Good day. Last week, we asked if investors are changing the way they conduct due diligence amid dealmaking’s frenetic pace.

• Greg Greifeld, managing director and head of credit at Runway Growth Capital, a venture debt provider, said firms must quickly identify the necessary data points about a business. “The increased pace in deal flow means due diligence needs to become more streamlined, without cutting corners. Firms must be able to leverage research and institutional knowledge across multiple simultaneous transactions.”
   
• Oliver Libby, co-founder and managing partner at H/L Ventures, said: “Due diligence has traditionally been a one-way street of information and questions, but now, during the diligence process, it is important to be clear about investors’ value add to founders and companies. We believe this directly affects the quality and quantity of the deal flow.”
   
• Guru Chahal, a partner at Lightspeed Venture Partners, said the actual due diligence hasn’t changed. “Things that have changed—no more weekly decision cycles, no more preconceived notions of certain round sizes by letter designation, more reliance on data science to identify signal over noise."

This week’s question: What does Microsoft Corp.’s plan to purchase Activision Blizzard Inc. signal to venture investors about investing in the gaming sector?

Please email responses to marc.vartabedian@wsj.com.

And now on to the news ...

SEC risk alert. Private-fund managers sometimes give investors misleading information about fees and performance, said the Securities and Exchange Commission, which highlighted several types of violations found by examiners as the regulator considers stronger rules for private-equity and hedge-fund managers, WSJ Pro’s Chris Cumming reports.

• By giving misleading and inaccurate information to investors, private-fund managers may have been able to charge unfairly high fees, the regulator said on Thursday in a public letter, called a risk alert. The letter described more than a dozen types of problems it uncovered in its examinations of private-fund advisers, without naming the firms involved.
   
• Firms’ failures to adhere to their policies about fund fees “resulted in investors paying more in management fees than they were required to pay,” the agency wrote.

Glossier Inc., the online beauty startup that sought to upend the cosmetics counter, is scaling back its tech ambitions, The Wall Street Journal reports. The New York-based company is laying off more than a third of its corporate workforce, including technology personnel, according to an email to staff Wednesday. The company, valued at more than $1 billion by its venture backers, said it would shift its focus to its core makeup and skin-care business. “Over the past two years, we prioritized certain strategic projects that distracted us from the laser-focus we needed to have on our core business: scaling our beauty brand,” Emily Weiss, founder and chief executive, wrote in the email. “We also got ahead of ourselves on hiring. These missteps are on me.”

Facebook’s ambitious effort to bring cryptocurrency to the masses has failed. The Diem Association, the consortium Facebook founded in 2019 to build a futuristic payments network, is winding down and selling its technology for about $200 million to a small California bank that serves bitcoin and blockchain companies, a person familiar with the matter said, the Journal reports. The bank, Silvergate Capital Corp., had earlier reached a deal with Diem to issue some of the stablecoins—which are backed by hard dollars and designed to be less volatile than bitcoin and other digital currencies—that were at the heart of the effort.

Funds

Chimera Capital, a fund manager and subsidiary of Abu Dhabi-based Chimera Investment, closed its second venture capital fund at $10 billion. Co-managed by Alpha Wave Global, Alpha Wave Ventures II will focus on the fintech, artificial intelligence, life sciences, consumer internet and business-to-business sectors.

Unovis Asset Management closed its second alternative protein-focused fund with €146 million (about $163 million), far exceeding its original target of €75 million. Unovis NCAP Fund II CV’s limited partners include Invest-NL, Unigestion, Credit Suisse, Fuji Oil and Griffith Foods.

MaRS Investment Accelerator Fund and the Canadian province of Ontario have teamed up to launch a $100 million venture capital fund to make early-stage investments in Ontario tech startups. The fund, Graphite IAF IV, has raised $77 million to date.

People

Bookkeeping services and tax advisory platform Bench named Jean-Philippe Durrios as president and chief financial officer. He was previously CFO and chief operating officer at Disqo. Bench has raised over $100 million in funding from investors such as Bain Capital, iNovia Capital, Altos Ventures and Contour Ventures.

Automated compliance technology platform Azimuth GRC said Ned Carroll joined the company as chief technology officer. He was most recently chief data officer at TIAA. Jacksonville, Fla.-based Azimuth GRC has raised funding from Truist Ventures, Detroit Venture Partners and Mosaik Partners.

Data-protection provider Virtru appointed Matt Howard as chief marketing officer. He was previously senior vice president and CMO at Sonatype. Last week, Washington, D.C.-based Virtru said it raised a $60 million growth round from investors including Iconiq Growth, Foundry Capital, Bessemer Venture Partners and New Enterprise Associates.

Exits

Kubernetes platform Weaveworks acquired cloud native security provider Magalix Corp. for an undisclosed amount. Weaveworks is backed by investors including Accel, GV, Redline Capital Management and Orange Ventures. Magalix is listed in the portfolios of Trend Forward Capital, Endure Capital and Egypt Ventures.

Enterprise application software company SAP SE agreed to acquire a majority stake of Taulia, a provider of working capital management services, for an undisclosed sum. San Francisco-based Taulia is backed by investors including Trinity Ventures, Matrix Partners and Zouk Capital.

