SO LONG, SNAP
Good morning, Term Sheet readers.
Something is going on at Snap. Snap’s head of strategy Imran Khan is leaving the company to “pursue other opportunities,” according to an SEC filing. He is reportedly leaving to form his own investment firm that will back tech companies.
Khan became Snap’s chief strategy officer in 2015. He was one of the highest paid Snap executives and was instrumental in taking the company public last March. At the time of joining, Khan received stock worth about $145 million, according to Reuters.
Somehow, this company has perfected the “nothing to see here” narrative in the media about its high-level executive departures. As Bloomberg’s Sarah Frier noted, since the IPO, Snap has lost or replaced its chief strategy officer, chief financial officer, head of product, head of engineering, chief counsel, head of sales, and head of hardware. In other words, Khan was one of the last remaining executives from the management team that took the company public.
The filing said, “Mr. Khan has confirmed that this transition is not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, or practices (financial or otherwise).” In his exit memo to employees, Khan leaves a spectacularly glowing review of Snap, calling it “an amazing company” and that he is “forever grateful” to Spiegel for “his trust & friendship.”
The company’s financial reality is not as bright. Khan’s departure comes at a time when Snap’s stock hit an all-time low following an unpopular redesign, declining daily usage, and an inability to turn a profit. Just last month, Bloombergpublished a bizarre profile on Spiegel. After receiving complaints about his dictatorial management style and penchant for secrecy, Spiegel hired a management coach and began holding New Age corporate retreats.
Now, we sit and wait to see who Spiegel hires to replace his long-time No. 2.
STELLAR ACQUISITION: The for-profit subsidiary of the Stellar Development Foundation has purchased Chain, a venture-backed blockchain startup. Chain, had raised more than $40 million from investors including Visa, Nasdaq, and Citi Ventures. Talks of this deal have been ongoing for a very long time, and Coins2Day first reported on it in June.
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...AND ELSEWHERE
Alibaba’s Daniel Zhang to succeed Jack Ma as chairman next year. Amazon’s antitrust antagonist has a breakthrough idea. Riot Blockchain names new leaders as previous boss faces fraud charges. The biggest M&A boom in India’s history is underway. Inside the fall of Abraaj Group. Coinbase plots to become the New York Stock Exchange of crypto securities.
VENTURE DEALS
•GreyOrange, a Singapore-based maker of advanced robotics systems for automation in distribution and fulfillment centers, raised $140 million in Series C funding. Mithril Capital led the round, and was joined by investors including Blume Ventures.
•PagerDuty, a San Francisco-based digital operations management platform, raised $90 million in Series D funding. The investors were T. Rowe Price Associates Inc, Wellington Management, Accel, Andreessen Horowitz and Bessemer Venture Partners.
•Evaneos, a France-based operator of an online platform that connects travelers and local agencies, raised €70 million ($81 million) in funding. Partech led the round, and was joined by investors including Level Equity, Quadrille Capital, XAnge, Serena Capital and Bpifrance.
•MasterClass, a San Francisco-based website that features celebrity-taught classes, raised $80 million in Series D funding. IVP led the round, and was joined by investors including Javelin Ventures, NEA, Advancit Capital, Atomico and Evolution Media.
•Sonatype, a Fulton, Md.-based provider of automated open source governance, raised $80 million in funding. TPG led the round, and was joined by investors including Accel, Goldman Sachs Group and Hummer Winblad.
•Clarify Health Solutions, Inc, a San Francisco-based developer of real-time care guidance technology, raised $57 million in Series B funding. KKR led the round.
•Spyce, a Boston-based restaurant featuring a robotic kitchen that cooks meals to order, raised $21 million Series A funding. Collaborative Fund and Maveron co-led the round, and were joined by investors including Khosla Ventures.
•ParkWhiz, a Chicago-based parking app, raised $20 million in funding. NewSpring led the round, and was joined by investors including Baird Capital, Jump Capital and Beringea.
•Ordermark, a Los Angeles-based provider of online ordering management solutions for restaurants, raised $9.5 million in Series A funding. Nosara Capital led the round, and was joined by investors including Vertical Venture Partners, Techstars Ventures, Riverpark Ventures, Matchstick Ventures, TenOneTen, Mucker Capital, Act One Ventures and AARD Capital.
•SkyX, a Canada-based developer of autonomous vehicles for asset monitoring and data collection, raised $9.5 million in a Series B funding. Almond Tree Enterprise led the round.
•Pani, an Austin, Texas-based smart home internet of things company, raised $1 million in seed funding. Blake Chandlee led the round.
HEALTH AND LIFE SCIENCES DEALS
•Scipher Medicine, a Waltham, Massachusetts-based developer of a molecular technology platform, raised a total of $10 million in funding. Khosla Ventures led the latest round.
PRIVATE EQUITY DEALS
•IF&P Foods LLC, a portfolio company of Rotunda Capital Partners, acquired Cibus Fresh, an Indiana-based food service company. Financial terms weren't disclosed.
•Summa Equity acquired HyTest, a Finland-based antibody manufacturer. Financial terms weren't disclosed.
•JMC Capital Partners acquired Phoenix Products, a Milwaukee-based maker of rugged industrial lighting products. Financial terms weren't disclosed.
IPOs
•Meituan Dianping, the Chinese online food delivery platform, filed for a $4.4 billion IPO in Hong Kong. Read more.
•Haidilao International Holdings, a Chinese hot pot chain, filed for an IPO to raise between $801 million to $963 million in Hong Kong. Read more.
•Kodiak Sciences, a Palo Alto, Calif.-based Phase 1 biotech developing treatments for macular degeneration, filed for a $100 million IPO. Baker Bros backs the firm. Morgan Stanley and BofA Merrill Lynch are underwriters. It plans to list on the Nasdaq as “KOD.” Read more.
•EQT Partners, the Swedish private equity firm, is reportedly weighing an IPO, Bloomberg reports citing sources. Read more.
EXITS
•Boston Scientific agreed to acquire Augmenix, a Waltham, Mass.-based developer of radiation oncology products to treat prostate cancer. The deal includes $500 million in cash, and up to $100 million based on milestones. Augmenix, previously known as SpaceOAR, had raised approximately $42.9 million in funding from investors including Excelestar Ventures, Ascension Health Ventures, Catalyst Health Ventures, Pinnacle Ventures and the Sparta Group.
•Vista Equity Partners acquired Alegeus, a Waltham, Mass.-based consumer-directed healthcare payment and processing firm, from Lightyear Capital. Financial terms weren't disclosed.
•The Carlyle Group acquired a significant minority stake in Ambio Holdings, Inc, a peptide active pharmaceutical ingredient contract development and manufacturing organization, from MVM Partners. Financial terms weren't disclosed.
FIRMS + FUNDS
•JTS Capital, a Waco, Texas-based investment firm, raised more than $70 million for its third fund, according to an SEC filing. The target is $150 million.
PEOPLE
•Andrew Felbinger joined the Urban Innovation Fund as an associate.
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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.