, which closed on $206 million in 2017. The early-stage VC firm specializes in leading seed and Series A rounds, with investments ranging from $500,000 to $5 million. Blumberg is based in San Francisco, with operations in Tel Aviv, Miami and New York. | | | | | | | | | "Throughout the pandemic, public equities have been choppy; however, big tech companies have largely increased their market capitalizations. Consequently, this has led numerous tech-based VC-backed companies to exit at robust valuations and take advantage of the increased focus on technology as a sector."
Source: PitchBook's Q2 2021 European VC Valuations Report | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | Service Providers | | | | | | | | | |
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