Term Sheet: Oct. 02, 2017

FOLLOW subscribe ANON TIP October 2, 2017 OPERATORS WANTED Good morning, Term Sheet readers! PEOPLE MOVES: Just three months after hiring longtime tech exec Tony Bates to run its new growth arm, Social Capital has made another senior addition to the team.   . .   Sandhya Venkatachalam has joined the firm as a general partner leading growth investing. Previously, she was one of the founding partners at private investment firm Centerview Capital. Venkatachalam will report to Bates, whom she'd previously worked with at Skype and Cisco. Bringing in operators like Bates and Venkatachalam, who will invest in later-stage companies (and could even do buyouts) is part of Chamath Palihapitiya's larger vision for the firm, which has traditionally focused on venture and seed investments. Going forward, Palihapitiya wants Social Capital to become a capital partner to the businesses it invests in throughout their lifecycles. Venkatachalam joins the firm at a time of some high-profile turnover. Social Capital co-founder Mamoon Hamid abruptly departed in August to join Kleiner Perkins Caufield & Byers, and there are rumors that third co-founder Ted Maidenberg also plans to leave the company. Social Capital confirmed reports that Maidenberg won't be making new investments or participating in any future funds, although he's currently still supporting the portfolio. Palihapitiya ultimately wants to change the way Social Capital makes investments. As the firm begins to expand and veer toward being stage-agnostic, the co-founders reportedly didn't see eye to eye. After speaking with Bates and Venkatachalam, the vision seems to be pretty clear — operational experience coupled with a focus on data. The growth team will continue to scale as Bates hints he'll be making more hires in the near future. "We'll be selective," he says. "[Sandhya and I] both understand that data is really going to be important. And when you augment that with operating teams, we should get strong results." POWER PLAY: Well, here we go. After ex-Uber CEO Travis Kalanick appointed two board members — former Xerox CEO Ursula Burns and former Merrill Lynch CEO John Thain — without informing the executive team, Uber's new chief had a few things to say about it. In a letter to employees, Dara Khosrowshahi described Kalanick's power move as "a complete surprise." He went on to say that "anyone would tell you that this is highly unusual." As Fortune's David Z. Morris notes: It's a major hint that, despite the arrival of a new CEO, chaos is still the name of the game at Uber, and Kalanick is still its main agent. Khosrowshahi is getting a baptism by fire — though baptism might not be the right term, since it's not going to be over as long as Kalanick is still lurking in the background. And he may be lurking for a while. Like I said last week, if Uber can't get a handle on its internal politics, we can only guess what happens next. . . THE LATEST FROM FORTUNE... • Can blockchain stop the next Equifax? (by Jeff John Roberts) • Why GoDaddy promoted 30% more women this year (by Valentina Zarya) • Shake Shack founder Danny Meyer raised a $220 million private equity fund (by Natasha Bach) • Is the Apple iPhone X in trouble? (by Don Reisinger) …AND ELSEWHERE Inside Scooter Braun's hit factory. Talks to take Nordstrom private are faltering. The massive hedge fund betting on AI. Should Rex Tillerson resign? A media empire lost its king. Zen and the art of hedge fund management. . VENTURE DEALS • MariaDB, a Finland-based company that develops an open source relational database, raised €22.9 million ($27 million) in funding, according to TechCrunch. Investors include Alibaba. The deal values MariaDB at approximately €300 million ($354 million). Read more. • Kryon Systems, an Israel-based provider of intelligent robotic process automation, raised $12 million in Series B funding. Investors including Aquiline Technology Growth and Vertex Ventures. • Heetch, a France-based ridesharing app developer, raised $12 million in funding, according to TechCrunch. Investors include Felix Capital, Via ID and Alven Capital. Read more. • Cloud4Wi, a San Francisco-based location analytics and marketing platform, raised $11.5 million in Series B funding. Opus Capital and United Ventures led the round. • Vestwell, a New York-based digital retirement platform, raised $8 million in Series A funding. F-Prime Capital Partners led the round, and was joined by investors including Primary Venture Partners, FinTech Collective, and Commerce Ventures. • Tecovas, an Austin, Texas-based direct-to-consumer western brand, raised $2.6 million in funding. YETI Capital led the round, and was joined by existing investors, including Brian Spaly and Blue {Seed} Collective. • Reachify, a New York-based provider of data to sellers and buyers of enterprise software, raised $1.5 million in funding. Forerunner Ventures led the round, and was joined by investors including NEA, Female Founders Fund, Beanstalk Ventures and Commerce Ventures. • Dwell, a U.K.