Term Sheet -- Thursday July 2, 2020

Controversial surveillance startup Anduril gets a $1.9 billion valuation

July 2, 2020

Government contracts and immigration are a sensitive issue for Silicon Valley.

That's why Anduril Industries, a three-year-old defense technology company that develops drones and surveillance towers, is taking heat. The company was a target for immigrant-rights activists after selling its products to the U.S. Customs and Border Protection agency as a "virtual wall" of interlinked sentry towers along the Mexico-U.S. border. Its founder, Palmer Luckey, is known to be a supporter of President Donald Trump.

On Wednesday, the company announced that it has raised some $200 million in Series C funding, valuing the company at around $1.9 billion, nearly double its last funding round in September. The round was led by Andreessen Horowitz, who was joined by 8VC, Elad Gil, Founders Fund, General Catalyst, Human Capital, Lux Capital, and Valor Equity Partners.

And while some consumer tech companies are avoiding the issues altogether, Anduril is finding an opportunity.

"We founded Anduril because we believe there is value in Silicon Valley technology companies partnering with the Department of Defense," says CEO of Anduril Industries Brian Schimpf.

Lemonade goes public at a discount: The SoftBank-backed home-and-rental insurance company perhaps predictably took a valuation cut ahead of its stock market debut today.

On Wednesday, the company announced that it had raised $319 million in an offering of 11 million shares priced at $29 apiece, with Baillie Gifford, a new investor, indicating interest in acquiring some $100 million in shares in the IPO. The pricing implied a valuation of about $1.6 billion, below its last private market valuation of about $2 billion. The company plans to list on the NYSE as "LMND."

Of course, how it trades on public markets will be a whole other matter.

Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com

VENTURES DEALS

- Annexon, a South San Francisco, Calif.-based clinical-stage company developing therapies for classical complement-mediated disorders, raised $100 million in funding. Redmile Group led the round and was joined by investors including BlackRock, Deerfield Management Company, Eventide Asset Management, Farallon Capital Management, Janus Henderson Investors and Logos Capital.

- Bolt Biotherapeutics, a Redwood City, Calif.-based biotech developing immunotherapies, raised $93.5 million in Series C funding. Sofinnova Investments led the round and was joined by investors including RA Capital Management, Rock Springs Capital and Samsara BioCapital.

- Goldfinch Bio, a fCambridge, Mass.-based company focused on kidney disease, raised $100 million in Series B funding. Eventide Asset Management led the round and was joined by investors including Wellington Management, Ally Bridge Fund, BlackRock, Casdin Capital, Irving Investors, Gilead, Yonjin Capital, and Schroeder Adveq. Read more.

- Amylyx Pharmaceuticals , a Boston-based company developing treatments for Alzheimer's disease and neurodegenerative disorders, raised $30 million in Series B funding. Morningside Ventures led the round.

- Fauna, a San Francisco-based data API for client-serverless applications, raised $27 million in funding. Madrona Venture Group led the round and was joined by investors including ADDITION and GV.

- The Mom Project, a Chicago-based job search site for moms, raised $25 million in Series B funding. 7GC led the round and was joined by investors including Citi Ventures, Synchrony, High Alpha and Silicon Valley Bank, alongside existing investors Initialized Capital, Grotech Ventures, OCA Ventures, Aspect Ventures, Wintrust Financial, IrishAngels, and Engage Ventures.

- Curv, a New York-based digital asset security infrastructure company, raised $23 million in Series A funding. Investors included CommerzVentures, Coinbase Ventures, Digital Currency Group, Team8, and Digital Garage Lab Fund.

- Zetwerk, an Indian business-to-business marketplace for custom manufacturing, raised Rs 156.4 crore ($20.8 million) in Series C funding. Greenoaks Capital and Accel Partners led the round and were joined by investors including Kalysta Capital Fund, Subhsiah Vellayan, A. Venkatachalam, Kae Capital, Sequoia Capital, and Lightspeed Partners.

- Owkin, a French company using machine learning in medical research, raised $18 million in extended Series A funding. Mubadala Capital and Bpifrance, led the round. Read more.

- Genome Medical, a South San Francisco-based telegenomics technology and services company, raised $14 million. Samsung Catalyst Fund led the round.

- Jüsto, a Mexico City-based online supermarket, raised $12 million in funding. Investors included Foundation Capital, Mountain Nazca and FEMSA Ventures, as well as H20 Capital, SV Latam, and S7V. Read more.

- Bluedot , a San Francisco-based location technology maker for mobile apps, raised $9.1 million in Series B funding. Autotech Ventures led the round and was joined by investors including Transurban and new investors Forefront Ventures, IAG Firemark Ventures, and Mighty Capital.

- Riders Share, an Austin-based peer-to-peer motorcycle marketplace startup, raised $2 million in Series A funding. LiveOak Venture Partners led the round.

- Onda, a spirits brand, raised $1.1 million in funding. 25madison led the round.

- Competitive Wedge, a Holland, Mich.-based video interviewing solution, has raised $1 million to date. Investors include Wade Burgess, chief revenue officer at Rev.com.

PRIVATE EQUITY

- Valet Living, backed by Ares Management and Harvest Partners, acquired Skinner Waste Solutions, a Jacksonville, Fla.-based waste and recycling provider. Financial terms weren't disclosed.

- Vida Capital, backed by Reverence Capital Partners and RedBird Capital Partners, acquired assets of Avmont, a longevity risk-based asset manager and advisor. Financial terms weren't disclosed.

- Mercer Global Advisors, majority owned by Oak Hill Capital and Genstar Capital, acquired ClearRock Capital, a Sun Valley, Id.-based wealth management firm. Financial terms weren't disclosed.

- Evolution Managers Capital, backed by HC Private Investments and Landon Capital Partners, invested in Greens Farms Capital, a private equity firm. Financial terms weren't disclosed.

- Platinum Equity acquired Deluxe Entertainment Services Inc.'s distribution business. Financial terms weren't disclosed.

- Orion Advisor Solutions, a tech-based platform for financial advisors backed by TA Associates, merged with Brinker Capital, an investment management company. Genstar Capital will invest in the company alongside TA. Financial terms weren't disclosed.

- Propel Insurance, a portfolio company of Flexpoint Ford, acquired HealthCare Services, a Knoxville-based boutique insurance consulting firm. Financial terms weren't disclosed.

OTHERS

- Prosus NV is seeking to acquire EBay's classifieds business, per Bloomberg. Read more.

- IAC (NASDAQ: IAC) and Match Group (NASDAQ: MTCH) separated. IAC will trade under the symbol "IAC" and Match Group under the symbol "MTCH."