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| Hey Insiders, Today we are taking a look at why the EU is planning to investigate Adobe's $20B acquisition of Figma, why a16z launched a "Perennial" evergreen fund, and why U.S. investors have scaled back their investments into European startups. We have also rounded up the top late-stage funding rounds of this week. Scroll down for some quick hits, and then let us know what other content you'd like to see in future issues. Karan
p/karan-chafekar | |
| 1 | | European regulators are planning to launch an antitrust investigation into Adobe's $20B acquisition of design software startup Figma, sources informed the Financial Times. Per an earlier report, the U.S. Department of Justice is also reportedly planning to block the acquisition. If successful in blocking, the move would wipe away substantial returns for Figma's VC backers. More: - The $20B acquisition price for Figma makes it the highest price paid for a private startup throughout history.
- The price represents a 50x multiple over Figma's $400M annual recurring revenue for 2022.
- Figma backers Index Ventures, Greylock Partners, and Kleiner Perkins have 13%, 13%, and 10.5% stakes in the firm, having led the firm's first four funding rounds.
- Index and Greylock stand to make $2.6B each, with Kleiner's stake worth $2.1B.
- Sequoia Capital's stake in the firm is estimated to be worth $1.2B.
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| 2 | | 
VCs deployed $597M in late-stage and beyond North American startups this week between June 19 to June 23, per Crunchbase data. Healthcare startups raked in 67% of the funding this week. Biotech, transportation, and insurance startups nabbed 13%, 5%, and 3.4% of the financing, respectively. Here are the top 10 largest rounds announced this week: - Aledade, a startup that offers analytics, workflows, and regulatory solutions to primary care providers, raised $260M in fresh funding at a $3.5B valuation. Lightspeed Venture Partners led the funding round with participation from Venrock, Avidity Partners, OMERS Growth Equity, and Fidelity Management & Research. To date, the firm has raised $660M from investors.
- Seattle-based patient appointment booking health tech startup DexCare secured $75M in Series C funding led by Iconiq Growth, with additional backing from Transformation Capital, Kaiser Permanente Ventures, Define Ventures, Frist Cressey Ventures, and SpringRock Ventures.
- Pediatric care startup PM Pediatric Care nabbed $50M in Series E funding led by Scopia Capital, with backing from Jefferson River Capital.
- Empress Therapeutics, a startup that is developing drugs by understanding genetic code programs, raised $50M in fresh funding from Flagship Pioneering.
- Nautical propellor maker Sharrow Marine raised $30M in debt and equity funding from the family offices of John H. McFadden and David Dolby.
- Veralox Therapeutics, a clinical-stage biotech firm making therapeutics for immune-mediated diseases, raised $24M in funding from Pappas Capital, NYBC Ventures, Sanofi Ventures, JDRF T1D Fund, and Genesys Capital.
- Union Bay Risk Advisors is set to receive $20M in funding from an undisclosed institutional investor. The financing could be raised up to $50M contingent on meeting certain conditions.
- Retail platform Leap received a $15M capital infusion co-led by BAM Elevate and Costanoa Ventures.
- Digital health company Duos raised $10M in additional funding led by Primetime Partners and SJF Ventures.
- Wellness products vending machine maker SOS secured $7.6M in funding from Wasserman Ventures and Urban Us Capital.
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| 3 | | Andreessen Horowitz has launched a new evergreen fund, dubbed a16z Perennial Venture Capital Fund. The fund has been placed under a new entity Perennial Management, which is listed as a "large advisory firm" with over $105M in assets under management (AUM). More: - The entity has eight employees, with recent hire Michel Del Buono taking up the chief investment officer role.
- Del Buono joined the firm last August as the firm looked to provide wealth management services to clients and executives from its portfolio companies.
- The filing shows that the firm has 18 high-net-worth individuals as clients.
- The move behind the new entity seems to be to hold onto shares of publicly traded companies instead of liquidating them and distributing returns to limited partners.
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| 4 | | 
U.S. investors are scaling back their investments in European startups, instead focusing on domestic deals. Pitchbook estimated earlier in the year that U.S. investors would participate in a quarter of all European deals. However, in the first five months of this year, U.S. investors participated in only 19.3% of European deals. More: - U.S. investors participated in 692 deals worth €10.3B ($11.3B), per Pitchbook.
