SoftBank considering investment in goPuff

Tom Paine

SoftBank is considering making a large investment in home delivery service goPuff, the website The Infomation reported.

The investment could be for several hundred million dollars, according to the article.

Philly-based goPuff has already reached Unicorn status, The Information says, but its been very quiet when it comes to announcing investment events.

SoftBank might have some channel conflicts with other startups its invested in, including Uber and DoorDash, and that has been an issue of debate within SoftBank.

Founded in 2013 by Drexel students  Rafael Ilishayev and Yakir Gola, goPuff grew like a weed and now serves 90 markets.

Speculation about SoftBank’s planned $108 billion Vision Fund ll (which isn’t certain to be the funding source for any investment in goPuff) has often involved questions as to how far SoftBank will have to search for investment opportunities, since it already reached many obvious ones through the first Vision Fund.

To date, goPuff funding per CrunchBase is $8.3 million from two rounds, the latest a 2016 Series A round led by Anthos. But goPuff must have gone beyond that amount already judging from its rapid expansion to 30 states, going down to Florida and to Arizona and Colorado to the west. So my guess is it already has more funding from somewhere.

But there are risks, as well as opportunities, in moving so quickly to establish a national footprint.

Update: Verified recent investor in goPuff:

Dan Primack’s Pro Rata reported in early July that “3L Capital tells Axios that it’s raised $217 million for its debut fund, which will make growth equity investments in consumer and enterprise tech companies.””

“It launched around 18 months ago, and used a warehousing facility to already invest around $100 million into companies like TheRealReal, Smile Direct Club, goPuff, SnackNation and ChowNow. “

Don’t know what kind of round was involved.

But The information piece said goPuff was already a Unicorn.

Huawei layoffs may affect NJ, Philly

Tom Paine

Huawei will lay off hundreds of US workers, the Wall Street Journal reported on Sunday. The reductions are expected to be concentrated in Huawei’s R&D outfit, Futurewei Technologies.

The layoffs follow a May 16 Commerce Department decision to put Huawei on its so-called entity list, which blocked companies from supplying U.S.-sourced technology to Huawei without a license. However, it appears possible removal of restrictions is still a bargaining chip in the US / China trade negotiations.

Esther Surden, Editor & Publisher of NJTechWeekly (and contributor to this site), covered the opening of Huawei’s R&D center in Bridgewater, NJ, back in 2012. Huawei pledged to bring 55 (later said to be 90) new jobs to the center, for which it received some state financial support. But that achievement was soon overshadowed by a House Intelligence Committee report written after a yearlong investigation of it and another Chinese firm, ZTE. The report essentially concluded that U.S. companies should think twice about doing business with the Chinese firms.

As a result, Huawei cut back its US efforts, except to maintain some small wireless systems it already had and to continue US-based R&D.

In Philadelphia, Huawei has a small office with around 2o employees, and I believe its primary purpose is to work with Comcast.

Though layoffs have already started, there is no word yet on cuts in these two locations.

Philly EnterpriseTech Software Deals July 12

Tom Paine

Phreesia, a NY-based intake app for med patients accessed on a tablet or online, set pricing for its IPO at $15-$17 per share. Philly’s LLR Partners owns just under 24% pre-IPO.. See my previous article, LLR Partners-backed Phreesia files for $125 million IPO.

Phreesia is expected to begin trading on July 18.

Battery Ventures, a leading SaaS VC firm, acquired Ewing NJ-based 1WorldSync Holdings. 1WorldSync enables brands “to securely and continuously share critical product data with a community of retailers, operators and distributors across industries, including consumer goods, foodservice, electronics and healthcare”, the company says.

Of its 200+ employees, only a small fraction, mostly administrative staff, appear to be based in New Jersey. More US employees are based in Chicago, and the company also has established ops in Europe.

Analytical Graphics (Exton) spinout Cesium raised $5mm from Falcon Global Capital for a platform enabling software developers and data providers to build dynamic, interactive 3D geospatial applications. It is AGI’s first spinout; will there be more?

