Good day. Last week we asked what the priority for venture capitalists was as we approached the fourth quarter.
Kouki Harasaki, who focuses on healthcare technology deals for the venture capital arm of Microsoft M12, said that in the fourth quarter he will focus on the exit market. “Will the IPO window continue to be as open in the fourth quarter and beyond? Mr. Harasaki wrote. “If the IPO window starts to narrow, there will be a cascading negative impact on the healthcare venture capital space.”
Lightspeed Venture Partners partner Guru Chahal wrote that the biggest challenge will be fast investment cycles where valuation assumes flawless execution by the company. “This creates tremendous pressure on companies to optimize growth at all costs (literally).”
H / L Ventures managing partner Oliver Libby said critical issues include the Delta variant, back to school, whether consumer spending and advertising have strong Q4s, infrastructure bills and budget and output market.
Steve Brotman, founding partner of Alpha Partners, said there will be opportunities in sectors such as machine learning, enterprise software and fintech. But the influx of new capital risks pushing up valuations.
This week’s question: Lawmakers in Washington are considering measures to lower prescription drug prices. Do you think these efforts are justified, or do you have concerns about their potential impact on venture capital investment in biotechnology?
Please email your responses to [email protected]
And now for the news …
Bracing for fallout. Chinese officials are asking local governments to prepare for the potential downfall of the China Evergrande group, officials familiar with the talks say, signaling reluctance to bail out the indebted property developer while preparing for any economic and social fallout from the struggles of the company, Keith Zhai Reports of the Wall Street Journal.
Officials called the ordered actions “preparations for a possible storm,” saying local government agencies and state-owned companies have been instructed not to step in to deal with the consequences until the last minute if Evergrande fails. not to run his affairs in an orderly fashion.
They said local governments have been tasked with preventing unrest and mitigating the ripple effect on homebuyers and the economy in general, for example by limiting job losses – scenarios that are became more likely as Evergrande’s situation worsened.
Ara Partners raises $ 1.1 billion for second decarbonisation fund
Ara Partners has raised about $ 1.1 billion to invest in companies that help industries reduce carbon emissions, reports Luis Garcia of WSJ Pro. The Houston-based company said it closed Ara Fund II LP well above an initial target of $ 650 million. Ara has so far committed about a third of its new fund’s capital to five deals, according to Troy Thacker, managing partner and co-founder of the private equity firm. Mr Thacker said the strong demand for the fund reflected the increased desire of institutional investors to support companies that help reduce pollution. Ara focuses on sectors such as industry and manufacturing, chemicals and materials, energy efficiency, biofuels, food and agriculture.
New Platform Seeks To Bring IPO Market Into The Digital World
A new technology platform backed by America’s largest banks and fund managers aims to bring the IPO market into the 21st century, reports the WSJ. The syndicate office – a long-standing part of Wall Street banks where IPOs and other large stock sales are valued and awarded to investors – has long clung to traditional ways of doing business like phone orders and scribbled pieces of paper, even as other businesses go digital. Capital Markets Gateway LLC has decided to change this. Backed by Franklin Templeton, Fidelity Investments, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, among others, CMG was started in 2017 by former bankers of Robert W. Baird & Co.
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Greylock Partners has raised a $ 500 million fund dedicated to seed investments. The new vehicle will typically write checks in the range of $ 2 million to $ 20 million.
Intuit Inc. has started a venture capital arm to primarily make Series B and C investments with a focus on FinTech, Virtual Expertise, Consumer Credit, Omnichannel Commerce, Compatible Services AI and crypto / DeFi. Intuit Ventures’ inaugural investment was Clearco, an e-commerce investor.
Crypto and blockchain investor CoinFund has appointed David Pakman as managing partner. He joined the firm after 13 years at Venrock. CoinFund was founded in 2015 and is based in New York and Miami.
Relay Ventures, which invests in mobility, proptech and fintech, has appointed Horace Dediu as partner and chief market strategist. He is co-founder of Micromobility Industries and host of Micromobility America. Founded in 2008, Relay Ventures has offices in Canada and San Francisco.
Contract lifecycle management platform Ironclad Inc. has appointed Leyla Seka as COO and Helen Wang as CFO. Ms. Seka was previously a partner at Operator Collective. Most recently, Ms. Wang was CFO of eBay Global Payments. Earlier this year, San Francisco-based Ironclad raised $ 100 million Series D from BOND, Lux Capital, Accel, Sequoia Capital, Y Combinator Continuity and Emergence Capital.
