Sourcery (10/17-10/21)
2 Years! ~ Enable, Banyan, Vanta, Northstar, Mercantile, Credit Key, Astra, Viome, Prenuvo, SubjectWell, Adonis, Cofertility, Upkeep, Jasper, Stability AI, Landis, Ambi Robotics, Trendsi, GlobalFair..
2 Years!
140 Sourceries later and we’ve hit our 2 year anniversary!
Time flies by fast. Thank you to you all who keep reading and subscribing!
With a relatively good estimate, that’s over 9K deals that I’ve single-handedly picked out for all of the newsletters. Yes, I manually do this every single week. It takes about 5-7 hours to sort, aggregate and write up. No easy feat. Why do I do it? Because I learn a lot from it, I’ve met so many great individuals, and I enjoy sharing that with other people to make their jobs in sales, venture, founding companies, engineering, business development, + more, a little bit easier and a little more engaging with what’s cooking in tech.
Over time, we’ve moved from market trend to market trend, from embedded fintech to creator economy to SPACs to web3 to generative AI. As well as, from what seemed like a reasonable amount of available funding capital, to zero, to an infinite amount of capital, back to zero. Ah… the joys of market cycles.
Please continue to reach out, to give feedback and to make suggestions. If you want to support Sourcery, the best way to do so is to share the newsletter with a friend or two, and if you have a Substack newsletter, add Sourcery to your recommendations!
Listenings
E101: Ye acquires Parler, Snap drops 30%, macro outlook, VC metrics, valuing stocks & more, All-in Podcast
Why 75% of Active Investors Will Disappear in the Next Few Years, The Death of “So So” Venture Firms is Coming, The Rise of Blackstone of Venture Firms and What That Does To Venture Returns, How the World of LPs is Broken and more with Kyle Harrison, General Partner @ Contrary, 20VC
Dave Finocchio of The Cool Down on Building Enduring Media Companies, Howard Lindzon of Panic with Friends
Altimeter’s Brad Gerstner on Why Supercycles and the Powerlaw is the Most Important Thing In Investing, Why Portfolio Diversification is the Opposite of Risk Mitigation and The #1 Question Brad Asks All New Recruits, 20VC
Deal Selection with Keith Rabois, Lunch Pail VC
And to all of those at Money 2020 this week in Vegas, good luck.
. . .
Last Week (10/17-10/21):
Relevant deals include the 60+ deals across stages below.
I've categorized the deals below into four categories, Fintech, Care, Enterprise & Consumer, and Sustainability, and ordered from later-stage rounds to early-stage rounds. Highlighted deals include Enable, Banyan, Vanta, Northstar, Mercantile, Credit Key, Astra, Viome, Prenuvo, SubjectWell, Adonis, Cofertility, Upkeep, Jasper, Stability AI, Landis, Ambi Robotics, Trendsi, GlobalFair, Kubiya, Relevize, StoryFit, ByteBrew, MycoWorks, Hoxton Farms, Freebee, Lithos, GreenPlaces; Ping Identity, Parler, OpenAP, Albertsons, Avalara, Nutanix; Mobileye
Final numbers on US IPO Proceeds at the bottom.
Deals
Sources: TS, Pro Rata, FinSMEs, Pitchbook, StrictlyVC
Fintech:
- Enable, a San Francisco-based collaborative rebate management platform, raised $94 million in Series C funding. Insight Partners led the round and was joined by investors including Lightspeed Venture Partners, HarbourVest Partners, SE Ventures, PSP Growth, Norwest Venture Partners, Menlo Ventures, Telstra Ventures, and others.
- Banyan, a New York-based network for SKU data, raised $43 million in Series A funding co-led by Fin Capital and M13.
- Vanta, a San Francisco-based compliance and software automation security company, raised $40 million in Series B extension funding. CrowdStrike and others invested in the round.
- Northstar, a remote-based financial wellness benefit platform for employees, raised $24.4 million in funding. GGV Capital led the round and was joined by investors including PayPal Ventures, Thomson Reuters Ventures, Canvas Ventures, M13, Workday Ventures, Parade Ventures, Foundation Capital, Designer Fund, and RRE.
