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Questions We Ask in Due Diligence and Why!

Over the now almost 12 year storied history of Angel Capital Group, we have found key information is indicative of a team ready to use our capital to buy revenue, make use of our network and expertise, and to become business partners. These are key characteristics we look for because we have learned these lessons […]

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Over the now almost 12 year storied history of Angel Capital Group, we have found key information is indicative of a team ready to use our capital to buy revenue, make use of our network and expertise, and to become business partners. These are key characteristics we look for because we have learned these lessons the hard way.

Our Phase II application is designed to get to key questions and to *test* the entrepreneur. Entrepreneurs who embrace the system generally do well. They are prepared with the right information (e.g. they have done their homework and understand how this works). They are more than likely coachable. And, they are savvy at raising capital….and sales! Those that do not embrace the system tend to bounce back and do not receive funding.  That should not be a revelation to anyone! If you are applying through our application, you would be wise to read this fully, prepare your answers, and respond honestly. Hyperbole and “gaming the system” are easily detected in this process. That usually means the application goes in the digital, circular file.

The process we go through starts with your application for funding. The information is posted on our internal website *for our members only*. Initially, the information is reviewed by the screening committee of one of our funds or groups (seven now, soon to be 10). The screening committee reviews the information and decides if the information is forwarded to their members. Once the members have reviewed the information, they will ask you to pitch, decide to invest, or pass on the deal. If they decide to invest, they can request the application be forwarded to all network members for review and funding by the Alliance. There are several distinct levels of review and diligence is performed at each level. The good news is by the time a company is invested, it has been thoroughly vetted and ready to use our investor’s capital wisely. If you use this process correctly, even if you do not receive funding, your company will be better for having gone through a professional diligence program. We sincerely want you to succeed, even if it does not involve our network.

The application is broken up into four parts (so that you don’t run the risk of losing all your work if you have a browser issue): General Overview, Multiple Choice Questions (that are scored), Long Form Questions, and file uploads (Executive Summary, Pitch Deck, Proforma, Balance Sheet, Income Statement, Term Sheet, and Capitalization Table – more on this below), all based on the [heuristics](https://appalachianinvestors.com/2018/08/10/where-to-start-with-diligence-heuristics/) we use to rapidly screen companies so we can provide fast “yes’s” and “no’s” without wasting your time.

Overview

  • We need your contact information, website, and social media handles (Facebook, Twitter, LI, etc.).   We are going to visit your website, social media, and take a look at you to decide if you are someone we want to be associated with for the next 3 – 7 years.
  • We need your corporate address including corporate type (Inc. or LLC).  We don’t invest in sole proprietorships or in S-corps. So, this is an easy litmus test to understand if you know what you are doing.
  • We need a paragraph (no more than 4 sentences) that describes your company.
  • We have multiple groups within the Alliance, each with its own affinity (Nashville is healthcare, Knoxville is advanced materials, Boone is SaaS, Red Wing is female focused, etc.). So, we need to know to whom to direct your information.
  • We want to know why you get up in the morning (i.e. your “why” in the parlance of Simon Sinek If you are not driven to get up and self-start every day, you are not cut out to be an entrepreneur.
  • We want to know what the most compelling reason we should review the venture is in your mind.  This answer can be very tellingSelling shares is no different than selling products and services. If you can’t give us a compelling reason to take you seriously, we don’t. And, this is a great way to insert personality into the application process so we begin to know who you are and if you are creative, innovative, and focused on sales. If you can make an investor say “Wow, that IS pretty cool,” then you are 80% of the way to getting an investment…assuming your materials, business model, and projections are legitimate.
  • We need to understand what you see as your top three strengths/advantages. We will read all your materials with these strengths in mind.
  • We need to understand your top three non-capital related business risks. We will be looking in your materials to understand how you plan to mitigate these risks.

