Term Sheet — Tuesday, May 21

DEBUT DEAL

Mary Meeker has made her first investment out of Bond Capital, the new firm she launched after spinning out of Kleiner Perkins last year.

Bond, which has raised $1.25 billion, participated in the $70 million funding round of online design platform Canva. The deal values the Australia-based company at $2.5 billion. Other investors in the round include General Catalyst, Felicis Ventures, and Blackbird Capital.

The funding announcement made me pause. When I was reporting the Kleiner Perkins story, I understood that Meeker was required to finish deploying the capital out of Kleiner Perkins’ third digital growth fund before making investments out of Bond. My question this morning was, “How is Meeker investing out of two active funds? Isn't that a conflict?”

Sources tell me that Meeker and her team had allocated and committed all of the remaining capital from Kleiner’s third growth vehicle before making the Canva investment out of Bond. Some of the investments made out of the Kleiner fund haven’t yet been publicly announced.

“The Canva team are building their platform around three trends – content, community and commerce – that we’ve been observing in some of the world’s fastest growing companies,” Meeker said in a news release. “With its global user base of more than 15 million monthly active users, Canva is a clear leader providing a platform that empowers users to create compelling, data-rich visuals and gain design fluency through collaboration and feedback."

Like I mentioned in the story, Meeker and her team continue to share office space with Kleiner Perkins in San Francisco’s South Park neighborhood as well as in Kleiner’s longtime complex on Sand Hill Road in Menlo Park.

A spokesperson for Bond Capital declined to comment.

Read on Coins2Day.com.

NEW FUND ALERT: My colleague Lucinda Shen has the latest on Al Gore’s sustainable investment firm. She reports:

Al Gore’s $22 billion sustainable investment firm is raising its largest growth equity fund yet.

Generation Investment Management raised $1 billion from existing and new investors in its third IM Sustainable Solutions Fund, focused not only on on Gore’s modus operandi—climate change—but also on lowering healthcare costs, boosting financial inclusion, as well as workplace diversity.

That comes as the impact investing market has grown to $502 billion in assets under management as of 2018, according to the Global Impact Investing Network (a previous paper with a smaller survey group estimated that figure was $228 billion in mid-2018 compared to $114 billion a year earlier).

Generation has ramped up the sustainable gunpowder with its third growth equity fund. The firm had raised $680 million for its debut fund and $520 million for its second vehicle — making investments in companies such as Docusign (electronic paperwork to cut down on, well, cutting trees), electric scooter maker Gogoro (to cut down on diesel engines), and house-goods maker, Seventh Generation (to cut down on chemicals).

On average, the fund will write checks between $50 million to $150 million. Generation keeps track of its portfolio companies’ performance through financials and other annual review metrics such as employee retention, carbon emissions reduction, diversity, and job creation.

“We have requirements with financial reporting that include Environmental Social Governance metrics,” says Lila Preston, partner and co-head of Generation’s growth equity funds. “You want to ensure they aren’t polluting your local environment in the long term.”

VENTURE DEALS

• Marqeta, an Oakland, Calif.-based modern card issuing platform, raised $260 million in Series E funding at a valuation of nearly $2 billion. Coatue Management led the round, and was joined by investors including Vitruvian Partners, Spark Capital, Lone Pine, Geodesic, Visa, ICONIQ, Goldman Sachs, 83North, Granite Ventures, CommerzVentures and CreditEase.

• Ivalua, a provider of global spend management cloud solutions, raised $60 million in funding at a valuation of more than $1 billion. Investors include Tiger Global Management and Ardian Growth.

• Sun Basket, a San Francisco-based healthy meal delivery service, raised $30 million in Series E funding. PivotNorth Capital led the round, and was joined by investors including Sapphire Ventures, August Capital, Founders Circle, Unilever Ventures, Baseline Ventures, Relevance Capital, Accolade Partners, and Correlation Ventures.

• Snapsheet, a Chicago-based provider of virtual claims solutions, raised $29 million in Series E funding. Investors include Tola Capital, Liberty Mutual Strategic Ventures, F-Prime Capital and OCA Ventures.

• Modulr, a U.K.-based payments as a service API platform for digital businesses, raised 14 million pounds ($17.8 million) in funding. Frog Capital led the round, and was joined by investors including Blenheim Chalcot.

• Amastan Technologies, a North Andover, Mass.-based provider of advanced ceramic, metal and composite materials, raised $11 million in funding. Anzu Partners led the round. (Also, Amastan acquired AL Solutions Inc, a producer of refined titanium materials for the aerospace, automotive and medical industries. Financial terms weren't disclosed.)

• Arris Composites, a Berkeley, Calif.-based provider of next-gen composites for mass market applications, raised $10 million in Series A funding. New Enterprise Associates led the round.

• Folio Photonics, a Solon, Ohio-based developer of a new standard in optical solutions for data storage, raised $8 million in seed funding. Refinery Ventures led the round, and was joined by investors including Pavey Investments and Capital One Partners.

