Axios Pro Rata: Space SPACdown

Plus, Discord buys more moderation. | Wednesday, July 14, 2021

Open in app View in browser   Presented By Fidelity   Axios Pro Rata By Dan Primack ·Jul 14, 2021 🖥️ You're invited to an Axios virtual event today at 12:30pm ET on the future of alternative energy. Guests include Sen. Ed Markey (D-Mass.) and Heather Zichal, CEO of the American Clean Power Association. Register here.     Top of the Morning Illustration: Annelise Capossela/Axios   U.S. securities regulators aren't yet strengthening disclosure rules on SPACs, but they are beginning to step up enforcement of existing rules. Driving the news: The SEC yesterday announces charges and a settlement with several entities and people involved in a 2020 SPAC deal for space cargo company Momentus. That transaction, first announced in late 2020 but still not closed, was designed to bring Momentus public at a $1.1 billion enterprise value via Stable Road Acquisition, and included a $175 million PIPE. The valuation was recently slashed to $567 million. The SEC accused Momentus of making misleading public statements about the results of its in-space tests and accused Stable Road of insufficient due diligence on both those tests and national security concerns involving former Momentus CEO Mikhail Kokorich (this morning the company added ex-Defense Department official John Rood as its new CEO). Momentus agreed to pay $7 million in penalties while Stable Road will pay $1 million, and PIPE investors will be given permission to terminate their subscription agreements prior to the deal's shareholder approval vote. Prior to the SPAC deal, Momentus had raised nearly $90 million in VC funding, and received a PPP loan. What SEC chair Gary Gensler is saying: "The fact that Momentus lied to Stable Road does not absolve Stable Road of its failure to undertake adequate due diligence." Big picture: This situation will fuel SPAC critics who argue that public investors are getting taken in by futuristic tech promises that are unlikely to pan out, particularly in areas like space. It also offsets Saturday's successful test flight by Virgin Galactic, which went public via SPAC in 2019 (although its stock has sagged so far this week). The bottom line: You can't spell space without SPAC, nor can you spell it without SEC.     The BFD Illustration: Aïda Amer/Axios   Discord, a San Francisco-based chat platform valued by VCs at $7 billion, agreed to buy Sentropy, a Palo Alto-based provider of AI software for detecting and removing online harassment. Why it's the BFD: Because engaging with others online shouldn't include an entrance fee of harassment and abuse. Discord once was known as a place where such misdeeds proliferated, but it cracked down after Charlottesville, and this deal reflects its continued efforts around user safety. ROI: Sentropy had raised around $13 million from firms like Initialized Capital, King River Capital, Horizons Ventures, Playground Global, Chapter One Ventures. The bottom line: "Discord has a huge network, with more than 150 million monthly users, and servers can be a real challenge to moderate. The service is made up of more than 19 million individual communities, and that scale requires the work of both volunteers and teams within Discord to properly moderate." — Jacob Kastrenakes, The Verge     Venture Capital Deals • Remote, a San Francisco-based recruiting platform, raised $150 million in Series B funding at a valuation north of $1 billion. Accel led, and was joined by Sequoia Capital, Index Ventures, Two Sigma, General Catalyst and Day One Ventures. http://axios.link/qvDa • Sourcegraph, a San Francisco-based code navigation tool, raised $125 million in Series D funding at a $2.6 billion valuation. Andreessen Horowitz led, and was joined by Insight Partners and Geodesic Capital. http://axios.link/dYBF • Impact, a partnership management platform for brands, raised $150 million at a $1.5 billion valuation. Qatar Investment Authority led, and was joined by Providence Public. http://axios.link/kEkO 🚑 Nimbus Therapeutics, a Cambridge, Mass.