Multiple Choice Questions: (scored 15 questions, 9 points max for each question = 135 possible points)

  • “Is your product novel and disruptive?” We generally don’t invest in “better mousetraps.” So, we are seeking to understand if you are competing on value or price. We invest in the former.
  • “What is the size of your investment round?” We generally invest in rounds of $250k to $2.5M. So, we are seeking to validate you are in our sweet spot.
  • “What is your premoney valuation?” We generally invest in companies, for a first round, of $1500k – $250k. We generally plan to do 2 or 3 rounds of capital with a company that is growing and executing its business plan. Second and third rounds tend to be $150k – $450k. That is why our syndicate model is so important. We can help you scale quickly.
  • “What is the status of your product/service?” We are generally investing in companies that are within six months of meaningful revenue on both ends. Meaning we are generally seeking seed or early Series A deals. We understand product and software development cycles. So, we can estimate your time to revenue based on your product development status.
  • “How much revenue have you generated in the last 12 months?” We will invest pre-revenue, but prefer a company to have clients and revenue. Valuations directly reflect the latter.
  • “What is your revenue model?” We prefer recurring revenue models over laborious single product sales and fulfillment models. That is not to say we won’t invest if the margins are sufficiently large.
  • “What are your gross margins?” Gross margin is a proxy for “room for error.” If you have large gross margins, you have room to make mistakes and recover. The opposite is true. So, this is really a measure of risk, more than money.
  • “What is the total addressable market (TAM) for your business?” We generally invest in markets of $1B+. The reason is a market of this size will allow for several companies to start, grow, compete, and be successful. So, this is more a measure of “room to operate.”
  • “What is the Compounded Annual Growth Rate (CAGR) of your market?” We generally like to see above 5% CAGR or better. As we get beyond 20% CAGR, the market is hot! So, this is a measure of interest by others in your market.
  • “What is the state of the market?” We like to see unconsolidated markets where several companies can compete that will soon go through some sort of consolidation. In the consolidation processes, acquisitions occur, which is generally how we get our money back.
  • “How is the market timing for your product?” Timing is a HUGE issue for an entrepreneur. Too early to market means you will spend your time…and our money….educating the market. Too late to the market means you will be competing on price if you can elbow your way in at all. Timing is the one thing an entrepreneur can’t control.
  • “What is the status of your intellectual property (IP) or barriers-to-entry for fast followers (BtoE)?” We generally invest in companies with significant patent rights because, historically that has created barriers-to-entry for fast followers and driven acquisitions. That is not a fail-safe model, but IP adds to the value of a company at exit, and often is the reason for acquisition. We want to know if you have any intrinsic barriers-to-entry built into your company.
  • “Does your team have a demonstrated track record of execution?” The experience of the team is the largest predictor of success we have found. So, we want to know if this is a been-there-done-that-learned-the-hard-lessons team or a one-man band newbie.
  • “How much capital have you raised in the last 12 months?” Having raised meaningful capital in the last 12 months is the second largest predictor of success we have found. If your deal appeals to a broad group of investors, you have a higher likelihood of raising capital easily and with good terms.
  • “Describe the mergers and acquisition (M&A) activity in your market over the last three – five years with a look to the future. Initial Public Offering?” If your market is hot, there is a higher chance you will be acquired. It is that simple. Name names here. It shows you understand your own market place.

Long Form Questions:

