Portfolio companies of Shuly Galili’s UpWest Labs and Laura Stoppel go public while Mary Meeker sees a portfolio company prepare to merge with a SPAC
From our Women's PE Briefs - week commencing July 5, 2021
Shuly Galili’s UpWest Labs has its first portfolio company go public
UpWest Labs, which was co-founded by Shuly Galili, has its first portfolio company go public – an event that Shuly tells Women’s PE Briefs “strengthens our conviction in our ‘first-check’ strategy and our continued effort to deliver significant value to LPs, founders, and ecosystem.” SentinelOne, a software security company, raised $1.2 billion by offering 35 million shares at $35 a share. It is now trading on the New York Stock Exchange under the symbol S. The company, which has more than 4,700 customers, generated $112 million in sales for the 12 months ended April 30. UpWest’s board includes Charlene Begley, a former executive with GE. Insight Venture Partners was the largest shareholder prior to the offering with a 15.73 percent stake, while Tiger Global had 12.4 percent and Third Point Ventures held 11.25 percent. UpWest’s holdings in SentinelOne were not disclosed in the filing, but the firm was the first investor in the Mountain View, Calif. company in 2013.
Calling the IPO “monumental for the cybersecurity industry,” Shuly said, “it was clear to us as first investors at the pre-seed that the opportunity to disrupt the antivirus industry will rely heavily on new AI and behavioral technology, where SentinelOne delivers cutting edge differentiation.” She said that during the eight-year journey to IPO, the founders of SentinelOne – Tomer Weingarten and Almog Cohen – “not only exemplified the spirit of innovation, but the values of resilience and tenacity in building a true category leading company with over 1,000 employees worldwide.” In growing the company, SentinelOne’s founders leveraged UpWest’s network in Silicon Valley to penetrate the U.S. cybersecurity market. In a blog post, Shuly and her UpWest co-founder, Gil Ben Artzy, wrote that the firm “grew” alongside SentinelOne, and “in many ways we share the same startup mentality and core values of resilience, tenacity, trust and community.”
Prior to UpWest, Shuly founded and ran the California-Israel Chamber of Commerce. Gil previously worked at Yahoo, first in corporate development and then as vice president of operations management. UpWest focuses on helping Israeli start-ups grow in the United States. It has raised three funds, totaling $27 million – including an $18 million fund closed in 2018.
A portfolio company of BOND’s Mary Meeker is poised to become publicly traded
Nextdoor, Inc., a portfolio company of BOND’s Mary Meeker, is poised to become publicly traded – a company whose CEO is Sarah Friar and whose co-founders include Sarah Leary and Madison Bell. A social network for neighbors, Nextdoor has agreed to merge with a special purpose acquisition company and, in turn, become publicly traded. Under the agreement with Khosla Ventures Acquisition Co. II, Nextdoor will have a pro forma equity value of approximately $4.3 billion and will trade on Nasdaq under the symbol KIND. The San Francisco company will also receive approximately $686 million in gross proceeds, which includes a $270 million fully committed private investment in a public entity. Sarah Friar is among those who will participate in the PIPE financing.
Nextdoor said the transaction will accelerate its growth plans and enable it to increase hiring and expand into new territories. It currently is in more than 275,000 neighborhoods in 11 countries. Following the completion of the transaction, Sarah Friar and Sarah Leary will, along with co-founders Nirav Tolia and Prakash Janakirman and founding investor Bill Gurley, contribute a portion of their personal ownership in the company to form and sustainably fund the Nextdoor Kind Foundation. The nonprofit will be dedicated to helping neighbors rejuvenate their neighborhoods through targeted grants.
Sarah Leary joined Unusual Ventures last year as a venture partner but has been on Nextdoor’s board. Madison left Nextdoor and founded Kontist, a German banking management company. Sarah Friar joined Nextdoor in 2018 after being CFO of publicly traded Square.
In addition to BOND, Nextdoor’s backers include Riverwood Capital, Benchmark, Tiger Global Management and Kleiner Perkins Caufield & Byers. Mary led BOND into Nextdoor in 2019 and joined its board, which also includes Leslie Kilgore, who was formerly Netflix’s chief marking officer and also serves on the boards of such companies as Netflix and Pinterest.
Recently, another company that BOND backed, CLEAR Secure, went public. The New York secure identity company’s founder and CEO is Caryn Seidman-Becker.
Mary serves on the boards of Plaid, Square and Genies. She has also supported BOND’s investments in Ironclad; Material Bank; On Running; BYJU’S; Checkr; Hipcamp, which was created by Alyssa Ravasio to enable people to find and book privately-owned campsites; and Canva, whose co-founder and CEO is Melanie Perkins. BOND closed its second fund earlier this year at $2 billion.
