Term Sheet -- Thursday, April 18
THE FLOODGATES ARE OPEN
The IPO avalanche is here.
Pinterest raised about $1.4 billion in its initial public offering, pricing its shares two dollars above the high end of its targeted range and valuing the company at approximately $12.7 billion. That’s up from Pinterest’s most recent valuation, which was pegged at $12.3 billion. The listing is the second biggest in the U.S. so far this year, after Lyft’s $2.34 billion IPO.
Zoom Video Communications also priced its IPO Wednesday, raising $751 million in this year’s fourth-largest listing so far. Other high-profile companies considering going public include Slack Technologies, Postmates, Palantir Technologies and Airbnb.
My colleague Lucinda Shen lists five things investors should consider as the IPO market keeps rolling. They including ignoring the first day “pop” and keeping an eye on existing competitors.
UBER NEEDS MORE MONEY: The technology required to make autonomous driving a reality takes an enormous amount of capital, and none other than Softbank is up for the challenge. Uber is nearing a deal with a group including SoftBank that would invest in its self-driving car unit at a valuation of $7.25 billion, according to The Wall Street Journal. Softbank, Toyota, and Denso Corp will reportedly invest a total of $1 billion in Uber’s self-driving arm. Read more here.
WORLD’S GREATEST LEADERS: Fortune’s annual World’s Greatest Leaders list is out this morning, and you can find it here. Below are some dealmakers and tech CEOs who made the list:
Softbank CEO Masayoshi Son (No. 12): Son has become a tech kingmaker. He upended venture capitalism in 2016 by launching the $100 billion Vision Fund, and his backing often proves pivotal in battles between rival startups. Son personally vets CEOs of potential portfolio companies and spurs them to scale up dramatically, even if profit is elusive.
Walker & Co. Brands CEO Tristan Walker (No. 19): A common theme links Code2040, a nonprofit that nurtures black and Latinx tech talent, and the eponymous beauty company that Walker launched in 2013. Both engage with the premise that people of color will be the majority in the U.S. in about 20 years (the “2040” in Code2040) and that businesses will miss huge opportunities if they fail to connect with that majority.
Stitch Fix CEO Katrina Lake (No. 23): As CEO of personal styling service Stitch Fix, Lake has quietly changed the game for women in corporate America. In 2017, at 34, she became the youngest female founder ever to take a company public. Stitch Fix’s board and workforce are majority female. And Lake last year set a trailblazing example by taking a substantial parental leave—16 weeks—while serving as a public-company CEO.
Venture Capital for the 99% (No. 33): All Raise, a coalition of women in the VC field, launched last year, gives female founders intensive one-on-one mentoring, while its VC Champions program pairs promising investors with senior partners at established venture firms. Geographical diversity is another hurdle in tech: Steve Case, the AOL founder turned investor, runs Rise of the Rest, a $150 million fund devoted to companies in less heavily saturated markets.
….And the No. 1 spot goes to the power duo consisting of Bill and Melinda Gates. Read Fortune editor Cliff Leaf’s excellent profile here.
THE LATEST FROM FORTUNE…
• This Is the Emotional Quality That the World’s Greatest Leaders All Share (by Geoff Colvin)
• Chef José Andrés Won’t Wait for Permission to Feed the World’s Hungry (by Beth Kowitt)
• How the Congressional Pink Wave Is Changing the Face of Leadership (by Kristen Bellstrom)
• How CEOs Are Making Mental Health a Less Taboo Topic at Work (by Carson Kessler)
VENTURE DEALS
• Luckin Coffee, a China-based coffee shop chain, raised $150 million in Series B-plus funding at a $2.9 billion valuation. Blackrock led the round.
• CloudGenix, a San Jose, Calif.-based provider of a software-defined wide-area network, raised $65 million in funding. Investors include Bain Capital Ventures, Charles River Ventures, Mayfield Fund, Intel Capital and ClearSky.
• Moveworks, a Mountain View, Calif.-based artificial intelligence platform for large enterprises, raised $30 million in Series A funding. Investors include Bain Capital Ventures and Lightspeed Venture Partners.
• Payfone, a New York and Colorado-based digital identity authentication network, raised $24 million in funding. TransUnion led the round, and was joined by investors including Synchrony, MassMutual Ventures and Wellington Management LLP.
• Super, a San Francisco-based subscription service that provides home care and repair, raised $20 million in Series B funding. Aquiline Technology Growth led the round, and was joined by investors including Munich Re Ventures, Liberty Mutual Strategic Ventures, Moderne Ventures, 8VC, QIA and Solon Mack Capital.
• Innovapptive, a Houston-based connected workforce platform for asset intensive industries, raised $16.3 million in Series A funding. Tiger Global Management LLC led the round.
• STORD, an Atlanta-based warehousing and distribution company, raised $12.3 million in Series A funding. Kleiner Perkins led the round, and was joined by investors including Susa Ventures and Dynamo.
