Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Venture-backed exits remained soft in the third quarter with 90 M&A deals and 13 IPOs in the United States, according to a report by Thomson Reuters and the National Venture Capital Association. Twenty of the 90 deals reported an aggregate deal value of $5.1 billion, which was up 39 percent from the second quarter and marked the strongest quarter for M&A exits with a disclosed value this year. The 13 IPOs raised $1.7 billion. This was a 55 percent decrease in the number of offerings from the second quarter and a 54 percent decline in total amount of dollars raised, the report found. PRESS RELEASE M&A Value Hits $5.1 billion for Strongest Quarter This Year Market Volatility Drags Down Venture-Backed IPO Activity in Third Quarter NEW YORK, NY – Ninety venture-backed M&A deals were reported in the third quarter, 20 of which had an aggregate deal value of $5.1 billion, increasing 39 percent compared to the second quarter and marking the strongest quarter for M&A exits with disclosed value this year, according to the Exit Poll Report by Thomson Reuters and the National Venture Capital Association (NVCA).  Thirteen venture-backed initial public offerings (IPOs) raised $1.7 billion during the third quarter of 2015, a 55 percent decrease, by number of offerings, from the second quarter of this year and 54 percent decline in total amount of dollars raised during the previous three-month period. “While the number of companies making a public offering during the third quarter was down as a result of market volatility, M&A activity was robust, marking the strongest quarter by disclosed deal value this year.  Of the thirteen companies that did make an IPO, more than two-thirds are currently trading above their offering price in the middle of a choppy market, a strong indicator of the quality of venture-backed IPOs,” said Bobby Franklin, President and CEO of NVCA.  “In addition to market volatility weighing down IPOs, another recent and important trend that has impacted the venture-backed IPO market is the increased activity of both VCs and non-traditional investors making late-stage investments into private companies that might otherwise file for an IPO.  While these so-called ‘private IPOs’ are weighing down the current IPO market, it also means the venture-backed IPO pipeline is deep and we are hopeful exit activity picks up steam in future quarters.” IPO Activity Overview There were 13 venture-backed IPOs valued at $1.7 billion in the third quarter of 2015.  By number of deals, quarterly volume decreased 55 percent from the second quarter of this year and registered a 54 percent decrease, by dollars, compared to the previous quarter. Led by the biotechnology sectors, ten of the 12 offerings during the quarter were life sciences IPOs, representing more than three-quarters of the total listings in the third quarter. By location, 11 of the quarter’s 12 IPOs were from U.S.-based companies.  In the only non-U.S. offering of the quarter, Austria-based Nabriva Therapeutics AG (NBRV) raised $92.3 million on the NASDAQ stock exchange on September 17th. In the largest IPO of the quarter, Sunrun Inc (RUN), a San Francisco, California-based provider of solar energy, raised $250.6 million and began trading on the NASDAQ stock exchange on August 4th.  The company is currently trading 26 percent below its $14 offering price. Eleven companies listed on the NASDAQ stock exchange during the third quarter, while two listed on the New York Stock Exchange. Nine of the 13 companies brought to market this quarter are currently trading at or above their offering price.  There are 50 venture-backed companies currently filed publicly for IPO with the SEC.  This figure does not include confidential registrations filed under the JOBS Act, where many observers believe the majority of venture-backed companies now file. Mergers and Acquisitions Overview As of September 30th,  90 venture-backed M&A deals were reported for the third quarter of 2015, 20 of which had an aggregate deal value of $5.1 billion, a 42 percent uptick compared to the overall number of deals reported during the second quarter of this year, and a 39 percent increase, by disclosed deal value. The information technology sector led the venture-backed M&A landscape with 69 of the 90 deals of the quarter and had a disclosed total dollar value of $3.4 billion.  Within this sector, Computer Software and Services and Internet Specific deals accounted for the bulk of the targets with 47 and 17 transactions, respectively, across these sector subsets. The largest venture-backed M&A transaction during the third quarter was EMC Corp’s $1.2 billion million purchase of Virtustream, a Bethesda, Maryland-based provider of enterprise cloud solutions.  Infor Inc’s $675 million acquisition of Oakland, California-based Gt Nexus Inc ranked as the second largest venture-backed M&A deal during the quarter.