-based developer of TYK2 inhibitors, raised $105 million. BVF Partners led, and was joined by RA Capital Management, Atlas Venture, Access Biotechnology, Commodore Capital, Logos Capital and Surveyor Capital. http://axios.link/ud8W • Mark43, a New York-based public safety platform, raised $101 million in Series E funding. Spruce House Partnership and Tiger Global co-led, and were joined by Radcliff Cos., Malcolm Turnbull, Goldman Sachs, General Catalyst, Spark Capital, HighSage Ventures and Avenir Capital. http://axios.link/nCps • Amperity, a Seattle-based customer data platform, raised $100 million in Series D funding at a valuation north of $1 billion. HighSage Ventures led, and was joined by Tiger Global Management, Declaration Partners, Madrona Venture Group and Madera Technology Partners. http://axios.link/XpAd 🚑 Kriya Therapeutics, a Redwood City, Calif.-based gene therapy startup, raised $100 million in Series B funding. Patient Square Capital led, and was joined by Woodline Partners, CAM Capital, Hongkou, Alumni Ventures and insiders QVT, Dexcel Pharma, Foresite Capital, Bluebird Ventures, Transhuman Capital, Narya Capital, Amplo and JDRF T1D Fund. www.kriyatherapeutics.com • Pantheon, a web-ops SaaS startup, raised $100 million in Series E funding from SoftBank. http://axios.link/OtUm • Railsbank, a London-based fintech-as-a-service platform, raised $70 million in Series B funding. Anthos Capital led, and was joined by Central Capital, Cohen and Company and Outrun Ventures. http://axios.link/AKf3 🚑 Ribon Therapeutics, a Cambridge, Mass.-based cancer biotech, raised $65 million. Deerfield Management and USVP co-led, and were joined by Avego BioScience Capital, GV, Monashee Investment Management and Peregrine Ventures, AbbVie Ventures, Bristol Myers Squibb, Euclidean Capital, J&J, Novartis Venture Fund, Osage University Partners, Takeda Ventures and The Column Group. www.ribontx.com • MOBILion, a Chadds Ford, Pa.-based developer of biomarker instruments, raised $60 million in Series C funding. D1 Capital Partners led, and was joined by aMoon, Agilent Technologies (NYSE:A), IP Group, Hostplus and Cultivation Capital. http://axios.link/7yeX • DevRev, a software startup focused on bringing "developers closer to customers and revenue," raised $50 million in seed funding from backers like Mayfield Fund and Khosla Ventures. http://axios.link/w2C8 • Pratilipi, an Indian online storytelling platform, raised $48 million in Series D funding. Krafton led, and was joined by Omidyar Network India. http://axios.link/TwPK • AttackIQ, a San Diego-based cyber breach and attack simulation startup, raised $44 million in Series C funding co-led by Atlantic Bridge, Saudi Aramco Energy Ventures and Gaingels. Return backers include Index Ventures, Khosla Ventures, Salesforce Ventures and Telstra Ventures. http://axios.link/sJL0 • Cardless, a San Francisco-based platform for launching branded credit cards, raised $40 million in Series B funding. Activant Capital led, and was joined by insiders Accomplice and Pear VC. www.cardless.com • LinkSquares, a Boston-based contract lifecycle management and analysis tool, raised $40 million in Series B funding. Sorenson Capital led, and was joined by Catalyst Investors, Xerox, Bottomline Technologies, Hyperplane VC, MassMutual Ventures and First Ascent Ventures. www.linksquares.com • Heart Aerospace, a Swedish electric aviation startup, raised $35 million in Series A funding from Breakthrough Energy Ventures, United Airlines and insiders EQT Ventures and Lowercarbon Capital. http://axios.link/aHzl • Syfe, a Singapore-based investment app, raised $30 million in Series B funding. Valar Ventures led, and was joined by insiders Presight Capital and Unbound. http://axios.link/4nPS 🚑 ISA Pharmaceuticals, a Dutch developer of treatments for human papillomavirus virus, raised €26 million from Invest-NL and insider Regeneron. http://axios.link/qGCX 🚑 BestDoctor, a Russian online medical insurance platform for corporates, raised $26 million in Series B funding. Winter Capital Partners led, and was joined by VNV Global and UNIQA Ventures. http://axios.link/7vAa • Morty, a New York-based online mortgage marketplace, raised $25 million in Series B funding. March Capital led, and was joined by Rethink Impact and insiders