- Mercantile, a New York-based provider of industry-specific credit cards, raised $15m in Series A funding. Index Ventures led, and was joined by First Round Capital, General Catalyst, SV Angel, Operator Partners and Box Group. https://axios.link/3VrvvUu
- Credit Key, an LA-based B2B BPNL startup, raised $15m in equity funding from insiders RedBird Capital, Bonfire Ventures, and Greycroft, per Axios Pro. It also secured a $150m credit facility from Fortress Investment Group. https://axios.link/3TeRVXI
- Fabric Systems, an energy-efficient Bitcoin mining hardware startup, raised $13m in seed funding from Metaplanet, Blockchain.com and 8090 Partners. https://axios.link/3yG2meK
- Astra, an SF-based instant settlement startup, raised $10m in Series A funding. FPV Ventures led, and was joined by Slow Ventures and Allegis Capital. It also secured a $30m line of credit from CoVenture. www.astra.finance
- Kudos, a credit card browser extension, raised $7m in seed funding. Patron led, and was joined by QED Investors, SciFi VC, SV Angel, Precursor Ventures, Newtype Ventures and Chingona Ventures. https://axios.link/3gp1NiR
- Spindl, a Miami-based web3 attribution management startup, raised $7m co-led by Dragonfly and Chapter One. https://axios.link/3VL0uu
- Bookkeep, a New York-based accounting automation platform, raised $6.6 million in seed+ funding. Fin Capital led the round and was joined by investors including TTV Capital, Argonautic Ventures, Lerer Hippeau, Haymaker Ventures, and others.
- Maplerad, an Africa-focused banking-as-a-service startup, raised $6m in seed funding led by Valar Ventures at a $30m valuation. https://axios.link/3T9CqjH
- OTONOMI, a Brooklyn, New York-based parametric cargo-focused insurtech, raised $3.4 million in seed funding. ATX Ventures led the round and was joined by investors including GSR Ventures, Greenlight Re Innovations, Punja Global Ventures, Altari Ventures, SoundBoard Venture Fund, Blackhorn Ventures, Bering Waters Ventures, REFASHIOND Ventures, and other angels.
- Bags, a loan marketplace focused on underrepresented businesses, raised $3 million in seed funding. Slauson & Co. led, and was joined by Connecticut Innovations and the Schultz Family Foundation. https://axios.link/3yOe5b9
- LuckyTruck, a remote-based trucking insurance provider, raised $2.4 million in seed extension funding. Candid Insurance Investors led the round and was joined by investors including Markd’s Parker Beauchamp, Draper University Ventures, and SiriusPoint.
- Super Advisor, a Toronto, Canada-based digital platform developer for financial advisors, raised CAD $2 million ($1.45 million) led by Rhino Ventures.
. . .
Care:
- Viome Life Sciences, a Bellevue, Wash.-based digital health company, raised $67 million in Series C extension funding led by Bold Capital Group.
- Prenuvo, a Redwood City, Calif.-based radiation-free, whole body imaging company for early detection of cancer and other diseases, raised $40 million in Series A funding. Felicis Ventures led the round and was joined by investors including Nest founder Tony Fadell, Dr. Timothy A. Springer, 23&Me CEO Anne Wojcicki, and other angels.
- SubjectWell, an Austin, Texas-based clinical trial matching platform for patients with chronic health conditions, raised $40m in new funding. Asset Management Ventures led, and was joined by Bertlesmann. www.subjectwell.com
- Eyenuk, Woodland Hills, Calif.-based artificial intelligence digital health company, raised $26 million in Series A funding. AXA IM Alts led the round and was joined by investors including T&W Medical A/S, A&C Foelsgaard Alternativer ApS, Kendall Capital Partners, and KOFA Healthcare.
- Engaged MD, a Washington D.C.-based eLearn and eSign solutions provider for the fertility sector, raised $11 million in funding led by MonCap.
- Axoft, a Boston-based neurotechnology company, raised $8 million in seed funding. The Engine led the round and was joined by investors including Ab Initio Capital, Decent Capital, Alumni Ventures, Safar Partners, AIBasis, LiquidMetal VC, Taihill Venture, AMINO Capital, Blindspot Ventures, and Mintz.
- Adonis, a New York-based medical billing startup, raised $5.6m in seed funding. Bling Capital led, and was joined by Max Ventures, Homebrew, Soma Capital and Coalition Operators. https://axios.link/3yOFSs3
- Cofertility, a Los Angeles-based egg donation, freezing, and donor matching company, raised $5 million in seed funding. Initialized Capital and Offline Ventures co-led the round and were joined by investors including Coalition Partners, Muse Capital, Arkitekt Ventures, and other angels.
- Noala, a London, U.K.-based speech and language therapy platform, raised $4 million in seed funding. LocalGlobe led the round and was joined by investors including Cocoa Ventures and other angels.
- Liine, a Raleigh, N.C.-based provider of CRM and workflow automation software for health care practices, raised $3m in a round led by Eastside Partners. https://axios.link/3MEPwD0
- Upkeep, a Los Angeles-based MedSpa treatments booking and payments platform, raised $2 million in seed funding. The Anthemis Female Innovators Lab Fund and 1517 Fund co-led the round.
. . .