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Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Norse raises $11.4 mln

Norse has raised $11.4 million in a Series A1 round led by KPMG Capital. Foster City, California-based Norse provides security solutions that aim to help companies block the threats. PRESS RELEASE September 30, 2015 12:01 AM Eastern Daylight Time FOSTER CITY, Calif.–(BUSINESS WIRE)–Norse, the leader in live attack intelligence, today announced the successful closing of its Series A1 round of funding led by a strategic investment from KPMG Capital, KPMG International’s global investment fund. The investment will enable KPMG’s member firms to offer Norse threat intelligence products and services to clients through the KPMG network’s global cyber security practice. The remainder of the $11.4 million total raised in this round was provided by a group of existing investors, and the funds will be used by Norse primarily to bolster the company’s product development efforts and accelerate the expansion of its global sales organization to capitalize on high-growth market opportunities abroad. The additional Series A1 funding now brings the total venture funding raised by Norse to $42 million. “KPMG clearly understands the complex challenges that public and private organizations face and that threat intelligence and the insights that it brings are at the heart of the next generation of information security. They also have a strong presence in the parts of the world where we see our greatest opportunities for growth,” said Norse CEO Sam Glines. “KPMG Capital’s strategic investment in Norse is a strong endorsement of our technology and our approach, and we are thrilled to have our efforts recognized by such an established and highly regarded global consultancy with deep business and technology experience.” “As trusted advisors to governments and industries around the world, KPMG member firms work to find smart, creative and forward-thinking technologies like Norse threat intelligence solutions to help address cyber security challenges,” said Mark Toon, CEO, KPMG Capital. “Through KPMG Capital’s strategic investment in Norse, we can ensure that clients will benefit from their industry-leading technologies today and in the future.” Norse has already taken important steps towards achieving its product development and sales expansion goals. Norse recently announced the appointment of Andrew Lewman to the newly created position of vice president of data development, where he will extend Norse’s lead in gathering, processing and applying live threat intelligence for the next generation of enterprise security solutions. Norse also named David Weier, an accomplished sales executive with more than 20 years of experience building and leading high-performance sales teams, as senior vice president of worldwide sales. Norse’s family of enterprise threat intelligence solutions includes the Norse Appliance™ 10g and the Norse Intelligence Service™, a turnkey “early-warning-as-a-service” that helps large financial services firms and government agencies quickly identify compromised systems, spot malicious activity and track attacks while they are still under way. By analyzing the large amount of data that comes through its network, Norse’s suite of solutions gives organizations the ability to instantly assess the risk level and threat context of connections both inside and outside their networks. Threats are identified in near real time, allowing companies to block the sources of threats as they happen. Norse’s in-house team of cyber intelligence and counterintelligence fusion analysts, many recruited directly from military and government intelligence organizations, are at the core of the Norse Threat Intelligence Service. These security professionals deeply understand the wider threat landscape and each customer’s incident response options and offer the crucial human touch missing from fully automated solutions. About KPMG Capital KPMG Capital Limited and KPMG Capital Holding Limited comprise an investment fund for KPMG member firms. The investment fund is not open to third-party investment and will not, itself, provide professional services to clients. KPMG Capital Limited and KPMG Capital Holding Limited are legally distinct and separate from KPMG International Cooperative and each KPMG member firm. Like every member firm in the KPMG global network, KPMG Capital, and the entities it invests in, is subject to the same rules and regulations promulgated by the regulatory, bodies responsible for establishing standards for auditor Independence (for example, the US SEC, PCAOB, AICPA, IESBA and those established by the various countries in which the investments reside). These rules apply to member firms, the individuals at such member firms and the targets for potential joint venture, alliance or acquisition related to the activities of KPMG Capital. All existing Independence protocols apply to KPMG Capital. About KPMG International KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 162,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. About Norse Norse is the global leader in live attack intelligence, helping companies block the threats that other systems miss. Serving the world’s largest financial, government and technology organizations, Norse intelligence dramatically improves the performance, catch-rate and return-on-investment of the entire security infrastructure. The Norse Intelligence Network, a globally-distributed distant early warning grid of millions of sensors, honeypots, crawlers and agents, delivers unmatched visibility into difficult-to-penetrate geographies and darknets, where bad actors operate. Norse processes hundreds of terabytes daily against a 7 petabyte attack history database, and weighs over 1,500 variables to compute real-time risk scores for millions of IP addresses and URLs every day. For more information, visitwww.norsecorp.com.