-based online mortgage broker that has now rebranded to Burrow, raised $1.2 million (£900,000) in seed funding. Passion Capital led the round. • Idelic, a Pittsburgh-based provider of a machine learning truck safety platform, raised $1 million in seed funding. Birchmere Ventures led the round, and was joined by investors including McCune Capital and M25 Group. . PRIVATE EQUITY DEALS • Bain Capital plans to buy Asatsu-DK Inc (TSE:9747) in a deal that could be worth $1.2 billion or more, according to Reuters. Read more. • Tracker Capital acquired root9B (Nasdaq:RTNB). Financial terms weren't disclosed. • Sentinel Capital Partners sold PlayCore, a Chattanooga, Tenn.-based maker of playground equipment. Financial terms weren't disclosed. • Apax Partners acquired Tosca Services, LLC, an Atlanta-based provider of supply chain solutions and reusable packaging. Financial terms weren't disclosed. . OTHER DEALS • Metro Inc (TSX:MRU) will buy Jean Coutu Group (TSX:PJC.A) for C$4.5 billion ($3.60 billion), according to Reuters. Read more. • Suez finalized its 3.2 billion euros ($3.4 billion) acquisition of GE Water, a Trevose, Penn.-based water treatment company, according to Reuters. Read more. • Savola Group (SASE:2050) is in talks to buy Sanabel Al-Salam, a Saudi Arabia-based food and confectionery manufacturer, in a deal worth $300 million, according to  Reuters. Read more. . IPOs • Haymaker Acquisition, a New York City-based SPAC created to acquire a consumer products facing business, filed for an IPO of $300 million. Steven Heyer has been named CEO and executive chairman. Heyer previously was CEO at Starwood Hotels & Resorts Woldwide, and a COO at the Coca-Cola company. Cantor Fitzgerald is underwriter in the deal. The company plans to list as "HAYU" on the Nasdaq. • Altair Engineering, a Troy, Mich.-based engineering software maker, filed for an $150 million IPO. In 2016, the company posted revenue of $313 million, and income of $10.2 million. J.P. Morgan, RBC Capital Markets, Deutsche Bank, William Blair, and Canaccord Genuity are underwriters in the deal. The company plans to list on the Nasdaq as "ALTR." • CarGurus, a Cambridge, Mass.-based car marketplace, set the terms of its IPO. The company plans to raise $132 million in an offer of 9.4 million shares (73% insider) at $13 to $15 a piece. The company posted revenue of $198.1 million in 2016, with earnings of $6.5 million. CarGurus is backed by Allen & Co. (5.4% post-offering), Spinnaker Capital's Anastasios Parafestas (13%), and T. Rowe Price (11.1%) back the company. Goldman Sachs, Allen & Company, RBC Capital markets, JMP Securities, Raymond James and William Blair are underwriters in the deal. The company plans to list on the Nasdaq as "CARG." • National Vision Holdings, a Duluth, Ga.-based eye care provider, filed for an $100 million IPO. The company posted revenue of $1.2 billion on earnings of $14.8 million in 2016. KKR(77% pre-offering) and Berkshire Partners (18%) back the company. KKR is sole underwriter in the deal. The company plans to list on the Nasdaq as "EYE." • Hexindai, a Beijing, China-based consumer lending firm, filed for an $80 million IPO of ADSs. The company posted revenue of $22.9 million in the 12 months ending March 2017 and income of $7.5 million. Network 1 Financial Securities is underwriter in the deal. The company plans to list as "HX." . EXITS • IFS agreed to acquire WorkWave LLC, a Neptune, N.J.