Term Sheet — Friday, May 4 – 学期表-星期五,5月4日

Term Sheet -- Friday, May 4 - 学期表-星期五,5月4日


Polina Marinova

May 4, 2018


Good morning, Term Sheet readers.

Here are some sobering numbers to wake you up on this Friday morning:

— $150 million: The Walton Family, heirs to Walmart Founder Sam Walton
— $125 million: Rupert Murdoch, executive chairman of News Corp
— $100 million: Betsy DeVos & her family, Secretary of Education
— $100 million: The Cox family, owners of media properties
— $96 million: Partner Fund Management, investment management firm
— $70 million: Shareholders who invested through venture funds
— $30 million: Carlos Slim, media investor
— $25 million: Andreas Dracopoulos, Greek shipping heir
— $20: The Oppenheimer family, former owners of De Beers
— $6.2 million: Riley Bechtel, former chairman of Bechtel Corp
— $1 million: Robert Kraft, owner of New England Patriots
(*Not included: Earlier investors who invested nearly $100 million in Theranos before 2013.)

That’s a total of more than $700 million that business figures, government officials, and international magnates invested in an ambitious company promising to revolutionize blood testing. Enter Theranos.

The Wall Street Journal’s John Carreyrou got his hands on previously sealed documents that show just how much capital has sank with the Theranos ship. The documents are part of a lawsuit alleging that the company made false and misleading claims about its operations and technology while soliciting money from investors. (Theranos has denied the suit’s allegations.)

I feel uneasy every time I see a star-studded investor list for a startup that has raised hundreds of millions of dollars. The uneasy factor goes up when you realize none of the investors have deep medical or biotech expertise. Remember when GV’s Bill Maris said the firm passed on investing back in 2013 because it had a lot of questions about the company’s technology?

Maris said, “We looked at it a couple times, but there was so much hand-waving — like, Look over here!— that we couldn’t figure it out. So, we just had someone from our life-science investment team go into Walgreens and take the test. And it wasn’t that difficult for anyone to determine that things may not be what they seem here.”

At Fortune’s 2016 Brainstorm Tech conference, TPG’s David Trujillo made the point that people were simply not doing their diligence. “It’s just taking what a management team says at face value and not being able to follow up with it,” he said. “Part of it is the competitive dynamic of sources chasing opportunity that has created companies not having to share quite as much as they would outside this bubble we’ve been in.”

The hand-waving. The trade secrets. The competitive advantage. The revolutionary technology. For years, Holmes successfully dazzled investors, reporters, and the public.

As we’ve previously noted, the notoriously private company would use the sanctity of trade secrets as an excuse to run an operation shrouded in secrecy. When hundreds of millions of dollars are on the line, however, investors should expect transparency — not slippery & confusing language masquerading as industry jargon.

I’ll leave you with this remark by a Term Sheet reader: “How are these not lessons that [Silicon Valley] should not already know? Do your diligence, understand the tech, don’t accept ‘trade secret’ BS, and check out board oversight.”

As we now know, it was a very, very expensive lesson to learn.

NEWSLETTER ALERT: The first edition of “The Ledger,” a newsletter focused on cryptocurrency and the blockchain, comes out today. Sign up at fortune.com/gettheledger.



• The U.S. Unemployment Rate Is Now the Lowest It’s Been This Century

• Elon Musk’s Wall Street-Bashing Sunk Tesla Stock, But He Still Has More to Say

• Now It Looks Like Walmart Has Defeated Amazon in the War to Buy Flipkart (by David Meyer)

• Why Jay-Z Is Being Subpoenaed by the SEC (by Grace Donnelly)


Telegram’s billion-dollar ICO has become a mess. Singapore Exchange to invest in London-based Cobalt. A small college’s endowment manager beat Harvard with index funds.


Freeda Media, an Italy-based media company, is raising $10 million in Series A funding. Alven Capital will lead the round, according to TechCrunch. Read more.