  • “Provide an overview of the management team. Why is this the right team to win in the market place? What unique skills and experience does the team have? Why should the investor trust the team with their hard earned cash?” We are seeking information on your team, which is the largest determinant variable of success. Winners keep winning.
  • “What is the point of pain that your company addresses? How is your product/service addressing it? Why is it critical to your clients?” We invest in companies that are addressing real-world problems for which we can clearly see a market for the solution.
  • “What is your value proposition? Who are your clients? Why would they buy from you? What is their motivation? What is their ROI?” Clients buy products and services because it saves money, makes money, or both. We need to understand your monetary value to your customer.
  • “Describe your business model. How do you make money? What are your revenue streams? How much revenue does a customer represent?” We need to understand how you make money.
  • “Please provide an overview of the market for your product/service including market segmentation.” We need to understand the market from your perspective.
  • “Provide an overview of your marketing plan. Who are you selling to and how will you reach them? What is their alternative? What is your “beachhead” strategy?” Please tell us how you plan to message your clients. We want to understand if you know the difference between marketing and sales.
  • “Provide an overview of your sales plan. How will you sell to your customers? What channels will you use?” We need to understand how you intent to capture clients. We want to understand if you know the difference between marketing and sales.
  • “Describe your commercial traction. Do you have paying customers? Describe your ideal customer profile.” Traction is the most important reason to invest in a company.
  • “Please summarize your use of funds and financial projections including cash flow positive and break-even milestones. Describe your cost structure and capital needs.” How are you going to spend our money? If you are spending it on marketing to generate sales, we are happy. If you are spending it on human resources to keep the lights on and the doors open, we are not interested.
  • “Please describe the sources of competition in the marketplace and your sustainable competitive advantage(s) that will help you win in that same marketplace.” We need to understand the competitive landscape from your perspective. We need to believe you have a sustainable competitive advantage that is worth our money and your time.
  • “Describe your intellectual property position. Do you have patents? Trademarks? Copyrights? What barriers-to-entry do they create for your competition?” We need to understand what, if any, barriers-to-entry by fast followers you have created. We understand the value of IP and its challenges. IP still commands a premium in the Heartland.
  • “Please enter the Myers Briggs personality profile results (ENTJ, INTP, etc.) for each of your management team (CEO, CTO, CFO, CMO, etc.):” The team, and more importantly the chemistry of the team, is critical to the success of the company. We use this information to begin to understand how your team will react to adversity and success. We don’t disqualify anyone based solely on this measure, but it does help us guide our diligence when we begin to analyze the team’s ability to execute and succeed. For instance, if you do not have a diversity of personalities on the team, we can expect dissension within the team at some point or you will succumb to “we think.”
  • “Who are the most likely acquirers in your market that you will target for exit? Are you seeking IPO? Provide examples of prior exits and IPO values.” Understanding who you want to acquire you helps create a roadmap to acquisition and maximizing your valuation at exit. If you don’t have a map, it is easy to lose your way.
  • “Are there any intangible advantages or reasons that we should consider this venture for funding?” We always consider intangible value of the company for investment. If we can do the right thing AND make money, the answer is obvious.
  • “Describe your deal terms (e.g convertible note, SAFE Note, Series Seed, revenue sharing/royalty, preferred equity). Are you using industry standard terms (e.g. NVCA standard templates and terms)? Please list the terms.” Let us know what terms you are offering or, preferably, from a lead investor.
  • “What are the top three key performance indicators (KPI) or metrics to measure success of your venture?” We will measure your performance against these indicators.

Files

  • Executive Summary – We request an executive summary that we can share easily with investors in our network and outside to introduce your company. This should be a one page (two page at the absolute most) summary of your company, business model, marketing plan, sales plan, projections, competition, exit strategy, team, and current funding request.
  • Proforma – The proforma is simply the numerical version of your business plan. So, we want to review your ability to plan a business’s growth and to understand the assumptions you have placed in your financial model. If you can’t plan a business, you can’t run a business.
  • Pitch Deck – We need a pitch deck to provide more flavor and to judge your ability to communicate, to be succinct, and to be effective in your sales pitch. Make no mistake, you are selling shares of your company. If you can’t sell us shares, you can’t sell customers products and services.
  • Business Plan – Despite the fashionable rumor that business plans are dead, they are not.  We do appreciate seeing a business model canvas, but it does not replace a business plan. The business plan is just the narrative version of your financial projections. Assumptions in this plan better be in lock-step with those in the proforma. We are not looking for a long flowery narrative. We are looking for a 10 – 12 page concise, to the point plan that better include the following: overview of your company, overview of you product/service, explanation of your business model, a marketing plan, a sales plan, a detailed overview of the competitive landscape, your financial projections, your use of funds, your capital plan, your biggest risks and mitigation strategies, your exit strategy, and your team. Again, if you can’t plan a business, you can’t run a business. And, if you can’t convince me in your business plan that your business is viable, scalable, and impactful, don’t bother.
  • Balance Sheet – We need to understand your assets and liabilities.
  • Income Statement – We need to understand your current financial position.
  • Cap Table – We need your cap table so we can validate your valuation and to understand who we are getting involved with in your venture.
  • Term Sheet – We need a term sheet so we can understand what terms you are offering or your lead investor has offered you.

With these files, we can do a very fast dive on your company and give you a fast “yes” or “no” on our serious interest level. So, the more quality material you have prepared, and the more transparent you are, the faster you will get a solid answer.

This may sound like a lot of information, but all of this should be in your business plan. You should be copying/pasting this info. If you are spending hours creating new content, you are not ready for professional investors to perform diligence on your company. That is what it takes to get investment in this day and age. We deeply dive into your business and want to understand your leadership capabilities so we can feel comfortable that you can run a business, will take advice when given, make hard calls when necessary, and be responsive to your new business partner……us.