- The deal participation has dropped from the record high of 22.6% in 2022.
- U.S. investors were initially expected to increase participation in European startups as it would allow them to scoop up startups at lower valuations and diversify their portfolios.
- However, the lack of liquidation options and the collapse of Silicon Valley Bank earlier in the year made VCs hesitant about making deals beyond their borders.
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| 5 | | The Federal Deposit Insurance Corp. (FDIC) stepped in to backstop all uninsured deposits over $250,000 in Silicon Valley Bank, a move that helped larger tech firms and VCs. Per an unredacted FDIC document seen by Bloomberg, VC firm Sequoia Capital got covered for its $1B deposits, and Chinese tech firm Kanzhun received a backstop of more than $900M. More: - Here are the other firms that had large sums of deposits with SVB:
- Life sciences startup Altos Labs had $680.3M in deposits.
- Payments startup Marqeta had $634.5M in the bank.
- Crypto stablecoin company Circle Internet Financial had 8.2% of its USD Coin reserves with SVB.
- Streaming device maker Roku had 26% of its cash balance worth $420M in the bank.
Zoom out: - Treasury Secretary Janet Yellen considered backstopping all deposits as necessary as several American households had most of their savings in the bank.
- However, the move to backstop all deposits was criticized by many, including former vice president Mike Pence, who argued the move was akin to a bailout.
- The decision to cover all deposits at SVB and Signature Bank reportedly cost the FDIC fund about $15.8B.
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| 6 | | Today's Funding: AI - Kleiner Perkins led a $25M Series B funding round into AI-powered video creation platform Captions. Sequoia Capital, Andreessen Horowitz, and SV Angel participated in the funding round.
Biotech - German MRI polarizer and hyperpolarized imaging agents startup NVision Imaging secured $30M in Series A funding led by Playground Global. The firm also secured an additional $19.5M in grants from the German government.
- Clinical-stage biotechnology company Calidi Biotherapeutics raised $25M in Series B funding led by Jackson Investment Group.
Climate Tech - German solar panel system startup 1KOMMA5 cemented its unicorn status with a €430M ($469M) Series B funding round led by G2VP. Half of the sum was raised through the equity round, with the remaining in the form of a buyback option.
- Palo Alto, California-based weather and climate tech startup WindBorne Systems closed its seed funding round at $6M. Footwork led the round with participation from Khosla Ventures, Pear VC, Ubiquity Ventures, Harvest Ventures, and Humba Ventures.
Data - Integrated data governance and observability platform Acryl Data raised $21M in Series A funding led by 8VC.
Food Tech - Food tech marketplace Hungry raised $10M in Series C1 funding from Sands Capital Ventures, Motley Fool Ventures, Evolution VC Partners, GP Ventures, and others.
Space Tech - Spacecraft manufacturer Apex nabbed $16M in Series A funding led by Andreessen Horowitz and Shield Capital.
- In-space propulsion thrusters and rocket engine maker Agile Space Industries fetched $13M in seed funding from Lockheed Martin's VC division, Caruso Ventures, CORI Innovation Fund, and Greenline Ventures.
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| 7 | | Quick Hits: - Combine traditional project management with your docs, knowledge base, and AI.*
- Planeteer Capital, a VC firm co-founded by Sophie Purdom and Hanna Friedman, is raising a debut fund worth $100M.
- Existing backers Bank of America, Costco, and Mastercard made a multi-million dollar follow-on investment into Fearless Fund.
- Stock trading platform Robinhood acquired credit card startup X1 for $95M. X1 co-founders Deepak Rao and Siddharth Batra will join Robinhood and oversee its credit card arm.#
- Nashville-based nonprofit organization Launch Tennessee expects to back 140 local startups and four to six VC funds through funds received from the State Small Business Credit Initiative for its InvestTN initiative.
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Term of the Day Commercial real estate: Commercial real estate (CRE) is property used to generate profit through capital gain or rental income. Question of the Week How do you feel about the phrase "The customer is always right"? Join the conversation |
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Aaron Crutchfield | |
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