A portfolio company of RA Capital Management’s Laura Stoppel goes public
Acumen Pharmaceuticals, whose board includes RA Capital Management’s Laura Stoppel, goes public. The Charlottesville, Va. company raised $160 million by pricing 10 million shares at $16 a share. It is listed on Nasdaq under the symbol ABOS.
Acumen is developing a monoclonal antibody for Alzheimer’s disease. The company believes it is developing a novel approach to the disease by targeting soluble amyloid-beta oligomers, which are globular assemblies of amyloid-beta that it believes are a key underlying cause of the disease.
RA was the largest shareholder prior to the offering, with a 23.3 percent stake. PMG Capital Group holds 16 percent and Sands Capital Management has 11 percent.
Laura is also on the boards of Nimbus Therapeutics and Artiva Biotherapeutics, which is in registration to go public. Laura is a principal on RA Capital’s investment team.
Liz Muñoz-led Torrid goes public
Torrid, a private equity-backed, plus-size women’s fashion retailer whose CEO is Liz Muñoz, goes public. The City of Industry, Calif. company raised $231 million by pricing 11 million shares at $21 a share. It is listed on the New York Stock Exchange under the symbol CURV. Owned by Sycamore Partners, it had a net income of $25 million on $974 million in revenue for the year ended Jan. 20.
Liz has served as the company’s CEO since August 2018. She previously was the company’s senior vice president of product. Her background also includes serving as president of Lucky Brand.
Torrid’s board also includes Lisa Harper, who is CEO of Belk, a department store chain. She previously served as CEO of Torrid and predecessor Hot Topic.
Hanzade Doğan Boyner’s D-MARKET becomes the first Turkish company to go public on Nasdaq
D-MARKET Electronic Services & Trading, whose founder and chair is Hanzade Doğan Boyner, becomes the first Turkish company to go public on Nasdaq. D-MARKET, which operates the e-commerce platform Hepsiburada, raised $681 million by offering 56.7 million American Depository Shares at $12 a share. It is trading under the symbol HEPS. In 2020, Hepsiburada connected 33 million members, 9 million active customers and 45,000 active merchants.
Hanzade founded the company in 2000. She is also the founder of Nesine, a sports betting platform. According to the filing, she owned 14.1 percent of the company’s Class A shares and 10.5 percent of the Class B shares and held 74.6 percent of the voting power.
Since last year, D-MARKET’s board has also included Vuslat Doğan Sabancı, who is Hanzade’s sister. She previously served as publisher and CEO of Hurriyet Publishing, a Turkish newspaper group. Vuslat owned 17.1 percent of the Class B shares and held 5.7 percent of the voting power.
A company that NEA’s Vanessa Larco and IVP’s Becca Faust and Louisa Xu have been involved with files to go public
A company that New Enterprise Associates’ Vanessa Larco and IVP’s Becca Faust and Louisa Xu have been involved with – Robinhood Markets – files to go public. The Menlo Park no-fee stock trading app is seeking to raise $100 million and list on Nasdaq under the symbol HOOD. Robinhood has more than 18 million funded brokerage accounts and booked $1.35 billion in revenue for the 12 months ended March 31. Robinhood’s board includes Paula Loop, who was previously a partner at PwC. Index Ventures, Ribbit Capital, DST Global and NEA are listed as owning more than 5 percent of the company.
Vanessa has served as an observer on the company’s board. She has also led the firm’s investments in Rocket.Chat, Evident ID, Greenlight, Feather Home, Lily AI, Mejuri, which was founded by Noura Sakkijha, and Cleo, which was founded by Shannon Spanhake and Dr. Chitra Akileswaran. Vanessa is also an observer on the boards of Willow, Forethought AI and OmniSci.
Louisa, who is a partner with IVP, and Becca, who is an investor, were both involved in IVP’s investment a year ago in Robinhood. Becca, who joined IVP in 2019, has also been involved in the firm’s investments in Aledade and more recently Figma. Louisa, who has been with IVP since 2018, also worked on the firm’s investments in Harness, Lime and Whisper.
Rachel Haurwitz and Jennifer Doudna’s Caribou Biosciences files to go public
Caribou Biosciences, Inc., a CRISPR genome editing company founded by Rachel Haurwitz and Nobel Prize winner Jennifer Doudna, files to go public. The Berkeley, Calif. company is seeking to raise $100 million and list on Nasdaq under the symbol CRBU.
Caribou is using its CRISPR technology platform to develop genome-edited allogenic cell therapies for oncology. Its lead allogeneic CAR-T cell program is being evaluated in a Phase 1 clinical trial for patients with relapsed/refractory B cell non-Hodgkin lymphoma.
Rachel serves as president and CEO and is a member of the board as is Dr. Natalie Sacks, who is chief medical officer at Harpoon Therapeutics. Rachel is also a co-founder of Intellia Therapeutics, which Jennifer is also a founder of. Jennifer is on Caribou’s scientific advisory board. She is an investigator with Howard Hughes Medical Institute and a professor at U.C. Berkeley and won the 2020 Nobel Prize in Chemistry for her work on CRISPR. Jennifer has also helped found such other companies as Scribe Therapeutics, Inc. and Mammoth Biosciences.
