Axios Pro Rata: Vice bust
By Dan Primack ... Dan Primack
May 15, 2023 ... 10:03 AM
Readers regularly ask if there's a database for deals included in Axios Pro Rata, going back to our January 2017 launch. You were persistent. So we built one.
Here's how it works. Our deal-tracker will be available exclusively to Axios Pro Deals subscribers as part of your subscription, and you can join the waitlist here.
Top of the Morning
Animated illustration of a dumpster on fire.
Illustration: Aïda Amer/Axios
Vice Media last night filed for Chapter 11 bankruptcy protection, after several failed efforts to sell itself as a whole or in parts.
Why it matters: This makes Vice one of the biggest venture capital busts ever, as the company had raised at least $1.6 billion.
This included a $450 million structured infusion from TPG in 2017 at a $5.7 billion valuation.
Other major Vice investors wer Disney, A&E, Technology Crossover Ventures and The Raine Group.
In a bankruptcy filing, Vice said assets will be purchased by a lender consortium led by Fortress Investment Group.
Runners up: The current 'record holder' for VC-backed busts is Boston-based biotech Intarcia, which had raised just under $2 billion from firms like Fidelity and NEA but could never get FDA approval for its diabetes treatment device.
The only other bankrupt startup to have raised more than Vice was FTX, per data provided by PitchBook.
Coming up right behind Vice were construction tech company Katerra, short-form video app Quibi, crypto lender Celsius Network and fraudulent blood testing company Theranos.
Go deeper: Check out the full list.
Worth noting that we excluded some big Chinese startups, including bike-share giant Ofo, because the initial fundraising announcements were unverifiable.
The bottom line: We spend a lot of time focused on entry prices, but it's the exit — or lack thereof -- that ultimately — matters most.
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
The BFD
Animated illustration of the Forbes logo, with the
Illustration: Maura Losch/Axios
Austin Russell, CEO of electric vehicle sensor and software company Luminar Technologies, has agreed to buy media company Forbes from Hong Kong-based investment firm Integrated Whale.
Why it's the BFD: It looks like an iconic American brand is returning to U.S. hands, but Axios' Sara Fischer reports that the deal structure obfuscates how much may be funded by foreign firms like India's Sun Group, which has ties to Russia. Or, put another way, this is a regulatory trial balloon.
The bottom line: 'The deal hasn't moved into an escrow process yet, and could go sideways. There's a $35 million breakup fee if either side walks.' — Sara Fischer, Axios
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
Venture Capital Deals
• Smart, a London-based pension monitoring and management startup, raised $95m in Series E funding. Aquiline Capital Partners led, and was joined by Barclays, Chrysalis Investments, Fidelity International Strategic Ventures, DWS, and Natixis Investment Managers. https://axios.link/3MpzjDs
• M-KOPA, a Kenyan asset financing platform for the underbanked, raised $55m in equity funding led by Sumitomo Corp. The company also secured over $200m in debt. https://axios.link/3W3DMic
• Cork, a Boston-based provider of cyber-warranties for MSPs, raised $6m in seed funding. DVx Ventures led, and was joined by Outsiders Fund and Vestigo Ventures. www.corkinc.com
• Figorr (fka Gricd), a Nigerian cold supply chain startup, raised $1.5m in seed funding. Atlantica Ventures led, and was joined by VestedWorld, Jaza Rift Ventures and Katapult VC. https://axios.link/3Mrtc1r
• Renaissant, a Milwaukee-based dock intelligence platform, raised $1.5m in seed funding. Venture 53 led, and was joined by NFI Ventures and TitletownTech. https://axios.link/42MZOIi
⚡ HyAxiom, an East Hartford, Conn.-based hydrogen fuel cell developer owned by South Korean conglomerate Doosan, is in talks to raise $200m in new funding, per Korea Economic Daily. https://axios.link/42ZjBo3
• Worldcoin, a crypto project led by OpenAI CEO Sam Altman, is in advanced talks to raise another $100m, per the FT. https://axios.link/3OaQ6eP
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
A MESSAGE FROM COOLEY
What organizations need to know before monetizing alternative data
Funds, stock traders and investors leverage alt-data to gain insights into a company’s (or market’s) performance that may not be reflected in traditional financial statements.
Okay, but: Alt-data assets come with potentially serious legal risks.
Learn more in an upcoming Cooley webinar.
Private Equity Deals
• TPG agreed to buy credit and real estate investment firm Angelo Gordon for $2.7b in cash and stock.
Word is that the two sides began discussing a merger in March 2022.
TPG CEO Jon Winkelried appeared at our Axios BFD event last week, and explained why his firm was looking to get back into the private credit market (video here, private credit discussion begins at 5:25).
• Apax Partners agreed to invest $450m for a minority stake in IBS Software, an Indian provider of travel and logistics SaaS, from Blackstone. https://axios.link/42X2WRT
• Apollo Global Management said it would not proceed with takeover efforts for Wood Group (LSE: WG), following a fifth approach that valued the British energy services firm at around $2.1b. https://axios.link/453Qxxx
⚡ DIF Capital Partners agreed to buy a majority stake in Toronto-based geothermal company Diverso Energy. https://axios.link/3W444Rn
• EQT formed a joint venture with CK Hutchison Holdings to provide wholesale mobile and fixed communications services in Italy. https://axios.link/3MpI4NQ
• GIC is the frontrunner to buy a 20% stake in Messer, a German industrial gas firm that could be valued north of $10b, per the Straits Times. https://axios.link/3Ogq4XD
• TIAA secured U.S. regulatory approval to sell its banking unit to a private equity group that includes Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street Partners and Bayview Asset Management. https://axios.link/451nJp5
• TPG offered to buy Australian funeral home operator InvoCare (ASX: IVC) for A$1.86b, just weeks after pulling a A$1.8b bid that InvoCare had rejected. https://axios.link/3W2nMNA
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
Public Offerings
🚑 Jamjoon Pharma, a Saudi drugmaker, is seeking to raise up to $336m in a Riyadh IPO. https://axios.link/42R6KER
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
SPAC Stuff
• VinFast, a Vietnamese electric vehicle maker, agreed to go public at an implied $27b valuation via Black Spade Acquisition Co. (NYSE: BSAQ), a SPAC led by Dennis Tam (ex-Melco International). https://axios.link/42AJn29
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
Liquidity Events
• Tiger Global is in early talks to sell part of its growth equity portfolio via a secondary transaction, per the FT. https://axios.link/44Z82ip
• Yanolja, a South Korean travel booking site valued at $1b by VCs in 2019, agreed to acquire Go Global Travel, an Israeli B2B travel search engine, from Apax Partners. https://axios.link/3Obvdjx
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
More M&A
- • Americanas, a bankrupt Brazilian retailer, is seeking buyers for its stake in retail chain Grupo Uni.co, per Reuters. https://axios.link/44T8vm6
- 🍔 Engaged Capital, an activist investment firm, acquired around a 6.6% stake in Shake Shack (NYSE: SHAK) and plans to run a proxy fight for three board seats, per Bloomberg. https://axios.link/3I9H7GR
- • Fanatics, a Jacksonville, Fla.-based sports merchandising giant most recently valued at $31b, agreed to buy the U.S. business of Australian online sportsbook PointsBet (ASX: PBH) for around US$150m. https://axios.link/3BxCHWl
- ⚡ ONEOK (NYSE: OKE) agreed to buy Tulsa, Okla.-based pipeline operator Magellan Midstream Partners (NYSE: MMP) for $18.8b in cash and stock. https://axios.link/42DvPmi
- • SBI Holdings (Tokyo: 8473) agreed to acquire the 49.96% stake in Japanese lender Shinsei Bank (T: 8303) that it doesn't already own, via a $1.1b tender. https://axios.link/3LXgENO
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
Fundraising
- • Atomic, a Miami-based venture studio, raised $320m for its fourth fund. https://axios.link/42DiBWE
- • Onex Corp. paused fundraising for its sixth flagship buyout fund, following a CEO switch and Q1 earnings loss. https://axios.link/42V06wH
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
Final Numbers
Data: Axios research, Crunchbase; Chart: Axios Visuals
Share on Facebook Tweet this Story Post to LinkedIn Email this Story
A MESSAGE FROM COOLEY
Deal count and invested capital continue downward trend in Q1 2023
The slowdown in invested capital and deal volume continued through Q1, with pre-money valuations trending up.
Up rounds dipped to 73% of transactions, but deal terms remained generally favorable for companies.
Get the latest data on the Cooley GO venture financing dashboard.
Thanks for reading Axios Pro Rata, and to copy editors Mickey Meece and Bryan McBournie! Please ask your friends, colleagues and dumpster firefighters to sign up.
| The text being discussed is available at
and
| |
