YOUNG & INFLUENTIAL
Good morning, Term Sheet readers.
40 UNDER 40: Coins2Day released its annual 40 under 40 list of the most influential young people in business this morning. Instagram’s Kevin Systrom topped the list; Mark Zuckerberg is No. 2; and Lyft’s Logan Green and John Zimmer are sharing spot No. 3.
Two investors made the list — Female Founders Fund founding partner Anu Duggal as well as Backstage Capital founder Arlan Hamilton. Here’s a little more info:
Duggal launched Female Founders Fund in 2014 as a seed-stage venture fund to invest in female-led technology companies. After 700 investor meetings, she raised $5 million, which she invested in companies like Thrive Global, Zola, and Maven. By 2018, times had changed, and in May, Duggal closed $27 million for her second early-stage fund, with a roster of limited partners including Melinda Gates and Katrina Lake. Read Term Sheet’s Q&A with her here.
Hamilton was living out of a hotel room she shared with her mother four years ago. Today, she’s a VC who has deployed some $4 million across 100 companies led by underrepresented founders through her venture firm. She’s also raising an added $36 million to invest exclusively in startups founded by black female entrepreneurs. (She’s calling it the “It’s about damn time fund.”) Hamilton aims to close the funding gap for women of color, who receive only 0.2% of total VC dollars. Read Term Sheet’s Q&A with her here.
THE END IS NEAR: My colleague Geoff Colvin wrote a feature titled, “The End is Near For the Economic Boom.” Growth will slow, and the bull market will expire, he says. Here’s an excerpt:
“Frothy stocks, economic indicators pointing down, financial stability flashing red, trade war, and more—it’s a lot to worry about. It doesn’t necessarily mean calamity is just ahead. For all we know, stocks could resume rising or even “melt up,” as Grantham says. The economy may well grow impressively this year. But we don’t have to look much further out to get more nervous. No one except the Council of Economic Advisers seems to think GDP can grow at 3% over the long term, and if the recent stimulus turbocharges growth, it does so at a price that will have to be paid afterward. The economic cycle hasn’t been abolished; all evidence says we’re in the latter stages of one. And we had better be ready for the next recession, because when it arrives, economists will not have predicted it.” Read more.
BIRD EXIT: Well, a different type of exit. Paige Craig, the former general partner at Arena Ventures, has stepped down as head of U.S. City operations at Bird, according to Axios.
But first, here’s a quick timeline:
In January, Craig said he would pause seed investing "until the seed market corrects." He sent out a private letter to LPs laying out concerns about the seed market — overvalued seed companies, excessive capital supply, and imbalanced market forces.
In March, Craig halted all seed investing through the fund and joined electric scooter company Bird as its head of U.S. City operations. (As an aside, Bird is actually a beautiful example of this “seed market is too hot” trend — a company that raised $3 million in seed funding last June, $15 million in Series A in February, $100 million in Series B in March, and another $300 million in Series C in June. And, in less than a year, it’s worth about $2 billion.)
Today, four months after joining, Craig is stepping down from the fast-growing startup … to go back to investing? He told Axios that he’s “better suited investing and advising companies.” Craig added, “I’m spending my time helping one or two later-stage companies scale and fundraise." ¯_(ツ)_/¯
THE LATEST FROM FORTUNE...
• Where to Invest When the Bull Market Ends (By Matthew Heimer)
• Tech Has Opportunity in Europe's Silicon Union, Industry Insiders Say (by Clay Chandler)
• Match Group CEO: Facebook Is No Threat to Us (by Ellen McGirt)
• Why AI Needs to Be Audited Before We Have Self-Driving Cars (by Jonathan Vanian)
VENTURE DEALS
• Light, a San Francisco-based developer of computational imaging technology, raised $121 million in Series D funding. SoftBank led the round, and was joined by investors including Leica Camera AG.
• BookMyShow, an India-based online ticketing service for cinemas, theatres and sports, raised $100 million in Series D funding. The investors were not named.
• Centivo, a New York-based type of self-funded health plan, raised $34 million in Series A funding. Bain Capital Ventures led the round, and was joined by investors including F-Prime Capital Partners, Maverick Ventures, Bessemer Venture Partners, Ingleside Investors, Rand Capital, Grand Central Tech Ventures and Oxeon Investments.
• Seeq Corp, a Seattle-based provider of industrial internet of things advanced analytics software, raised $23 million in Series B funding. Altira Group led the round, and was joined by investors including Chevron Technology Ventures, next47, and Second Avenue Partners.
