BIG MONEY

Another day, another mega-round. On-demand delivery startup Postmates raised $100 million in venture funding from investors including Tiger Global and Blackrock. The deal values the company at approximately $1.85 billion, according to a source familiar with the situation.

You might remember that just four months ago Term Sheet reported on Postmates’ last funding round, which was a whopping $300 million at a $1.2 billion. This is likely the last capital raise before the company goes public. “We have a beautiful path to an IPO in 2019,” Postmates CEO Bastian Lehmann told me in September. “Listen, I’m an immigrant, and I came to this country to launch the Postmates business. My dream is to run a publicly-traded company.”

ZONED OUT: The government shutdown tentacles are far-reaching. The IRS cancelled a key hearing on opportunity zones, which was originally scheduled for Jan. 10 and would focus on clarifying the nuances around tax breaks and proposed regulations under the new program. I reached out to Peter Brack, founding partner of Hypothesis Ventures to further explain what the cancellation of this meeting means for the future of opportunity zones.

He said:

With the government shutdown, the Opportunity Zone hearing scheduled for January 10th has been postponed indefinitely. This hearing was to address the over 150 comments submitted to the Federal Rulemaking Portal and the letters sent to the Treasury Department by working groups during the open comment period since the last round of guidance in October 2018. To the best of our knowledge this hearing will be rescheduled a few weeks after appropriations have been made, and guidance would be released thereafter.

Because the hearing and necessary guidance have been delayed indefinitely, an enormous amount of money designated for Opportunity Zones must sit on the sidelines. While real estate investors were waiting for final clarifications on some issues, non-real estate investors were hoping for broader guidance around operating businesses, fund structures, etc. The government shutdown does not change the structure or substance of the OZ program but merely delays the implementation of it and subsequently the ability of investors to deploy capital into Opportunity Zones.

THANK U, NEXT: My colleague Lucinda Shen found out why TPG decided to turn down vaping startup Juul even though the firm had the opportunity to invest early in 2018. On Tuesday, TPG Co-CEO Jon Winkelried discussed the benefits of making Environmental Social Governance standards a key part of a company’s operations.

“Today more so than ever, having a set of values I think is a very attractive feature for an organization,” said TPG Co-CEO Jon Winkelried. “We’re trying to be more mindful of that and have a position on things.”

As a result, TPG has also stayed away potential investments in firearms, marijuana, alcohol, and tobacco.

Read the full story here.

FEEDBACK FRIDAY: Thank you to the Term Sheet readers who wrote in after my comments on Fidelity’s investment in both Bird and Lime yesterday. Many of you said that Fidelity likely doesn’t see it as a conflict of interest because it’s less …read more

Source:: Fortune

      

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Term Sheet — Friday, January 11

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