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Norse raises $11.4 mln

DriverUp collects $20 mln Series B

DriverUp, an online marketplace for automotive financing, has secured $20 million in Series B funding. SF Capital Group led the round with participation from Emerald Development Managers and RRE Ventures. In conjunction with the funding, DriverUp has added Neil Wolfson, president of SF Capital, to its board of directors. PRESS RELEASE DALLAS, Sept. 24, 2015 /PRNewswire/ — DriverUp, the first online marketplace for automotive financing, announced it closed a $20 million Series B round. The DriverUp marketplace gives accredited investors an opportunity to directly enter the $1 trillion auto lending industry and provides dealers with an expedited, streamlined credit process. New investor SF Capital Group led the round joined by existing investors Emerald Development Managers and RRE Ventures. “This Series B round allows us to accelerate our product development, support added marketplace loan inventory and ramp up marketing efforts,” said Sam Ellis, chief executive officer, DriverUp. “We have seen strong interest from accredited investors since launching, and are confident this round of funding will bolster DriverUp’s ability to take the platform to new levels and reach a larger audience.” DriverUp also announced the appointment of Neil Wolfson to the company’s Board of Directors. As president of SF Capital Group, Wolfson oversees all debt and equity investing, asset allocation, investment management and operations for a large multi-generational family office. He also serves on the Board of Directors for OnDeck Capital, BorrowersFirst, Patch of Land, TodayTix, Nextivity and FastPay. “In a very short time, DriverUp has clearly demonstrated that their technology can fundamentally improve auto lending, similar to how we have seen FinTech disrupt other industries,” said Neil Wolfson, president, SF Capital Group. “The auto-tech sector as a whole will continue to grow over the next few years as more stakeholders seek out efficient, platform-based auto finance options, and DriverUp is uniquely positioned to lead this charge.” DriverUp is the first company that offers auto loans as an investment opportunity to accredited investors such as hedge funds, endowments, family offices, and high net worth individuals. Previously, investing in this sector was limited to a handful of large institutions. The DriverUp platform uses technology to fundamentally improve how loans are secured and serviced by creating a direct-to-investor option that until now has not existed within the auto-lending industry. Through DriverUp’s proprietary software and advanced data analytics, the marketplace enables efficient processing and direct investment in auto loans, with full transparency and reporting. To learn more about DriverUp, please visit www.driverup.com. About DriverUp DriverUp is a new online marketplace for automotive financing that enables investors – who previously did not have access – to directly participate in the growing, higher-yield business of auto lending and provides dealers with a streamlined credit application that speeds loans and moves cars. DriverUp’s proprietary technology platform makes processing and buying loans quicker and easier. Rely on DriverUp’s industry stature – more than 100 years of collective experience in automotive and consumer finance – for a direct connection to the business.

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DriverUp collects $20 mln Series B

