Archive for November, 2018

Terminating/Restructuring Prohibitive Real Estate, License, Payables & Contingent Liabilities


Gerbsman Partners has been involved with numerous national and international equity sponsors, senior/junior lenders, investment banks and equipment lessors in the restructuring or termination of various balance sheet issues for their technology, life science, medical device, cyber security, solar and cleantech portfolio companies.

These companies were not necessarily in crisis, but had cash (in some cases significant cash reserves) and/or investor groups that were about to provide additional funding. In order to stabilize their Go-Forward-Plan and maximize cash resources for future growth, there were specific needs to address Balance Sheet and Contingent Liability issues as soon as possible.

Some of these areas where Gerbsman Partners has assisted, these companies have been in the process of termination, restructuring and/or reduction of:


Prohibitive Executory Real Estate Leases, Computer and Hardware-related Leases and Senior/Sub-debt Obligations

 Gerbsman Partners was the “innovator” in creating strategies to terminate or restructure prohibitive real estate leases and senior and sub-debt obligations.

To date, we have terminated or restructured $810 million of such obligations for private and public companies, and which has allowed them to return to financial viability.


Accounts/Trade Payable Obligations

 Companies in a crisis, turnaround or restructuring situation typically have account and trade payable obligations that become prohibitive for the viability of the company on a go-forward-basis. Gerbsman Partners has successfully negotiated mutually beneficial restructurings that allowed all parties to maximize value based on the reality or practicality of the situation.


Software and Technology-related Licenses

 As per the above, software and technology-related licenses need to be restructured/terminated in order for additional capital to be invested in restructured companies. Gerbsman Partners has a significant, successful track record in these areas.


About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in underperforming, undercapitalized and undervalued companies and their intellectual properties. Since 2001, Gerbsman Partners has successfully maximized the values of 103 companies in a wide and diverse spectrum of industries. In the process, GP has successfully restructured/terminated over $810 million of real estate executor contracts and equipment lease/sub-debt obligations, and has assisted in over $2.3 billion of financings, restructurings and M&A transactions.


Gerbsman Partners has offices and strategic alliances in Boston, New York, Washington DC, McLean VA, San Francisco, Orange County, Europe and Israel.

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Silicon Valley Venture Capital Survey – Third Quarter 2018
First Look
By Cynthia Clarfield Hess, Mark A. Leahy and Khang Tran

View the full report.

We analyzed the terms of 215 venture financings closed in the third quarter of 2018 by companies headquartered in Silicon Valley.

Key Findings
Up Rounds Continue to Dominate, Valuation Metrics Plateau
Valuation results were generally flat in Q3 2018 compared to the prior quarter. Overall, valuation metrics remain strong and are above historical averages, but have plateaued since Q3 2017.

Series B Financings Continue to Show Strongest Valuations
Series B financings recorded the strongest valuation results in Q3 2018, although the average price increase declined from 117% in Q2 to 92% in Q3, while the median price increase was up moderately from 66% in Q2 to 68% in Q3.

Life Sciences Industry Scores Strongest Valuations
The life sciences industry recorded the strongest valuation results in Q3 2018 and the greatest gain from the prior quarter, with an average price increase of 110%, up from 63% in Q2, and a median price increase of 44%, up from 19% in Q2.

Full Report

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As we begin Veterans Day/Week 2018, we say “Thank You” to the men and woman of our armed services and suggest that it is time for all to “step up” and find ways to support our Veterans. To often we say “thank you for your service” and then do nothing more. Please think about supporting various Veterans groups with donations, food, clothing and moral support. The have “Earned” it and we “Owe” it to them.

In the late summer of 1967, I was on my way back to Basic Training at Fort Dix, N.J. I was in New York City and an older couple came up to me and said “Thank You” for serving and then gave me $ 20 to enjoy a dinner on them. The gentleman said he served in the Korean War and understands and appreciates what men and woman in uniform go through. I said thank you, enjoyed a great dinner and to this day, remember their kind gesture.

On this Veterans Day/Week, our family will support the Wounded Warriors program and will provide moral support and friendship to Afghanistan Veterans. On Veterans Day, I will also continue to remember that couple and honor them by buying dinner for soldiers in uniform. I will ask them to do the same thing, 5, 10, 20 and 40 years later.

May God Bless our troops and provide our leaders with the courage and strength to do what is Right and what is Just in supporting them.  Many talk about sanctuary cities, places of worship and immigration, how about more focus and respect for those Veterans in need.

Please always remember – FREEDOM IS NOT FREE

What are YOU doing to HELP?

