| | | | | | | | | | | Axios Pro Rata | | By Dan Primack · May 31, 2023 | | | | | | Top of the Morning |  | | | Illustration: Aïda Amer/Axios | | | | Want to invest in the right-wing blowback to corporate diversity, equity and inclusion efforts? There's a SPAC for that. - It's called Colombier Acquisition Corp., and was formed in late 2021 with the backing of venture firm Torch Capital and business development company SuRo Capital.
- The SPAC had a fairly milquetoast tech investment mandate, raising $172.5 million in its IPO last June.
- Then, earlier this year, it agreed to merge with PublicSq, an online marketplace for companies in what it calls "the patriot economy."
- If the deal goes through, the combined company's board will lose the Torch and SunRo reps, in favor of failed U.S. Senate candidate Blake Masters and former Mike Pence strategist Nick Ayers.
Why it matters: This comes at a moment when anti-LGBTQ activists have helped tank stock prices for companies like Anheuser-Busch InBev and Target. - PublicSq, which includes a section titled "Ditch Target 2.0," claims a 30% month-over-month user growth rate (now over 700k) and a 19% month-over-month business growth rate (over 50k) over the past year.
- Last week it rose to No. 4 in Apple's App Store, ahead of Amazon and Walmart, although by yesterday it had fallen back to No. 60.
- "Any time Target pulls a Target, it's kind of a reminder for our consumers of, 'Hey, there's there's maybe some other options out there that we should pursue,'" PublicSq CEO Michael Seifert tells Axios' Sara Fischer.
- Many of PublicSq's merchants appear to be apolitical, focusing instead on "American-made products," although the app features plenty of sellers like a "pro-life coffee brand."
The big picture: There's nothing new about social or political movements seeking to leverage the power of consumer checkbooks. In recent history, however, it's more commonly come from the other side of the political spectrum. - One other big difference is the role of SPACs.
- Seifert acknowledges that the overall SPAC market has been a pit of despair, but believes that the relative success of Rumble — a right-leaning alternative to YouTube — shows that SPACs can have niche value for niche companies like his.
- Specifically, Rumble had far fewer pre-merger redemptions than most deSPAC transactions, and has managed to keep its share price near the $10 par mark. Colombier hasn't gone through the redemption process yet, but has stayed above $10 since announcing its PublicSq deal.
The bottom line: It remains unclear if this "anti-woke" movement will really drive consumer behavior, or if it's more limited to social media and stocks. - Disney's top and bottom lines, for example, appear unaffected by the company's Florida fight, and it's tough to believe that people will stop eating delicious Chick-fil-A sandwiches (yes, that Chick-fil-A) because the company named a VP of DEI.
- Once its SPAC merger goes through, however, PublicSq will begin disclosing financials that could give better insights into how much of the bark is bite.
|     | | | | | | The BFD |  | | | Illustration: Sarah Grillo/Axios | | | | CleanJoule, a Salt Lake City-based developer of sustainable aviation fuels developed from agricultural residues and other waste biomass, raised $50 million led by Indigo Partners. Why it's the BFD: This reflects a growing aerospace sector belief that sustainable aviation fuels could become competitive with crude oil-based fuels, or at least part of a standard blend, in terms of both cost and performance. Plus government incentives in the U.S. and Europe. Other investors include air carriers Frontier Airlines, Wizz Air and Volaris — a consortium that also agreed to buy up to 90 million gallons of CleanJoule SAF. - Temasek's GenZero and existing backer Cleanhill Partners also participated.