Indian and American investors are competing to buy Princeton-based Citius Tech, a provider of a range of clinical health technologies and services. Update: BPEA won, with a reported bid of over $1 billion.

The company posted $175 million in revenue with a 27-30% operating margin in fiscal 2019 and had estimated Ebitda of $55-60 million. 

BPEA (Baring Private Equity Asia) and KKR are the forerunners as of now, says Indian pub BusinessX. Citius could be valued at as much as $1 billion, according to the article.

Last year Citius made a “strategic investment” in Philadelphia-based FluidEdge Consulting, a national healthcare consultant.

IBM/Red Hat – more like history repeating itself?; Salesforce/Tableau-going down the same path?

Tom Paine

A Very Cold Take on IBM, Red Hat and Their Hybrid Cloud Hyperbole— Charles Fitzgerald (@charlesfitz) July 9, 2019

This piece by Charles Fitzgerald on IBM’s acquisition of Red Hat (now closed) is definitely worth the read.

About two years ago I did a quick and dirty analysis on all of IBM’s expenditures on Capex, M&A, and R&D over the past 20 years, compared to its market value. It appeared that Big Blue was frittering away its shrinking but still prodigious cashflow on expenditures that were not enhancing its value, which is the reason for investing.

You might also want to take a look at this by Daniel Newman:

Salesforce’s deal for Tableau smacks of desperation 11, 2019

PeakEquity (Radnor) sells 1st investment, EnterpriseDB

Tom Paine

In late June, Radnor-based software PE firm PeakEquity Partners announced the sale of its first investment, EnterpriseDB, to Great Hill Partners. Milestone Partners and NewSpring Capital invested along with Peak in 2014. I wrote about that deal then.

Bedford, MA-based EnterpriseDB is perhaps the leading branded version of the PostgresSQL open source database software. I don’t know the entry and exit prices, but imagine it was a timely buy because PostgresSQL is becoming more mainstream. AWS, which offers its own version of PostgresSQL as do other major Cloud platforms, probably paved the way for broader market adoption in general by providing better hosting options, making it easier for users to “just say no to Oracle”.

After Microsoft itself acquired another PostgresSQL provider, Citus, early this year, an industry consultant who sometimes works with Microsoft was quoted as saying that the only way the Redmond, Wash.-based cloud giant could have made that point [commitment to open source database] clearer would have been by purchasing EnterpriseDB.

PeakEquity said EnterpriseDB triple its annual recurring revenue during Peak’s tenure and lifted its growth rate to 40%.

Veeva soars on earnings release

MONDAY, JUNE 10, 2019

Veeva Soars on Earnings Release

  California-based Veeva Systems (NYSE: VEEV), the Life Sciences Cloud company with east coast operations based in Radnor, announced 1st quarter 2020 results on May 29 . it was a blowout quarter in which revenue reached a billion dollar annual run rate at $245 million, up 25% year over year. First quarter operating income was $71.2 million, compared to $44.0 million one year ago, an increase of 62% year-over-year. Net Income grew 66% year-over-year.

Veeva also has offices in Fort Washington and Princeton. 

Veeva highlighted the continued success of ongoing product development, including the release of Veeva Andi, an AI application that delivers
insights and suggestions from within Veeva CRM, and the adoption of its relatively new Veeva Vault CDMS offering by a Top Twenty Pharma. Also, Veeva recently introduced Veeva Claims, for non-pharma clients to help them with end-to-end claims management.

Veeva raised its revenue guidance for FY2020 to revenues between $1,045 and $1,050 million, a $20 million upward adjustment. Its shares broke through to a new high after the earnings release and now trade at $162.20, giving Veeva a market value of just under $24 billion, and a remarkable price to sales (not price to earnings) ratio of 24.

The intense pressure resulting from being a “momentum stock” now plagues Veeva, a nice problem to have. Investor expectations become more and more demanding, and even a slight negative surprise could cause a dramatic decline in the share price.

