Scherzer Blog

District of Columbia: Limitations on Reporting Negative Information in Background Checks Used for Employment Purposes

Although several states have laws analogous to the federal Fair Credit Reporting Act (FCRA), the District of Columbia does not. As a rule, the District of Columbia follows the federal FCRA regarding the limitations on reporting negative information in background check reports used for employment purposes. However, there are three notable exceptions where district law differs from the FCRA regarding reporting criminal records:

(1)        Records of arrests or criminal accusations that did not result in a conviction cannot be reported (unless the charges are pending);

(2)        Inquiries about criminal convictions cannot be made unless a conditional offer of employment is made; and

(3)        Convictions with a completed sentence that is more than 10 years old cannot be reported.

The first two exceptions are found in the district’s Fair Criminal Record Screening Amendment Act of 2014 codified at Sections 32-1341 – 32-1346 of the Code of District of Columbia, and the third exception is found in Section 2–1402.66 of the district’s Human Rights Law.

The Scherzer Deal Report: April 11-15, 2022

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International and Lucas and Associates, LLC.

PE and VC Firms

$405M
Last fund, best fund
 
$2B
Debut fund
 
$1.6B
First PE fund-of-funds
 
$2.75B
Eighth fund
 
$120M
Second digital asset fund

Private Equity Deals

The Carlyle Group
Undisclosed
London-based life sciences VC and PE firm 
 
PSG
$200M+
Lexington, MA-based media tech holding company
 
Thomas H. Lee Partners
Undisclosed
Santa Barbara, CA-based provider of data products for insurers
 
New Mountain
Undisclosed
New York, NY-based advisory, tax, and assurance firm
 
Godspeed Capital
Undisclosed
Fort Worth, TX-based architecture and engineering firm focused on Texas education facilities
 
Rockpoint
Undisclosed
Orlanda, FL-based Jimmy Buffett lifestyle brand for restaurants, stores, and casinos
 
Bregal Sagemount
Undisclosed
Greenwich, CT-based payment processing software company
 
Health Enterprise Partners
Undisclosed
Norwell, MA-based provider of in-home and clinic treatment for autism
 
Thoma Bravo
$6.9B
Austin, TX-based enterprise cybersecurity firm
 
Gridiron Capital
Undisclosed
Greensboro, NC-based provider of fall protection equipment and arborist tools for the tree care industry

 

Venture Capital Deals

7Wire Ventures, Human Capital, StartUp Health, Bayer, Define Ventures, Founders Fund
$16M
San Diego-based virtual diabetes clinic
 
Northpond Ventures, RA Capital, Blue Water Life Science Advisors, Altitude Life Science Ventures, Fiscus Ventures, PEAK6 Strategic Capital, Carbon Silicon Ventures, Codon Capital, Mubadala Capital, Humboldt Fund, Fifty Years, Horizons Ventures
$68M
Emeryville, CA-based developer of enzymatic DNA synthesis tech
 
Deerfield Management, Petrichor Healthcare Capital Management, Flying L Partners, Falcon Vision, Visionary Ventures
$120M
Seattle, WA, Boston, MA- and Tokyo, Japan-based clinical-stage biotech company and developer of regenerative therapies for vision loss
 
Insight Partners, FJ Labs
$30M
San Francisco, CA-based brand intelligence AI
 
BlackRock, Fidelity, Marshall Wace, Fin Capital
$400M
Boston, MA-based provider of payment and treasury infrastructure solutions for online businesses
 
Dragoneer, Bessemer Venture Partners
$50M
Humble, TX-based energy analytics software provider
 
Stone Point Ventures, Sony Innovation Fund by IVG, Aflac Ventures, Allianz Life Ventures, Connecticut Innovations, Fairview Capital, Contour Venture Partners, Commerce Ventures, Tribeca Early Stage Partners
$15M
Hartford, CT-based digital life insurance startup
 
Vista Equity Partners
$215M+
Plano, TX-based managed detection and response cybersecurity startup
 
Tiger Global, Cedars-Sinai Health Ventures, True Ventures, DNX Venture, Ubiquity Ventures, E14 Fund, Next Coast Ventures, Boom Capital, Gaingels
$30M
Austin, TX-based developer of service robots for healthcare
 
Insight Partners
$30M
New York, NY-based provider of no-code security tools for cloud app logins
 
Imaginary Ventures
$15M
New York, NY-based senior care startup
 
Shamrock Capital
$80M
Culver City, CA-based TV ad measurement company
 
GGV Capital, Pavilion Capital, Cenova Capital, Mitsui & Co., CBC Group
$67M
Boston, MA-based oncology biotech
 
Sony Group, KIRKBI
$2B
Cary, NC-based maker of Fortnite
 
Brewer Lane Ventures, FirstRound Capital, FirstMark Capital, Foundation Capital, Altai Ventures, Asymmetric Ventures, Reliance Standard Life, New York Life Ventures, Guardian Life, Sedgwick
$21M
New York, NY-based insurance claims platform
 