• Adverity, an Austria-based data intelligence provider, raised €11 million ($12.4 million) in Series B funding. Felix Capital led the round, and was joined by investors including Sapphire Ventures and the SAP.iO fund.
• Carrot Fertility, a provider of fertility-based health plans to companies, raised $11.5 million in Series A funding. CRV led the round.
• Kangaroo, a home security startup, raised $10.26 million in Series A funding. Greycroft led the round, and was joined by investors including Lerer Hippeau.
• Airbase, a creator of a spend management platform, raised $7 million in Series A funding. First Round Capital led the round.
• PadSplit, a co-living startup, raised $4.6 million in seed funding. Core Innovation Capital led the round, and was joined by investors including Cox Enterprises, Kapor Capital, Techstars Ventures, 1984 Ventures, The Impact Engine, Metaprop, and Enterprise Community Partners.
• Native, a New York City-based on-demand logistics company, raised $2.5 million in funding. Lavrock Ventures led the round, and was joined by investors including Riverbend Capital.
HEALTH AND LIFE SCIENCES DEALS
• Arrakis Therapeutics, a biopharmaceutical company, raised $75 million in Series B funding. venBio Partners and Nextech Invest co-led the round, and was joined by investors including Omega Funds, HBM Healthcare Investments, GV (formerly Google Ventures), WuXi AppTec Venture Fund, Alexandria Venture Investments, Canaan Partners, Advent Life Sciences, Pfizer Ventures, Celgene Corporation, Osage University Partners and the estate of Henri Termeer.
PRIVATE EQUITY DEALS
• Polaris Growth Fund made an investment in Emergency Reporting, a Bellingham, Wash.-based provider of reporting and records management software for fire and EMS agencies. Financial terms weren’t disclosed.
• Stifel Financial Corp. (NYSE: SF) agreed to acquire Mooreland Partners, an independent M&A and private capital advisory firm. Financial terms weren’t disclosed.
OTHER DEALS
• Chrysaor Holdings Limited will acquire ConocoPhillips’ UK oil and gas business for $2.675 billion.
IPOs
• Pinterest, a San Francisco, Calif.-based social ideas board maker, raised $1.4 billion in an offering of 75 million shares priced at $19, the high end of its range. The firm posted revenue of $755.9 million and loss of $63 million in 2018. Bessemer (13.1% pre-offering), FirstMark (9.8%), and a16z (9.6%) back the firm. Goldman Sachs, J.P. Morgan, Allen & Company, BofA Merrill Lynch, Barclays, Citi, Credit Suisse, Deutsche Bank and RBC Capital Markets are underwriters. It plans to list on the NYSE as “PINS.” Read more
• Shenwan Hongyuan Group, a Chinese securities firm, raised $1.16 billion in a Hong Kong IPO that is Asia’s largest listing this year, Reuters reports citing sources. ICBC Asset Management Scheme Nominee, Huaxia Life Insurance, China Life Insurance, China Reinsurance Corp, and New China Life Insurance back the firm. Read more.
• Hookipa Pharma, a New York-based Phase 2 biotech, raised $84 million in an downsized offering of 6 million shares priced at the low end of its range, $14. Baker Bros, Sofinnova Capital, and Forbion Capital back the firm. BofA Merrill Lynch, SVB Leerink and RBC Capital Markets are underwriters. It plans to list on the Nasdaq as “HOOK.” Read more.
• Zoom Video Communications, a San Jose, Calif.-based video conferencing system,raised $752 million in an offering of 20.9 million priced at $36, avoce its range. It posted revenue of $330.5 million in the year ending 2019 and income of $7.6 million. Emergence Capital, Sequoia, and Li Ka-shing back the firm. Morgan Stanley, J.P. Morgan, Goldman Sachs, and Credit Suisse are underwriters. Read more.
• Palomar Holdings, a La Jolle, Calif.-based specialty property insurance provider focused of floods, earthquakes, and wind damage, raised $85 million in an offering of 5.6 million shares priced at $15, the low end of its range. Genstar Capital backs the firm. Barclays, J.P. Morgan and Keefe Bruyette Woods are underwriters. It plans to list on the Nasdaq as “PLMR.” Read more.
• Brigham Minerals, an Austin-based oil and gas firm, raised $261 million in an IPO of 14.5 million shares priced at $18. Warburg Pincus backs the firm. Credit Suisse and Goldman Sachs are underwriters.It plans to list on the NYSE as “MNRL.” Read more.
• Life360, a U.S. location tracking app, launched a $104 million IPO in Australia, Reuters reports. Read more.
EXITS
• Mastercard acquired Vyze, an Austin-based company that connects merchants with lenders to offer customers credit options online and in-store. Financial terms weren’t disclosed. Vyze had raised approximately $47 million in venture funding from investors including Austin Ventures and Starvest Partners.
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Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here.