Riverside exits Orliman

Magnum Capital has acquired Riverside Company‘s ownership stake in Orliman. No financial terms were disclosed. Montalban and KPMG served as advisors to Riverside on the transaction. Based in Valencia, Spain, Orliman is a maker of orthopedic devices. PRESS RELEASE (PRWEB) SEPTEMBER 24, 2015 The Riverside Company has sold its ownership stake in Orliman to Iberian Private Equity firm Magnum Capital. Orliman is a Spanish manufacturer and distributor of non-invasive orthopedic devices. The company’s products are used in the prevention of injury, treatment of chronic conditions and for recovery after surgery or injury. Based in Valencia Spain, Orliman manufactures a broad portfolio of devices for the upper limb, torso and lower limb including both standard as well as made-to-measure products. After investing in Orliman in 2010, Riverside expanded the company considerably through both organic growth and integration of add-on acquisition. These efforts helped to extend Orliman’s leadership position in its market and accelerated the company’s transformation into the leading player within Southern Europe. During Riverside’s hold period, Orliman’s sales by more than 50% and EBITDA nearly doubled. Among other improvements, Riverside incorporated new senior leadership, further invested in new product development, and reinforced the export department by increasing the company’s presence in selected markets throughout the world. In 2014, Riverside completed the acquisition of French orthopedic company Soft Medical Europe. Today, Orliman sells in more than 40 countries and 70% of sales are generated outside of Spain. “We’re very proud of the work we did at Orliman,” said Riverside Principal Rafael Álvarez-Novoa. “It went from a family-owned business to a growing international enterprise during our hold. Orliman has proven to be a very solid and stable business, with strong leadership position in its core markets and very promising exports business that grows above 15% every year.” Working with Álvarez-Novoa on the transaction for Riverside were Vice President Damien Gaudin and Operating Executive Juan Rufilanchas. Montalban and KPMG advised Riverside on the transaction, and Garrigues acted as legal counsel for the firm. The Riverside Company (http://www.riversidecompany.com or http://www.riversideeurope.com) The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million. Since its founding in 1988, Riverside has invested in more than 400 transactions. The firm’s international portfolio includes more than 80 companies.

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Riverside exits Orliman

Denham Capital invests in Jenner Renewables

Denham Capital has made an undisclosed investment in Jenner Renewables. Based in Madrid, Jenner Renewables is a power producer focused on developing renewable infrastructure assets in Latin America. PRESS RELEASE LONDON–(BUSINESS WIRE)–Denham Capital, a leading global energy-focused private equity firm, announced today a partnership with Jenner Renewables. The Madrid-based independent power producer will develop, finance and construct renewable power generation assets globally. Initially, the company will focus on selected countries in Latin America, the Middle East and North Africa. “We are very excited to partner with Denham Capital, a firm that not only brings capital to our efforts but also provides a deep global industry network and a wealth of knowledge in the power sector,” said Jorge Calvet, the Founder and Chief Executive Officer of Jenner Renewables. “This partnership will allow us to begin developing wind, solar and small hydro projects in countries where we see a clear need for this type of power generation.” Prior to founding Jenner, Calvet served as the Chief Executive Officer of Gamesa, one of the largest wind developers and manufacturers in the world. Jenner’s senior leadership also includes former executives of Gamesa and other leading entities in the field of renewable energy. The team has collectively developed more than four gigawatts of wind and solar projects globally with an enterprise value of $4.5 billion. The investment bolsters the Denham Power team’s Latin American presence, joining Brazil’s Rio Energy, a renewables company which now has 54 megawatts of operational assets and more than 200 megawatts of assets in construction across the region. “This investment allows us to expand our reach in Latin America, a region where we see a big demand for power generation and an attractive opportunity for renewable power. At the same time, it creates a global platform that will allow us to execute in other geographies where wind can effectively compete with the current cost of power and provide an economic source of generation,” noted Scott Mackin, Managing Partner and Co-President at Denham Capital. “We are very happy to work with Jorge and the Jenner team. Their global experience and track record is outstanding, and I have no doubt their skills will allow us to execute successful investments and bring needed power generation capacity to Latin America and other places around the world.” About Jenner Renewables Jenner Renewables is an independent power producer focused on the development, financing, construction and divestment of renewable infrastructure assets across Latin America. Jenner is headquartered in Madrid, with a local presence and extensive network across Latin America. Jenner is managed by a team of industry veterans who average more than fifteen years of experience, having held the most senior positions at leading renewables companies. For more information about Jenner, please visit www.jenner-renewables.com. About Denham Capital Denham Capital is a leading energy and resources-focused global private equity firm with more than $7.9 billion of invested and committed capital across seven fund vehicles and offices in London, Boston, Houston, São Paulo and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving power generation, oil and gas, and mining, across the globe and all stages of the corporate lifecycle. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.

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Denham Capital invests in Jenner Renewables