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The Funded: 16 VC-backed businesses raise nearly $650M in Bay Area deals

By  – TechFlash Editor, Silicon Valley Business Journal

Nearly $650 million in funding was disclosed by 16 Bay Area startups at midweek, along with a pair of M&A deals and new venture funds.

Here are the details:


• Coinbase Inc., San Francisco, $300 million: This digital currency wallet and platform is now Y Combinator’s fifth most valuable alumni after getting an $8 billion post-money valuation in this round led by Tiger Global Management. It was joined by Y Combinator’s Continuity fund, Wellington Management, Andreessen Horowitz and Polychain Capital. Read more here.

• Deliv Inc., Menlo Park, $40 million: Investors in the Series C round of this crowdsourced same-day delivery service include Google, Clayton Venture Partners, UPS, General Catalyst Partners, The Macerich Company, PivotNorth Capital, RPM Ventures and Upfront Ventures.

• Handshake, San Francisco, $40 million: EQT Ventures led the Series C funding of this career network for U.S. college students. It was joined by Chan Zuckerberg Initiative, Omidyar Network and Reach Capital.

• The Athletic Media Co., San Francisco, $40 million: Founders Fund and Bedrock Capital co-led the Series C funding of this digital sports media startup. They were joined by Comcast Ventures, Evolution Media Capital, Courtside Ventures, The Chernin Group, YC, Advancit, Luminari, Amasia and BDMI.

• Quid Inc., San Francisco, $37.5 million: REV Ventures led round for this provider of a platform for analyzing large volumes of text. It was joined by Julian Robertson, Henry Kravis, Lixil Group, Artis Ventures, Salesforce Ventures and Founders Fund.

• AppZen Inc., San Jose, $35 million: Lightspeed Venture Partners led the Series B funding of this AI-powered expense report auditing automation startup that was featured in The Pitch four years ago. It was joined by return backers Redpoint Ventures and Resolute Ventures. (Read more here.)

• Ethos Technologies Inc., San Francisco, $35 million:  Accel Partners led the Series B funding of this life insurance company. It was joined by investors including GV (formerly Google Ventures), Sequoia Capital and Arrive.

• Concord Worldwide Inc., San Francisco, $25 million: Tenaya Capital led the Series B round of this contract management platform provider. It was joined by Alven and CRV.

• Clear Labs Inc., Menlo Park, $21 million: Menlo Ventures led the Series B2 round of this food safety testing platform provider. It was joined by Wing VC, Dentsu Ventures, Felicis Ventures and Khosla Ventures.

• HeadSpin Inc., Mountain View, $20 million: Investors in the Series B round of this mobile app performance software startup include Iconiq Capital, Battery Ventures and EQT Ventures. The round was reportedly done at a valuation of $500 million.

• Sentieo Inc., San Francisco, $19 million: Centana Growth Partners led the Series A round of this financial research platform.

• Waterline Data Inc., Mountain View, $14.5 million: Menlo Ventures led the Series C round of this provider of data cataloging solutions and applications. It was joined by investors including Jackson Square Ventures, Partech Ventures and Infosys.

• Intabio Inc., Newark, $9.5 million: Northpond Ventures led the Series A round of this analytical platform provider for the development of biotherapeutic drugs. It was joined by investors including Genoa Ventures and Vertical Venture Partners.

• ZypMedia, San Francisco, $5.6 million: Archer Venture Capital led the Series C round of this creator of a programmatic advertising platform built specifically for media companies. It was joined by investors including U.S. Venture Partners and Sinclair Broadcast Group.

• Visla Labs, San Francisco, $3 million: Lux Capital led the seed round for this radiology diagnostics platform provider.

• Aura Health Inc., San Francisco, $2.7 million: Cowboy Ventures and Reach Capital co-led the seed round of this emotional well-being app provider. 


• San Francisco-based Atlassian Corp. plc (NASDAQ:TEAM) agreed to sell Jitsi, an open-source chat and videoconferencing tool it bought in 2015, to San Jose-based 8×8 Inc. (NYSE: EGHT).

Carbon Health, a San Francisco-based platform for ongoing care management and virtual appointments, has merged with Direct Urgent Care, a network of Northern California urgent care centers. Carbon Health raised $6.5 million from investors who include Builders VC. (Read more here.)

Funders in the news

• Palo Alto-based True Ventures raised $350 million for its sixth early stage fund and $285 million for its Select Fund.

• Larry Cook joined Omidyar Network as head of fund operations. He previously was Intel Capital’s finance director.

•  Lynne Chou-O’Keefe, who has invested in healthcare for five years at Kleiner Perkins, has raised $50 million for a new firm she is forming called Define Ventures.

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