Quartet Health Inc., which makes software to coordinate care between general practitioners and mental health care providers, said Christina Mainelli has joined the company as chief operating officer. She was previously Executive Vice President and Chief Growth Officer at Beacon Health Options. Quartet Health, based in New York, is backed by Oak HC / FT, GV, F-Prime Capital, Polaris Partners, Deerfield Management and Echo Health Ventures.
Listed construction management software provider Procore Technologies Inc. has agreed to acquire Levelset, whose software helps the construction industry streamline compliance and payment processes, for approximately $ 425 million in cash and $ 75 million in stocks. New Orleans-based Levelset is backed by investors such as Horizons Ventures, S3 Ventures, Altos Ventures, Operating Venture Capital, and Brick & Mortar Ventures.
Syte, a retail product discovery platform, expands its presence in North America with the purchase of the fashion and furniture segments of visual search company Slyce. The terms were not disclosed. With offices in Tel Aviv and Switzerland, Syte is backed by investors such as Viola Ventures, Commerce Ventures, Storm Ventures and LG Technology Ventures.
Health data information provider Clearsense has acquired Compellon, a plug-and-play AI analytics company, for an undisclosed amount. In March, Jacksonville, Florida-based Clearsense said it had raised a $ 30 million funding round led by Health Catalyst Capital. Kairos Ventures was a funder of Compellon, based in Lake Forest, California.
Kavak, a Mexico-based used car market, has secured $ 700 million in Series E financing, giving the company a valuation of $ 8.7 billion. General Catalyst led the round, which included participation from Tiger Global Management, Founders Fund, Ribbit Capital and others.
Dapper Labs Inc., developer of the NBA Top Shot digital collectibles platform, has secured a $ 250 million investment led by Coatue Management. New investors BOND and GIC also participated in the round, alongside previous backers Andreessen Horowitz, GV and Version One Ventures.
Opentrons Labworks Inc., a lab automation startup based in Brooklyn, NY, landed $ 200 million in Series C funding. SoftBank Vision Fund 2 led the round, which included support from Khosla Ventures. In addition to funding, Opentrons appointed Greg Greeley as President and COO, and Myrtle Potter as Chairman of the Board. Mr. Greeley was previously President of Airbnb. Ms. Potter is currently the Managing Director of Sumitovant.
FLYR Labs, a San Francisco-based provider of an operating system for airlines, travel and transportation, secured $ 150 million in Series C funding. WestCap Group led the round, which included contributions by Silver Lake Waterman, WndrCo, Peter Thiel, Streamlined Ventures, JetBlue Technology Ventures and Gopher Asset Management.
Lilac Solutions, a lithium mining technology provider based in Oakland, Calif., Staged the first close of a $ 150 million Series B cycle. Lowercarbon Capital and funds and accounts advised by T. Rowe Price Associates Inc. led the investment, which included participation from Mercuria Energy Trading, Valor Equity Partners, Breakthrough Energy Ventures and The Engine.
Sunday, an Atlanta-based restaurant payment app, raised $ 100 million in Series A funding. Coatue Management led the round, which was attended by partners from DST Global and others.
StreamElements, a Tel Aviv-based provider of engagement and monetization tools for live content and video-on-demand creators, has landed a $ 100 million investment. SoftBank Vision Fund 2 led the funding, which included support from PayPal Ventures, State of Mind Ventures, Pitango and others. In addition to the round, StreamElements named Gil Hirsch as Managing Director, Yuval Tal as COO, Jason Krebs as Commercial Director, Udi Hoffmann as CFO and Doron Nir as President.
Ocrolus Inc., a New York-based digital lending automation platform, has secured $ 80 million Series C financing for a valuation north of $ 500 million. Lead investor Fin Venture Capital was joined by Thomvest Ventures, Mubadala Capital, Oak HC / FT, FinTech Collective, QED Investors, Bullpen Capital, ValueStream Ventures, Laconia, RiverPark Ventures, Invicta Growth, Stage 2 Capital and Cross River Bank in the cycle. Logan Allin from Fin Venture Capital has joined the company’s board of directors.
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September 24, 2021 11:24 am ET (3:24 pm GMT)
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