StepStone Group, Golub Capital, Signal Peak Ventures, Meritech Capital
$108M
Salt Lake City, UT-based legal work platform
 
Silver Lake, BOND, NEA, Tamarack Global
$150M
Los Angeles, CA-based startup that creates avatars for the metaverse
 
Tiger Global, Zoom, Slack, Unusual Ventures, Freestyle VC
$16M
San Francisco, CA-based video meeting content saving and sharing startup
 
Energy Impact Partners, Moore Strategic Ventures, Sunfox Capital, NGP ETP
$40M
Milpitas, CA-based enterprise rate platform provider to modern utilities and energy technology companies
 
Concord Health Partners and Columbia Pacific Advisors
$40M
Austin, TX-based telepsychiatry startup
 
General Catalyst, Resolute VC, NNS, Expanding Capital
$42M
Palo Alto, CA-based provider of backend solutions to provide home services marketplaces
 
Insight Partners
$18M
Oakland, CA-based product analytics startup
 
Vista Equity Partners, Telescope Partners
$43M
Redlands, CA-based provider of healthcare credentialing and training software
 
Justin Bieber, Paris Hilton, and Drake
$87M
Miami, FL-based crypto payments startup
 
Evolution VC Partners, Tattarang, Lewis & Clark AgriFood, Collaborative Fund, AiiM Partners, Engine No.1, Raga Partners, Tidal Impact, Scrum Ventures, Gaingels, BMW iVentures, Ralph Lauren, Advantage Capital, Central Illinois Angels
$85M
Peoria, IL-based maker of plant-based textile materials
 
Goldman Sachs, B Capital, Founders Fund, Meritech Capital
$200M
San Mateo, CA-based insurance brokerage platform
 
SoftBank, Zoom, Menlo Ventures, Nexus Ventures
$125M
San Francisco, CA-based quality assurance AI for call centers
 
Menlo Ventures, Norwest Venture Partners, IVP, Greylock, Wing, GV
$90M
Newport Beach, CA-based SaaS security and posture management startup
 
SoftBank, Liberty Global Ventures, Catalyst Investors, Sageview Capital, Blue Cloud Ventures
$185M
Greenwood Village, CO-based cloud distribution platform
 
Sequoia Capital, Insight Partners, IA Ventures, Four Rivers, Rise of the Rest
$24M
Washington, DC-based cybersecurity startup
 
Baird Capital, Venrock, Foundry Group, Next Frontier Capital
$25M
Bozeman, MT-based chatbot platform
 
MKB, Microsoft Climate Innovation Fund, Blue Bear Capital, DNV, Buoyant Ventures, Congruent Ventures, Data Point Capital
$22M
Boston, MA-based provider of solar lifecycle management software
 
Owl Ventures, Lightspeed Venture Partners, Female Founders Fund, Forerunner Ventures, BBG Ventures
$37M
New York, NY-based mental health app
 
TPG, Permira, Neuberger Berman, Cap Table Coalition
$200M
Boston, MA-based commerce experience platform for brands
 
Giant Ventures, Nimble Ventures
$20M
Austin, TX-based ocean floor mapping robotics company
 
AXA Venture Partners, Sorenson Capital, Qualcomm Ventures, Fifth Wall, SJF Ventures, Floating Point Ventures
$54M
Boston, MA-based supply chain visibility startup
 
Atlas Venture, Lightspeed Venture Partners, RA Capital, Pfizer Ventures, Surveyor Capital, Logos Capital
$110M
Boston, MA-based molecular glue startup
 
Enhanced Healthcare Partners, Kittyhawk Ventures, Kawn Ventures, North Coast Ventures
$53M
Hoboken, NJ-based provider of value-based senior care solutions
 
TTV Capital
$30M
Los Angeles, CA-based app for immigrant families in the US

UCC filing where the secured party is the IRS

If the IRS wants to file a statewide tax lien against a taxpayer’s personal property, the document evidencing the lien will be filed with the secretary of state’s office. Most states (if not all) index the IRS liens along with the UCC-1 financing statement liens. Although the tax lien is indexed with the UCC filings, the tax lien is not a UCC filing.

The reasoning for indexing the federal tax liens with the UCC-1 filings has to do with a potential bankruptcy filing by the debtor/taxpayer. In most cases, there will be an issue of which lien takes priority in the bankruptcy case. The date of filing with the secretary of state usually decides the issue of priority.

Are independent contractors considered employees under the FCRA?

Unfortunately, there is no clear answer.

The Federal Trade Commission (FTC) in its most recent staff report (in 2011) states that “employment purpose” is interpreted broadly and may apply to situations where individuals are not technically employees. Reports on consumers who are clearly not employees under traditional common law principles can nevertheless be construed as consumer reports for employment purposes.

It is up to the employer to determine the purpose of the background check based on its particular facts and circumstances. Some points to consider include:

1) Is the individual free from control and direction in connection with the performance of the service?

2) Is the service performed outside of the usual course of business of the employer?

3) Is the individual customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed?

If the answer is “yes,” then most likely a report on the individual would not be under the FCRA’s employment purpose.