Loom.ai, a San Francisco-based provider of mobile solutions for building and animating personalized 3D avatars, raised $3 million in seed funding. The investor was Samsung Venture Investment Corporation.



Casma Therapeutics Inc, a Cambridge, Mass.-based biotechnology company, raised $58.5 million in Series A funding. The investor was Third Rock Ventures.



Silver Lake made an investment in Imagine Learning, a Provo, Utah-based provider of supplemental math, language, and literacy programs for Pre-K-8 students nationwide.

Source Capital LLC acquired M&M Refrigeration LLC, a Federalsburg, Md.-based provider of industrial refrigeration equipment and control systems for cold storage, food processing and other industrial applications. Financial terms weren’t disclosed.

Francisco Partners agreed to acquire Renaissance, a Wisconsin Rapids, Wisc.-based provider of pre K-12 learning analytics. The sellers include Hellman & Friedman. Financial terms weren’t disclosed.

Aterian Investment Partners acquired Vander-Bend Manufacturing, a San Jose, Calif.-based maker of precision products. Financial terms weren’t disclosed.

HCS Capital invested $1 million in Ceptinel, a reg-tech company serving the financial industry with risk management and compliance platforms.

TPG Capital will acquire a minority stake in Rodan + Fields LLC, a San Francisco-based skincare brand. Financial terms weren’t disclosed.



Vivo Energy, an Amsterdam-based petroleum firm focused on Africa, plans to raise 650 million pounds ($882.4 million) in the largest Africa-focused IPO since 2005. Vitol, Helios Investment Partners, and Shell back the firm. Read more.

Carbon Black, a Waltham, Mass.-based cloud-based security software maker, said it plans to raise $152 million in an IPO of 8 million shares priced at $19 apiece, above its $17 to $18 range. The firm posted revenue of $162 million and loss of $55.2 million in 2017. Atlas Venture (17% pre-IPO), Highland Capital Partners (14.9%), Kleiner Perkins Caufield & Byers (8.8%), Point 406 Ventures (7.7%), and Sequoia Capital (9.9%) back the firm. Morgan Stanley and J.P. Morgan are underwriters in the deal. The firm plans to list on the Nasdaq as “CBLK.” Read more.

Construction Partners, a Dothan, Ala.-based road and infrastructure company, plans to raise $135 million in an IPO of 11.25 million shares priced at $12, below its previously stated range of $15 to $17 apiece. SunTx backs the firm. Baird, Raymond James, and Stephens are underwriters in the deal. The firm plans to list on the Nasdaq as “ROAD.” Read more.

Arco Educação, a Brazilian for-profit education company, plans to file for an IPO in the U.S. this year, Reuters reports citing sources. Read more.



IK Investment Partners will acquire a majority stake in Mademoiselle Desserts, a France-based company in the frozen bakery industry. Equistone Partners Europe was the seller.



Foresite Capital, a San Francisco-based healthcare and life sciences investment firm, raised $668 million for its fourth fund.

Salesforce Ventures raised $100 million for its Canada Trailblazer Fund, a fund that will invest in Canadian startups.



AJ Murphy is joining Silver Lake as a managing director. Previously, Murphy was the head of global markets at Bank of America.



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Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here.