The bottom line: "While advances have been made in electric planes, battery weight remains a problem for large aircraft. Sustainable jet fuel is seen by many as the most promising way to reduce greenhouse gas emissions in the aviation sector, which contributes more than 2% to global emissions each year." — David Gelles, NY Times | | | | | | | | Venture Capital Deals | | • Hostaway, a Toronto-based provider of vacation rental and management software, raised US$175m led by PSG. https://axios.link/42cbkMx 🚑 Strive Health, a Denver-based provider of value-based kidney care, raised $166m in Series C funding. NEA led, and was joined by CVS Health Ventures, CapitalG, Echo Ventures, Town Hall Ventures, Ascension Ventures and Redpoint Ventures. https://axios.link/42hdZ7V • Lightmatter, a Boston-based developer of photonics for large-scale computing, raised $154m in Series C funding from Fidelity, SIP, Viking Global Investors and GV. www.lightmatter.co • NomuPay, a unified payments startup formed via the 2021 purchase of select WireCard assets, raised $53.6m from backers like Finch Capital and Outpost Ventures. https://axios.link/3C1u8U8 • Magic, a web3 onboarding startup, raised $52m. PayPal Ventures led, and was joined by Cherubic, Synchrony, KX, Northzone, and Volt Capital. www.magic.link 🚑 Prognos Health, a New York-based health data marketplace, raised $23m. Marshall Wace and Safeguard Scientifics co-led, and were joined by Cigna Ventures, Hikma Ventures, Hunt Holdings, Labcorp, Maywic, Merck Global Health Innovation Fund and Red & Blue Ventures. https://axios.link/3WF7NFm • Vartana, an SF-based B2B sales closing and financing startup, raised $20m in Series B funding. Activant Capital led, and was joined by Mayfield and Audacious Ventures. https://axios.link/43fiqBo • Atly, an Israeli social mapping platform, raised $18m from Target Global, Tal Ventures and FKA Brands. https://axios.link/43CnP5l • Neat Burger, the British plant-based fast food chain, raised $18m in Series B funding led by B-Flexion. https://axios.link/42atVZn • Deep Sentinel, a Pleasanton, Calif.-based provider of live video monitoring solutions, raised $15m. Intel Capital led, and was joined by Shasta Ventures, Slow Ventures, UP2398 and The Syndicate. www.deepsentinel.com 🚑 MediView XR, a Cleveland-based AR surgery startup, raised $15m from the Cleveland Clinic, the Mayo Clinic, GE HealthCare, JobsOhio Capital Growth Fund, Inside View Investments and KKVS Syndicate. https://axios.link/42ekHeD • Payrails, a German payment processor, raising $13m from EQT Ventures and General Catalyst, per Insider. https://axios.link/45EXkhe 🚑 Violet Therapeutics, a Cambridge, Mass.-based biotech focused on CNS diseases, raised $10.6m in seed funding. Dementia Discovery Fund and UTEC co-led, and were joined by Ono Venture Investment and founding backer Mass General Brigham Ventures. www.violet-tx.com • XFlow, an Indian cross-border payments startup, raised $10.2m in seed funding. Square Peg led, and was joined by Moore Strategic Ventures, Lightspeed Venture Partners and General Catalyst. https://axios.link/3MF6p0X • Alcion, a Santa Clara, Calif.-based data management startup, raised $8m in seed funding from angel investors like Lip-Bu Tan (Walden International) and Debanjan Saha (DataRobot). www.alcion.ai • Qflow, a London-based environmental management platform for construction, raised £7.2m in Series A funding. Systemiq Capital led, and was joined by Ascension Ventures, Bridge Investment Group, Gravel Rd, Greensoil Proptech Ventures, Grosvenor, MMC and Suffolk Tech. https://axios.link/3IOrgxA • Holdings, an SF-based business cash diversification startup, raised $7m in seed funding from backers like Album VC, Fin Capital and Hustle Fund, per Axios Pro. https://axios.link/43tDSC8 🚑 Dock Health, a Boston-based provider of health care admin tools, raised $5m. MassMutual led, and was joined by DaVita Venture Group and insider August Capital. www.dock.health • Zeliq, a French developer of sales tools, raised €5m in pre-seed funding led by Resonance. www.zeliq.com • Proxima, a gaming startup led by Ran Mo (ex-EA), raised $1.6m in pre-seed funding. London Venture Partners led, and was joined by Konvoy Ventures, Progression Fund, and Valhalla Ventures. www.proxima.gg | | | | | | | | A message from Axios | | Break through the noise with Axios | | |  | | | | Reach execs and business leaders with Axios. We'll help you tell your story in the right way: - We'll distill your brand's message into its most effective form with Smart Brevity.
- No clutter, no filler — just clean, smart and effective.
Contact us to learn more. | | | | | | Private Equity Deals | | 🚑 Ardian invested €100m for a minority stake in French veterinary clinic chain Mon Véto. www.veterinaire-monveto.com • Atlas Holdings acquired a Canadian pulp and paper mill for nearly US$219m from Paper Excellence Group. https://axios.link/3MJ1w73 🐔 DCP Capital agreed to buy Cargill's Chinese poultry business. https://axios.link/43f0Mh6 • REIC, a Kalispell, Mont.-based portfolio company of Kinderhook Industries, acquired Midstream Equipment Corp., a Canadian provider of rental equipment in the oil, gas and large industrial sectors. www.reicorporation.com • Renology, a German portfolio company of Nordic Capital, acquired Invoke, a French provider of financial, regulatory and tax reporting solutions whose backers include Bpifrance, ISAI and Sagard NewGen. www.renology.net • Tech24, a Greenville, S.C.