• MistNet, a Mountain View, Calif.-based first multi-entity threat detection and response platform, raised $7 million in Series A funding. Foundation Capital led the round, and was joined by investors including Westwave Capital.

• CozyKin, an Allston, Mass.-based nanny sharing and an infant childcare service, raised $6 million in Series A funding. Investors include Bessemer, NextView Ventures and Primary Venture Partners.

• Sonarworks, a Riga, Latvia-based audio software company, raised 5 million euros ($5.6 million) in Series A funding. Karma Ventures and Practica Capital led the round, and were joined by investors including Revo Capital, SuperAngel, ProksCapital and Imprimatur.

• Impossible Objects, a Northbrook, Ill.-based 3D printer and materials company specializing in high-performance composites, raised $4.1 million in funding. OCA Ventures led the round.

• Clerkie, an AI-powered financial assistant, raised $2 million in seed funding, from Flourish, a venture of The Omidyar Group.

• Tiled Inc, a San Diego-based microapp platform for interactive sales and marketing communications, raised $1.5 million in seed funding. Kickstart Seed Fund led the round, and was joined by investors including Stage 2 Capital.

• Outpost, an Asia-based hospitality brand focused on developing a remote work lifestyle, raised $1.3 million in seed funding. Investors include EverHaus, Strypes Holdings and Clarenberg Ventures.

• Velofix, a Vancouver, British Columbia-based bike shop operator, raised funding of an undisclosed amount, from MacKinnon, Bennett & Company.

HEALTH AND LIFE SCIENCES DEALS

• Reneo Pharmaceuticals, a San Diego-based clinical-stage pharmaceutical company, raised $50 million in Series A funding. New Enterprise Associates led the round.

• Quell Therapeutics, a London-based new cell therapy company, raised 35 million pounds ($44.4 million) in funding. Syncona led the round, and was joined by investors including UCL Technology Fund.

• Rinri Therapeutics, a U.K.-based biotech company, raised 1.4 million pounds ($1.7 million) in seed funding. Boehringer Ingelheim Venture Fund and UCB Ventures led the round. And was joined by investors including BioCity.

• Paradigm Diagnostics, a Phoenix-based precision medicine company focused on cancer diagnostics, raised funding of an undisclosed amount, from OSF Ventures.

PRIVATE EQUITY DEALS

• Nxgen, which is backed by Parthenon Capital Partners, acquired Payments Plus Inc, a Paducah, Ky.-based payments firm. Financial terms weren't disclosed.

• ParkerGale Capital made a majority investment in EditShare, a Boston-based provider of intelligent scale-out storage automated quality control, editing and media management solutions. Financial terms weren't disclosed.

• TowerBrook Capital Partners LP made an investment in KeHE Distributors, a Naperville, N.Y.-based provider of natural and organic, specialty and fresh products to chain and independent grocery and natural food stores. Financial terms weren't disclosed.

• Mainsail Partners invested $23 million in Fullbay, a Phoenix, Ariz.-based business management software provider for the heavy-duty truck repair industry.

OTHER DEALS

• Merck & Co. Inc. (NYSE:MRK) agreed to acquire Peloton Therapeutics Inc (Nasdaq:PLTX), for an upfront payment of $1.05 billion in cash.

• Pivotal Acquisition Corp. (NYSE: PVT), a public investment vehicle, and KLDiscovery, a provider of electronic discovery and information governance services agreed to merge. The deal is valued at approximately $800 million, and KLD will become a publicly listed company.

IPOs

• Peloton Therapeutics, a Dallas-based Phase 2 biotech focused on kidney cancer, was acquired for $1.05 billion by Merck after it filed for a $115 million IPO. The firm has yet to post a revenue. The Column Group (19.6%), Topspin Partners (11.3%), and Nextech Invest (5.8%) backed the firm. J.P. Morgan, Citi and Jefferies were underwriters . It planned to list on the Nasdaq as “PLTX.” Read more.

• Trainline, the rail booking app, is planning a London IPO that could value it at over $1.3 billion. KKR backs the firm. Read more.

EXITS

• Broadridge Financial Solutions agreed to buy RPM Technology, a provider of enterprise wealth management software solutions, for about $300 million. Bayshore Capital was the seller.

• Spectrum Equity sold Ethoca, a Canada-based provider of technology to help merchants and issuers fight fraud, to Mastercard. Financial terms weren't disclosed.

• Goldman Sachs Group Inc agreed to buy United Capital Financial Partners Inc, a Newport Beach, Calif.-based independent financial life management firm, for $750 million in cash. The sellers include Sageview Capital and Grail Partners.

FIRMS + FUNDS

• Noro-Moseley Partners, an Atlanta-based private equity and venture firm, raised $180 million for its eighth venture-capital fund, according to an SEC filing.