Copyright Appalachian Investors Alliance, Inc. 2018
@angelcapitalgr | @appalachianinvestors | www.appalachianinvestors.com | www.theangelcapitalgroup.com | www.facebook.com/angelcapitalgroup

Source: https://theangelcapitalgroup.com/2018/10/30/questions-we-ask-in-due-diligence-and-why/

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Private Equity

iAngels Israeli Deal Digest – September 2020

Welcome to the iAngels Monthly Deal Digest, a summary of corporate developments in the Israeli startup market.  This September we tracked 50 announced deals at approximately $1.8 Billion, and 6 exits of $1.3 billion. Including iAngels portfolio company, BioCatch, which raised $20m in a C round.   Insurtech and Cybersecurity were the two top performing sectors […]

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Welcome to the iAngels Monthly Deal Digest, a summary of corporate developments in the Israeli startup market. 

This September we tracked 50 announced deals at approximately $1.8 Billion, and 6 exits of $1.3 billion. Including iAngels portfolio company, BioCatch, which raised $20m in a C round.

Insurtech and Cybersecurity were the two top performing sectors this month. Next Insurance, a InsurTech company raised $250 million Series D financing round led by CapitalG, Alphabet’s independent growth fund, with participation from FinTLV, and existing investor Munich RE Group. Snyk, a cybersecurity startup closed a $200 million Series E financing round, led by venture capital firm Addition, according to a company valuation of more than $2.6 billion.


On the M&A side, we tracked three acquisitions. The largest being Preempt Security, an American-Israeli cybersecurity startup whose solution offers zero trust and conditional access for continuously detecting and preempting threats based on identity, behavior and risk, was acquired by a California-based cloud-delivered endpoint and cloud workload protection company CrowdStrike Holdings, Inc. in a $96 million deal.  

Seed Round

  • Anima App, a startup which allows designers to export code to the programming team, without needing to learn how to code or switching between different unfamiliar programming languages. completed a $2.5 million Seed funding round, led by Zohar Gilon, one of Israel’s leading and most important investors, along with Hetz Ventures. 
  • Bobile, the first company to offer real time advanced endpoint security for iOS from zero-day and targeted advanced persistent threats, closed a $1.5 million seed round led by the New York Angels and participation by Harvard Business School (HBS) alumni angels and other leading investors.
  • KRE8.TV, a celebrity content platform which allows users to order custom made video content from their favorite creators raised approximately $1.17 million of seed investment led by Benson Oak Ventures (BOV). The round also included additional investors, among them Eyal Waldman, CEO of Israeli chipmaker Mellanox.
  • Plantt, a solution which connects to your sales and support tools, analyzing your conversations with customers to create a tailor-made customer experience raised  $1 million from Fusion LA and GoAhead Ventures.
  • Inthegame, a start-up which develops an AI-powered platform can help create unique and interactive experiences by adding ‘layers’ to broadcast television to include things like polls and quizzes in sports events and game shows, raised $650 thousands in a Seed funding round.