While a few recent district court decisions have held that the FCRA employment purpose does not apply to contractors, the FTC has not budged on its stance that employees and nontraditional workers alike are protected under the FCRA.

Where there are gray areas, the conservative approach is to follow the employment purpose requirements but modify disclosure and authorization forms and other documents to reflect an independent contractor status.

The Scherzer Deal Report: April 4-8, 2022

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International and Lucas and Associates, LLC.

PE and VC Firms

$750M
Seventh early-stage life sciences fund ($450M) and second later-stage fund ($300M)
 
$150M
VC debut fund
 
$4.6B
Second fund
 
$460M
Third fund
 
$1.1B
Fifth midmarket PE fund
 
$200M+
Latest fund
 
$365M
Second fund
 
$500M
Third fund
 
$1.95B
Sixth growth equity fund
 
$85M
Third fund
 
$167M
Third growth equity fund
 
$4.6B
Second credit opportunities fund
 
$3.3B
Second credit fund
 
$1.35B
Fifth fund

Private Equity Deals

Reverence Capital Partners
$100M
New York, NY-based alternative investment platform
 
Brookfield Business Partners
Undisclosed
Illinois-based provider of auto dealership software
 
Stonepeak
Undisclosed
Denver, CO-based data center operator
 
Hellman & Friedman
Undisclosed
Chicago, IL-based market analytics firm
 
FTV Capital
$180M
Norwalk, CT-based provider of procurement tech
 
H.I.G. Capital
Undisclosed
Spring Grove, IL-based paper producer
 
GrowthCurve Capital
Undisclosed
Franklin, TN-based provider of hospital revenue cycle management software
 
Patient Square Capital
$340M
Herndon, VA- based provider of acute care telemedicine
 
Ariel Alternatives
Undisclosed
Salt Lake City, UT-based communications provider to people who are deaf or hard of hearing
 
Monarch Alternative Capital, Alliance Consumer Growth, White Road Investments
$150M
San Diego, CA-based pet food maker
 
Stone Point Capital
$2B
Franklin, TN-based owner of the SilverSneakers fitness program for Medicare-eligible people
 
Thoma Bravo
Undisclosed
San Jose, CA-based user experience insights company

 

Venture Capital Deals

MicroPort CardioFlowMedtech
$35.4M
Minneapolis, MN-based medical device maker focused on mitral regurgitation
 
Tiger Global, Shasta Ventures, Accel
$31M
Palo Alto, CA-based provider of data automation products for enterprise customers
 
Koch Strategic Platforms
$30M
Hayward, CA-based solid-state battery developer
 
Tiger Global
$64M
San Francisco, CA-based maker of trenching robots for heavy construction projects
 
Insight Partners, Tiger Global, Advent International, Goldman Sachs, Sequoia Capital, Lightspeed Venture Partners
$88M
New York, NY-based web3 and blockchain security company
 
SoftBank, BlackRock, Memorial Hermann Health System, Insight Partners, Spark Capital, KKR, Aspenwood Ventures, Rivas Capital, Sigmas Group
$150M
San Francisco, CA-based cloud analytics and value-based payments platform
 
Warburg Pincus, The Heritage Group
$50M
Boyertown, PA-based environmental commodities trading company
 
Acrew Capital, BNY Mellon, Goldman Sachs, Fidelity Investments, Highland Capital Partners, Avon Ventures, Morningside Technology Ventures
$35M
Boston, MA-based crypto financial intelligence startup
 
Fifth Wall
$15M
San Francisco, CA-based marketplace for building accessory dwelling units
 
Goldman Sachs, Prologis Ventures, Shasta Ventures, Vopak Ventures, Sandbox Insurtech Ventures
$50M
Austin, TX-based enterprise data catalog
 
General Catalyst, Warburg Pincus, Town Hall Ventures, NorthPond Ventures, Rethink Impact
$50M
Mooresville, NC-based addiction support startup
 
F-Prime Capital, Eight Roads Ventures, aMoon Fund, lool ventures, Arkin Holdings
$20M
Boston, MA-based startup that uses voice tech to analyze behavioral health sessions
 
BMO, Contour Venture Partners, Halogen Ventures, Cleo Capital, New York Ventures of Empire State Development, Stardust Equity, The Venture Collective, Envestnet, Geingels
$53M
New York, NY-based digital investment platform for women
 
Integrity Growth Partners
$16M
Denver, CO-based provider of incidental findings and screening patient management software
 
NEA
$28.5M
San Francisco, CA-based telehealth company focused on perimenopause and menopause
 
National Football League, Major League Baseball, MLB Players Association, NFL Players Association, the National Hockey League, Blue Pool Capital, the Qatar Investment Authority
$1.5B
Jacksonville, FL-based sports merchandising giant
 
Hamilton Lane, SoftBank, Iconiq, DST Global
$240M
Madison, WI-based shopping rewards app
 
Bain Capital Ventures, NYCA Partners, QED Investors
$65M
New York, NY-based financial infrastructure platform
 