Thrive Capital, Lerer Hippeau, Prudence Holdings, FJ Labs and Metaprop. www.morty.com 🚑 Eucalyptus, an Australian telehealth platform, raised $22.3 million in Series B funding. NewView Capital led, and was joined by AirTree Ventures and insiders Blackbird Ventures and W23. http://axios.link/CGlQ • Comet Bio, a Canadian developer of food ingredients, raised US$22 million in Series C funding. Open Prairie led, and was joined by LDC, BDC Capital and insider Sofinnova Partners. www.comet-bio.com • Mighty Buildings, an Oakland-based developer of 3D-printed homes, raised $22 million in new Series B funding from ArcTern Ventures, Core Innovation Capital, Decacorn Capital, Gaingels, Khosla Ventures, Klaff Realty, MicroVentures, Modern Venture Partners, Polyvalent Capital and Vibrato Capital. http://axios.link/8wlx • Next Gen Foods, a Singapore-based developer of plant-based chicken alternatives, raised $20 million in new seed funding from backers like GGV Capital and soccer star Dele Alli. http://axios.link/ketg • NoTraffic, an Israeli traffic management platform, $17.5 million in Series A funding. Nielsen Ventures led, and was joined by Grove Ventures, Menora Mivtachim Group, Meitav Dash, Next Gear Ventures and North First Ventures. http://axios.link/FMGa • Endgame, a Los Angeles-based provider of product-led sales solutions, raised $17 million in seed (led by Upfront Ventures) and Series A (led by Menlo Ventures) funding. http://axios.link/3HUu • Veo, an e-scooter sharing startup, raised $16 million in Series A funding. Autotech Ventures led, and was joined by UP Partners, FJ Labs and Interplay Ventures. http://axios.link/nUhQ 🚑 Wecasa, a French marketplace for homecare and wellness, raised €15 million. Blisce led, and was joined by Serena, ISAI and Frédéric Mazzella. http://axios.link/iL3j • Nas Academy, a Singapore-based monetization platform for knowledge creators, raised $11 million in Series A funding led by Lightspeed Venture Partners. http://axios.link/895C • Great Question, a customer research enablement startup, raised $2.5 million in seed funding from Funders Club, January Capital, Nomo VC and Twenty-Two Ventures. http://axios.link/c1Lu     A message from Fidelity Going public, you only get one chance to ring the bell     Fidelity Stock Plan Services is here to provide strategic, actionable insights from decades of helping companies with equity compensation plans. Learn how Fidelity Stock Plan Services can help you make key equity plan decisions–from day one.     Private Equity Deals • BC Partners is buying a "significant stake" in London-based digital marketing firm Valtech at a $1.4 billion valuation, per WSJ. http://axios.link/e3oA ⚡ Brookfield Infrastructure Partners said it's considering "further enhancements" to its C$8.48 billion hostile takeover offer for Canadian oil and gas pipeline company Inter Pipeline (TSX: IPL), after Alberta regulators found that Infor didn't engage in any improper defense tactics. http://axios.link/0ZYm • CenterOak Partners acquired HK Solutions, a Des Moines, Iowa-based provider of infrastructure maintenance services for municipal and industrial customers. www.hksolutionsgroup.com • Cohere Capital invested in Promevo, a Burlington, Ky.-based IT services firm. www.provemo.com • EQT Infrastructure agreed to buy Covanta (NYSE: CVA), a Morristown, N.J.-based owner and operator of waste-to-energy facilities. The deal is valued at $5.3 billion, or $20.25 per share (27% premium to yesterday's closing price). www.covanta.com • Permira agreed to buy up to a 33% stake in Norwegian classifieds business Adevinta from eBay (Nasdaq: EBAY) for $2.25 billion. http://axios.link/JH6I • Platinum Equity agreed to buy Oregon Tool, a Portland, Ore.