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Goldman’s acquisition of Industry Ventures is a bet on soaring secondaries

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A venture capital firm, if you think about it, is an extremely weird acquisition target.

VC firms have malleable time horizons that are long (and getting longer), and fundamentally are devoted to high-risk investing that’s reasonably likely to fail. To boot, VC firms getting acquired is an exceptionally rare occurrence—examples exist, but they’re all scattered and odd, like Meta’s half-acquisition of AI two-man-show NFDG this year, or StepStone Group’s 2021 acquisition of Greenspring Associates. There are probably more visible comets in any five-year period than notable acquisitions of VC firms. 

So, when Goldman Sachs announced plans on Monday to acquire Industry Ventures, eyebrows shot up. The deal, for a venture firm with about $7 billion in assets under management, is substantial—$665 million in cash and equity, tacking on an additional performance-based $300 million through 2030. 

“This acquisition is the first of its kind and signals the increasing importance of VC in propelling the growth of Wall Street banks,” said Emily Zheng, PitchBook senior VC analyst. “Acquisitions of this scale are difficult to replicate given Goldman and Industry’s prominence, though we will likely see heightened investment in alternative strategies across banks after this news.”

So, does this mean Goldman’s now going to be competing with the Sand Hill Road set, elbowing into more hot funding rounds? Is this the next logical step after the arrival (and subsequent retreat) of hedge funds into the VC game a few years ago?

While Industry Ventures was an active startup investor, it was primarily known as a pioneer in the secondaries market. So, off the bat: the Goldman-Industry Ventures deal isn’t just about venture—it’s very specifically about secondaries. As Mercedes Bent, Lightspeed venture partner, points out: Industry is “one of the most established players in VC secondaries and hybrid funds, so this gives Goldman a high-quality on-ramp into private markets—both a liquidity solution and early visibility into venture deal flow.”

Marc Nachmann, Goldman’s global head of asset and wealth management, told Fortune that the firm sees secondaries as a “secular growth opportunity” and that the Industry Ventures deal is reflective of the banking giant’s “belief in rounding out our platform.”

“Right now, secondaries are less than 1% of primary,” Nachmann said. “However much you think alts will grow, secondaries will grow even faster… And people are going to want to manage their portfolio actively.” 

Secondaries have soared as companies have stayed private longer, going from a once-maligned tool to, increasingly, the lifeblood of the private markets. Some numbers suggest that, by the end of 2025, secondary trading volume could cross $200 billion, shattering last year’s record $162 billion.

“This deal really shows just how far the VC secondaries market has come in recent years—emerging as a critical component of venture portfolio management for firms of all types and sizes,” said Zach Aarons, MetaProp cofounder and general partner, via email. “Goldman appears to be buying the entire firm—the team, infrastructure, and operational capabilities to run this type of book into the future.”

Goldman’s Nachmann confirmed to Fortune that Industry’s entire team will be joining up. 

Acquisitions of VC firms will likely continue to be fairly anomalous, but we may see more of them. This deal shows, Costanoa managing partner Greg Sands says, “how attractive venture remains, even amid market uncertainty.” And there is uncertainty: The landscape is in regulatory flux from D.C. (consider the recent executive order linking private markets more closely to 401k plans) and via Silicon Valley and Wall Street.

“Acquisitions like this remain relatively rare, but they reflect how institutional investors are moving deeper into private markets, even as the venture landscape grows more bifurcated in terms of performance and strategy,” said Antonio Rodriguez, Matrix managing partner via email. “What remains to be seen is whether this kind of diversification ultimately strengthens the broader venture ecosystem, or whether maintaining a sharp, focused strategy will deliver better returns over time.”

For all that private market rules are shifting, the Goldman-Industry deal exists at the intersection of relentless, long-running trends—companies staying private longer and financial firms reaching further into private company dynamics. There’s also the slow but undeniable blurring of what it means to be a private company versus a public company, and the sense that private market opportunities have never been bigger. 

“In talking with public market investors, they are very aware of the fact that the number of publicly-traded companies in the U.S. has actually dropped fairly significantly over the last few decades (it has roughly halved in the last two decades),” said Don Butler, Thomvest Ventures managing director, via email. “So, the real game to be played feels increasingly like it is in the private markets.”

See you tomorrow,

Allie Garfinkle
X:
@agarfinks
Email: alexandra.garfinkle@fortune.com
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Venture Deals

Kailera Therapeutics, a Boston, Mass. and San Diego, Calif.-based developer of obesity therapeutics, raised $600 million in Series B funding. Bain Capital Private Equity led the round and was joined by Adage Capital Management, Canada Pension Plan Investment Board, Invus, and others.

Lila Sciences, a Cambridge, Mass.-based scientific superintelligence company, raised $115 million in a Series A extension from IQT, Analog Devices, Catalio Capital Management, Dauntless Ventures, Pennant Investors, and others.

OneImaging, a Miami, Fla.-based medical imaging company, raised $38 million in funding. Vy Capital led the round and was joined by Aquiline, Sempervirens Venture Capital, and others.

Arbio, a Berlin, Germany-based AI platform designed to help with renting and running holiday rental properties, raised $36 million in Series A funding. Eurazeo led the round and was joined by OpenOcean and others.

Nova Credit, a San Francisco-based credit infrastructure and analytics company, raised $35 million in Series D funding. Socium Ventures led the round and was joined by Canapi Ventures, Kleiner Perkins, General Catalyst, and others.

Basis Theory, a San Francisco-based payments infrastructure platform, raised $33 million in Series B funding. Costanoa led the round and was joined by Stage 2 Capital, Moneta VC, and others.

Marble, a New York City-based mental health platform for young people, raised $15.5 million in Series A funding. Costanoa led the round and was joined by Town Hall Ventures and Khosla Ventures.

Medmo, a New York City-based AI-powered care coordination platform for medical imaging, raised $15 million in Series A funding. Covera Health led the round and was joined by existing investors Origin Ventures, Lerer Hippeau, Digital Health Venture Partners, and Toppan Global Venture Partners.

Airbound, a Bengaluru, India-based developer of delivery drones, raised $8.7 million in seed funding. Lachy Groom led the round and was joined by Lightspeed Venture Partners and Humba Ventures.

Kuunda, a Cape Town, South Africa-based business-to-business lending-as-a-service company, raised $7.5 million in pre-Series A funding from Portugal Gateway Fund, Seedstars Africa Ventures, 4Di Capital, and others.

SirenOpt, an Oakland, Calif.-based manufacturing intelligence platform for factory applications, raised $6.5 million in funding. Hitachi Ventures led the round and was joined by InMotion Ventures.

Private Equity

Updata Partners and Denali Growth Partners invested $77 million in MD Integrations, a New York City-based telehealth platform.

Asbury Carbons, a portfolio company of Mill Rock Capital, agreed to acquire Graphit Kropfmühl, a Kropfmühl, Germany-based mining company. Financial terms were not disclosed. 

Imprivata, backed by Thoma Bravo, acquired Verosint, an Austin, Texas-based identity threat detection and response solutions company. Financial terms were not disclosed.

LevelBlue, backed by WillJam Ventures, agreed to acquire Cybereason, a La Jolla, Calif.-based cybersecurity consulting company. Financial terms were not disclosed.

R1, backed by TowerBrook and CD&R, agreed to acquire Phare Health, a New York City-based developer of AI technology for inpatient coding and clinical documentation. Financial terms were not disclosed.

Reynolda Equity Partners acquired North American Lawn and Landscape, a Charlotte, N.C.-based commercial landscaping services company. Financial terms were not disclosed.

Security 101, a portfolio company of Gemspring Capital, acquired Security & Energy Technologies Corporation, a Chantilly, Va.-based systems integrator. Financial terms were not disclosed.

Funds + Funds of Funds

Integrum, a New York City-based private equity firm, raised $2.5 billion for its second fund focused on services companies.