Paradigm, Multicoin Capital, Andreessen Horowitz, Solana Labs, Animoca, Coinbase, Play Ventures, Position Ventures, Zynga founder Mark Pincus, Crossover, Shrug Capital
$35M
New York, NY-based marketplace for gaming NFTs
 
Munich Re Ventures, TriVentures, MS&AD, Orix, Aspect Ventures, Mindset Ventures, At Inc., OurCrowd
$25M
San Francisco, CA-based startup combining fertility financing and care support
 
GIC, JPMorgan, Sequoia Capital, Coatue, Lightspeed Venture Partners, Lead Edge Capital
$240M
New York, NY-based open observability platform
 
Zigg Capital, Blackstone Innovations Investments, Fir Tree Partners
$35M
Nashville, TN-based group travel booking site
 
Lux Capital, Andreessen Horowitz, Lachy Groom, Caffeinated Capital, Founders Fund, Construct Capital, and 137 Ventures
$90M
Los Angeles, CA-based autonomous manufacturing startup focused on aerospace and defense
 
Multicoin Capital, Craft Ventures, Solana Capital, Shine Capital, 75, Sunny Ventures, Spark Capital, Founder Collective, Homebrew
$18M
San Francisco, CA-based decentralized mapping network
 
Janus Henderson Investors, Longitude Capital, Leeds Illuminate, Endeavour Vision, Revelation Partners, Kaiser Permanente Ventures
$115M
Quincy, MA-based nurse staffing platform
 
Velvet Sea Ventures, Parameter Ventures, One Way Ventures, NextView Ventures, Dash Fund
$15M
San Francisco, CA-based employee background check startup
 
Sequoia Capital
$18.5M
San Francisco, CA-based predictive AI SaaS for businesses
 
Valor Equity Partners, Ballie Gifford, Goldcrest Capital, Vlad Tenev
$70M
Palo Alto, CA-based startup that enables stable coin transfers via its bitcoin network
 
Four Rivers, Sorenson Capital, CLEAR Ventures, Wipro Ventures, Sequoia Capital, Intel Capital, Redpoint Ventures, XSeed Capital
$55M
Stanford, CA-based enterprise translation software and services company
 
G Squared, G2 Venture Partners, Xerox Ventures
$800M
Norwalk, CT-based contract management software provider
 
Tiger Global, Craft Ventures, Slow Ventures, Garage Capital, Worklife Ventures
$40M
San Francisco, CA-based business communications startup
 
Insight Partners, GV, Sequoia Capital, Lightspeed Venture Partners
$26M
San Francisco, CA-based revenue orchestration SaaS
 
Index Ventures, Amplify Partners
$24M
Beverly Hills, CA-based database infrastructure startup
 
SoftBank, Accel, Sequoia, Index Ventures, Two Sigma Ventures, General Catalyst, 9Yards, Adams Street, Base Growth
$300M
San Francisco, CA-based distributed workforce management company
 
Eldridge, TTV Capital, Fin VC, the George Kaiser Foundation, eGateway Capital
$82M
Austin, TX-based sales platform aimed at content creators
 
Andreessen Horowitz, LRV Health, Company Ventures
$34M
Austin, TX-based digital food pharmacy
 
Binance, Animoca Brands, Andreessen Horowitz, Dialectic, Paradigm, Accel
$150M
Millwood, NY-based crypto gaming studio
 
Sozo Ventures, USV, RyderVentures, Greycroft, Equal Ventures, Las Olas VC, The Fund
$30M
Miami, FL-based freight trucking dispatch platform
 
Owl Ventures, Lightspeed Venture Partners, NEA, PJC, Sky9 Capital, Diplo
$30M
San Francisco, CA-based no-code mobile app dev platform
 
Spark Capital, Zetta Venture Partners, Pillar VC
$20M
Cambridge, MA-based dental diagnostics startup

The Scherzer Deal Report: March 28-April 1, 2022

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International and Finance IQ.

PE and VC Firms

$1.765B
Fourth fund
 
$50M
Debut fund
 
$110M
Second fund
 
$45M
Debut fund
 
$750M
Third fund

Private Equity Deals

KKR, Global Infrastructure Partners
$15B
Dallas, OH-based data center operator
 
Antin Infrastructure Partners
Undisclosed
Prattsburgh, NY-based broadband provider in New York and Pennsylvania
 
Berkshire Partners, Warburg Pincus
Undisclosed
Cincinnati, OH-based provider of revenue cycle management software
 
The Jordan Co.
Undisclosed
Houston, TX-based flexible packaging maker
 
Thomas H. Lee Partners
Undisclosed
Rosemont, IL-based healthcare data enablement company
 
Amulet Capital Partners
Undisclosed
Columbus, OH-based network of outpatient substance abuse and mental health treatment facilities
 
Goldman Sachs Asset Management
Undisclosed
Chicago, IL-based corporate retirement plan robo-advisor
 
Elliott Management, Brookfield Asset Management
$16B
New York, NY-based global marketing research firm
 