A Round

  • AnyVision, a company which develops an AI-driven face recognition has raised $43 million from existing investors including investment funds and private investors.
  • Triple Jump Medical, a small insulin pump patch startup raised $20 million from Medtronic.
  • Varada, an Israeli Big Data startup has closed a $12 million series A funding round. The round was led by MizMaa Ventures, with participation by Gefen Capital. Existing investors Lightspeed, StageOne Ventures and F2 Venture Capital, which contributed in early 2019 to a $7.5 million seed round, also participated in the round.
  • EasySend, a company which develops a no-code drag and drop platform for managing customer experience by converting manual forms and data collection processes into digital mobile or web applications raised $11 million in a series A round led by Israeli venture capital firm Hanaco Ventures. Intel’s venture arm, Intel Capital, also participated in the round. 
  • Strigo, customer training cloud platform startup announced the close of an $8 million series A financing round. The new investment was led by Velvet Sea Ventures and existing investor Greycroft with participation from Hanaco, the company’s lead seed investor. 
  • DeepCube, a deep learning software accelerator, closed $7 million in Series A funding. The round, led by Canadian VC Awz Ventures with participation from Koch Disruptive Technologies (KDT) and Nima Capital, brings the total invested in DeepCube to $12 million. 
  • Metadata, a San Francisco-based autonomous demand generation company focused on B2B marketing, said it raised $6.5 million in its Series A round. Resolute led the series with participation from GreycroftYork IE and Stormbreaker, as well as Mark OrganIlya Volodarsky and more than a dozen Metadata customers and key employees.
  • Sternum, Israeli IoT cybersecurity company Sternum Ltd. has raised $6.5 million in series A funding. The company provides embedded protection and real-time visibility for connected devices. The round, led by Square Peg, was joined by existing investor and global business leader Merle Hinrich, European venture capital firm btov, and private investors including Boston-based veteran entrepreneur Eyal Shavit and Founder & CEO of CyberArk, Udi Mokady.
  • TetaVi, AI-based video capture technology company has announced the close of its $6 million series A round. The funding, which came from new and existing investors, brings its total capital raised to $11.3 million. It was led by American and Canadian venture capital fund REDDS Capital and included a strategic investment from ADWAYS.
  • Phytolon, natural food coloring developer completed a $4.1 million financing round led by Millennium Food-Tech with the participation of Consensus Business Group (CBG) Fund, Trendlines Group, EIT-Food (the EU body responsible for food-tech initiatives), and former Elbit Systems CEO Yossi Ackerman.

 

  • LIGC, an Israel-based producer of Laser-Induced Graphene filters, raised $3 million in round A led by Hubei Forbon Technology. LIGC Application is at the forefront of laser-induced graphene commercialization with patented technology.

B Round

  • NovellusDx, biotech company NovellusDX Ltd. which develops a drug that delays the development of a BRAF gene mutation created in cases of thyroid cancer and glioma cancer, raised $57 million in a round made at a valuation of $75 million in exchange for 73% of the company’s shares. The round was led by Israeli life science venture capital firm Pontifax Ltd. and healthcare investment firm Orbimed Israel Partners Ltd., with each investing around $10.5 million for a 14% stake. The third-largest investor in the round was Swiss firm HBM Healthcare Investments AG, which invested $10 million for around 10% of the company’s stock. Additional investors in the round include Swiss multinational pharmaceutical company Novartis International AG, Boston-headquartered investment firms Wellington Management and Cormorant Asset Management, and SR One Ltd., the healthcare venture capital arm of pharmaceutical company GlaxoSmithKline PLC (GSK). Each of them will receive a 6%-7% stake in the company.
  • EverC, Israeli cybersecurity startup, focusing on the prevention of online money laundering, completed a $35 million series B investment round. The round was led by Israeli venture capital fund Red Dot Capital Partners which invests in growth stage companies. Maor Partners also participated in the round together with the company’s current investors, including Joey Low, Viola Ventures, Arbor Ventures and American Express Ventures.
  • Axis Security, a cybersecurity startup completed a $32 million series B funding round led by Canaan Partners, with participation from existing investors Ten Eleven Ventures and Gili Raanan’s Cyberstarts. The capital was raised to meet the increasing demand for the company’s products in the wake of the widespread transition to work from home. Axis Security’s Application Access Cloud is a purpose-built cloud-based solution that simplifies application access, using a Zero Trust platform.
  • Deel, a company, which developed a payroll platform to pay both full-time staff and independent contractors who are working remotely, has completed a $30 million Series B financing round. The round was led by US venture capital fund Spark Capital with the participation of the company’s previous backers. Another dominant investor in Deel is U.S. venture capital fund Andreessen Horowitz, which is one of the world’s largest funds.
  • Medigate, a medical cybersecurity startup raised a $30 million series B round led by new investor Partech Partners. Previous backers YL Ventures, U.S. Venture Partners, and Blumberg Capital, as well as first time investor Maor Investments, also participated in the round. The new round brings Medigate’s total funding to around $50 million.
  • Pcysys, a cybersecurity company which developed an automated penetration-testing platform that assesses and reduces corporate cybersecurity risks, completed a $25 million series B financing round led by Insight Partners. Other participants include Canadian venture capital fund AWZ Ventures and U.S.-based The Blackstone Group. The company has so far raised a total of $40 million.
  • Coralogix, a company which provides a log analytics platform, completed a $25 million Series B financing round co-led by Red Dot Capital Partners and Eyal Ofer’s O.G with participation from existing backers Aleph VC, StageOne Ventures, Janvest Capital Partners, and 2B Angels.
  • Aurora Labs, a company which develops debugging tools for automotive software, completed a $23 million series B financing round. The round was led by Check Point co-founder Marius Nacht and LG Technology Ventures, LG Electronics’ investment arm. Porsche Automobil Holding SE, Toyota Tsusho, UL Ventures, the investment arm of global safety standards Company UL, and previous round backers participated in the oversubscribed round.
  • Aidoc, a medtech startup Aidoc Medical Ltd. raised an additional sum of $20 million for its series B round, which now stands at $47 million. This brings the company’s total funding to date to $60 million. The round was originally announced last year and was led by Melbourne, Australia-based Square Peg Capital, with participation from Magma Ventures, TLV Partners, and Emerge. Joining the round now are Alpha Intelligence Capital and Maor Investments. Aidoc develops artificial intelligence-based medical imaging software designed to quickly analyze medical scans and help doctors prioritize the most urgent cases and expedite treatment.
  • BrandTotal, the brand marketing analytics company providing social media competitive intelligence to brands and organizations, raised $12 million in its Series B investment round. The Series B round was led by INcapital Ventures, in participation with Maor Investments, Glilot Capital Partners, Flint Capital, KDC Media Fund, and FJ Labs.
  • Blue White Robotics (BWR), an autonomous vehicle platform startup Blue White Robotics (BWR) announced a $10 million funding round. The round was led by Jesselson Investment, alongside Peregrine VC, Entrée Capital and an investment group led by Datoroama founder Ran Sarig.
  • Envizion Medical, a startupwhich develops smart feeding tubes (Nasogastric tubes) for intubated patients, announced the completion of an $8 million funding round from private medtech backers, family offices and the Technion Venture Capital fund.
  • Salaryo, a Fintech company, which provides credit and digital banking services to small businesses in the U.S. has raised $5.8 million in credit and equity. The company declined to detail how much debt it had incurred, but it is estimated to be the main element of the deal. The equity component was led by UAE-based private equity and venture capital fund KEN Investments, which has invested hundreds of thousands of dollars in the deal. This is estimated to be the first time an Emirati fund has openly invested in an Israeli company and follows the announcement last month that the two countries had agreed to normalize diplomatic relations. Other investors included British venture capitalist Michael Ullman, Variant Investments, and Techstars Ventures in whose accelerator Salaryo had participated.

