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Sequoia, Andreessen Horowitz, a Saudi prince, and other investors have agreed to pour $7.1B into Elon Musk’s deal for Twitter

By
Jessica Mathews
Jessica Mathews
Former Senior Writer
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By
Jessica Mathews
Jessica Mathews
Former Senior Writer
Down Arrow Button Icon
May 5, 2022, 11:19 AM ET
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There’s nothing like a good SEC filing to wake a person up in the morning.

A group of private investors spanning Sequoia Capital, Brookfield, Binance, Oracle co-founder Larry Ellison, and the Qatar Investment Authority have collectively agreed to drop $7.1 billion into Elon Musk’s deal for Twitter, according to a new disclosure filed with the SEC earlier today. In total, 19 investors or firms have agreed to make an equity investment in Twitter as Musk moves forward with plans to take it private, including Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, who has agreed to maintain his 34.9 million shares in the company (that will equate to roughly $1.9 billion once the deal closes).

“We hope to be able to play a role in bringing social media and web3 together and broadening the use and adoption of crypto and blockchain technology,” crypto exchange Binance CEO Changpeng Zhao said in a statement. A Sequoia spokesperson said that Musk has showcased “business and technical prowess” with PayPal, SpaceX, and The Boring Company and that “we see, as he does, the opportunity to drive meaningful product innovation that will help unlock Twitter’s full potential as a global platform that connects the world.” Other investors including Dubai-based Vy Capital didn’t respond to an immediate request for comment. Spokespersons at Andreessen Horowitz and Fidelity, whose investment adviser to its mutual funds agreed to invest in Twitter, declined to comment.

The new equity funding, secured yesterday, according to the documents, is a big win for Musk—and likely a bit of a relief. Musk had taken a personal guarantee on the $12.5 billion margin loan he took out from Morgan Stanley and other banks, as Fortune has previously reported. Now he’s cutting that margin loan to $6.25 billion, according to the filing—meaning Musk is cutting his personal liability in half.

For investors, this may be a quick return on investment. Musk has reportedly told potential suitors that he may take Twitter public again after only a few years—maybe as few as three, according to the Wall Street Journal. Perhaps Musk is just looking for a little privacy for a few years while he makes changes to one of his favorite social media networks.

As for investors, they seem to be all for it. Or at least some of them. Private equity giant Apollo Global Management had reportedly been considering an investment, but the company’s name didn’t appear in today’s filing.

On another note… Brainstorm Tech is coming back to Aspen! This year’s event takes place July 11-13, and Fortune is excited to announce the initial lineup of speakers, which include GV Partner Terri Burns, Slack CEO Stewart Butterfield, and Away CEO Jen Rubio. As usual, we’ll convene leaders from FORTUNE 500 companies, the top emerging entrepreneurs of the tech world, and the most important investors who finance them. To apply to attend, please use this link.

See you tomorrow,

Jessica Mathews
Twitter: @jessicakmathews
Email: jessica.mathews@fortune.com
Submit a deal for the Term Sheet newsletter here.

Editor’s Note: The online version of this newsletter has been updated with comment from Sequoia Capital. 

Jackson Fordyce curated the deals section of today’s newsletter.

VENTURE DEALS

- Group14 Technologies, a Woodinville, Wash.-based battery tech company, raised $400 million in Series C funding led by Porsche AG and was joined by investors including OMERS Capital Markets, Decarbonization Partners, Riverstone Holdings, Vsquared Ventures, Moore Strategic Ventures, and others.

- Cavnue, a Washington D.C.-based autonomous roadways company, raised $130 million in Series A funding led by SIP and Ford Motor Company and was joined by investors including Openvia and Landstar System.

- Fictiv, a San Francisco-based custom on-demand manufacturing company, raised $100 million in Series E funding led by Activate Capital and was joined by investors including Angeleno Group, Cross Creek, The Westly Group, Accel, Bill Gates, G2 Venture Partners, and Standard Investments. 

- Lev, a New York-based digital commercial real estate transaction platform, raised $70 million in Series B funding. Parker89 and Cross River Digital Ventures led the round and were joined by inventors including NFX, Canaan, JLL Spark, Animo Ventures, Capital One Ventures, Citi Ventures, Citi SPRINT, and StepStone Group.

- Edge Delta, a Seattle-based data observability platform, raised $63 million in Series B funding led by Quiet Capital and was joined by investors including BAM Elevate, Earlybird Digital East, Geodesic Capital, Kin Ventures, ServiceNow, Cisco Investments, Menlo Ventures, MaC Venture Capital, and Amity Ventures.

- Pachama, a San Francisco-based carbon capturing technology company, raised $55 million in Series B funding led by Future Positive and was joined by investors including Breakthrough Energy Ventures, LowerCarbon Capital, Ellen Degeneres, Portia De Rossi, Plus Capital, ReGen Ventures, 20VC, and Reddit co-founder Alexis Ohanian. 

- Sidekick Health, a Reykjavik-based digital therapeutics company, raised $55 million in Series B funding led by Novator Ventures and was joined by investors including Wellington Partners, Asabys Partners, Frumtak Ventures, and others. 

- VitroLabs, a Milpitas, Calif.-based biotech company developing cellular cultivated animal leather, raised $46 million in Series A funding led by Agronomics and was joined by investors including Invest FWD, Kering, Khosla Ventures, Leonardo DiCaprio, New Agrarian, and Regeneration.VC. 

- Curebase, a San Francisco-based software company providing access to clinical studies, raised $40 million in Series B funding led by Industry Ventures and was joined by investors including Acrew Capital, World Innovation Lab, Positive Sum, GGV Capital, Bold Capital, Xfund, and Gilead Sciences. 

- Voyage Foods, an Oakland-based food technology company re-creating foods using sustainable ingredients and sourcing practices, raised $36 million in Series A funding co-led by funds managed by UBS O’Connor and Level One Fund and was joined by investors including Horizons Ventures, SOSV’s Indie Bio, and Social Impact Capital.

- Bitcoin.com, a cryptocurrency accessibility provider, raised $33.6 million via a VERSE token sale from investors including Digital Strategies, KuCoin Ventures, Blockchain.com, ViaBTC Capital, Redwood City Ventures, 4SV, BoostX Ventures, and other angels.

- Wyebot, a Marlborough, Mass.-based A.I.-based WiFi automation company, raised $8 million in Series A funding led by Stage 1 Ventures and was joined by investors including Tectonic Ventures, Innospark Ventures, and Launch Capital.

- Januar, a Copenhagen-based financial infrastructure partner for crypto businesses, raised €6 million ($6.34 million) in seed funding led by Element Ventures and was joined by investors including Angular Ventures, Outward VC, and byFounders. 

- YvesBlue, a New York-based data analytics and reporting platform for ESG analysis and portfolio management, raised $5 million in seed funding led by Illuminate Financial and was joined by investors including Aflac Ventures, Tribeca Early Stage Partners, SixThirty, Day One Ventures, and Walter Ventures.

- Realto, an Overland Park, Kan.-based online real estate investment marketplace operator, raised $4.5 million in funding led by Firebrand Ventures and was joined by investors including KCRise Fund and others. 

- Logseq, a remote-based knowledge management system, raised $4.1 million in seed funding Stripe CEO Patrick Collison, former CEO of GitHub Nat Friedman, founder of Shopify Tobias Lütke, general partner at a16z Sriram Krishnan, Craft Ventures, Matrix Partners, Day One Ventures, founder of Expo/Quora Charlie Cheever, and Dave Winer, and others.

- sipMARGS, a Mamaroneck, N.Y.-based ready-to-drink canned margarita company, raised $3 million in funding from Lab Capital Advisors.. 

- Infrascreen, a ​​Neuchâtel, Switzerland-based nanotech solutions provider for climate control, raised $1.5 million in seed funding from Investbridge Capital and ACE & Company. 

PRIVATE EQUITY

- Advanz Pharma, a portfolio company of Nordic Capital, agreed to acquire the majority of Intercept Pharmaceuticals’, a Morristown N.J.-based biotech treating liver diseases, ex-US operations for $405 million.

- EnCap Flatrock invested $300 million in Rangeland Energy, a Sugarland, Texas-based greenfield developer, acquiror, and operator of midstream assets.

- Altus Fire and Life Safety, a portfolio company of AE Industrial Partners, acquired Fire Systems, a North Dartmouth, Mass. and East Providence, R.I.-based installation, maintenance, testing, monitoring, and certification provider for both alarm and sprinkler systems. Financial terms were not disclosed.

- Micross Components, a portfolio company of Behrman Capital, acquired the High-Reliability Discrete Diodes and Assemblies business of Semtech Corporation, a Reynosa, Mexico-based global supplier of analog and mixed-signal semiconductors and advanced algorithms. Financial terms were not disclosed.

OTHER

- International Exchange agreed to acquire Black Knight, a Jacksonville, Fla.-based mortgage software company for $13.1 billion.

- Shopify agreed to acquire Deliverr, a San Francisco-based e-commerce shipping fulfillment company, for $2.1 billion.

- Qantas Airways agreed to acquire the rest of Alliance Aviation Services, a Brisbane, Australia-based aviation company for $553 million.

- CCC acquired Ringgold, a Beaverton, Ore.-based organization identifiers provider for the scholarly communications community. Financial terms were not disclosed. 

- ​​Daimler Truck acquired a minority stake in Apex.AI, a Palo Alto, Calif.-based safety-certified software company for mobility and autonomous vehicles. Financial terms were not disclosed. 

- DISQO acquired Feedback Loop, a New York-based product research platform. Financial terms were not disclosed.

FUNDS + FUNDS OF FUNDS

- Aquiline Capital Partners, a London and New York-based private investment firm, raised more than $365 million for a fund focused on early- and growth-stage technology companies in the fintech, insurtech and enterprise solutions sectors. 

- Magnify Ventures, a Los Angeles and San Francisco-based venture capital firm, raised $52 million for a fund focused on early-stage technology companies in the parenting and family life, the future of work, household optimization, and aging and longevity sectors.

- Valia Ventures, a London, New York, and San Francisco-based venture capital firm, raised $50 million for a second fund focused on the fintech, healthcare, consumer, and enterprise software sectors.

PEOPLE

- Bessemer Venture Partners, a San Francisco-based venture capital firm, hired Sameer Dholakia as partner. Formerly, he was with SendGrid. 

- Crayhill Capital Management, a New York-based alternative asset management firm, hired Daniel Shlomi as general counsel. Formerly, he was with Akin Gump Strauss Hauer & Feld.

- ICV Partners, a Miami-based private investment firm, hired Fernanda Llera as vice president. Formerly, she was with Investar Capital.

This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers. Sign up to get it delivered free to your inbox.

About the Author
By Jessica MathewsFormer Senior Writer
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Jessica Mathews is a former senior writer for Fortune, where she covered transportation, defense tech, and Elon Musk’s companies.

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