WPA6021602IMG2018年5月4日波琳娜马里诺娃血洗 早上好,学期表读者。以下是一些清醒的数字,在这个星期五早上叫醒你:1亿5000万美元:沃尔顿家族,沃尔玛创始人山姆沃尔顿WPAP60300 3BR- 1亿2500万美元的继承人:Rupert Murdoch,新闻公司WPAP60300 3BR – 1亿美元的执行主席:Betsy DeVos和A她的家庭,教育部长WPA60303BR- 1亿美元:Cox家族,媒体财产所有者WPAP60300 3BR- 9600万美元:合伙人基金管理,投资管理公司WPAP60300 3BR – 7000万美元:通过风险基金投资WPAP60300 3BR- 30美元的股东百万美元:Carlos Slim,媒体投资者WPA60303BR- 2500万美元:Andreas Dracopoulos,希腊航运继承人WPA60303BR- 20美元:奥本海默家族,前所有者DeBeer-WPA60300 3BR – 620万:瑞利·贝克特尔,贝克特尔公司主席WPAP60300 3BR – 100万美元:罗伯特Kraft,新英格兰爱国者WPAP60300 3BR的所有者(*不包括:之前的投资者,他们在2013之前投资了1亿美元)。商业数据、政府官员和国际巨头投资总额超过7亿美元。一个雄心勃勃的公司承诺要彻底改变血液检测。进入TelaNOS。《华尔街日报》的John Carreyrou掌握了先前密封的文件,这些文件显示了TelaNOS船沉没了多少资金。这些文件是诉讼的一部分,指控该公司在向投资者讨价还价时对其操作和技术做出虚假和误导性的索赔。(TelaNOS否认了诉讼的指控。)每当我看到一家明星公司的投资者名单,我就感到不安,因为这家公司已经筹集了数亿美元。当你意识到没有一个投资者拥有深厚的医学或生物技术专长时,这种不安因素就会上升。还记得GV的Bill Maris说,该公司在2013通过了投资,因为它对公司的技术有很多问题吗?Maris说,WPA60604QTEWE看了几次,但有这么多的手挥动,像,看这里!-我们不能把它算出来。所以,我们刚刚从我们的生命科学投资团队的人进入沃尔格林,并参加测试。NWPAP60300 7QTET对于任何人来说都很难确定事情可能不是他们看起来的那样。TWPG的David Trujillo在WPOP60300 6QTE的2016次头脑风暴技术会议上指出,人们根本不努力。他说:“这只不过是一个管理团队面对面值而无法跟进的说法。”“部分原因是追逐机会的竞争性动力使公司不必像我们所泡的那样分享更多的东西。”挥手示意。商业秘密。竞争优势。革命性的技术多年来,福尔摩斯成功地吸引了投资者、记者和公众。正如我们之前所指出的,臭名昭著的私人公司将以商业机密的神圣性为借口,进行秘密行动。然而,当数亿美元上线时,投资者应该期待透明度——而不是滑稽的、令人困惑的语言伪装成行业术语。我将把这句话留给你们的一个术语表读者:“这些怎么不是硅谷不应该知道的?”做你的勤奋,了解技术,不要接受“商业秘密”,检查董事会的疏漏。“正如我们现在所知,这是一个非常非常昂贵的教训。时事通讯提醒:第一个版本的“分类帐”,一个集中于加密和发行链的时事通讯,今天出版。登录Funt.com / GETSELDEGER。广告财富的最新…美国失业率正在上升最低的ITWPA60607QTES是本世纪的公牛;艾伦MaskWPAP60300 7QTs华尔街抨击沉思特斯拉股票,但他还有更多的话要说:BoW;现在看来,沃尔玛在战争中打败了亚马逊购买FLIKART(David Meyer)为什么Jay-Z被SEC(Grace唐纳利)传唤…D,其他地方WPA60303BR电报的十亿美元ICO已经变得一团糟。新加坡交易所在伦敦投资钴基。一个小学校的捐赠基金经理用指数基金击败哈佛。风险交易弗里达媒体,意大利BASED媒体公司正在筹集1000万美元的A系列资金。根据TechCrunch的说法,阿尔文资本将引领这一轮。多读。Boo.Loo.AI,一个基于三藩的移动解决方案提供商,用于构建和制作个性化3D化身,筹集了300万美元的种子资金。投资者是三星风险投资公司。广告健康与生命科学协议CAMMA治疗公司基于Realm公司的生物技术公司筹集了5850万美元的A系列资金。投资者是第三个投资公司。广告私募股权交易


Term Sheet -- Friday, May 4 - 学期表-星期五,5月4日

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