All posts tagged: M&A

SoftBank-backed TabaPay is buying the assets of a16z-backed Synapse, after it filed for bankruptcy

SoftBank-backed TabaPay is buying the assets of a16z-backed Synapse, after it filed for bankruptcy

After a tumultuous year, banking-as-a-service (BaaS) startup Synapse has filed for Chapter 11 bankruptcy and its assets will be acquired by TabaPay, according to the two companies. The deal is pending bankruptcy court approval. Founded in 2017, Mountain View-based TabaPay is an instant money movement platform that Softbank backed in a 2022 round of an undisclosed sum.  It is not clear how much venture capital it has raised. San Francisco-based Synapse, which operated a platform enabling banks and fintech companies to develop financial services, was founded in 2014 by Bryan Keltner and India-born CEO Sankaet Pathak.  In 2019, TechCrunch reported on the company’s $33 million Series B raise led by Andreessen Horowitz after rebranding from SynapseFi. That was the company’s last known fundraise. In total, it brought in just over $50 million in venture capital. Other backers include Trinity Ventures and Core Innovation Capital. In announcing the acquisition, TabaPay pointed out that Synapse made Deloitte’s 2023 Fast, posting 650%+ growth over a five-year period. However, it had two large-scale layoffs in the past year, blaming …

Wiz is in talks to buy Lacework for 0-200M; security firm was last valued at .3B

Wiz is in talks to buy Lacework for $150-200M; security firm was last valued at $8.3B

Consolidation continues apace in the world of security. Sources tell us that Lacework — a cloud security startup that was valued at $8.3 billion post-money in its last funding round — is in talks to be acquired by another security player, Wiz, for a price of just $150 million – $200 million. Sources close to the negotiations said that the two parties have already signed a letter of intent and described the state of negotiations as “somewhere in the middle”. That is to say, the acquisition is not yet completed and so the deal could still fall through. Although both work in the wider area of cloud security, sources tell us that there is relatively little competitive overlap between the two companies so it would likely be a technology plus talent plus customer acquisition play. We are still trying to find out more terms of the deal, such as whether it would be in stock, cash, or a mix. Wiz has said on a number of occasions that it’s looking to hit $1 billion in …

Zscaler buys Avalor to bring more AI into its security tools

Zscaler buys Avalor to bring more AI into its security tools

Zscaler, a cloud security company with headquarters in San Jose, California, has acquired cybersecurity startup Avalor 26 months after its founding, reportedly for $310 million in cash and equity. In a press release announcing the news, Zscaler founder and CEO Jay Chaudhry said that the deal would expand Zscaler’s platform with capabilities including streamlined reporting of security incidents, incident mitigation, asset discovery, data classification, security policy generation and more. “AI is only as good as the underlying data, and many solutions lack the additional context and knowledge from data sources across the enterprise to truly leverage security-specific AI models,” Chaudhry said in a press release. “Zscaler operates the world’s largest security cloud with the most relevant data to train security specific large language models, and with the Avalor acquisition, we can more effectively identify vulnerabilities while predicting and preventing breaches.” Raanan Raz co-founded Avalor with Kfir Tishbi, who previously led the engineering team at Datorama, a marketing analytics company acquired by Salesforce in 2018. Raz and Tishbi worked together at Datorama both leading up to — …

Theory Venture’s Tomasz Tunguz unveils 2024 predictions: AI dominance, resurging Web3, and the new normal of tech investments

Theory Venture’s Tomasz Tunguz unveils 2024 predictions: AI dominance, resurging Web3, and the new normal of tech investments

At the end of 2022, like many, I made some predictions about what 2023 would bring to the technology investing ecosystem. Namely, the Fed would tame inflation, and the fundraising market would thaw, but overall, claiming that 2023 would be the first year of a “new normal” era for the markets and that machine learning would permeate most of the workflow software operators use today. Fast forward a year later, and we’re entering our second year of the post-pandemic economy. The state of venture capital investing and technology battle several factors, some of which are 2023 repeats and some brand new, including but not limited to higher interest rates, a more challenging market that demands better product-market fit, and, of course, the rapidly evolving state of AI. Will we end 2024 in the same market we started 2023 in? Through exploring the sluggish first half of 2023 to how AI exploded in the second half, I have several predictions about what we can expect to see in the year ahead: The IPO market remains closed …

Theory Venture’s Tomasz Tunguz unveils 2024 predictions: AI dominance, resurging Web3, and the new normal of tech investments

Theory Venture’s Tomasz Tunguz unveils 2024 predictions: AI dominance, resurging Web3, and the new normal of tech investments

At the end of 2022, like many, I made some predictions about what 2023 would bring to the technology investing ecosystem. Namely, the Fed would tame inflation, and the fundraising market would thaw, but overall, claiming that 2023 would be the first year of a “new normal” era for the markets and that machine learning would permeate most of the workflow software operators use today. Fast forward a year later, and we’re entering our second year of the post-pandemic economy. The state of venture capital investing and technology battle several factors, some of which are 2023 repeats and some brand new, including but not limited to higher interest rates, a more challenging market that demands better product-market fit, and, of course, the rapidly evolving state of AI. Will we end 2024 in the same market we started 2023 in? Through exploring the sluggish first half of 2023 to how AI exploded in the second half, I have several predictions about what we can expect to see in the year ahead: The IPO market remains closed …