Already troubled office-sharing space WeWork is among the worst hit from the coronavirus.
As customers work from home, SoftBank revealed that it experienced a loss of $8.4 billion for the most recent fiscal year, $1.4 billion more than previously expected. That comes as SoftBank plans to write down its WeWork stake held outside the Vision Fund portfolio by $6.6 billion for the year.
“Every writedown takes WeWork’s carrying value closer to reality. Clearly the value is zero,” said Kirk Boodry, an analyst at Redex Holdings told Reuters.
It doesn’t look good for WeWork now—and into future quarters.
Surviving and operating during the epidemic will take a pivot for offices of all kinds. Investors are no longer waiting solely on a vaccine but looking for tech solutions around long-term social distancing. WeWork pitched itself as a tech company in IPO filings. If it plans to survive, it—along with other offices—will need to tap into contact-tracing platforms and population management software, even for meetings.
That said, shrinkage seems inevitable. Even with a vaccine, the company’s model of packing in as many people as efficiently possible into a workspace isn’t an attractive one.
A bet on smart cars: Samsung, Nationwide, and GE have invested $52 million in Nexar, a maker of software that alerts drivers to road hazards like potholes and helps with auto insurance claims.
The company, now valued at roughly $272 million, uses AI to recognize objects like a stop sign via the car’s camera—then alert drivers via smartphone. In the case of an insurance claim, customers can also nix the time-consuming paperwork process by giving insurers access to video of the accident and info such as its time, date, and location.
The company is operating in an abnormal environment right now. Car insurers aren’t so worried about accidents at the moment—the coronavirus has razed travel of all kinds, and car insurance claims along with it. But when travel restrictions begin to lift, analysts tell Term Sheet, car travel is expected to be the first to come back.
My colleague Jonathan Vanian has the story.
VENTURE DEALS
- Pivot Bio, an Berkeley, Calif-based agtech startup seeking to maximize crop yields, raised $100 million in Series C funding Breakthrough Energy Ventures and Temasek led the round, and were joined by DCVC.
- Otonomo, a Hertzliya, Israel-based automotive data services platform, raised $46 million in Series C funding. Investors include SK Holdings, Avis Budget Group, Alliance Ventures, and Bessemer Venture Partners.
- Taysha Gene Therapies, a Dallas-based gene therapy company seeking to treat monogenic diseases of the central nervous system, raised $30 million in seed funding. PBM Capital and Nolan Capital co-led the round.
- Genespire, a Milan-based biotechnology company focused gene therapies, raised €16 million ($17.4 million) in Series A funding. Sofinnova Partners was the investor.
- Tridge, a Seoul-based sourcing hub for food buyers and suppliers, raised $11 million in Series B funding. Activant Capital and Forrest Partners (Korea) were the investors.
- WindESCo, a Burlington-based software startup focused on wind farms, raised $10 million in Series B funding. WAVE Equity Partners led the round, and was joined by investors including an affiliate of Tenaska.
- Wise, a San Mateo, Calif.-based challenger bank for small businesses, raised $5.7 million in seed funding. Base10 Partners led the round, and was joined by investors including Abstract Ventures, Backend Capital, The Fund, and Two Culture Capital. Read more.
PRIVATE EQUITY
- AE Industrial Partners acquired Adcole Maryland Aerospace, a Marlborough, Mass.-based provider of satellite components. Financial terms weren't disclosed.
- Spectrum Equity invested in OurFamilyWizard, a Minneapolis, Minn.-based co-parenting application. Financial terms weren't disclosed.
- Vander-Bend Manufacturing, a portfolio company of Aterian Investment Partners, acquired TMK Manufacturing, a Santa Clara, Calif.-based specialty prototyping and precision machining provider. Financial terms weren't disclosed.
- Macquarie Capital Principal Finance acquired a majority stake in Multifuels Midstream Group, a Houston-based operator of lateral natural gas pipelines and related infrastructure in the U.S. Financial terms weren't disclosed.
- MPK Equity Partners and Princeton Equity Group invested in Restoration 1, a Waco, Texas-based property restoration company and sister brand Bluefrog Plumbing + Drain, a plumbing franchise.
- Warburg Pincus invested in Polyplus-transfection SA, a Illkirch, France-based, developer of gene and cell therapies, alongside the existing majority shareholder, ArchiMed. Financial terms weren't disclosed.
OTHERS
- The Abu Dhabi Investment Authority is delaying the sale of $2 billion in private equity fund stakes due to the coronavirus, per Bloomberg citing sources. Read more.
- Chesapeake Energy Corp, an Oklahoma City-based oil and gas exploration and production company, is preparing a potential bankruptcy filing, per Reuters citing sources. Read more.
- Dribbble acquired Creative Market, a San Francisco-based design assets marketplace. Financial terms weren't disclosed.
- Henkel and KKR are holding off bidding for a portfolio of beauty brands from Coty, a New York-based cosmetics firm, per Reuters. Read more.
- Hertz Global Holdings, a Florida-based car rental company, is preparing for a potential bankruptcy filing. Read more.
- Terminus acquired Ramble, an Atlanta-based chat solution. Financial terms weren't disclosed.
IPOs
- JD.com Inc. Filed confidentially for a second listing in Hong Kong, per Bloomberg. Read more.
EXITS
- British Columbia Investment Management, Neuberger Berman, StepStone, and Skandia have acquired a significant minority stake in Waterlogic, a New Castle, De.-based provider of purified drinking water dispensers. Castik Capital was the seller. Financial terms weren't disclosed.
- Engage Brand acquired Boston Market, a Golden, Colo.-based fast casual chain, from Sun Capital. Financial terms weren't disclosed.
- Inverness Graham sold Kalkomey Enterprises, a Dallas, Texas-based provider of online recreational safety education, certifications and cloud-based agency management solutions. Financial terms weren't disclosed.
- Mitsubishi Chemical America agreed to acquire Gelest Intermediate Holdings, a Morrisville, Pa.-based supplier of silicones, organosilanes, metal-organics, and specialty monomers, from New Mountain Capital. Financial terms weren't disclosed.
F+FS
- Warwick Group raised $388 million for its fourth fund. Read more.
- Owl Ventures is seeking to raise $350 million for its fourth fund. Read more.
- Silverton Partners, the Austin headquartered venture capital firm which has raised $144M new fund to invest in the next generation of Texas startups.
- Arctos Sports Partners raised over $430 million for its inaugural fund. Read more.
- Blackstone raised $233 million for its private infrastructure fund. Read more.