-based portfolio company of HCI Equity Partners, acquired TMR, a Brookhaven, Miss.-based provider of commercial kitchen repair, maintenance and installation services. www.mytech24.com 🚑 Trinity Hunt Partners acquired a majority stake in Centricity Research, a Columbus, Ga.-based clinical research reservices provider. www.centricityresearch.com • Vector Capital agreed to buy SF-based IT company Riverbed Technology from Apollo Global Management. www.riverbed.com • Warburg Pincus agreed to acquire over a 90% stake in Vistaar Finance, an Indian lender to SMBs, for around $250m. https://axios.link/3C1JQyL | | | | | | | | Public Offerings | | • Ciner Group, the Turkish parent company of natural soda ash producer WE Soda, is planning to raise at least $800m in a London IPO, per Reuters. https://axios.link/3MLjQfE ⚡ Hidroelectrica, a Romanian utility, is seeking to raise upwards of €2b in its IPO, per Bloomberg. https://axios.link/3oHU9oj • VinFast, a Vietnamese electric vehicle maker, formally withdrew its $1b U.S. IPO registration. Last week the company agreed to go public at an implied $27b valuation via a SPAC called Black Spade Acquisition Co. (NYSE: BSAQ). https://axios.link/3C0AqTQ | | | | | | | | Liquidity Events | | • Bacardi is in talks to buy Ilegal Mezcal for less than $200m, per Bloomberg. Bacardi and VMG Partners are existing investors in the Brooklyn-based spirits brand, which previously received buyout interest from L Catterton. https://axios.link/45Exz0z 🐟 Wicked Kitchen, an Edina, Minn.-based maker of plant-based foods, acquired Current Foods, an SF-based alt-seafood protein startup that had raised over $20m from firms like GreatPoint Ventures, Union Grove Venture Partners and Electric Feel Venture. https://axios.link/3INvQfx | | | | | | | | More M&A | | 🌎 Accenture agreed to acquire Brazilian sustainability consultancy Green Domus. www.accenture.com • Blueground, a New York-based furnished monthly rental property company valued by VCs at $750m, acquired German rival Nestpick. https://axios.link/3owC8tl • Bell Media, the Canadian media conglomerate, acquired a minority stake in Montreal-based indie producer Sphere Media. https://axios.link/3MFbiXY 🍺 Femsa, a Mexican Coca-Cola bottler, divested its Heineken (Amsterdam: HEIA) stake for around €3.3b. https://axios.link/3C0ACCO • Fleetcor (NYSE: FLT) is considering a sale of its prepaid card business, which could fetch north of $500m, per Bloomberg. https://axios.link/43waJ9y • Shiseido (Tokyo: 4911), the Japanese beauty company, said its wholly owned subsidiaries, Shiseido Japan and Shiseido Pharmaceutical, will merge at year's end. https://axios.link/3MHmxyZ ☕ Strauss Group (Tel Aviv: STRS) agreed to sell its Serbian coffee business to Croatian consumer products firm Atlantic Grupa. https://axios.link/3WCXvWo | | | | | | | | Fundraising | | 🚑 General Atlantic is raising around $1b for a life sciences companion fund, Axios has learned. It will invest on around a dollar-for-dollar ratio with General Atlantic's flagship fund, although the LP roster may differ. The firm declined comment. • Baidu (Nasdaq: BIDU) is launching a $145m VC fund focused on AI-generated content startups. https://axios.link/45xr13X • Integrum, a new PE firm focused on tech-enabled services companies, raised $1.1b for its debut fund. www.integrum.us • Newbury Partners, a PE secondaries firm, is raising $2.5b for its sixth fund, per an SEC filing. • Pear VC raised $432m for its fourth flagship seed fund. https://axios.link/45GVAnY • Selva Ventures, an LA-based firm focused on consumer brands "that promote healthier living," raised $34m for its second fund. https://axios.link/45xveVj | | | | | | | | It's Personnel | | • Jill Ford left Credit Suisse to join Wells Fargo as head of equity capital markets, per Bloomberg. https://axios.link/45D3ApO • Brian Hickey (ex-Brookfield Asset Management) and Zach Appleman (SROA Capital) joined the capital formation team of AE Industrial Partners as managing director and vice president, respectively. www.aeroequity.com • Prudential PLC named Ben Bulmer as CFO. He currently is CFO of the firm's asset management unit. www.prudentialplc.com • David Roberts joined Great Hill Partners as a managing director focused on digital commerce. He previously spent 11 years with Advent International. www.greathillpartners.com • Dina Powell McCormick is leaving Goldman Sachs, where she led sustainability and inclusive growth, to join BDT & MSD Partners as vice chair and president of global client services. https://axios.link/3MJB1hF | | | | | | | | Final Numbers |  Data: Domain Name Stat; Chart: Alice Feng/Axios It feels like every new startup is calling itself an AI company, while many old ones are rebranding as such. And some of that is showing up in domain name registrations. - Registrations of .ai domain names are up 156% over the past year, compared to just a 27% increase of .com domains over the same time period, according to Domain Name Stat.
- The big .ai spike came after the release of ChatGPT late last year.
| | | | | | | | A message from Axios | | Break through the noise with Axios | | | | | | | | Reach execs and business leaders with Axios. We'll help you tell your story in the right way: - We'll distill your brand's message into its most effective form with Smart Brevity.
- No clutter, no filler — just clean, smart and effective.
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