C Rounds

  • Melio, Israeli B2B payments startu, allowing small businesses to manage payments remotely, paying when and how they want, giving them more control and helping businesses manage cash flow raised $80 million in a Series C round from investors including Accel, Aleph, Bessemer Venture Partners, Coatue Management and General Catalyst.
  • Papaya, a global payroll and payment startup closed a $40 million series B funding round led by Scale Venture Partners, with participation from Workday Ventures, Access Industries (via its Israeli vehicle Claltech), and existing investors Insight Venture Partners, Bessemer Ventures Partners, New Era Ventures, Group 11, and Dynamic Loop.
  • Orasis, an ophthalmic pharmaceutical company which is developing eye drops to treat presbyopia – the loss of ability to focus near objects, closed a $30 million Series C financing round co-led by new investor Bluestem Capital and returning investor Visionary Ventures, with participation from previous investors Sequoia Capital, SBI (Japan) Innovation Fund, Maverick Ventures Israel, LifeSci Venture Partners and additional investors. 
  • V-Wave, a company is developing proprietary, minimally invasive interatrial shunt devices for treating patients with severe symptomatic heart failure and pulmonary arterial hypertension raised $28 million, bringing the total raised in its Series C financing round to $98 million. The financing was led by Deerfield Management with participation from Aperture Venture Partners, BRM Group, Endeavour Vision, Johnson & Johnson Innovation – JJDC Inc., Pontifax, Pura Vida Investments, GHS Fund (Quark Venture LP), as well as Triventures and Israel Secondary Fund.
  • PhyTech, a digital farming automation company and data provider raised $23.5 million from private equity firm Thomas H. Lee Partners, L.P. (THL) including from the THL Automation Fund L.P., and existing anchor investors.
  • Biocatch, a startup which is active in the behavioral biometrics field: the research of digital behavior by users from a physical and cognitive standpoint in order to protect them and their data from fraud in the digital space announced extended its series C financing round by an additional $20 million invested by four major global banks – Barclays, Citi, HSBC and National Australia Bank (NAB) – to increase the round to a total of $168 million.
  • Medasense, a company which develops technology for pain-response monitoring completed an $18 million series C financing round led by Sabadell Asabys venture capital firm (Asabys Partners, Spain), Israeli family offices, and former backers Baxter Ventures, Olive Tree Ventures, and LGL Capital.
  • KeepMed, a medical technology company secured 13 million Euros ($15.1 million) in series C funding for its positive airway pressure (PAP) device that helps people with Obstructive Sleep Apnea, KeePAP. New investors Celeste Management, Financière Arbevel, and 4See Ventures join existing investors Merieux Equity Partners, Pitango Venture Capital, Xenia Venture Capital, C4 Ventures, and Lavorel Medicare.
  • Capitolis, a fintech company raised $11 million from financial giants Citi, J.P. Morgan, and State Street. The company’s platform helps financial institutions free up capital and remove barriers that would otherwise restrict trading. Capitolis enables firms to optimize their balance sheet exposures through collaborative technology by eliminating unnecessary positions and finding the most suitable party to hold the remaining positions.