TA Associates
Undisclosed
New York, NY-based in-venue interactive music platform
 
Liberty Strategic Capital
$525M
Dallas, TX-based enterprise security firm

 

Venture Capital Deals

F-Prime Capital, Forerunner Ventures, Greylock
$23M
San Francisco, CA-based telemedicine network
 
m]x[v Capital, Defy VC, Underscore
$25M
New York, NY-based healthcare staffing startup
 
Imaginary Ventures, Left Lane, Good Friends, Interplay, Red Antler
$25M
New York, NY-based no-code ML infrastructure startup
 
NGP Capital, Canaan Partners, Emergent Ventures, BGV Ventures
$29M
Santa Clara, CA-based revenue operations and intelligence platform
 
ACME Capital, Mouse Partners, Bullpen Capital, Triventures, Trousdale Ventures
$50M
San Francisco, CA-based virtual behavioral health startup
 
DigitalBridge Ventures
$60M
Cupertino, CA-based 5G LAN deployment startup
 
CapitalG, GGV Capital, Inspired Capital, Primary Venture Partners, Flybridge Capital Partners, BoxGroup
$100M
New York, NY-based social network for professional women in senior leadership positions
 
Lux Capital, Human Capital
$25M
Lowell, MA-based privacy software startup
 
Nat Turner, D1 Capital Partners, Cohen Private Ventures, and TCG Capital Management
$100M
Santa Ana, CA-based sports card appraiser, and marketplace
 
Sixth Street Partners
$150M
Cambridge, MA-based medical research tools startup
 
Andreessen Horowitz, Eldridge Industries, T. Rowe Price, Whale Rock
$620M
Fort Lee, NJ-based lender to fintech companies
 
USVP, Team8 Capital, Hyperwise Ventures
$27M
Kirkland, WA-based cyber-attack surface management startup
 
USV and Keyframe Capital
$20M
New York, NY-based electricity providerPeak
 
Span Capital, Montreux Growth Partners
$15M
King of Prussia, PA-based patient financial management startup
 
Mainsail Partners
$31M
Overland Park, KS-based provider of management software for flight schools
 
Ocean Zero, Boost VC, Winklevoss Capital
$15.5M
East Greenwich, RI-based electric boat maker
 
Susquehanna Growth Equity, JMI Equity, Khosla Ventures, Randstad Innovation Fund, Recruit Holdings
$50M
Mountain View, CA-based developer skills company
 
Viola Growth
$26M
San Jose, CA-based real estate investing and property management platform
 
Edison Partners
$36M
New York, NY-based used furniture marketplace
 
Premji Invest, Sequoia Capital India, Telstra Ventures, Blume Ventures, Leo Capital
$45M
San Francisco, CA-based test orchestration startup
 
SVP Capital, Salesforce Ventures
$50M
San Francisco, CA-based payments infrastructure startup
 
Founders Fund, General Catalyst, XYZ VC, Fifth Down Capital, Friends & Family Capital
$25M
San Diego, CA-based strategic finance startup
 
SoftBank, Westlake Village BioPartners, Kleiner Perkins
$100M
South San Francisco, CA-based biotech focused on neurodegenerative diseases
 
Menlo Ventures, Tiger Global, Wing VC
$28M
San Mateo, CA-based similarity search platform
 
Radical Ventures
$25M
Palo Alto, CA-based developer of hyperspectral satellites
 
Precept Capital, Mark Cuban, Continental Investment Partners, Astralis Capital, RiverPark Ventures, Anchor Capital
$25M
New York, NY-based ad tech-focused on digital gift cards
 
Insight Partners, Dawn Capital
$35M
Redwood City, CA-based incident automation startup
 
Dell Technologies Capital, GSR Ventures, Liberty Global Ventures, Cathay Innovation, Zetta Venture Partners, Citi Ventures, Firebolt Ventures
$40M
Menlo Park, CA-based enterprise process discovery and monitoring platform
 
Fifth Wall, Wellington Management, Angeleno Group, FootPrint Coalition, Obsidian Investment Partners, A/O PropTech
$90M
San Francisco, CA-based smart electric panel startup
 
Debiopharm, Perceptive Advisors
$25M
Newport Coast, CA-based developer of digital endpoints from wearable sensor data
 
Altos Ventures, Balsam Bay Partners, JPMorgan, GGV Capital
$50M
Eastvale, CA-based online marketplace for Asian groceries

The Scherzer Deal Report: March 21-25, 2022

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International and Lucas and Associates, LLC.

PE and VC Firms

$2.3B
Seventh fund
 
$410M
Debut fund
 
$610M
Debut fund
 
$100M
Debut fund
 
$1.1B
Fifth fund
 
$12.7B
Latest private markets fund
 
$60M
Second fund
 
$8B+
Half of its 14th flagship fund

Private Equity Deals

Thoma Bravo|
$10.7B
San Francisco, CA-based provider of business planning and performance management software
 
Teleo Capital Management
Undisclosed
Pensacola, FL-based third party admin for the senior health and eldercare markets
 
Gauge Capital
Undisclosed
Dallas, TX-based provider of direct selling software
 
Broad Sky Partners
Undisclosed
New York, NY-based “sustainable lifestyle brand.”
 
