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The Daily Pitch: VC

January 5, 2021

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Investor group to warn against UK IPO changes

The UK is pondering how to maintain the appeal of the country's stock exchanges as a post-Brexit IPO destination.
(Tim Grist Photography/Getty Images)

The Investment Association, which represents the UK's asset management industry, is poised to speak out against proposals for dual-class share structures and other changes to the IPO process. The UK, which last week completed its exit from the European Union, launched a review in November of its IPO rules in hopes of enticing tech companies to list on the London market. This could include the introduction of dual-class share structures, which give some shareholders more voting rights and are often used by US tech companies.

Sky News reported that the Investment Association—which represents managers like BlackRock and Fidelity—is expected to argue that the London Stock Exchange's premium segment must keep the one-share, one-vote structure to maintain investor protection.

The group, whose members together manage assets of £8.5 trillion (about $11.5 trillion), also will call for more focus on raising corporate governance standards for private companies, as well as an acceleration of the IPO process and reforms to bring more SPACs to the UK. The trade group is expected to submit its recommendations this week to Jonathan Hill, a former EU financial services commissioner leading a review of the rules.

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Blackstone-backed PE firm prepares to go public

(Priscila Zambotto/Getty Images)

Patria Investments, a Latin America-focused investor that has been partially owned by Blackstone for the past decade, is setting the table for a seldom-seen event: A public offering for a private equity firm.

Patria has filed to go public on the Nasdaq, a move that comes a little more than 10 years after Blackstone acquired a 40% stake in the Brazilian firm for a reported $200 million. Since that 2010 deal, Patria has grown its assets under management from $3.6 billion to $12.7 billion, with $7.2 billion of that current AUM in its private equity strategy. In addition to buyouts, the 32-year-old firm also invests in infrastructure, real estate and credit.

Blackstone itself has been publicly traded since 2007, with fellow industry giants KKR, The Carlyle Group, Apollo Global Management and Ares Management among the handful of other firms listed on US stock exchanges. Late last month, Dyal Capital Partners—which owns stakes in dozens of other PE firms—and Owl Rock Capital announced plans to go public through an unusual $12.5 billion SPAC deal.

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Why has San Francisco proved more adept than most other US metropolises at combating the spread of COVID-19? It has at least something to do with the city's past. [The New Yorker]

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	The Daily Benchmark
	2006 Vintage US PE Funds
	People
	DCM names David Cheng principal
	VC Deals
	Healthtech startup Color raises $167M
	Cred collects $81M
	AMP Robotics picks up $55M
	Fintech startup Oxygen banks $17M
	Portfolio Companies
	ShareChat could get Google, Snap as new investors
	Exits & IPOs
	Clear aligner provider Byte gets snapped up for $1B+
	Cullinan Oncology sets IPO terms for Nasdaq debut
	Fundraising
	Madrona brings in $505M across two funds

The Daily Benchmark

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People

DCM names David Cheng principal

DCM has promoted David Cheng from vice president to principal at the Menlo Park, Calif.-based VC firm. Cheng, who has been with DCM since 2014, will continue to focus on the consumer services, fintech and digital health sectors. With more than $4 billion in assets under management, the firm has invested in over 400 tech companies throughout the US and Asia.

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View 355 investments »

VC Deals

Healthtech startup Color raises $167M

Color has raised $167 million in a Series D led by General Catalyst and T. Rowe Price, with participation from other backers including Viking Global. The round values the company at $1.5 billion. Based in the Bay Area, Color provides tech for public health applications, including COVID-19 testing, telehealth services and vaccine delivery programs. The startup also announced a number of senior hires, including the addition of former Optimizely executive Claire Vo as chief product officer.

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Cred collects $81M

Cred has raised $81 million at an $806 million valuation in a round led by DST Global, with Sequoia, Ribbit Capital, Tiger Global and General Catalyst also participating, according to reports. The Indian fintech startup reportedly used part of the Series C funding to buy $1.2 million worth of shares from employees. Cred operates a credit card payment platform and was said to be valued at around $450 million following its Series B in 2019.

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AMP Robotics picks up $55M

AMP Robotics has raised a $55 million Series B led by XN, with participation from investors including GV, Sequoia and Sidewalk Infrastructure Partners. Based in Colorado, the company is the creator of an AI-enabled robotic system designed to separate recyclable materials.

Additional Investors:

Congruent Ventures, Closed Loop Partners, Valor Equity Partners

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Fintech startup Oxygen banks $17M

Oxygen has raised a $17 million Series A from investors including Runa Capital, S7V, 1984 Ventures, EFG Hermes, Rucker Park and Inventures. The San Francisco-based company is the developer of a fintech platform that lets consumers and small businesses open bank accounts, process transactions and access loans.

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Portfolio Companies

ShareChat could get Google, Snap as new investors

ShareChat, an Indian social media company, has held talks with Google, Snap and several existing investors about the funding of its upcoming Series E round, TechCrunch reported. The new funding could reportedly be more than $200 million, with Google financing half of that amount. The round would value ShareChat at more than $1 billion, the report said.

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Exits & IPOs

Clear aligner provider Byte gets snapped up for $1B+

Dental products manufacturer Dentsply Sirona has bought Byte, a startup that provides invisible aligners for teeth straightening, in a $1.04 billion all-cash deal. The company had received an angel investment from actress Kerry Washington and subsequent funding from venture capital firm Thermal. Byte's CEO and its existing management team will continue to operate the business.

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Cullinan Oncology sets IPO terms for Nasdaq debut

Cullinan Oncology, a clinical-stage developer of cancer treatments, has established a price range of $17 to $19 per share for its upcoming offering of 8.33 million shares, according to an SEC filing. A midpoint pricing would raise nearly $150 million and value the Massachusetts-based company at about $681 million. Cullinan is backed by investors including UBS Oncology Impact Fund (25.5% pre-IPO stake) and F2 Ventures (19.5%). It plans to trade on the Nasdaq under the symbol CGEM.

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Fundraising

Madrona brings in $505M across two funds

Seattle-based Madrona Venture Group has closed a pair of funds on a combined $505 million. The VC firm raised $345 million for Venture Fund 8, which will seek out seed-stage and Series A investments. Madrona also raised $160 million for Acceleration Fund 2, which will be used to invest in companies at the Series B and C stages. Madrona was an early backer of Amazon and Smartsheet, as well as Snowflake, which went public in September.

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View 209 investments »

Chart of the Day

"Late-stage startups have attracted copious amounts of capital through Q3 2020 and are expected to push overall deal value figures in Europe to new highs at year end. Not surprisingly, late-stage VC deal sizes have swelled with the median reaching €5.0 million through Q3 2020, and valuations across quartiles have followed with the median pacing at €14.6 million."

Source: PitchBook's Q3 2020 European VC Valuations Report