Growth/Misc. Rounds

  • SolarEdge (NASDAQ GS: SEDG) announced the pricing of $550 million aggregate principal amount of 0.00% Convertible Senior Notes due 2025 in a private offering.
  • Next Insurance, a InsurTech company raised $250 million Series D financing round led by CapitalG, Alphabet’s independent growth fund, with participation from FinTLV, and existing investor Munich RE Group.
  • Snyk, a cybersecurity startup closed a $200 million Series E financing round, led by venture capital firm Addition, according to a company valuation of more than $2.6 billion.
  • BioProtect, a private company with a bioabsorbable polymer spacer balloon platform announced the final closing of its $25 million series D equity financing from an unnamed strategic investor and Peregrine Ventures. Peregrine and the additional international investor each invested $4.5 million.
  • Ionir, previously known as Reduxio, a company that is about to launch a platform allowing to transfer, copy and restore data of any size from the different cloud platforms has raised $11 million in a fifth round led by Jerusalem Venture Partners (JVP). British VC C5 Capital also participated in the round.
  • Evogene, a leading computational biology company focused on revolutionizing product discovery and development in multiple life-science based industries, including human health and agriculture, entered into a definitive agreement with ARK Investment Management, LLC (ARK Invest) and Alpha Capital Anstalt in connection with a registered direct offering of ordinary shares at a price per share of $1.70, for an aggregate cash consideration of $10 million. 

 

M&A/IPO

  • Amwell (NYSE: AMWL), a telehealth company that connects patients with doctors over secure video went public and managed to raise $742 million by selling 41.2 million class A shares at $18 apiece, after increasing the price and number of shares offered. 
  • JFrog (Nasdaq: FROG), an automated software updating company raised $352 million on Nasdaq and the amount could grow by $72 million if the underwriters exercise their option to buy additional shares. Morgan Stanley, J.P. Morgan and BofA Securities acted as the lead book-running managers for the offering. KeyBanc Capital Markets, Piper Sandler, Stifel, William Blair, Oppenheimer & Co. and Needham & Company acted as co-managers.
  • Nyxoah (Euronext Brussels: NYXH), Israeli-Belgium sleep disorder treatment company raised €85 million ($100 million) in an initial public offering (IPO) on the Euronext stock exchange in Europe. The money was raised at a company valuation of €362 million ($423 million) after money and since the IPO the share price has risen by 14% giving a company valuation of €413 million ($485 million).
  • Preempt Security, an American-Israeli cybersecurity startup whose solution offers zero trust and conditional access for continuously detecting and preempting threats based on identity, behavior and risk, was acquired by a California-based cloud-delivered endpoint and cloud workload protection company CrowdStrike Holdings, Inc. in a $96 million deal. 
  • Odo Security, a network security company that developed cloud-based, clientless secure access service edge (SASE) technology that offers secure remote access to company assets by an unlimited number of users, was acquired by Nasdaq-listed network and cloud security company Check Point Software Technologies Ltd. The financial terms weren’t disclosed but its believed to be a $30 million deal.
  • BlueBird Aero Systems, a company which develops and integrates small tactical unmanned aircraft systems (AUS) for the Israeli security sector and foreign governments, was acquired by 50% of the equity by Israel Aerospace Industries (IAI) for $14.4 million. As part of the transaction, IAI is acquiring the holdings of India- based Piramal Technologies SA, and additional shares from Fiberless Access and Ronen Nadir. Nadir will continue to hold 50% of BlueBird shares and continue to serve as the company’s CEO.

