Page 1 of 5

From: Name: Email Address: Subject: Date:

"Dan Primack" Dan Primack Dan_Primack@fortune.chtah.net Term Sheet -- Thursday,
January 2 02-01-2014 14:44:19 Message
January 2, 2013
Random Ramblings
"Who are the investors?" It's a question I've heard nonstop since we first repor
ted back in August that Kara Swisher and Walt Mossberg, co-executive editors of
influential tech site AllThingsD, had hired an investment bank to help explore t
he possibility of forming their own independent company, once their existing con
tract with Dow Jones expired on December 31. And the pestering only intensified
the following month, when the pending split was made official. At the time, we r
eported that Swisher and Mossberg were in talks with two prospective investors,
one of which was Comcast subsidiary NBCUniversal. But soon there were rumors tha
t Hearst also was in the mix, and that various hedge fund managers and venture c
apitalists had come knocking. Then a long period of silence, even as the clock k
ept ticking toward the end of AllThingsD and this morning's launch of what is be
ing called Re/code. So, let's end the mystery: In an interview, Swisher and Moss
berg say that their new company's two investors are the NBCUniversal News Group
(yay, got it right) and Terry Semel's Windsor Media (oops, never even sniffed th
at one -- although you've got to love the irony of Swisher getting money from Ya
hoo's ex-CEO). Each group took an equal minority equity stake somewhere south of
25% for an undisclosed amount.
file:///C:/Users/srinivas/AppData/Local/Temp/tmp.tmp
16-12-2015

Page 2 of 5
Swisher and Mossberg seem confident that the actual dollar details can remain co
nfidential because they structured the parent company (Revere Digital) as an LLC
, although my guess is that the SEC or Delaware Division of Corporations may hav
e a different sentiment. "It was a real learning experience," Swisher says of th
e investment process. "You really got a sense of how deals ebb and flow over ver
y small things, and how important the human element is." Mossberg adds: "Quincy
Smith [the pair's lead investment banker] told us from the beginning how central
the chemistry factor would be when choosing investors, and it kept surprising m
e how right he was about that." In addition to its investment, NBCUniversal has
signed a separate operational agreement that will, among other things, provide i
t with access to Re/code content and codify NBCNews as the new company's preferr
ed media partner. That means you should expect to be seeing lots of Swisher and
Mossberg on CNBC, MSNBC and NBC News properties like The Today Show. For more on
the deal and the new company, please go here. *** IPO data: 82 VC-backed compan
ies raised $11.25 billion in IPOs last year, according to the NVCA and Thomson R
euters. That's the most VC-backed IPOs since 2007, and the 24 offerings in Q4 re
presented the first time since 2004 that the market had three consecutive quarte
rs of 20+ VCbacked IPOs. Overall, Renaissance Capital reports that the 2013 U.S.
IPO market was busier than in any year since 2000, with 222 companies raising $
55 billion. The global IPO market hit $137 billion, a 37.5% increase over 2012.
*** More 2013 deal data: The most active U.S. region for private equity investme
nt last year was the Mid-Atlantic, according to Pitchbook. The area accounted fo
r just under 20% of all PE deal-flow and 26.5% of all PE investment dollars (buo
yed by the $23.2 billion buyout of Pittsburgh-based Heinz). Pitchbook also repor
ts that the year's five largest U.S. buyouts were: Dell ($24.9b), Heinz ($23.2b)
, BMC Software ($6.9b), Neiman Marcus ($6b) and Axalta Coating Systems ($4.9b).
Stuff to read at Fortune.com
2014 predictions: Fortune's crystal ball Miguel Helft: Microsoft's Chromebook he
adache Jen Wieczner: Why 2014 could be Mexico's year Caroline Fairchild: New Yea
r's resolutions for 8 big companies Adam Lashinsky: The uncomfortable truth abou
t Brad Stone's Amazon book
THE BIG DEAL
file:///C:/Users/srinivas/AppData/Local/Temp/tmp.tmp
16-12-2015

Page 3 of 5
Didi Dache, a Chinese taxi-booking app, has raised $100 million in Series C fund
ing from CITIC Capital ($60m) and existing investors like Tencent ($30m), accord
ing to a Chinese media report. www.xiaojukeji.com
VENTURE CAPITAL DEALS
Nest Labs, a Palo Alto, Calif.-based maker of smart home devices like thermostat
s and smoke detectors, is raising upwards of $150 million in a new VC round that
would value the company north of $2 billion, according to Re/code. DST is expec
ted to lead the round, with return backers including Google Ventures, Kleiner Pe
rkins, Generation Investment Management, Lightspeed Venture Partners, Shasta Ven
tures and Venrock. www.nest.com Alexar Therapeutics Inc., a developer of liver x
receptor agonists for both systemic and local use, has raised $21.5 million in
Series A funding. The company was formed by NeXeption LLC, while the investment
was co-led by New Science Ventures and Third Point Ventures. Palo Alto Investors
also participated. www.alexartx.com Agilis Biotherapeutics LLC, a New York-base
d synthetic biology-based company focused on rare genetic diseases, has raised $
8 million in new VC funding. The company also announced a partnership with Intre
xon Corp. (NYSE: XON), in order to develop a treatment for Friedreich's ataxia.
www.agilisbio.com Floored, a New York-based provider of 3D data capture and visu
alization solutions for the real estate, architecture, interior design and furni
ture industries, has raised $5.26 million in Series A funding. RRE Ventures led
the round, and was joined by Greycroft Partners and return backers Two Sigma Ven
tures, Lerer Ventures, and Felicis Ventures. www.floored.com Retrofit, a Chicago
-based provider of weight loss programs, has raised $5 million in Series B fundi
ng. Cambia Health Solutions led the round, and was joined by return backer DFJ.
The company previously raised more than $8 million. www.retrofit.com Breaker, a
producer and distributor of mobile video entertainment, has raised $2 million in
seed funding. Japan's Dream Incubator Inc. led the round, and was joined by Sie
mer Ventures. www.brkr.jp AirVend, a Provo, Utah-based maker of cashless touchsc
reen devices for vending machines that will aid in nutrition disclosure regulati
ons, has raised $1.2 million in seed funding. 365 Retail Markets led the round,
and was joined by PS27 Ventures. www.air-vend.com
PRIVATE EQUITY DEALS
KIK Custom Products Inc., a portfolio company of CIC Capital Partners, has acqui
red the consumer business of Chemtura Corp. (NYSE: CHMT) for $300 million. www.k
ikcorp.com New England Orthotic & Prosthetic Systems, a Branford, Conn.based prov
ider of orthotic and prosthetic patient care products and services, has raised a
n undisclosed amount of mezzanine funding from F.N.B. Capital Partners. New Engl
and Orthotic & Prosthetic Systems is a portfolio company of Summer Street Capita
l Partners. www.neops.com Peak Rock Capital has acquired Natural American Foods
Inc., an Onsted, Mich.based
file:///C:/Users/srinivas/AppData/Local/Temp/tmp.tmp
16-12-2015