Enterprise & Consumer:
- Jasper, an Austin-based A.I. content platform, raised $125 million in Series A funding. Insight Partners led the round and was joined by investors including Coatue, Bessemer Venture Partners, IVP, Foundation Capital, Founders Circle Capital, HubSpot Ventures, and others.
- Stability AI, a London, U.K.-based open-source A.I. startup, raised $101 million in seed funding co-led by Coatue Management and Lightspeed Venture Partners.
- Holidu, a Munich-based vacation rental company, raised €75m in Series E funding (plus €25m in debt). 83North led, and was joined by Northzone, HV Capital, Vintage Investment Partners, Commonfund Capital and insiders Prime Ventures, EQT Ventures, Coparion, Senovo, Lios Ventures and Possible Ventures.
- Ten Thousand Coffees, a Toronto, Canada-based talent experience platform, raised $56 million in funding from Five Elms Capital.
- Landis, a New York-based renting platform, raised $40 million in Series B funding. Google Ventures led the round and was joined by investors including Sequoia Capital, Arrive, Second Century Ventures, Operator Partners, Signia Ventures, and Team Builder Ventures.
- RisingWave Labs, a San Francisco-based streaming database company, raised $36 million in funding led by Yunqi Partners.
- Ambi Robotics, a Berkeley, Calif.-based developer of supply chain automation hardware, raised $32m. Tiger Global and Bow Capital co-led and were joined by Ahren and Pitney Bowes. https://axios.link/3SfSkbe
- Shibumi, a Norwalk, Conn.-based portfolio management software provider for enterprise customers, raised $30 million in funding from Guidepost Growth Equity.
- Trendsi, a San Gabriel Valley, Calif.-based startup that connects e-commerce sellers with suppliers, raised $25m in Series A funding. Lightspeed Venture Partners led, and was joined by Basis Set Ventures, Footwork VC, Peterson Ventures and Sierra Ventures. https://axios.link/3Tv075L
- Tellius, a Reston, Va.-based decision intelligence platform, raised $16 million in Series B funding. Baird Capital led the round and was joined by investors including Sands Capital Ventures, Grotech Ventures, and Veraz Investments.
- Bolster, a Los Altos, Calif.-based automated digital risk protection startup, raised $15m from Cervin, Liberty Global, Cheyenne Ventures and insiders Thomvest Ventures and Crosslink Capital. www.bilster.ai
- GlobalFair, a San Mateo, Calif.-based construction materials procurement platform, raised $12m in Series A funding (plus $8m in debt). Lightspeed Venture Partners led, and was joined by Saama Capital, India Quotient, AUM Ventures and Stride Ventures. https://axios.link/3ThA6Y9
- Voilà!, a Longueuil, Canada-based cloud platform, raised $13.75 million CAD ($10 million) in Series A funding. Walter Ventures led the round and was joined by investors including Desjardins Capital and Investissement Quebec.
- OutThink, a London, U.K.-based cybersecurity human risk management platform, raised $10 million in seed funding. AlbionVC led the round and was joined by investors including TriplePoint Capital, Forward Partners, Gapminder, and Innovate UK.
- Kubiya, a Palo Alto, Calif.-based conversational A.I. solution for DevOps teams, raised $6 million in seed funding led by Hyperwise Ventures.
- Relevize, a Boston-based channel activation company, raised $6 million in seed funding. Insight Partners led the round and was joined by investors including Hyperplane, Newfund, 1984.vc, and Weekend Fund.
- StoryFit, an Austin-based machine learning and audience insights provider for the entertainment industry, raised $5.5 million in Series A funding. Refinery Ventures led the round and was joined by investors including Techstars, Elkstone Partners, Collective Capital Ventures, Alumni Ventures, and others.
- Magic Games, an Istanbul, Turkey-based mobile games studio, raised $5 million in seed funding. Makers Fund led the round and was joined by investors including Firat Ileri and Hummingbird Ventures.
- ByteBrew, a San Diego-based mobile game analytics platform, raised $4m in seed funding led by Konvoy. www.bytebrew.io
- Aryeo, a Boston-based operating system for real estate photographers, raised $3.5 million in funding. 645 Ventures led the round and was joined by Hyperplane VC.
- Netmaker, an Asheville, N.C.-based cloud networking startup, raised $2.3 million in funding co-led by Lytical Ventures, Uncorrelated VC, and SaxeCap.
. . .
Sustainability:
- GM Ventures invested in MycoWorks, an developer of fungi-based biomaterials that can substitute for leather, as part of a strategic partnership. MycoWorks previously raised nearly $200m. https://axios.link/3S7jwc0
- Hoxton Farms, a London, U.K.-based company growing animal fat without animals, raised $22 million in Series A funding. Collaborative Fund and Fine Structure Ventures co-led the round and were joined by investors including Systemiq Capital, AgFunder, MCJ Collective, Founders Fund, BACKED VC, Presight Capital, CPT Capital, and Sustainable Food Ventures.