-based maker of professional-grade cutting tools and outdoor equipment accessories, from American Securities and P2 Capital Partners. www.oregontool.com • SFW Capital Partners acquired a majority stake in Captify, a London-based search data processor. www.captifytechnologies.com     Public Offerings • Core & Main, a St. Louis-based residential pipe distributor owned by Clayton Dubilier & Rice, set IPO terms to 34.9 million shares at $20-$23. It would have a $5.2 billion fully diluted value, were it to price in the middle, and plans to list on the NYSE (CNM). http://axios.link/4uE0 • European Wax Center, a Plano, Texas-based franchisor and operator of hair removal salons, filed for an IPO. It plans to list on the Nasdaq (EWCZ) and is backed by General Atlantic. http://axios.link/CeKA     Liquidity Events • ArcLight Capital Partners agreed to sell its stake in convenience store chain Thorntons to joint venture partner BP (LSE: BP). http://axios.link/2lvG 🚑 Eli Lilly (NYSE: LLY) acquired Protomer, a Pasadena, Calif.-based peptide and protein engineering platform. The deal could be worth more than $1 billion, including earnouts. Protomer had been seeded by Eli Lilly and T1D Fund. www.protomer.com • ZoomInfo (Nasdaq: ZI) agreed to buy Chorus.ai, a San Francisco-based conversation intelligence platform for sales, for $575 million. Chorus.ai had raised around $100 million from firms like Emergence Capital Partners, Georgian, Redpoint Ventures and Sozo Ventures. http://axios.link/DX63     More M&A • Infor, a New York-based ERP software company backed by Koch Development Capital, agreed to sell its enterprise asset management group to Sweden's Hexagon (ST: HEXA) for around $2.7 billion in cash and stock. http://axios.link/KGdH • Perch, a Boston-based Amazon marketplace rollup platform that recently raised $775 million in Series A funding, acquired Corona, Calif.-based Amazon seller Web Deals Direct. http://axios.link/DMUc 🚑 Sanofi (Paris: SAN) agreed to sell 12 OTC and prescription brands in Latin America from to Brazilian pharma company Hypera. http://axios.link/55hh • Sumitomo Mitsui Financial Group (Tokyo: 8316) is in talks to buy a 5% stake in Jefferies (NYE: JEF) for around $380 million, per Reuters. http://axios.link/KKzj     Fundraising • Andalusian Private Capital has been launched to focus on growth equity and special situations in the media and sports sector, per Bloomberg. It's led by former Merrill Lynch banker and David Tepper associate Jeffrey Kaplan, with around $800 million in capital from Tepper and more than 10 other family offices. http://axios.link/CAki • Ecosystem Integrity Fund, a San Francisco-based clean tech firm, raised $250 million for its debut fund. http://axios.link/eO7Q • Female Founders Fund raised $57 million for its third fund. http://axios.link/OVsD 🚑 Sofinnova Partners raised €63 million for its third med-tech accelerator fund. http://axios.link/d4SS • WestCap, a private equity firm led by ex-Blackstone and Airbnb exec Laurence Tosi, has secured around $650 million for a $1.5 billion-targeted fund, per Buyouts. http://axios.link/rj1G     It's Personnel • Laura Grattan (ex-TH Lee Partners) and Dan Stanko (ex-HGGC) joined Crosspoint Capital Partners as managing directors. www.crosspointcapital.com 🚑 Sacha Mann joined Takeda Ventures as a partner. She previously was a venture partner with Zoic Capital. http://axios.link/DKAn     Final Numbers Data: Bureau of Labor Statistics via FRED The White House was counting on fleeting inflation. Now, it's starting to look like it could last. Or maybe it's just all about cars. Ex-Treasury Secretary Steve Mnuchin this morning told CNBC that he doesn't believe this inflation is transitory, and that the Fed should immediately start trimming asset purchases. Fed chair Jay Powell today will testify that "inflation has increased notably and will likely remain elevated in coming months before moderating." In other words, he and the WH remain on the same page, at least for now. Great Britain's inflation rate jumped to 2.5% in June, far exceeding expectations. Go deeper: Inflation that can't be ignored     A message from Fidelity Need help with your equity comp plan? Fidelity is here     Fidelity is the only equity provider top-rated for customer satisfaction for 10 years running. What this means: They deliver service that helps you with your equity compensation plan starting at day one, and continuing beyond. See how.   🙏 Thanks for reading Axios Pro Rata! Please ask your friends, colleagues and Discord denizens to sign up. 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. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: