Billion-dollar-revenue companies get their IPOs pulled! IPOs are expensive and risky. Having a plan for a delayed IPO—or possibly no IPO—is a must. If your company will succeed with or without the IPO, you can safely test the IPO market. This means you have lots of investors wanting to invest in your next round. – JD Morris, Red Hook Capital
• Saxet III Minerals, a Houston-based oil and gas company, raised $100 million in funding from Post Oak Energy Capital LP.
• Sverica Capital Management acquired a majority interest in Gener8, a Sunnyvale, Calif.-based manufacturer of life science instrumentation and clinical devices. Financial terms weren’t disclosed.
• General Atlantic made an investment inEuropean Wax Center, an Aventura, Fla.-based beauty lifestyle brand franchise. Financial termsweren’t disclosed.
• Scania Growth Capital invested SEK 35 million (~$3.8 million) in Corebon AB, a Sweden-based carbon fiber startup.
• Washington Equity Partners acquired Accu-Tube Corporation, a manufacturer of highly engineered small-diameter stainless steel tubing. Financial terms weren’t disclosed.
• Rizing, a portfolio company of One Equity Partners, acquired 3D Results, a Libertyville, Ill.-based professional services firm. Financial termsweren’t disclosed.
• Winchester Interconnect Corporation, a portfolio company of Snow Phipps Group, acquired W- Technology Inc, a Houston, Texas-based developer of rotatable and molded connectors, precision-machined components, and specialized cable assemblies. Financial terms weren’t disclosed.
BEYOND LISTENING: “The most important thing in pitches is hearing what is not said.” – JD Morris
ACTION TO RESULTS: What are you hiding from yourself or your partners in your business plan or pitch. Address this issue in a backup slide or take you partners out to lunch to have a long talk about can this issue be addressed! – riseSEA Analysis Program
PIPELINE (IPO Focus)
• Apellis Pharmaceuticals, a Crestwood, Kentucky-based company raised $150 million in an offering of 10.7 million shares at $14 a piece. In 2016, the company posted loss of $27.1 million. Morningside Venture Investments(28% pre-IPO), Potentia Holdings(9.9%), and venBio Funds(9.4%) back the company. Citigroup and J.P. Morgan are underwriters in the deal. The company plans to list on the Nasdaq as “APLS.”
• Luther Burbank, a Santa Rosa, Calif.-based residential loan-focused bank, filed for an $150 million IPO. In 2016, the company posted income of $52.1 million and assets of $5.1 billion. Keefe, Bruyette & Woods and Sandler O’Neill + Partners are joint bookrunners in the deal. The company plans to list on the Nasdaq as “LBC.”
• Erytech Pharma, a Lyon, France biotech developing cancer treatments, raised $109 million in an offering of 4.7 million ADSs at $23.36 a piece. In 2016, the company, posted revenue of $4.9 million and loss of $25.7 million. Baker Bros Advisors(15.4% pre-offering) and Auriga Partners (9.8%) back the company. Jefferies, Cowen & Company, and Oddo BHF are joint bookrunners in the deal. The firm plans to list on the Nasdaq as “ERYP.”
• Bandwidth, a Raleigh, N.C.-based API software company, raised $80 million in an offering of 4 million shares at $20 a piece, the low end of its range. In 2016, the company posted revenue of $152 million and income of $22.4 million. The company is backed by Carmichael Investment. Morgan Stanley, KeyBanc Capital Markets, Baird, Canaccord Genuity, and JMP Securities are underwriters in the deal. The company plans to list on the Nasdaq as “BAND.”
•Quanterix, a Lexington, Mass.-based protein detection test maker, filed for a $57.5 million IPO. In 2016, the company posted revenue of $17.6 million and loss of $23.2 million. ARCH Venture Partners(21.8% pre-offering) and Bain Capital(12.7%) back the company. J.P. Morgan and Leerink Partners are joint bookrunners in the deal. The company plans to list on the Nasdaq as “QTRX.”
• PPDAI Group, a Shanghai, China-based peer-to-peer lending platform, raised $221 million in an offering of 17 million shares at $17, within its range. The company posted revenue of $175.1 million and loss of $8.7 million in 2016. Backers include Sequoia Capital China(25.5% pre-IPO) and Lightspeed China Partner(10.4%). Credit Suisse and Citi are underwriters in the deal. The company plans to list on the NYSE as “PPDF.”
DISCLAIMER: This information is provided by AP, Bloomberg, Forbes, Fortune, preqin, Reuters, TechCrunch, VentureBeat, Wall Street Journal (WSJ), and other 3rd party sources. Please check with the company website as this a beta blog and will not be updated.
We doing a lot pivoting in hope of finding our sweet spot for our beta blog! We are going back to our deal that closed model for few weeks with few changes to make it more interesting. We will still try to “Say Provocative statements that intelligent people argue about fast without dotting your i’s and crossing your t’s. As life is all about fun and results!”
QUOTE (Going for provocative )
Throw shit on the wall and things stick. Throw shit on wall with a dart board and you get better results!
DATA DUMP DEALS
We took Sauce company public back in the shell days and did reverse merger for early stage BioTech that need public shell. Getting deal funded is all what is about (i.e. results). If you want to meet with our team of experts, we can provide amazing events in DC, LA, La Jolla/San Diego, NYC, and worldwide! And now deal dump that show the market is active:
• Sauce Labs, a San Francisco provider of cloud-based testing for mobile and web applications, raised $70 million in funding from Centerview Capital Technology, IVP, and Adams Street Partners.
• CareCloud, a provider of cloud-based healthcare solutions for physicians, raised $31.5 million in Series C funding. Blue Cloud Ventures led the round, and was joined by the PNC Financial Services Group and First Data Corporation.
• MacroPoint, a Cleveland-based developer of automated location tracking software, raised $44 million in funding from Susquehanna Growth Equity.
• xAd, a New York City-based location marketing and advertising platform, raised $42.5 million in Series E funding. Eminence Capital led the round, and was and joined by W Capital, IVP, and Emergence Capital.
• Nutmeg, a U.K. provider of digital wealth management services, raised £30 million ($37.2 million). Hong Kong financial advisory firm Convoy led the round, and was joined by Schroders, Balderton Capital, Pentech, and Armada Investment Group.
• eOriginal, a Baltimore software firm focused on the management of financial asset documentation, raised $26.5 million from Philadelphia-based private equity firm LLR Partners.
• Quantopian, a Boston-based online platform for developing and testing investment algorithms, raised $25 million in Series C funding. Andreessen Horowitz led the round, and was joined by Bessemer Venture Partners, Point72 Ventures, Khosla Ventures, and Spark Capital.
• Logz.io, an Israeli log analytics software provider, raised $16 million in Series B funding. OpenView led the round, and was joined by 83North and Giza.
• Catapult Health, a Dallas provider of worksite preventive healthcare checkups, raised $10.1 million in Series B funding from UCHealth, according to Healthcare Daily. Read more.
• Siemplify, a New York City online information security platform, raised $10 million in funding. 83North and G20 Ventures led the round, with participation from angel investors.
• Musement, a Milan-based digital platform for travel booking company, raised $10 million in Series B funding, according to TechCrunch. Micheli Associati led the round, and was joined by P101, and 360 Capital Partners. Read more.
• Ava, a Zurich-based company that makes fertility-tracking wearable devices, raised $9.7 million in a Series A funding. Polytech Ventures led the round, and was joined by Blue Ocean Ventures, Global Sources, Swisscom, and ZKB.
• Zugata, a Palo Alto, Calif. mobile performance review platform for employees, raised $7 million in Series A funding. Investors include Canaan Partners, General Catalyst, and Redpoint Ventures.
• Prynt, a San Francisco startup that builds printers for smartphone cases, raised $7 million in Series A funding. GGV Capital led the round.
• GoZefo, an Indian refurbished furniture marketplace, raised Rs 40 crore ($5.9 million) in funding, according to The Economic Times. Sequoia Indialed the round, and was joined by Beenext and Helion Ventures. Read more.
• PlaySimple Games, an Indian mobile social gaming startup, raised Rs 27 crore ($5 million) in Series A funding, according to The Economic Times. SAIF Partners and IDG Ventures India led the round. Read more.
• Midaxo, a Finnish provider of mergers and acquisitions software, raised $4 million in Series A funding. EOC Capital and Finnish Industry Investmentsled the round.
• Employment Hero, an Australian HR, payroll, and employee benefits platform, closed its Series A round at AU$4.5 million ($3.4 million), according to ZDNet. AirTree Ventures, One Ventures, and AMP Ventures all participated. Read more.
• Gluru, a London-based task management platform, raised $2 million in seed funding. Investors include British Sussex Place Ventures, SAATCHiNVEST, GECAD, and Playfair Capital.
• Kit, a New York City-based platform for product recommendations, raised about $2.5 million in seed funding. Investors include Slow Ventures, Social Capital, Precursor Ventures, April Underwood, Ellen Pao, Authentic Ventures, BATF, and Expa.
• Genetesis, a Cincinnati-based medical device startup that helps physicians detect and characterize cardiac rhythm disorders, raised $1.2 million in seed financing. CincyTech and Radical Investments led the round, with participation from Loud Capital, Danmar Capital, Wilson Sonsini Investment Company, Genetesis management, and angel investors.
More to come every day possible!
Happy Networking and Investing,
Just text me +1 858-869-9483 with deal or referral anytime!
Happy Tuesday! We will be shooting video from La Costa Resort today and this is one of the best place to have a half day or two day strategy meeting. We look forward to referrals for EBITDA companies or strategy session for any companies with great leaders! We are all about growth and better when we can provide growth capital.
QUOTES OF THE DAY – Growth
“Strength and growth come only through continuous effort and struggle.” – this is an easy one to guest!
“We find comfort among those who agree with us – growth among those who don’t.” – if you know who said this one, I will be impressed!
What are your networking goals! Just remember to say hello to people and make an introduction. I have made million dollar deals or just amazing contacts by saying hello!
WHAT IS HOT
Medical Devices still are amazing space! Here is list of some companies that just won a pitch session at 4th annual Pediatric Surgical Innovation Symposium ($50k each):
Maternal Life, Palo Alto, Calif. – low-cost closed system that captures and administers colostrum to newborns with zero percent loss
JustRight Surgical, Louisville, Colo. – second generation surgical 5mm stapler scaled for a wider range of pediatric surgical procedures and bringing the benefits of laparoscopy to patients
Lully, San Francisco, Calif. – moisture sensor and Smart Pod monitor wirelessly connected to a smartphone app to prevent bed wetting episodes
Here is a list of recent exits top exits:
#1 Laborie Medical Technologies was acquired by Patricia Industries
#2 Advanced Accelerator Applications did an IPO
#3 ConforMISIPO4Topera Medical Acquired by Abbott Laboratories
#5 Glaukos IPO
We have access to recently funded and exits in most industries! Let us do strategy session with key information for you. Our Senior Executive Advisors team has played key roles in consolidation plays to major companies (e.g. McKesson) to wide range of early to consolidation plays. When have even helped an international company in the animal medical device field.
We are happier to provide a clear view of your company and its paths. However, this is a cool .JPEG with information!
DISCLIAMER: Please always check with the website of the company or investor as this information is from the Associated Press, Bloomberg, CB Insights, Forbes, Reuters, Wall Street Journal, or other 3rd party sources.
Here are some recent deals and our 40+ Senior Executive Advisors know many of the investors. We look forward to half day or two day strategy session.
• American Securities has agreed to acquire Chromaflo, an Ashtabula, Ohio-based maker of colorants and chemical dispersions, from Arsenal Capital Partners and Nordic Capital. No financial terms were disclosed for the deal, which is expected to close next month.
• Ashland Capital Partners has acquired Dedoes Industries, a Walled Lake, Michl.-based provider of equipment for the automotive refinish market, from Graycliff Partners. No financial terms were disclosed.
• Equistone Partners Europe has acquired a majority stake in United Initiators, a German producer of specialty chemical initiators, from Vision Capital and Speyside Equity. No financial terms were disclosed.
• First Reserve has agreed to acquire Gas Natural Inc. (NYSE MKT: EGAS), a Cleveland-based operator of local natural gas utilities serving around 68,000 customers in Maine, Montana, North Carolina and Ohio. The deal is valued at approximately $196 million, or $13.10 per share.
• Intelligent Medical Objects, a Northbrook, Ill.-based provider of medical terminology solutions for electronic health record systems, has raised an undisclosed amount of growth equity funding from Warburg Pincus.
• Precision Global, a New York-based portfolio company of Peak Rock Capital, has acquired Ralpet Plastics, an Australian manufacturer of injection and blow molded plastics products. No financial terms were disclosed.
• KKR and TowerBrook Capital Partners have agreed to invest a total of €250 million for a minority equity stake in OVH, a France-based provider of cloud infrastructure, telecom and web hosting services.
Easy referral is to our portfolio company for sale of any real estate asset (Residential, Commercial, Farm (we love Vineyards)). The Morris Team has partners nationwide and partners are market leaders in their industry.
Amazing referrals are owner of an EBITDA business that needs an exit or growth capital. Often we have an easy solutions.
Fun referral is any company that has a strong plan for rapid growth! We always try to help!
Through a syndication, we can invest over $100 million in a deal. However, our focus is not size or valuation! Or focus is building a company for success!
Leadership, Creativity, and Success.
An investment philosophy that cultivates value by investing in change.
A team of experienced investors with strong industry expertise.
Investments across a wide range of industries and geography.
We provide to private companies creative capital, structured for each investment opportunity. Our wealth of experience, industry expertise, deep operating skill sets and large global network of affiliated partners position us as a vital resource from which management can draw strategic, financial and operational guidance.
Red Hook Capital invests in companies across a broad range of industries and geographies. Our goal is to help management teams build long-term value that benefits all stakeholders. We structure our private equity investments based on each company’s circumstances and generally seek to invest in established businesses requiring equity capital between $10 million and $1 billion.
Red Hook Capital maintains a broad acquisition profile focused on acquiring businesses with its equity partners that exhibit a certain set of characteristics:
> fragmented market
> recurring revenues
> loyal customers
> strategic complements to our portfolio
This acquisition profile enables us to identify opportunities for creating value in virtually any industry. Here are example of ours of interest based on our partners and limited partners.
Wide Range services based on growth and EBITDA
SPECIALTY MANUFACTURING / INDUSTRIAL TECHNOLOGY
Test & measurement
Flow & process control
Instrumentation & sensors
Other high value-added niche manufacturing segments Consumer Products and Services
Wide Range of companies based on growth and EBITDA
Business process outsourcing
Governance, risk & compliance for financial institutions