AT 12:33 AM  



Post a CommentOlder PostHomeSubscribe to: Post Comments (Atom)

Follow @phillytechnews

Subscribe to Philly Tech News in a reader

Enter your email address:

Delivered by FeedBurner

How to subscribe to Philly Tech News from Feedly




             “Everyone in the world is talking about me”

Tweets about “phillytechnews”


Subscribe to Philadelphia Tech News by Email


 Subscribe in a reader

Subscribe to Philly Tech People News by Email

Subscribe in a reader

Subscribe to Philly Tech News – Cloud by Email

Subscribe in a reader

Subscribe to Philly Tech News-Comcast by Email

Subscribe in a reader

Updated, revised and expanded Philly Tech News’ Young Companies to Watch


Recent Posts

Philly EnterpriseTech Highlights 3/5: eMoney Advisor, ERT, ACG Philly, J&J— Tom Paine (@phillytechnews) March 6, 2019

New: Philly ACG SaaS & Tech Enabled Services Conference on March 12 in Philly; Big opportunity for area.— Tom Paine (@phillytechnews) March 6, 2019

New: Veeva beats guidance; Announces President Matt Wallach will retire from Management; join board in 2020— Tom Paine (@phillytechnews) March 6, 2019

Philly EnterpriseTech People News 2/17/2019: From Dorm Room Fund to Bessemer Partner; NBC/ Telemundo exec on Walmart board— Tom Paine (@phillytechnews) March 4, 2019

New: PE Hub Buyouts: Philly’s InstaMed seeking buyer #InstaMed— Tom Paine (@phillytechnews) March 4, 2019



Anexinet Continues Growth Under New Ownership (Press Release)

Anexinet Continues Growth Under New Ownership

Mill Point Capital Accelerates Anexinet’s Momentum in Helping Clients Provide a Complete Digital Experience Email Print Friendly Share June 25, 2019 07:00 ET | Source: Anexinet Corporation

BLUE BELL, Pa., June 25, 2019 (GLOBE NEWSWIRE) — Anexinet, a leading provider of digital business solutions, announced that it has been acquired by Mill Point Capital, a middle-market private equity firm focused on control-oriented investments in North America. The Mill Point team has extensive experience investing in transactions in the technology and business services sectors.

Anexinet’s management team, including CEO Todd Pittman, will continue to lead the company, building on a strong track record of multi-channel application strategy and development, enterprise mobility, and full-lifecycle cloud/hybrid IT infrastructure support. Anexinet is a leading technology consultancy and reseller, helping clients provide a Complete Digital Experience for employees, customers, and end users through transformative digital applications and platforms. For 20 years, Anexinet has delivered intelligent insights, customer engagement and enterprise modernization solutions that drive impactful business outcomes.

Todd Pittman, CEO of Anexinet, commented, “We are thrilled to be partnering with Mill Point given their experience and relationships within the IT solutions industry. I am very proud of what our team has been able to accomplish and look forward to building on the momentum we have created over the past few years.”

Michael Duran, Managing Partner at Mill Point, commented that, “We are very excited to welcome Anexinet to the Mill Point family. Anexinet has grown into a leading specialized reseller in the IT marketplace under the leadership of Todd Pittman and his dedicated and skilled management team. We look forward to working with Todd and his team to further enhance Anexinet’s product and services capabilities.”

About Anexinet Corp. Everyone deserves a great digital experience. Anexinet customers benefit from our holistic approach—from engaging front-end interactions to dependable back-end solutions, all informed by data-driven insights. Because truly great digital experiences rely on the smooth operation of all interconnected elements: beautiful front-end applications, modern distributed architecture, private/public cloud, Dev/Ops and Agile/SAFE processes, and data-driven insights. We call this the Complete Digital Experience. Some companies focus on application design. Others handle your infrastructure. And then there’s Anexinet. For more information, please visit

About Mill Point Capital Mill Point Capital is a middle-market private equity firm focused on control-oriented investments in the business services and industrial sectors. The firm works with Executive Partners to leverage its investment professionals’ experience, while providing strategic and operational guidance designed to drive long-term value creation in its portfolio companies. Mill Point is based in New York, NY. For more information, please visit For more information, contact: Betsey Rogers Public Relations BridgeView Marketing 603-821-0809 Related Articles More articles issued by Anexinet Corporation More articles related to: Company Announcement Profile Anexinet Corporation Subscribe via RSS Subscribe via ATOM Javascript Blue Bell, Pennsylvania, UNITED STATES Media Files Anexinet logo.png Logo Download Options Anexinet logo.png LOGO URL | Copy the link below Newswire Distribution Network & Management Home Newsroom RSS Feeds Legal About Us GlobeNewswire is one of the world’s largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public. © 2019 GlobeNewswire, Inc. All Rights Reserved.