Peloton Equity, Hamilton Lane, Morgan Stanley AIP Private Markets
Undisclosed
Richmond, VA-based maker of green tech for the life sciences industry
 
L Catterton
Undisclosed
Baltimore, MD-based residential plumbing and HVAC services platform

 

Venture Capital Deals

Lux Capital, USV, Maveron
$22M
San Francisco, CA-based in vitro fertilization startup
 
Insight Ventures, Meritech Capital, Salesforce Ventures, Sutter Hill Ventures, Venrock, Sierra Ventures
$213M
Cincinnati, OH-based data orchestration platform
 
ABS Capital, Intel Capital, Blue Lagoon Capital, TDF Ventures, Hidden Creek Management
$25M
Lake Nona, FL-based autonomous EV shuttle startup
 
Canapi Ventures, 9Yards Capital, SVB Capital
$110M
New York, NY-based SaaS for helping banks pool trading resources
 
Telescope Partners, Five V, Carthona
$29M
Portland, OR-based strategy execution platform
 
Casdin Capital, Amgen Ventures, Amplitude Ventures, Catalio Capital, Co-Win Ventures, Fast Track Initiative, Section 32, Alexandria Venture Investments, GV, Heritage Provider Network, Third Rock Ventures
$83M
Cambridge, MA-based biotech whose first candidate is to treat IBD
 
The Phoenix, Citi Ventures, Banco Bradesco, MUFG
$44M
New York, NY-based BNPL startup
 
Ayon Capital, Susquehanna International, Cboe Global Markets, Celsius, CMT Digital, Genesis Global Trading, Galaxy Digital, Arca, Mirana Ventures, GSR Markets, AscendEX
$16M
Miami, FL-based algo trading platform for digital assets
 
SoftBank, Insight Partners, Trinity Ventures, Shasta Ventures, Madrona Venture Group
$115M
Palo Alto, CA-based e-commerce management platform
 
SoftBank, 20VC Growth, GV, Benchmark
$65M
San Francisco, CA-based provider of real-time accounting software for SMBs
 
PeakSpan Capital, Active Capital, 500 FinTech, GTMfund Clear Haven Capital
$95M
Miami, FL-based accounting and finance automation startup for small businesses
 
AE Industrial Partners
$75M
Cedar Park, TX-based rocket developer
 
Kleiner Perkins
$50M
Wilmington, DE-based remote work management platform
 
Andreessen Horowitz, 1Sharpe Ventures, Human Capital, Susa Ventures, Primary Venture Partners, BoxGroup
$26M
Denver, CO-based real estate exchange fund provider
 
Koch Disruptive Technologies, NEA
$21M
Pittsburgh, PA-based app security testing startup
 
Insight Partners, Wildcat Capital Management
$45M
New York, NY-based digital customer service startup
 
Andreessen Horowitz, Snowflake, Databricks, Redpoint Ventures, Amplify Partners
$52M
San Francisco, CA-based data science collaboration platform
 
Insight Partners, Stripes, Sequoia Capital
$115M
Dallas, TX-based enterprise browser
 
Tencent, GIC, Stanford University, Andreessen Horowitz, CRV, SVB, FT Partners, Clocktower Ventures, Urban Innovation Fund, Haven Ventures, Gaingels, Spike Ventures
$180M
New York, NY-based expense management platform for startups
 
Sozo Ventures, Founders Fund, Activant, Human Capital, Strike Capital, Lineage Ventures, Flexport
$25M
San Francisco, CA-based supply chain visibility startup
 
PSG, Entrada Ventures
$45M
Santa Barbara, CA-based predictive cybersecurity startup
 
Lead Edge Capital, Arthur Ventures
$20M
Sarasota, FL-based vulnerability management and process automation startup
 
Oak HC/FT, Signalfire, GSR Ventures, Tiger Global Management, Kaiser Permanente Ventures
$66M
San Francisco, CA-based VR surgical training platform
 
D1 Capital Partners
$45M
Somerville, MA-based digital health startup focused on diabetes-related amputations
 
Brighthouse Financial, Global Atlantic Financial Group, iA Financial Group, Lincoln Financial, Pacific Life, KKR, Norwest Ventures Partners, Revolution Ventures
$125M
New York, NY-based online insurance marketplace
 
Evidity Health Capital
$20M
Laguna Hills, CA-based molecular diagnostics and precision medicine startup focused on breast cancer
 
SignalFire, Valor Equity Partners, Pear VC
$20M
New York, NY-based home care platform for heart attack survivors
 
Stripes, Sierra Ventures, Boldstart Ventures, WestWave Capital, T-Mobile Ventures, Alter Venture Partners
$40M
Santa Clara, CA-based Kubernetes management platform
 
Axon Capital, Khosla Ventures, Prime Movers Lab
$170M
Milpitas, CA-based fixed wireless access company
 