Plexus Capital, a Raleigh, N.C.-based private equity firm, raised $1.3 billion across two funds focused on U.S.-based middle-market companies.

Maximum Frequency Ventures, a New York City-based venture capital fund, raised $50 million for a new fund focused on cryptocurrency companies.

People

Angeles Equity Partners, a Los Angeles, Calif.-based private equity firm, hired Trent Ketterer as a vice president on the investment team. Formerly, he was with Sun Capital Partners.



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Google DeepMind agrees to sweeping partnership with the U.K. government

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AI lab GoogleDeepMind announced a major new partnership with the U.K. government Wednesday, pledging to accelerate breakthroughs in materials science and clean energy, including nuclear fusion, as well as conducting joint research on the societal impacts of AI and on ways to make AI decision-making more interpretable and safer.

As part of the partnership, Google DeepMind said it would open its first automated research laboratory in the U.K. in 2026. That lab will focus on discovering advanced materials including superconductors that can carry electricity with zero resistance. The facility will be fully integrated with Google’s Gemini AI models. Gemini will serve as a kind of scientific brain for the lab, which will also use robotics to synthesize and characterize hundreds of materials per day, significantly accelerating the timeline for transformative discoveries.

The company will also work with the U.K. government and other U.K.-based scientists on trying to make breakthroughs in nuclear fusion, potentially paving the way for cheaper, cleaner energy. Fusion reactions should produce abundant power while producing little to no nuclear waste, but such reactions have proved to be very difficult to sustain or scale up.

Additionally, Google DeepMind is expanding its research alliance with the government-run U.K. AI Security Institute to explore methods for discovering how large language models and other complex neural network-based AI models arrive at decisions. The partnership will also involve joint research into the societal impacts of AI, such as the effect AI deployment is likely to have on the labor market and the impact increased use of AI chatbots may have on mental health.

British Prime Minister Keir Starmer said in a statement that the partnership would “make sure we harness developments in AI for public good so that everyone feels the benefits.”

“That means using AI to tackle everyday challenges like cutting energy bills thanks to cheaper, greener energy and making our public services more efficient so that taxpayers’ money is spent on what matters most to people,” Starmer said.

Google DeepMind cofounder and CEO Demis Hassabis said in a statement that AI has “incredible potential to drive a new era of scientific discovery and improve everyday life.”

As part of the partnership, British scientists will receive priority access to Google DeepMind’s advanced AI tools, including AlphaGenome for DNA sequencing; AlphaEvolve for designing algorithms; DeepMind’s WeatherNext weather forecasting models; and its new AI co-scientist, a multi-agent system that acts as a virtual research collaborator.

DeepMind was founded in London in 2010 and is still headquartered there; it was acquired by Google in 2014.

Gemini’s U.K. footprint expands

The collaboration also includes potential development of AI systems for education and government services. Google DeepMind will explore creating a version of Gemini tailored to England’s national curriculum to help teachers reduce administrative workloads. A pilot program in Northern Ireland showed that Gemini helped save teachers an average of 10 hours per week, according to the U.K. government.

For public services, the U.K. government’s AI Incubator team is trialing Extract, a Gemini-powered tool that converts old planning documents into digital data in 40 seconds, compared to the current two-hour process.

The expanded research partnership with the U.K. AI Security Institute will focus on three areas, the government and DeepMind said: developing techniques to monitor AI systems’ so-called “chain of thought”—the reasoning steps an AI model takes to arrive at an answer; studying the social and emotional impacts of AI systems; and exploring how AI will affect employment.

U.K. AISI currently tests the safety of frontier AI models, including those from Google DeepMind and a number of other AI labs, under voluntary agreements. But the new research collaboration could potentially raise concerns about whether the U.K. AISI will remain objective in its testing of its now-partner’s models.

In response to a question on this from Fortune, William Isaac, principal scientist and director of responsibility at Google DeepMind, did not directly address the issue of how the partnership might affect the U.K. AISI’s objectivity. But he said the new research agreement puts in place “a separate kind of relationship from other points of interaction.” He also said the new partnership was focused on “question on the horizon” rather than present models, and that the researchers would publish the results of their work for anyone to review.