On John Andre

John Andre
John Andre

Tom Paine

I was certainly aware of the John Andre / Benedict Arnold saga, in which General Arnold was plotting to betray the young American nation by turning over the fort at West Point and Andre was the British intelligence officer trying to assist him. When the conspiracy unravaled, Andre was hung as a spy and Arnold fled to the British.

But even though I grew up within the geographical footprint of this history, I was only vaguely aware of the facts and events surrounding it.

But I happened to see two different films* about Andre over the 4th, both quite good, and they deepened my interest. I thought this written sketch made for good reading.

Virtual Marching Tour of the American Revolutionary War: Major John Andre

*The Scarlet Coat (1955)

The Unfortunate Death of Major Andre (2013)

PhillyEnterpriseTech Highlights July 4: Guru, Walmart eCommerce, Amazon, Comcast

The future of customer service in the spotlight with Guru CEO Rick Nucci 3, 2019

Diginomics, which goes in-depth on enterprise software, looks at what Guru is really about
“The field of customer service is a crucible of technology-driven change right now, and Guru is a company at the nexus of several of these trends. “

Walmart’s eCommerce biz is running a $ billion + annual loss. Is it Penn grad Marc Lore’s fault, or is Lore the victim of internal politics? Both perspectives:

Lore’s position getting difficult ?
Walmart’s e-commerce biz is reportedly racking up $1 billion in losses and that’s only one problem it has 3, 2019

Sources: Walmart is projecting losses of $1B+ for its US e-commerce division this year; e-commerce CEO Marc Lore is exhausted by internal politics (Jason Del Rey/Vox) #mustreadblogs #feedly
July 3, 2019

If they do a remake of “The Office”, as rumored, they must include this character: Ex-Scranton mayor pleads guilty; details of ongoing undercover investigation revealed Biden should be angry at what this guy has done to his native town July 3, 2019

WeWork isn’t even close to being profitable — it loses $219,000 every hour of every day via @businessinsider
July 3, 2019

Questions I share. Perhaps why SoftBank turned a could shoulder towards it.

Amazon is a deft buyer of companies, but increased government scrutiny of large tech companies could complicate matters via @WSJJuly 4, 2019

to date, Amazon has only made one huge acquisition, and that was mostly non-horizontal. What’s the big problem?

When MLB was putting together a bid for the Fox Sports-branded RSNs, it approached AT&T, Charter and Comcast with an idea to combine the RSNs and let MLB manage the group. Comcast said no. AT&T agreed. SBJ Media Newsletter:🔒🔒— John Ourand (@Ourand_SBJ) July 4, 2019

Univision seeks sale, but #Comcast‘s Telemundo has cut into its audience via @WSJJuly 5, 2019

NextGen Healthcare laying off 150

Tom Paine

NextGen Healthcare Information Systems is cutting some 150 employees, the Orange County (CA) Register reported, “as part of an operational realignment.”

NextGen (NSDAQ:  NXGN), specializing in systems for electronic health records and based in Orange County, recently changed its corporate name from Quality Systems, to reflect its largest operating unit of the same name:. NextGen Healthcare is based in Horsham. But where the layoffs occurred was not specified. NextGen has over 2600 employees, of whom about 560 are based in Horsham, according to Linkedin.

NextGen, which reported $529 million in revenue in the fiscal year ended 3/31/19, has had negligible revenue growth over the past few years. This followed a period of high growth while heavy federal incentives for adopting EHR systems were in play.

NextGen’s market cap is $1.3 biillion

Some analysts are looking for a renewed growth period for the sector, which also includes privately held giant Epic Systems and Cerner, which has significant operations in Malvern (see Baron’s article).