Goldman Sachs, Grosnevor, Harbert Growth Partners, Tao Capital Partners, Revolution Growth, SJF Ventures, Arborview Capital
$140M
Richmond, VA-based maker of packaging alternatives to Styrofoam
 
Battery Ventures, Cisco, RingCentral, Zoom, Salesforce Ventures, Neotribe Ventures, Lightspeed Venture Partners, Wells Fargo
$50M
Santa Barbara, CA-based provider of collaboration security and compliance solutions
 
Aldrich Capital Partners, Grand Ventures, Vocap Partners
$48.5M
Chicago, IL-based virtual care management startup
 
K1 Investment Management
$100M
Edmond, OK-based cloud tokenization provider
 
Elephant VC, NFX
$27.7M
Columbus, OH-based operating system for Shopify brands
 
Anthos Capital
$16M
Tempe, AZ-based digital estate planning platform
 
Salesforce Ventures, Slack Fund, Susa Ventures, OMERS Ventures, GTMfund, PeopleTech Angels, UpHonest Capital
$40M
San Francisco, CA-based employee learning platform

The Scherzer Deal Report: March 14-18, 2022

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International and Lucas and Associates, LLC.

PE and VC Firms

$987M
11th fund
 
$520M
12th fund
 
$17B
Fourth infrastructure fund
 
$538M
Fifth fund
 
$125M
Debut fund

Private Equity Deals

Odyssey Investment Partners
Undisclosed
Atlanta, GA-based engineered plastic component supplier
 
One Equity Partners
Undisclosed
Cranberry, PA-based distributor of aftermarket glass products
 
Sentinel Capital Partners
Undisclosed
Richmond, VA-based provider of 3D engineering design and additive manufacturing software
 
TA Associates
Undisclosed
Burlington, MA-based provider of app security solutions

 

Venture Capital Deals

Drive Capital
$20M
Fayetteville, AK-based farmland investing platform
 
Mainsail Partners
$37M
Atlanta, GA-based cybersecurity management platform
 
Questa Capital, Catalyst Health Ventures, Laerdal Million Lives Fund
$22M
San Francisco, CA-based connected response platform for out-of-hospital cardiac arrest
 
SoftBank, QED, AlphaEdison, Mucker Capital, Gaingels
$30M
Los Angeles, CA-based provider of HR management software for small businesses
 
Park West, VMG, NextView
$50M
San Francisco, CA-based organic infant formula startup
 
Parafi Capital, Temasek, SoftBank
$450M
New York, NY-based Ethereum infrastructure startup
 
Anthemis, Permira, PruVen Capital, NYCA Partners, Viola Fintech
$100M
Pleasanton, CA-based provider of cyber insurance for SMEs
 
Tiger Global, Genesys, Five9, JPMorgan Chase, CarMax, Zoom, Sequoia Capital, Greylock Partners, Andreessen Horowitz, Porsche
$80M
San Francisco, CA-based contact center intelligence company
 
Koch Disruptive Technologies, Bridger Healthcare, Horizons Ventures, Casdin Capital
$73M
Menlo Park, CA-based cell classification and isolation startup
 
LendingTree, KeyBank, Bain Capital Ventures, SignalFire, Blumberg Capital, Flourish Ventures
$31M
San Francisco, CA-based fintech serving the mortgage industry
 
Bessemer Venture Partners
$25M
San Francisco, CA-based specialty pharmacy startup
 
Constitution Capital, Liberty Street, Activant Capital, Sandbridge Capital, L Catterton, RX3 Ventures
$55M
Cambridge, MA-based at-home connected rowing startup
 
Anthemis, YC, Garage Capital
$30M
Oakland, CA-based e-commerce aggregator
 
M12, Microsoft Climate Innovation Fund, NSS Advisors, Systemiq Capital, Root Ventures, Quiet Capital, TMV, Amplifier
$34M
New York, NY-based ocean shipping logistics platform
 
CAVU Venture Partners, S2G Ventures, Cambridge, Beechwood
$52M
Berkeley, CA-based children’s organic foods company
 
Paradigm, Andreessen Horowitz
$150M
New York, NY-based Ethereum scaling startup
 
Denso, MegaChips, Leawood VC, Pear VC, Uncork Capital, Cota Capital
$21M
Burlingame, CA-based developer of AI edge chips
 
Ascension Ventures, Catalio Capital Management, Sixty Degree Capital, Hillenbrand Capital Partners
$80M
Hayward, CA-based radiotherapy system for cancer
 
Innovation Endeavors, IBI Tech Fund
$15.5M
Kirkland, WA-based autonomous sales prospecting startup
 
Two Bear Capital, SineWave Ventures, Atlantic Bridge, Comcast Ventures, Azure Capital Partners
$28M
Santa Clara, CA-based network monitoring and analytics startup
 
Coatue
$175M
San Mateo, CA-based chip designer that uses RISC-V architecture
 
Insight Partners
$100M
Los Angeles, CA-based provider of fraud detection solutions for property managers
 
Insight Partners, 8VC, Portage Ventures, Brewer Lane, MS&AD Ventures, Nationwide Ventures
$50M
Austin, TX-based insurance core platform
 