Rachel, according to the filing, owns 9.33 percent of the company while Jennifer and her husband, James, own 6.28 percent. F-Prime Capital Partners owns 9.32 percent while E.I. du Pont de Nemours and Co. owns 8.60 percent.
Earlier this year, Caribou raised $115 million in funding from a group that included Farallon Capital Management, PFM Health Sciences, Ridgeback Capital, AbbVie Biotech Ventures, Adage Capital Management, Avego Bioscience Capital, Avidity Partners, Invus, Janus Henderson Investors, LifeSci Venture Partners, The Leukemia & Lymphoma Society Therapy Acceleration Program, Monashee Investment Management, LLC, Point72, Tekla Capital Management, LLC and existing investors Heritage Medical Systems, Maverick Ventures and Pontifax Global Food and Agriculture Technology Fund.
Michelle Wilson-led Isos Acquisition agrees to combine with Bowlero
A special purpose acquisition company co-led by former WWE co-president Michelle Wilson has found a company to bring public – one it hopes it will strike gold with. Isos Acquisition Corp. has agreed to combine with Bowlero Corp., the world’s largest owner and operator of bowling centers and owner of the Professional Bowlers Association. The transaction values Richmond, Va.-based Bowlero at $2.6 billion. Once the deal is complete, Bowlero would receive $450 million and trade on the New York Stock Exchange under the symbol BOWL. Prior to the pandemic, for the 12 months ended Feb. 2020, it had revenue of $746 million and EBITDA of $201 million. Revenue for calendar year 2022 is expected to be $859 million and EBITDA is expected to be $275 million.
Isos Acquisition went public in March, raising $225 million. Michelle leads Isos with George Barrios. The two previously served as co-presidents of the WWE. They have also formed an investment firm, Isos Capital Management, to invest in media, entertainment, and sports companies.
Michelle joined WWE – the publicly traded wrestling company – in 2009 after serving as the chief marketing officer of the United States Tennis Association. Her background also includes brand management positions with the NBA and Nabisco.
Hellman & Friedman’s Annmarie Neal is on the board of a firm portfolio company that files to go public
Annmarie Neal, a partner and chief talent officer at Hellman & Friedman, is on the board of a firm portfolio company that has filed to go public. Snap One Holdings Corp. is seeking to raise $100 million and list on Nasdaq under the symbol SNPO.
Based in Charlotte, N.C., Snap One provides a suite of smart home products and services to professional integrators. As of March 26, integrators using the company’s remote management software platform reached approximately 345,000 active homes and businesses. Snap One booked $862 million in sales for the 12 months ended March 31. Hellman & Friedman acquired the company – then known as SnapAV – in 2017 from General Atlantic. Annmarie joined the company’s board in January.
Annmarie has been with Hellman & Friedman since 2015. Previously she ran her own consulting firm and held the chief talent officer roles at Cisco Systems and First Data.
A company that Dr. Francine Fang led 3E Bioventures into files to go public
A company that Dr. Francine Fang led 3E Bioventures into files to go public – a company whose board includes Tess Cameron, principal, strategic finance at RA Capital Management. Cytek BioSciences is seeking to raise $100 million and list on Nasdaq under the symbol CTKB.
Based in Fremont, Calif., Cytek provides cell analysis instruments for life science applications. As of March 31, the company had placed more than 750 instruments with more than 620 companies globally. It generated $99 million in sales for the 12 months ended March 31. Francine, a partner with 3E, guided the firm into Cytek’s Series C round in 2018 – the size of which was undisclosed.
According to Cytek’s filing, 3E owns 7.7 percent of company prior to the offering. Northern Light Ventures, which co-led that round, owns 4.4 percent. RA Capital owns 5.6 percent.
Tess joined the board in April. Prior to RA, she served as head of finance of Foghorn Therapeutics, Inc. and director of financial and business planning at WAVE Life Sciences, Ltd.
Cytek’s board also includes Gisele Dion, who previously served as the chief accounting officer and corporate controller for Takeda Pharmaceutical, Ltd. and Shire Pharmaceuticals, LLC.
Daojia files to go public
Daojia, a Chinese home services platform whose board includes Jiajia Zou, a partner with Sequoia Capital China, files to go public. The Beijing company is seeking to raise $100 million and list on the New York Stock Exchange under the symbol JIA.
Through its platform, Swan Daojia, the company offers such things as nannies, housekeeping services, training services and even maternity nurses. Daojia generated $118 million in sales for the 12 months ended March 31. Sequoia Capital China’s holdings in Daojia are not listed in the SEC filing, but Sequoia does list it as a portfolio company on its website. Jiajia joined the board in February 2020.