UIPath is Wall Street's next blockbuster

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The Daily Pitch: VC

April 21, 2021

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Today's Top Stories

UIPath set for NYSE debut valued at $31B

Photo: Getty Images

Shares of robotics-automation specialist UIPath are poised to begin trading Wednesday on the NYSE valued at nearly $31 billion on a fully diluted basis, lower than its last private valuation but making it one of the most valuable Wall Street debuts by a software company.

UIPath priced shares in its initial public offering at $56, above its estimated range, to raise about $1.3 billion.

Earlier this year the company completed a funding at a $35 billion valuation.

Top institutional backers of UIPath include Accel, Earlybird and CapitalG.

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UFC owner Endeavor looks to raise $511M+ in public debut

(Handout/Getty Images)

Endeavor, the famed talent agency, live events operator and owner of the Ultimate Fighting Championship, has established a price range for its upcoming debut on the NYSE.

The Beverly Hills, Calif.-based entertainment giant hopes to sell 21.3 million shares for between $23 and $24 apiece, according to an SEC document. The IPO could raise north of $511 million for the company and give it a valuation of $10 billion.

Endeavor has received backing from Silver Lake, GIC and Canada Pension Plan Investment Board, among others. It reached a valuation of $6.3 billion in 2018, according to PitchBook data.

This is the company's second run at an IPO. In 2019, Endeavor intended to sell 15 million shares priced between $26 and $27 per share, below an original target of nearly 19.4 million shares for between $30 and $32 apiece. The revised range would've raised $397.5 million for the company at a midpoint pricing. The deal was eventually canceled due to weak investor demand.

Related read: A glimpse inside Hollywood's playbook for surviving the pandemic

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A message from Bridge Bank

Analyzing life sciences VC activity's main hot spots

In Bridge Bank's latest Markets to Watch series, the surge in venture investment across life sciences in the key metro areas of the Bay Area, Boston and Southern California are analyzed in depth. Building on the steady technical advances of the 21st century so far, multiple segments of life sciences are now proffering significant breakthroughs, from the suddenly omnipresent mRNA-based therapies to CRISPR-derived tests. The space is thriving, in short, as the report finds, with key focus areas including:

Which metro has seen its rate of venture funding increase the most over the past decade
How liquidity surges are fueling reinvestment into those ecosystems
Trends in valuations and financing sizes and their implications

Read the full report now

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Versant Ventures raises $950M to fund biotech bets

(Kwanchai Lerttanapunyaporn/Getty Images)

Biotech investor Versant Ventures has raised $950 million across three funds to fuel a strategy that prioritizes building new companies from scratch.

Versant VIII, a $560 million fund, will seed the creation of 20 startups, and the $140 million Voyageurs II is for follow-on investments. The third vehicle, Vantage II, is a $250 million fund reserved for companies approaching an exit.

The venture capital firm's unconventional model has yielded notable successes in cutting-edge fields: Gene editing pioneer CRISPR Therapeutics, cell therapy maker BlueRock Therapeutics, and precision oncology companies Black Diamond Therapeutics and Repare Therapeutics were all spun out of Versant Ventures. Seven companies from the firm's portfolio went public last year.

Behind the scenes, Versant's global team of Ph.D.s are tasked with translating scientific breakthroughs into businesses. The firm's incubator-like "discovery engines" also equip entrepreneurs with labs and other resources to get ideas off the ground.

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How crossover investors are making an impact on the VC ecosystem

(Chris Valle/Getty Images)

As companies wait longer to go public, crossover investors have increasingly turned to private deals as an investment strategy over the past 10 years.

These investors participated in nearly $60 billion of venture capital allocations in 2020—accounting for a record 36% of total deal value. Our latest analyst note explores why companies are increasingly seeking crossover capital and how the trend is likely to impact VC exit strategies. Among the takeaways:

The median and average crossover round sizes are significantly larger than traditional venture financings because most deals tend to go to late-stage companies that can presumably secure a vote of confidence from public market investors.

Last year, nearly 75% of IPOs included crossover investment in pre-IPO rounds, signaling credibility to the cap table and a tangible valuation for the company.

Crossover investors are often rewarded with the ability to purchase significant ownership in these growing businesses during pre-IPO rounds—and typically at a discount to the eventual IPO price.

read it now

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Recommended Reads

American culture has become more and more preoccupied with nature, but there may be a dark side to the houseplant boom. [The Atlantic]

Hundreds of companies have promised to reduce their greenhouse gas emissions. Now, shareholders are demanding transparency. [Politico]

A visual look at how the pandemic has changed where people are—and aren't—moving. [The New York Times]

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	The Daily Benchmark
	2013 Vintage North American PE Funds
	People
	Binance affiliate names ex-banking regulator as CEO
	VC Deals
	Clearbanc closes in on $2B valuation with Series C
	Classy brings in $118M Series D
	Mantl makes off with $40M in CapitalG-led round
	Exits & IPOs
	Discord abandons sale talks with Microsoft
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	Kleiner Perkins raises $750M for latest vehicle

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People

Binance affiliate names ex-banking regulator as CEO

Brian Brooks has been named CEO of the US affiliate of crypto exchange operator Binance, effective in May. Brooks formerly led the Office of the Comptroller of the Currency under the Trump administration, during which time he released guidance that made it easier for institutions to trade cryptocurrencies. He also previously served as chief legal officer at Coinbase. Binance was founded by Changpeng Zhao.

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VC Deals

Clearbanc closes in on $2B valuation with Series C

Clearbanc, an ecommerce investor and provider of financing products and services, has raised $100 million in equity led by Oak HC/FT, with participation from Founders Circle and several angel investors. Clearbanc also raised $250 million in debt from Credigy. The company, which is rebranding as Clearco, is now valued at close to $2 billion. Oak HC/FT managing partner Annie Lamont will join Clearbanc's board.

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Classy brings in $118M Series D

Classy has raised a $118 million round led by Norwest Venture Partners, with participation from Salesforce Ventures and Hinge Capital. San Diego-based Classy, a Certified B Corporation, makes software to help nonprofits raise money. Co-founder Scot Chisholm is stepping down as head of Classy and will become executive chairman, with current COO Christopher Himes taking over as CEO.

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Mantl makes off with $40M in CapitalG-led round

Banking tech startup Mantl has secured a $40 million Series B from lead investor CapitalG, with support from D1 Capital Partners, BoxGroup, and existing backers Point72 Ventures, Clocktower Technology Ventures and OldSlip Group. Based in New York, Mantl provides bank account opening and consumer onboarding software for credit unions and banks. The startup has now raised over $60 million in private funding.

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Exits & IPOs

Discord abandons sale talks with Microsoft

Discord, the maker of a chat app that is popular with gamers, has ended acquisition talks with Microsoft, The Wall Street Journal reported. The two were reportedly in advanced talks for a $10 billion deal. Discord raised $100 million at a $7 billion valuation this past December, according to PitchBook data. It recently hired former Pinterest executive Tomasz Marcinkowski as CFO and reportedly may seek a public listing.

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Fundraising

Kleiner Perkins raises $750M for latest vehicle

Kleiner Perkins has raised a $750 million fund, dubbed Kleiner Perkins Select, that will back mid-stage startups and make follow-on investments in existing portfolio companies, Bloomberg reported. The fund will reportedly target companies in the enterprise, consumer, hard tech, fintech and healthcare sectors. Based in Menlo Park, Calif., Kleiner Perkins is still deploying capital from a $700 million early-stage vehicle, the report said.

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