Anthos Capital, Tech Operators, Blu Ventures, StoneMill Ventures
$28M
Denver, CO-based security cloud platform
 
Menlo Ventures, Greylock, Wing VC, Harpoon Ventures, Conversion Capital, Data Community Fund, Forgepoint Capital, B Capital Group
$25M
Redwood City, CA-based provider of AI quality management solutions
 
Maverick Ventures, Khosla Ventures, Casdin Capital, E14 Funds, Blindspot Ventures
$20M
Cambridge, Mass.-based genomic sequencing automation startup

New York Civil Cases and the RJI

State courts often have some quirky procedures, and the New York Supreme Court is no exception. Civil records from the New York Supreme Court typically include a reference to an “RJI” and whether it has been filed. What does “RJI” mean?

Definition: RJI is an abbreviation for “Request for Judicial Intervention.” It’s a form that is filed by either a plaintiff or defendant sometime after the summons and complaint is served on the defendant in a civil case.

Filing Effect: When an RJI is filed, the civil case is assigned to a judge.

What does this mean? When a plaintiff files a complaint in the New York Supreme Court to start a civil case, the court’s only action is to assign the case an index number. The court will not take any other action regarding the case – such as deciding a motion or order to show cause or hold a conference or trial – until either the plaintiff or defendant files an RJI. When the RJI is filed, the case is assigned randomly to a judge who will decide everything in the case until it is over.

How long will a case stay in the pre-RJI status? Because New York law does not specify a time limit for pre-RJI status, a civil case could be pending for years without any activity showing on the publicly available docket other than the filing and service of the summons and complaint.

That is the quirk in the New York Supreme Court civil case procedures – the possibility of a lengthy period of no case activity during the pre-RJI status.

To ensure that a civil case is timely prosecuted, many state courts assign a judge to a civil case when the summons and complaint are filed.

How to consider sex offender registry records in California (Updated)

For California employers concerned about hiring sex offenders, there are a few important points to keep in mind.

An employer has a duty to keep the workplace free of sexual harassment and other forms of discrimination under state law. Under the California Fair Employment and Housing Act (FEHA), an employer can face significant liability if it knowingly employs a sex offender and fails to take actions to protect its other employees from unlawful behavior by that person.

To avoid this problem, employers would like to know if they are hiring a registered sex offender. But how can they find out?

Since 2005, the state has operated a Megan’s Law website with a database to obtain access to the state’s list of more than 100,000 registered sex offenders. Created to help state residents better protect their families by being able to search for an individual registrant or by geographic location, the site (https://www.meganslaw.ca.gov/Default.aspx) contains the sex offender’s name, aliases, age, gender, race, address, physical description and, in some cases, a photograph.

While the site would appear to be a boon for employers, state law expressly forbids use of the state’s sex offender registry information for employment purposes. California Penal Code section 209.46(l)(2)(E) prohibits the use of information disclosed on the website for purposes relating to health insurance, insurance, loans, credit, education, housing and employment, among other uses.

Statutory exceptions provide for use “to protect a person at risk,” a term not defined by the Penal Code, as well as for employers required by law or authorized to request criminal history from the California Department of Justice. Examples of businesses that meet this standard may include child care centers, financial institutions and governmental agencies.

An employer who runs afoul of the Penal Code’s prohibition can face actual and exemplary damages, attorneys’ fees and a civil fine. Legislative history explains that the website attempts to protect the public while not inflicting additional punishment on registrants.

For employers trying to walk the fine line of protecting other employees and third parties, such as customers, from potential sex offender registrant employees while not violating the Penal Code, two alternate avenues exist to try to find out information about a sex offender: conviction records and employee/applicant self-disclosure.

Following applicable state and federal law, employers can conduct a criminal background check on applicants and employees and learn of a sex offense conviction. (However, convictions past the seven-year cut-off date in California may not appear on a background check report while the individual may still appear in the sex offender registry). An applicant or employee may also self-disclose a conviction.

Providing another wrinkle for California employers, the state’s Fair Chance Act took effect on January 1, 2018, mandating that employers with five or more employees must wait until after a conditional offer of employment has been made to ask any questions about criminal history. This includes inquiries about convictions, running a background check or other efforts to find out about an applicant’s criminal past.

If the employer decides not to hire the applicant, it must conduct an individualized assessment of the conviction at issue to evaluate whether it has a “direct and adverse relationship with the specific duties of the job that justify denying the applicant the position.” Other legal requirements, based on both state and federal law, must also be satisfied if an employer takes an adverse action on the basis of the background check (see our prior blog post (https://www.scherzer.com/reminder-to-california-employers-about-requirements-when-taking-adverse-action-based-on-a-criminal-record/) for more details).

What if an employer learns that an employee is a registered sex offender from another employee’s perusal of the Megan’s Law website? This situation could trigger liability under section 290.46 and employers should be careful to take action only after evaluating any potential risk the sex offender employee may pose to coworkers or customers, considering all the facts and circumstances.

Go to Top