-based provider of cloud-based Software-as-a-Service solutions. Financial terms weren't disclosed. WorkWave had previously raised more than $8 million in venture funding from investors including ParkerGale Capital and Key Venture Partners. • GLP agreed to buy IDI Gazeley, an Atlanta-based operator of modern logistics facilities, for about $2.8 billion. Brookfield Asset Management was the seller. • Ardian sold its stake in TimeOne, a France-based digital marketing company, to Edmond de Rothschild Investment Partners' ActoMezz investment team. Financial terms weren't disclosed. . FIRMS + FUNDS • Afore Capital, a San Francisco-based venture capital firm raised $47 million, for its pre-seed fund. • Corporate Fuel, a New York-based private equity firm, raised $35 million for its newest fund. . PEOPLE • Gainline Capital Partners named Kerri McNicholas as principal and promoted Harry Clouston to vice president. . SHARE TODAY'S TERM SHEET View this email in your browser. Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here. . Email Polina Marinova subscribe share: . This message has been sent to you because you are currently subscribed to Term Sheet Unsubscribe here Please read our Privacy Policy, or copy and paste this link into your browser: http://www.fortune.com/privacy All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website. For Further Communication, Please Contact: FORTUNE Customer Service 3000 University Center Drive Tampa, FL 33612-6408 Advertising Info | Subscribe to Fortune

Go, GoDaddy

FOLLOW subscribe SEND TIP October 2, 2017 Good morning, Broadsheet readers! We get an exclusive look at GoDaddy’s diversity “brag sheet,” Ursula Burns joins Uber’s board, and private equity has a serious woman problem. Have a productive Monday. EVERYONE'S TALKING • Go, GoDaddy. GoDaddy's diversity report—or its "brag sheet," as CEO Blake Irving refers to it—seems to tell a similar story to other those of other tech companies: Change is happening, but not as quickly as one would hope. The number of women at the company increased by two percentage points since last year, from 24% to 26%. But, Irving insists that the report doesn't tell the whole story. "I think progress isn't just measured in numbers," the Internet company chief, who is retiring at the end of the year, tells me. "The real jump is in [women's] promotion trajectory." After taking the helm of GoDaddy in 2012—a time when the company was perhaps best known for its ads featuring scantily-clad women—Irving began working with the Clayman Institute for Gender Research in order to improve both outside perceptions of the company and its internal culture (though he notes that "the internal culture at GoDaddy never matched that external brand"). After months of observation, the Institute, which works with corporations to promote gender equality, concluded that GoDaddy was "a lot like most tech companies"—that is to say, it had a culture in which women and minorities were not always given the same opportunities as white men. While many companies have tried to tackle this problem through unconscious bias training, says Irving, he decided to "experiment" with a different approach. Irving's team noticed that women were not getting promoted at the same rates as men (a phenomenon that is not unique to GoDaddy). At that time, promotions happened on an ad hoc basis, with employees who felt they were qualified raising their hands for open jobs. Yet, because men tend to believe they are qualified for jobs much more readily than women do—remember the statistic that men apply for a job when they meet 60% of qualifications, but women apply only if they meet 100%?—more men were asking to be promoted (and therefore being promoted) than women. To rectify this, Irving's team decided to ask managers to review all employees as potential candidates for promotion—even those who didn't ask. As a result, promotions of women jumped 30% in a single year. Fortune .   .   ALSO IN THE HEADLINES • Life in plastic, it's fantastic? Fortune's Michal Lev-Ram writes about her search for the answer to questions that have plagued many a mom: "How had my experience of playing with Barbies shaped me, if at all? And how could it shape my daughters? Most importantly, as a feminist (and a writer who often covers women in powerful positions) how could I justify letting my girls play with a doll whose 'greatest quotes' include the following gem: 'Math class is tough!'"  