SoftBank, a16z plan diversity-focused funds

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June 4, 2020

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SoftBank, a16z announce launch of separate diversity-focused funds

In the wake of mass protests, investors like SoftBank and Andreessen Horowitz have vowed to help fight racism.
(Win McNamee/Getty Images)

Two of the venture capital world's most influential investors, SoftBank and Andreessen Horowitz, have launched diversity-focused funds amid social unrest spurred by the death of George Floyd at the hands of Minneapolis police. His death and other police killings of black individuals have further highlighted entrenched racial inequalities that many in the VC space have promised to address.

SoftBank's new $100 million Opportunity Growth Fund will invest exclusively in founders and entrepreneurs of color. The vehicle will be backed primarily by the firm's own capital and will not have traditional management fees.

Andreessen Horowitz is taking a different approach with its Talent x Opportunity Fund, which is open to donations and will launch with $2.2 million from the firm's partners. Ben Horowitz and Felicia Horowitz have also committed to matching other donations up to $5 million, and any profits will be reinvested in future founders from underserved communities.

Both announcements follow efforts that were previously underway, but the firms cited outrage over the killing of Floyd as a motivating factor for this week's launch.

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Newspapers face uphill battle to survive a pandemic

(Justin Sullivan/Getty Images)

A thirst for information about the coronavirus and spreading social unrest means demand for news has been booming. But the catastrophic effects of the virus on the US economy have hammered the newspaper industry, leading to dramatic declines in advertising revenue as well as layoffs, furloughs and other economic distress.

And the industry's contentious relationship with both private equity and big tech isn't making things easier:

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Quick Takes


	The Daily Benchmark
	2005 Vintage Global Real Assets Funds
	VC Deals
	Digital banking startup locks down $241M
	NodThera picks up $55M Series B
	Portfolio Companies
	Quibi asks execs to take pay cuts
	Exits
	Pliant soars in trading debut
	Puig closes in on $1B deal for Sequoia-backed Charlotte Tilbury
	Fundraising
	Meritech Capital secures $800M for latest fund

The Daily Benchmark

2005 Vintage Global Real Assets Funds

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1.26%

Top Quartile IRR Hurdle Rate

5.00%

1.01x

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32 Funds in Benchmark »

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VC Deals

Digital banking startup locks down $241M

Gallatin Point Capital and The Rise Fund have co-led a $241 million Series D for Varo, the developer of a digital banking platform. Investors including HarbourVest Partners and Progressive Insurance also participated in the round. The San Francisco-based company expects to receive approval to become a national bank this summer. Varo raised $100 million at a $280 million valuation last July, according to PitchBook data.

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NodThera picks up $55M Series B

NodThera, a clinical-stage developer of medicines that treat diseases caused by chronic inflammation, has raised $55 million in a round led by Novo Ventures, with participation from new and existing investors. Operating out of offices in the US and the UK, the company closed a Series A in 2018 that raised £28 million (about $40 million at the time).

Additional Investors:

5AM Ventures, Cowen Healthcare Investments, Epidarex Capital, F-Prime Capital, Sanofi Ventures, Sofinnova Partners

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Portfolio Companies

Quibi asks execs to take pay cuts

Meg Whitman, CEO of video streaming startup Quibi, is taking a 10% pay cut, according to The Wall Street Journal. The company has also reportedly asked senior management to take a 10% salary cut and had previously discussed laying off about 10% of its staff, mainly lower- and mid-level employees, though it doesn't plan to go through with "substantial" cuts. Some lower-level employees have been let go in recent weeks, according to the report.

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Exits

Pliant soars in trading debut

Pliant Therapeutics began trading on the Nasdaq Wednesday, with shares opening 56% higher than their $16 apiece IPO price and closing at $21.30 each. The company sold 9 million shares in its IPO, raising $144 million. Based in San Francisco, Pliant is developing therapies to treat fibrotic diseases. It has received prior backing from investors including Novartis, Redmile Group and Cormorant Asset Management.

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Puig closes in on $1B deal for Sequoia-backed Charlotte Tilbury

Puig, a Spanish fashion and fragrance company, is in talks to team up with BDT Capital Partners on a deal to purchase makeup brand Charlotte Tilbury for around $1 billion, according to Bloomberg. London-based Charlotte Tilbury has been backed by Sequoia since 2017.

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Fundraising

Meritech Capital secures $800M for latest fund

Meritech Capital Partners has raised $800 million for its seventh fund, according to Bloomberg. The new vehicle will reportedly focus on investments in the enterprise software, consumer and healthcare sectors. Based in Palo Alto, the growth-stage VC firm has backed companies including Carta, Lime and ForgeRock. It raised $630 million for its sixth venture fund in 2018.

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