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The Daily Pitch: VC

March 5, 2021

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Today's Top Stories

Hippo strikes deal with SPAC led by Reid Hoffman, Mark Pincus

(Dimitri Otis/Getty Images)

Home insurance startup Hippo has agreed to go public by teaming up with a blank-check company in a deal that will value the combined entity at $5 billion.

Hippo will merge with Reinvent Technology Partners Z, which counts LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus as its lead directors.

Hippo, led by CEO Assaf Wand, has raised over $700 million from investors including Comcast Ventures and Fifth Wall, according to PitchBook data. Last November, the company secured a $350 million investment, valuing it at $2 billion, according to a PitchBook estimate.

The newly combined company plans to have $1.2 billion in cash once the deal closes. That includes $230 million from the SPAC's IPO, and a $550 million PIPE led by Hippo investors Dragoneer Investment Group, Lennar and Ribbit Capital, among others. Existing Hippo shareholders are expected to own about 87% of the new company.

Hippo is the latest in a series of insurance startups to go public. Health insurance provider Oscar recently debuted on the NYSE, and last November, auto insurance company Metromile penned a SPAC deal.

Last week, another of Hoffman and Pincus' blank-check companies inked a deal to merge with air taxi company Joby Aviation.

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Deliveroo opts for London listing as UK seeks to relax IPO rules

(Courtesy of Deliveroo)

Deliveroo has tapped London for its highly anticipated IPO the day after UK finance minister Rishi Sunak backed recommendations to overhaul the country's listing rules.

Deliveroo could seek a valuation of up to $10 billion in what is expected to be one of the year's biggest public debuts.

The company plans to use a dual-class share structure after the IPO, an option that is not yet available in the UK but which is a significant feature of the upcoming rules overhaul.

The choice marks a win for the UK, which is seeking to retain its prominence in the wake of Brexit, even as Amsterdam surpassed London as the continent's largest share trading center.

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Real Estate Funds
	VC Deals
	Papaya Global crosses $1B valuation mark with new funding
	Amunix secures $117M Series B
	TytoCare adds $50M to Series D
	Customer experience startup banks $25M
	Seebo picks up $24M for Series B
	Exits & IPOs
	Square buys Tidal for $297M, names Jay-Z to board

The Daily Benchmark

2012 Vintage Global Real Estate Funds

Median IRR

11.86%

Top Quartile IRR Hurdle Rate

19.38%

1.43x

Median TVPI

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ERS Texas Private Real Estate Emerging Manager Exeter

KTR Industrial Fund II

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*IRR: net of fees

59 Funds in Benchmark »

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VC Deals

Papaya Global crosses $1B valuation mark with new funding

Papaya Global, the creator of a workforce management platform, has raised $100 million in a Series C led by GreenOaks Capital Partners, with support from other backers including IVP Ventures, Alkeon and Bessemer Venture Partners. The funding values the company at more than $1 billion and brings its total private backing to around $190 million. Papaya offers payroll management, employee onboarding and other services to organizations in over 140 countries.

Additional Investors:

Dynamic Loop, Access Ventures, Group 11, Workday Ventures, New Era, Insight Partners, Scale Ventures

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View 3 competitors »

Amunix secures $117M Series B

Biopharma startup Amunix has raised $117 million in a Series B led by Viking Global, with support from Bain Capital Life Sciences, BlackRock, Avidity Capital, Omega Funds, ArrowMark Partners and others. The South San Francisco-based company is working to treat solid tumor cancers; its drug pipeline includes a therapy that targets HER2-expressing solid tumors.

Select Additional Investors:

Frazier Healthcare Partners, Polaris Partners, Venrock, Longitude Capital, Redmile Group, Casdin Capital, Franklin Templeton Investments

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TytoCare adds $50M to Series D

TytoCare has secured an additional $50 million for its Series D. The new funding, led by Insight Partners, brings the round's total to $100 million. The New York-based company is the developer of an AI-based telehealth platform and hand-held tool that lets patients receive examinations and diagnoses from doctors. Founded in 2011, TytoCare raised $50 million in April 2020.

Additional Investors:

OTV, Qualcomm Ventures, Qumra Capital, Shenzhen Capital Group, Tiger Global

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Customer experience startup banks $25M

ChurnZero has raised $25 million in a round led by JMI Equity, with participation from Baird Capital and Grotech Ventures. The Washington, DC-based company is the developer of a customer experience platform designed to help subscription businesses analyze data in real time. ChurnZero was valued at $32 million with a $7 million round in 2019, according to PitchBook data.

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Seebo picks up $24M for Series B

Seebo has extended its Series B round to $24 million, with the new funding led by Vertex Ventures. 10D, The Phoenix and Leumi Partners also participated in the financing. The Tel Aviv-based company uses AI to predict inefficiencies and prevent production losses for manufacturers such as Nestle, General Mills and Mondelez.

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Exits & IPOs

Square buys Tidal for $297M, names Jay-Z to board

Payments giant Square has snapped up a majority stake in music streaming startup Tidal for $297 million in cash and stock. Tidal founder Jay-Z will join Square's board of directors following the deal, and Tidal's shareholders will remain co-owners.

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View 18 competitors »