Fortune • Trump's latest target. Carmen Yulin Cruz, mayor of the Puerto Rico capital San Juan, is in a high-profile altercation with President Donald Trump after having publicly criticized the administration's insufficient response to Hurricane Maria. "This is, damn it, this is not a good news story. This is a 'people are dying' story," she said Friday. In response, Trump pointed the finger back at her (via Twitter, of course): "Such poor leadership ability by the Mayor of San Juan, and others in Puerto Rico, who are not able to get their workers to help." New York Times • PE's woman problem. Private equity has the biggest gender imbalance in the alternative asset space, according to an Axios analysis of data from industry research firm Prequin. Women make up less than 18% of all employees in the private equity industry, and just 9% of senior execs. Of those women who do work in PE firms, half are in either marketing or investor relations. Only 14% are investors. Axios • Meet the mastermind. If you've ever wondered how the Fortune Most Powerful Women franchise got started, you'll find the answer in this episode of Paul Samuel Dolman's What Matters Most. (Hint: It has everything to do with Dolman's interview subject, Pattie Sellers, Fortune's former assistant managing editor and the current executive director of MPW Live Content.) What Matters Most MOVERS AND SHAKERS: Former Xerox CEO Ursula Burns has been appointed to Uber's board of directors. . content from Deloitte Reimagining inclusiveness Every generation brings new expectations to the workplace and today's role models are often multi-dimensional. Succeeding in a new world means reimagining inclusive behaviors, says Deloitte CEO Cathy Engelbert. READ MORE HERE . IN CASE YOU MISSED IT • It's about time. Private banks are just now "discovering women." According to research by the Boston Consulting Group, only 2% of private banks globally think of women as a distinct client segment, even though they control 22% of the assets under management, or some $21 trillion. It's a segment that will become even more difficult to ignore. Why? For one thing, women outlive men by about five years—making them the primary decision-makers about assets inherited not only from their parents but also from their spouses. Barron's • Nicole's real-life role. Nicole Kidman writes a powerful letter to survivors of domestic violence, advocating for women to support one another: "Imagine: if you can fall back on the 3.5 billion sisters, and the many good men who are with us, what could we possibly not achieve?" The actress portrayed a victim of domestic abuse in the HBO series Big Little Lies, a role that won her an Emmy.  Porter • Sirleaf's legacy. Liberia's first female president Ellen Johnson Sirleaf is preparing to step down next weekend, as the country goes to the polls on Oct. 10. Her legacy is a complicated one, but where Sirleaf's fans and critics clash most often is over her dedication to female empowerment. Though she won the Nobel Prize for Peace for her efforts to further women's rights in 2011, detractors point out that Liberia ranks just 146th of 190 countries in terms of women in the legislature and that just ten of 58 candidates in Sirleaf's Unity Party are women. Quartz • Thanks, but no thanks. Last week, President Trump directed the Education Department to commit at least $200 million towards computer science education. While several corporations and nonprofits celebrated the initiative, Girls Who Code did not. In this powerful editorial, the nonprofit's CEO Reshma Saujani explains why: "I do not believe this initiative—nor any partnership with this White House—can reverse the harm this administration has already done in attempting to legitimize intolerance. Indeed, collaborating with this administration, on any issue, emboldens it only further."  New York Times Share today's Broadsheet with a friend. Looking for previous Broadsheets? Click here. . ON MY RADAR Group of white men in Patagonia vests confused for VC Fund, raise $500 million Fortune Why are women still set up to fail in the C-suite? Fortune How Ruth Bader Ginsburg called out a man's unconscious bias Fortune NBC should've seen the Megyn Kelly trainwreck coming  Fortune . . QUOTE I think there's duality to everything. Humanity is capable of such beautiful things. But it's also capable of such massive amounts of destruction. Rodarte co-founder Kate Mulleavy . EMAIL Valentina Zarya subscribe share: . This message has been sent to you because you are currently subscribed to The Broadsheet Unsubscribe here Please read our Privacy Policy, or copy and paste this link into your browser: http://www.fortune.com/privacy All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website. For Further Communication, Please Contact: FORTUNE Customer Service 3000 University Center Drive Tampa, FL 33612-6408 Advertising Info | Subscribe to Fortune