Good day. Last week we asked if venture investors are taking an August break from deal making.

• Teddie Wardi, managing director at Insight Partners, said August is “definitely a holiday month and it's a quieter summer than we've seen in years. Besides looking at new deals we are especially doing lots of work with our portfolio companies and that work never goes away."
   
• Oliver Keown, a managing director at Intuitive Ventures, said his firm is balancing vacation time with deal making and isn’t slowing down this month as it’s one of the firm’s busiest deal periods to date. “We’re seeing opportunities to support companies we’ve been tracking enthusiastically.”
   
• Oliver Libby, co-founding managing partner at H/L Ventures, said: “Venture investors’ strategies will vary as the downturn deepens, with less experienced managers and those investing in sectors with headwinds pausing, while more seasoned GPs and those in still-favorable sectors will stay active. We expect the investing environment to start to tip back toward fairer valuations and more creative structuring, with many startups seeking capital and only some VCs actively deploying.”

This week’s question: Which portfolio companies should pour capital into growth versus cut costs? With startups taking diverging paths to managing business during the current downturn, how do investors decide what advice to give their companies?

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

And now on to the news...

Demand grows for AI-ready data. Nine-year-old data analytics startup Databricks Inc. says it has surpassed $1 billion in annualized sales, and has no immediate plans for an initial public offering or another fundraising round.

• Ali Ghodsi, Databricks co-founder and chief executive, said the company has more than enough cash on hand to see it through a prolonged recession. Last year, the San Francisco-based startup raised $1.6 billion in a Series H round, led by Morgan Stanley Counterpoint Global, at a $3.8 billion valuation.
   
• Mr. Ghodsi said revenue gains reflect growing demand for AI-ready data by corporate technology leaders, even as fears of a recession prompt many companies to tighten budgets and cut costs.
   
• Mr. Ghodsi said he wants to take advantage of shifting markets to expand by acquiring earlier-stage startups that may be struggling with the current slowdown in venture-capital funding.

Cybersecurity insurance provider Coalition Inc. appointed its first finance chief on the heels of raising $250 million in a Series F round, The Wall Street Journal reports. The San Francisco-based company said Jim Young started July 25 as chief financial officer. Mr. Young most recently served as CFO at agricultural-technology company Indigo Ag. The creation of the CFO position comes as the company focuses on launching operations in continental Europe and the Oceania region, Chief Executive Joshua Motta said. Coalition operates in the U.S. and Canada and expects to begin offering its services in the U.K. in September. Coalition has raised more than $755 million in funds, including the $250 million round in July.

TikTok is getting rid of pandemic-era perks including daily meal stipends for many employees, according to people familiar with the situation, as the company pushes staff to work more from its offices, WSJ reports. TikTok announced its return-to-office policy July 11, requiring that employees come in at least twice a week, but encouraging them to do so three times a week. The company gave employees a little more than a month’s notice that they would be expected back in the office, said the people familiar with the situation. The Chinese-owned social-media company hired thousands of employees after exploding in popularity following Covid-19 lockdowns in early 2020, with most of them working remotely.

Since 2015, WSJ Pro has published its annual Women to Watch in Private Equity list to highlight the accomplishments of outstanding women in the field. We're accepting nominations for senior deal professionals, rising star deal professionals, and limited partner or fundraising professionals for this year's class. For more information and to submit nominations by Aug. 8, click on this link. (Note: We are planning to recognize VC talent at a later date.)

Funds

Flashpoint Venture Capital met the target of its VC III fund, with a $102 million close. Széchenyi Funds committed $20 million toward the vehicle, which will focus on investments in business-to-business software companies founded by expats from Eastern Europe and Israel.

BitValue Capital launched a $100 million Web3 venture capital fund. Based in Toronto, the firm was founded in 2010.

L’Attitude Ventures raised over $100 million for its first institutional fund to invest in Latino-owned early-stage companies. Investors in the fund included JPMorgan Chase, Trujillo Group, Bank of America, Barclays, Cisco Investments and Morgan Stanley.

People

Healthcare-focused Illumina Ventures added four new members to its European team. Arnaud Autret was named principal and head of European operations, William Byrne was appointed associate, and Ronan Byrne and Ivan Coulter will serve as venture advisers. Before joining Illumina Ventures, Mr. Autret was an investment director at M Ventures. Mr. Byrne was previously head of biotechnology at NEOM. Mr. Byrne is currently chief executive and co-founder of Pharma Latch. Mr. Coulter is founder and managing director of Eden BioPharma.

Plant-based food technology startup Motif FoodWorks promoted Michael Leonard to the post of chief executive. Prior to joining the company, he was at Kraft Heinz. Based in Boston, Motif FoodWorks is backed by investors including AiiM Partners, Wittington Ventures, Breakthrough Energy Ventures and CPT Capital.