- Freebee, a Florida-based owner and operator of a public transit EV fleet, raised $8m in Series A funding led by BP Ventures. https://axios.link/3eMe6p9
- Lithos, a Seattle-based agricultural carbon removal company, raised $6.29 million in seed funding. Union Square Ventures and Greylock led the round and were joined by investors including Bain Capital Ventures, Carbon Removal Partners, Carbon Drawdown Initiative, Fall Line Capital, and Cavallo Ventures.
- GreenPlaces, a Raleigh, N.C.-based climate platform, raised $4 million in seed funding. Felicis led the round and was joined by investors including Bull City Venture Partners and other angels.
Acquisitions & PE:
- Thoma Bravo acquired Ping Identity, a Denver-based intelligent identity solution for enterprise, from Vista Equity Partners for approximately $2.8 billion.
- Ye, formerly known as Kanye West, agreed to acquire Parler, a Nashville-based social media platform. Financial terms were not disclosed.
- Snowflake (NYSE: SNOW) bought a 5% stake in OpenAP, a New York-based ad tech company. https://axios.link/3yMdI0M
- Kroger agreed to acquire Albertsons, a Boise, Idaho-based grocery company, for $24.6 billion.
- DexCare acquired Womp, a Bellingham, Wash.-based e-commerce and online merchandising technology company. Financial terms were not disclosed.
- JETNET agreed to acquire Asset Insight, a Sandwich, Ill.-based aviation-focused valuation firm. Financial terms were not disclosed.
- Verseon International Corporation acquired Edammo, an Iowa City, Iowa-based A.I. platform for the medicine and life sciences industry. Financial terms were not disclosed.
- Vista Equity Partners acquired Avalara, a Seattle-based tax-management software provider, for $8.4 billion.
- New York Sports Club acquired Fhitting Room, a New York-based boutique fitness brand. Financial terms were not disclosed.
- Natura & Co., a Brazilian cosmetics maker, is considering a sale process for its Aesop brand, following a stock plunge, per Bloomberg. https://axios.link/3yUuuuB
- Nutanix (Nasdaq: NTNX), a San Jose, Calif.-based enterprise cloud computing company, is exploring a sale after receiving takeover interest, per the WSJ. The news sent the company's market cap near $6b. https://axios.link/3TtA52M
- Thirty Five Ventures, the firm run by Kevin Durant and Rich Kleiman, has purchased a Major League Pickleball expansion team. Call me a curmudgeon, but I really preferred "classic MLP," before the talent pool got diluted by expansion.
. . .
IPOs:
- Mobileye, the Intel-owned maker of computer vision products for driver assistance and self-driving, set IPO terms to 41m shares being offered at $19–$20. It would have a $15.4b fully diluted market value, were it to price in the middle of its range, which is well below the $30b floated recently in a Bloomberg report. The company plans to trade on the Nasdaq (MBLY) and will raise an additional $100m via a concurrent private placement to General Atlantic.
. . .
SPACs:
- flyExclusive, a Kinston, N.C.-based private jet charter experience provider, agreed to go public via a merger with EG Acquisition Corp., a SPAC. A deal is valued at $600 million.
Funds:
- Ares Management raised $7.1b for its second special opportunities fund, which will make non-control equity and public and private market debt investments. www.aresmgmt.com
- Steve and Connie Ballmer have launched a $400m fund-of-funds focused on Black venture capital and private equity managers. https://axios.link/3Sgcemq
- Propeller, an ocean-focused climate tech VC firm, raised $100m for its debut fund. It’s led by Brian Halligan, co-founder and exec chairman of HubSpot. https://axios.link/3SjqbQv
- Operator Collective, a San Francisco-based venture fund, raised $92 million for a fund focused on investing in early stage enterprise and B2B tech companies.
Final Numbers: U.S. IPO proceeds
Source: Renaissance Capital. Data through 10/20/22, and excludes SPAC IPO proceeds.
The material presented on Molly O’Shea’s website are my opinions only and are provided for informational purposes and should not be construed as investment advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy, or investment product. Any analysis or discussion of investments, sectors or the market generally are based on current information, including from public sources, that I consider reliable, but I do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. My views and opinions expressed in any website content are current at the time of publication and are subject to change. Past performance is not indicative of future results.
Congrats Molly. This is a wonderful accomplishment. It just shows all your hard work and perseverance has paid off. You deserve all of your success. Keep up the great work. This is such a great source of information in the tech space.