Citizen, an app that alerts users to fires, missing children or crimes in progress, agreed to purchase disaster-preparedness technology company harbor. Terms weren’t disclosed. Citizen is backed by Sequoia Capital, 8VC, Founders Fund, Goodwater Capital and Greycroft. Venture studio 25Madison incubated harbor.

Fireblocks, a New York-based startup that secures digital assets in transit, scored $550 million in Series E funding, bringing the company’s valuation to over $8 billion. Co-led by D1 Capital Partners and Spark Capital, the round included participation from General Atlantic, Index Ventures, Mammoth, CapitalG, Altimeter Capital Management, Iconiq Capital, Canapi Ventures and ParaFi Capital.

FTX US, a Chicago-based cryptocurrency exchange, closed a $400 million Series A round, valuing the company at $8 billion. Investors included Paradigm, Temasek Holdings, New Enterprise Associates, Multicoin Capital, Tribe Capital, Ontario Teachers' Pension Plan Board, SoftBank Vision Fund 2, Greenoaks Capital, Steadview Capital and Lightspeed Venture Partners.

Fever, a live-entertainment discovery platform, picked up a $227 million investment, valuing the company at more than $1 billion. The Growth Equity business within Goldman Sachs Asset Management led the funding, which included additional support from Goodwater Capital, Smash Capital and others. In addition to the $227 million, Eurazeo and Vitruvian Partners provided a secondary investment of an undisclosed amount.

Paack, a Barcelona-based e-commerce delivery platform, raised €200 million (about $225 million) in Series D funding led by SoftBank Vision Fund 2. New investors Infravia Capital Partners, First Bridge Ventures and Endeavor Catalyst also participated in the round, along with existing backers including Unbound, Kibo Ventures, Big Sur Ventures, RPS Ventures, Fuse Partners, Rider Global and Castel Capital.

Blockdaemon, a Los Angeles- and Ireland-based blockchain infrastructure platform, closed a $207 million Series C round at a post-money valuation of $3.25 billion. Sapphire Ventures and Tiger Global Management co-led the investment, which included contributions from SoftBank Vision Fund 2, Boldstart Ventures, StepStone Group, Matrix Capital Management and Lerer Hippeau.

Esusu, a startup that reports rent payments to the three major U.S. credit bureaus, allowing tenants who pay on time to establish credit histories and boost their scores, landed $130 million in new funding. The Series B round was led by SoftBank Vision Fund 2, and gave the company a $1 billion valuation. New investors including SoftBank Opportunity Fund and Wilshire Lane Capital also participated in the round, alongside previous backers Concrete Rose Capital, Equity Alliance, Impact America Fund, Motley Fool Ventures, Next Play Ventures, Serena Ventures, Sinai Ventures and TypeOne Ventures.

MinIO Inc., a Palo Alto, Calif.-based multi-cloud object storage provider, nabbed $103 million in Series B funding at a $1 billion valuation. Intel Capital led the round, which saw participation from SoftBank Vision Fund 2, Dell Technologies Capital, General Catalyst and Nexus Venture Partners.

CaptivateIQ, a San Francisco-based sales commission software developer, scored $100 million in Series C financing at a post-money valuation of $1.25 billion. Led by Iconiq Growth, Accel and Sequoia Capital, the round included support from Sapphire Ventures.

CoinTracker, a San Francisco-based cryptocurrency tax and portfolio tracking platform, closed a $100 million Series A round, bringing the company’s valuation to $1.3 billion. Accel led the investment, and was joined by General Catalyst, Initialized Capital, Y Combinator Continuity, 776 Ventures, Coinbase Ventures, Intuit Ventures, Kraken Ventures and others.

Firebolt, a cloud data warehouse startup with offices in San Francisco, Munich and Tel Aviv, secured $100 million in Series C financing, bringing the company’s valuation up to $1.4 billion. Lead investor Alkeon Capital was joined by Sozo Ventures, Glynn Capital, Zeev Ventures, Angular Ventures, Dawn Capital, Bessemer Venture Partners, K5 Global and TLV Partners in the round.

Septerna Inc., a South San Francisco, Calif.-based drug discovery startup, launched with $100 million in Series A funding. Third Rock Ventures led the investment, with additional contributions coming from Samsara BioCapital, BVF Partners, Invus Financial Advisors, Catalio Capital Management, Casdin Capital and Logos Capital. 

Veriff, an Estonia-based identity verification provider, snagged $100 million in Series C funding, giving the company a $1.5 billion valuation. Tiger Global Management and Alkeon Capital co-led the investment, which included support from IVP and Accel.

• Robinhood meme-stock negligence suit is rejected by judge
   
• UBS buys Wealthfront for $1.4 billion to reach rich young Americans
   
• Walmart-backed fintech startup is acquiring two firms and a new name
   
• Tesla supplier LG Energy hits $99 billion valuation on trading debut
   
• AMD’s planned purchase of Xilinx clears last big regulatory hurdle
   
• Crypto kings are the real-estate industry’s newest whales

This newsletter was compiled by Matthew Strozier and Zachary Cole.

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: vcnews@wsj.com

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Marc Vartabedian.

Follow us on Twitter: @wsjvc, @ychernova, @BrianPGormley, @marcvarta.