Airspace security and defense provider Fortem Technologies Inc. hired Greer Carper as its chief financial officer and vice president of corporate development. He joins the company from Boeing. Pleasant Grove, Utah-based Fortem Technologies counts DCVC and Signia Venture Partners as investors.

Exits

Gilead Sciences agreed to acquire MiroBio, a developer of treatments for autoimmune diseases, for approximately $405 million in cash. U.K.-based MiroBio counts Oxford Science Enterprises, Samsara BioCapital and Medicxi as investors.

BorgWarner Inc. acquired electric-vehicle charging technology provider Rhombus Energy Solutions for $130 million upfront, plus up to $55 million in contingent payments over the next three years. Rhombus Energy is listed in the portfolios of Cycle Capital, Emerald Technology Ventures, Greenhouse Capital Partners and Bootstrap Venture Partners.

Deel, a payroll and compliance software provider for international teams, purchased Legalpad Inc., which streamlines the U.S. work-visa process. Terms weren’t disclosed. San Francisco-based Deel is backed by investors including Coatue Management, Altimeter Capital, Andreessen Horowitz, Y Combinator Continuity, Spark Capital and Neo. Legalpad, of Seattle, previously raised funding from Amplo, Global Founders Capital, 8VC, Liquid 2 Ventures, Tekton Ventures and others.

Cera, a London-based at-home healthcare provider, raised about $320 million in equity and debt financing. Lead investor Kairos HQ was joined by Vanderbilt University Endowment, Schroders Capital, Jane Street Capital, Yabeo Capital, Squarepoint Capital, Guinness Asset Management, Oltre Impact, 8090 Partners and others in the round.

Afresh Technologies Inc., a provider of forecasting, inventory, ordering and store operations technology to grocers, scored $115 million in Series B funding. Spark Capital led the round, which included participation from Insight Partners, VMG Partners, Bright Pixel Capital, Maersk Growth and Innovation Endeavors.

Talon Cyber Security, a Tel Aviv-based secure enterprise browser startup, landed $100 million in Series A funding. Led by Evolution Equity Partners, the round included participation from Ballistic Ventures, CrowdStrike’s Falcon Fund, Merlin Ventures, SYN Ventures, Lightspeed Venture Partners, Sorenson Ventures and Team8. Richard Seewald, founder and managing partner of Evolution Equity Partners, will join the company’s board.

Aisera, a Palo Alto, Calif.-based employee and customer experience platform, secured $90 million in Series D financing. The Growth Equity business within Goldman Sachs Asset Management and Thoma Bravo led the round, which saw participation from True Ventures, Menlo Ventures, Norwest Venture Partners, Icon Ventures, World Innovation Lab, Zoom Ventures, Khosla Ventures, First Round Capital and Silicon Valley Bank.

PayIt, a Kansas City, Mo.-based provider of digital government services and payments technology, closed a $90 million investment from Macquarie Capital Principal Finance. Senior Managing Directors Larry Handen and Jared Doskow will join PayIt’s board.

F2G Ltd., a developer of novel therapies to treat rare fungal infections, picked up a $70 million investment. Forbion and Sofinnova Partners co-led the funding, which included contributions from Novo Holdings, Morningside Ventures, Cowen Healthcare Investments and Advent Life Sciences. Nanna Lüneborg of Forbion and Joe Anderson of Sofinnova Partners will join the board.

Parafin Inc., a San Francisco-based startup that helps small businesses launch and embed financial services for their sellers, fetched $60 million in Series B funding. GIC led the investment, which saw additional support from Thrive Capital and Ribbit Capital.

Everytable, a Los Angeles-based ready-to-eat meals provider, closed a $55 million Series C round. Creadev, Desert Bloom and Gullspång Re:food led the investment, which saw participation from Kaiser Permanente Ventures, Lerer Hippeau and others.

Geopagos, a payments startup serving Latin America, snagged a $35 million investment. Riverwood Capital led the funding, which included support from Endeavor Catalyst. Alex Porto of Riverwood will join the board.

Orange EV, a Riverside, Mo.-based electric trucking startup, completed a $35 million funding round led by S2G Ventures and CCI.

Arena AI, a New York-based autonomous enterprise business decision enabler, raised $32 million in Series A funding. Initialized Capital and Goldcrest Capital led the round, which saw participation from Founders Fund, Flexport, Peter Thiel and others.

Kurtosis Technologies, a software development startup, nabbed a $20 million Series A investment. Coatue Management led the round, with additional participation from Coinbase Ventures, Crosstimbers Ventures, Mantis VC and others.

• EV maker Lucid cuts production outlook in half
   
• Proposed tax break for buying electric vehicles is too hard to get, auto makers say
   
• DoorDash revenue climbs as restaurants raise prices, consumers continue spending
   
• Alibaba posts first revenue decline since going public

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, Angus Loten and Marc Vartabedian.

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