Page 4 of 5
producer and distributor of honey and other food products. No financial terms we
re disclosed. www.naturalamericanfoods.com Yumi's Quality Foods, an Australian s
nack-maker, has raised an undisclosed amount of equity funding from Anacacia Cap
ital. www.yumis.com.au
IPOs
Dicerna Pharmaceuticals, a Watertown, MA-based pharmaceutical company that devel
ops RNA interference-based therapeutics, has filed for a $69 million IPO. It pla
ns to trade on the Nasdaq under ticker symbol DRNA, with Jefferies, Leerink Swan
n and Stifel serving as lead underwriters. The company reports around a $10 mill
ion net loss on $7 million in revenue for 2013. Shareholders include Domain Asso
ciates (16.8% pre-IPO stake), Skyline Ventures (14.7%), Deerfield Management (13
.4%), RA Capital (13.4%), Abingworth Management (10.3%), Brookside Capital (9.4%
), S.R. One Ltd. (8%) and Oxford Bioscience Partners (7.3%). www.dicerna.com Rev
ance Therapeutics Inc., a Newark, Calif.-based developer of a platform technolog
y that enables local, targeted delivery of large macromolecules across skin, has
filed for an $86.25 million IPO. It plans to trade on the Nasdaq under ticker s
ymbol RVNC, with Cowen & Co. and Piper Jaffray serving as lead underwriters. Sha
reholders include Essex Woodlands Health Ventures (36.2% preIPO stake), NovaQues
t Capital (24.9%), Technology Partners (7.6%), Vivo Ventures (7%), Shepherd Vent
ures, Palo Alto Investors, Pac-Link Ventures and Essex Capital Corp. www.revance
.com
EXITS
PTC (Nasdaq: PTC) has acquired ThingWorx, an Exton, Penn.-based application deve
lopment platform. The deal is valued at up to $130 million, including a $112 mil
lion up-front payment. ThingWorx backers included Safeguard Scientifics. www.thi
ngworx.com
OTHER DEALS
21st Century Fox (Nasdaq: FOXA) has agreed to sell its 47% stake in Star China T
V to the channel's majority owner, China Media Capital. No financial terms were
disclosed. www.21cf.com Fiat SpA has agreed to acquire the 41.46% stake in Chrys
ler that it does not already own, in a $4.35 billion deal. Jonas Software, a uni
t of Constellation Software Inc. (TSX: CSU), has acquired Shortcuts Software Ltd
., an Australiabased provider of business management solutions for the hair and b
eauty industry. No financial terms were disclosed. www.shortcutssoftware.com Nor
thern & Shell, a group owned by Richard Desmond, is considering a sale of Britis
h broadcast TV station Channel 5, according to the FT. Barclays is managing the
process, which could garner around $1.2 billion.
FIRMS & FUNDS
Bowmark Capital, a UK-based mid-market buyout firm, has raised 375 million for it
s fifth fund, according to a regulatory filing. www.bowmark.com Lexington Partne
rs has agreed to acquire around a $1 billion portfolio of private equity fund
file:///C:/Users/srinivas/AppData/Local/Temp/tmp.tmp
16-12-2015

Page 5 of 5
stakes from Ireland's National Pensions Reserve Fund, according to LBO Wire. UBS
managed the process. Represented funds include CVC Capital Partners, Providence
Equity Partners and TPG Capital. www.nprf.ie
MOVING IN, UP, ON & ON
Stephen Moseley has joined the Alaska Permanent Fund Corporation as a senior por
tfolio manager focused on alternative investments. He served as president of Ste
pStone Group until May 2009, and since has been managing his own real estate and
investment management office. www.apfc.org Daniel Axelsen has joined Vy Capital
, the tech-focused investment firm launched last year by Alexander Tamas (ex-DST
) and Mateusz Szeszkowski (ex-KKR). Axelsen previously was with New Enterprise A
ssociates and, before that, Qatalyst Partners. www.vycapital.com
Fortune on Facebook @FortuneMagazine
Subscribe to Fortune Advertising info
Email Administrator One CNN Center Atlanta, Georgia 30303 This message has been
sent to you because you are currently subscribed to The Term Sheet. To unsubscri
be, click here PRIVACY POLICY Please read our Privacy Policy, or copy and paste
this link into your browser: http://money.cnn.com/services/privacy/
file:///C:/Users/srinivas/AppData/Local/Temp/tmp.tmp
16-12-2015