• Openpath, a Los Angeles-based provider of secure access systems for the modern office, raised $20 million in Series B funding. Emergence Capital led the round.
• Reali, a San Mateo, Calif.-based real estate app, raised $20 million in Series B funding. Zeev Ventures led the round, and was joined by investors including Signia Venture Partners.
• K Health, a New York-based primary care app, raised $12.5 million in funding. Investors icnlude Mangrove Capital Partners, Lerer Hippeau, Primary Venture Partners, BoxGroup, Max Ventures, Bessemer Venture Partners and Comcast Ventures.
• Swim.ai, a San Jose, Calif.-based edge intelligence software firm, raised $11 million in Series B funding. Cambridge Innovation Capital led the round.
• Fattmerchant, an Orlando, Fla.-based payment technology provider, raised $10.5 million in Series C funding . Fulcrum Equity Partners led the round.
• Swivel, a San Francisco-based online service where companies can find and design their own plug-and-play workspace, raised $4.75 million in seed funding. First Round Capital led the round, and was joined by investors including Fuel Capital, Correlation Ventures, Great Oaks Venture Capital, Hack VC, Capital Factory, Abstract Ventures, Floodgate and Next Coast Ventures.
• Kenzie Academy, an Indianapolis-based apprenticeship program that develops modern tech workers, raised $4.2 million seed funding. ReThink Education led the round.
• The Ken, an India-based business news site, raised $1.5 million in Series A funding. Omidyar Network led the round.
PRIVATE EQUITY DEALS
• Gridiron Capital LLC acquired a controlling stake in The Service Companies Inc, a Miami-based provider of services such as housekeeping, public and casino area cleaning, kitchen cleaning. Financial terms weren’t disclosed.
• WindRose Health Investors recapitalized basys, a Baltimore-based provider of benefits administration technology. Financial terms weren't disclosed.
IPOs
• China Tower, a Beijing-based mobile infrastructure firm, plans to raise up to $8.8 billion in an IPO in Hong Kong, Reuters reports citing sources. Read more.
• HDFC Asset Management, an Indian mutual fund manager, will seek an IPO in the country raising as much as $409.1 million. Read more.
• Continental AG, a German auto supplier, plans to list its Powertrain unit as early as mid-2019, Reuters reports. Read more.
• Jam City, a Culver City, Calif.-based gaming company, may seek an IPO valuing the company at around $1 billion, the Wall Street Journal reports citing sources. Read more.
• Allakos, a San Carlos, Calif.-based allergy antibodies developer, raised $128 million in an offering of 7.1 million shares priced at $18, an upsized IPO above its $15 to $17 range (27% insider). It has yet to post a revenue. Alta Partners (33.6% pre-offering), RiverVest Venture (21.7%), and Roche Finance (13.8%) back the firm. Goldman Sachs and Jefferies are the joint bookrunners on the deal. It plans to list on the Nasdaq as “ALLK.” Read more.
• Constellation Pharmaceuticals, a Cambridge, Mass.-based epigenetics cancer therapies maker, raised $60 million in an offering 4 million shares priced at $15, a downsized IPO in the middle of its $14 to $16 range. It has yet to post a revenue. Ponoi Capital (21.7% pre-offering), Third Rock Ventures (12.7%), and Venrock (11.1%) back the firm. J.P. Morgan, Jefferies and BMO Capital Markets are underwriters. It plans to list on the Nasdaq as “CNST.” Read more.
• Establishment Labs Holdings, a Costa Rica-based breast implant maker, raised $67 million in an offering of 3.7 million priced at $18, an upsized IPO above its $15 to $17 range. The firm booked revenue of $34.7 million in 2017. Jefferies and Cowen are the joint bookrunners on the deal.Jefferies and Cowen are underwriters. It plans to list on the Nasdaq as “ESTA.” Read more.
EXITS
• H.I.G. Capital sold Kondor, a U.K.-based provider of audio and mobile accessory products, to DCC Technology. Financial terms weren't disclosed.
FIRMS + FUNDS
• Insight Venture Partners, a New York-based private equity and venture capital firm, raised $6.3 billion for its Fund X.
• PPC Partners, a Chicago, Ill.-based private equity firm, raised $1.8 billion for PPC Fund II.
• Perry Creek Capital, a New York-based private equity firm, raised more than $604 million for its second fund.
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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.