Source: https://www.iangels.com/2020/10/iangels-israeli-deal-digest-june-2020-2-2-2/

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Target Mobility GmbH – HRB 195781 B – 31122022B

With our unique vehicle logistic solution, we crowdsource drivers by marketing vehicle transfers as one-way rentals for 1€ to our users, saving fleet operators up to 50% in logistic cost. Our win-win proposition delivers significant savings to fleet operators by monetizing unused capacities of their vehicle logistics (= empty seats) and creating unbeatable travel options from city to city for our users in the process.

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” The Leapfunder Note is a sensible and attractive way to place capital in start-ups in the Netherlands “

” Diversification is important in angel investing. Leapfunder is a platform that allows angels to spread their investments. “

” Leapfunder investing allows you to become actively involved in a start-up, just as in classical angel investing, while taking all the hassle out of transaction execution “

” Leapfunder is ideal for investing smaller amounts in a start-up in the very early stages. Such investments can be a powerful addition to a portfolio “

” With Leapfunder you get a great opportunity to build up a diversified portfolio of start-up investments, often investors can play an active role in developing the company “

” When I saw the Leapfunder proposition I thought straight-away: this is what start-ups need. I am an entrepreneur and wish this system had been available when I started my company. “

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Pieter ter Kuile

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Wouter Kneepkens

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Ronald Bazuin

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Eric van der Maten

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Eric van Gilst

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Donald Res

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Source: https://www.leapfunder.com/companies/165

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Liquid Alternatives: Fidelity Canada Launches Three New Liquid Alt Mutual Funds

Fidelity Investments Canada, one of the country’s largest investment managers, announced on Tuesday the launch of its maiden offerings within a liquid alternatives suite for Canadian investors.

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Liquid Alternatives: Fidelity Canada Launches Three New Liquid Alt Mutual Funds

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The new funds bring alternative sources of alpha to Canadian investors.

Fidelity Investments Canada, one of the country’s largest investment managers, announced on Tuesday the launch of its maiden offerings within a liquid alternatives suite for Canadian investors.

According to Fidelity, the new liquid alternative mutual funds can provide diversification benefits to retail investors, resulting in improved risk-return profile for their portfolios. They are designed for investors who want to step out beyond the traditional “long-only” investing strategy. (Markets Insider)

Further, these funds may be considered as differentiated solutions for navigating the considerable volatility across markets in 2020, as well as extremely low interest rates.

The new liquid alternative mutual funds are Fidelity Global Value Long/Short Fund, Fidelity Market Neutral Alternative Fund and Fidelity Long/Short Alternative Fund.

Fidelity Global Value Long/Short Fund

This fund seeks to achieve long-term capital appreciation by investing in long and short equity positions of companies across the world. It may use leverage through short selling of up to 50% of its net asset value and by investing in derivatives.

The fund is managed by Dan Dupont.

Fidelity Market Neutral Alternative Fund

This liquid alt fund aims to generate long-term capital appreciation by investing in long and short equity positions of companies in Canada and/or the United States. It may apply leverage through the use of short selling of up to 100% of its net asset value and investing in derivatives. The fund aims for a low correlation to major equity markets.

This fund is managed by David Way.

Fidelity Long/Short Alternative Fund

The goal of this fund is to earn long-term capital appreciation by investing in long and short equity positions of companies in Canada and/or the United States. It may apply leverage through the use of short selling between 30% to 50% of its net asset value, and by investing in derivatives.

“With the launch of our new alternative suite of products, retail investors can access products that until recently were only available to institutional or high-net-worth investors,” said Kelly Creelman, Senior Vice President, Products, Fidelity. “Our new offerings provide a broader opportunity set for investors seeking returns and diversification benefits beyond traditional “long-only” products.”

Related Story:  Liquid Alternatives – Because Bonds No Longer Diversify Or Pay A Yield

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Source: https://dailyalts.com/liquid-alternatives-fidelity-canada-launches-three-new-liquid-alt-mutual-funds/

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