Isaac said there is no financial or commercial exchange as part of the research partnership, with both sides contributing people and research resources.

“We’re excited to announce that we’re going to be deepening our partnership with the U.K. AISI to really focus on exploring, really the frontier research questions that we believe are going to be important for ensuring that we have safe and responsible development,” he said.

He said the partnership will produce publicly accessible research focused on foundational questions—such as how AI impacts jobs or how talking to chatbots effects mental health—rather than policy-specific recommendations, though the findings could influence how businesses and policymakers think about AI and how to regulate it.

“We want the research to be meaningful and provide insights,” Isaac said.

Isaac described the U.K. AISI as “the crown jewel of all of the safety institutes” globally and said deepening the partnership “sends a really strong signal” about the importance of engaging responsibly as AI systems become more widely adopted.

The partnership also includes expanded collaboration on AI-enhanced approaches to cybersecurity. This will include the U.K. government exploring the sue of tools like Big Sleep, an AI agent developed by Google that autonomously hunts for previously unknown “Zero Day” cybersecurity exploits, and CodeMender, another AI agent that can search for and then automatically patch security vulnerabilities in open source software.

British Technology Secretary Liz Kendall is visiting San Francisco this week to further the U.K.-U.S. Tech Prosperity Deal, which was agreed to during U.S. President Trump’s state visit to the U.K. in September. In November alone, the British government said the pact helped secure more than $32.4 billion of private investment committed to the U.K tech sector.

The Google-U.K. partnership builds on a £5 billion ($6.7 billion) investment commitment from Google made earlier this year to support U.K. AI infrastructure and research, and to help modernize government IT systems.

The British government also said collaboration supports its AI Opportunities Action Plan and its £137 million AI for Science Strategy, which aims to position the UK as a global leader in AI-driven research.



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49-year-old Democrat who owns a gourmet olive oil store swipes another historically Republican district from Trump and Republicans

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Democrat Eric Gisler claimed an upset victory Tuesday in a special election in a historically Republican Georgia state House district.

Gisler said he was the winner of the contest, in which he was leading Republican Mack “Dutch” Guest by about 200 votes out of more than 11,000 in final unofficial returns.

Robert Sinners, a spokesperson with the secretary of state’s office, said there could be a few provisional ballots left before the tally is finalized.

“I think we had the right message for the time,” Gisler told The Associated Press in a phone interview. He credited his win to Democratic enthusiasm but also said some Republicans were looking for a change.

“A lot of what I would call traditional conservatives held their nose and voted Republican last year on the promise of low prices and whatever else they were selling,” Gisler said. “But they hadn’t received that.”

Guest did not immediately respond to a text message seeking comment late Tuesday.

Democrats have seen a number of electoral successes in 2025 as the party’s voters have been eager to express dissatisfaction with Republican President Donald Trump.

In Georgia in November, they romped to two blowouts in statewide special elections for the Public Service Commission, unseating two incumbent Republicans in campaigns driven by discontent over rising electricity costs.

Nationwide, Democrats won governor’s races by broad margins in Virginia and New Jersey. On Tuesday a Democrat defeated a Trump-endorsed Republican in the officially nonpartisan race for Miami mayor, becoming the first from his party to win the post in nearly 30 years.

Democrats have also performed strongly in some races they lost, such as a Tennessee U.S. House race last week and a Georgia state Senate race in September.

Republicans remain firmly in control of the Georgia House, but their majority is likely fall to 99-81 when lawmakers return in January. Also Tuesday, voters in a second, heavily Republican district in Atlanta’s northwest suburbs sent Republican Bill Fincher and Democrat Scott Sanders to a Jan. 6 runoff to fill a vacancy created when Rep. Mandi Ballinger died.

The GOP majority is down from 119 Republicans in 2015. It would be the first time the GOP holds fewer than 100 seats in the lower chamber since 2005, when they won control for the first time since Reconstruction.

The race between Gisler and Guest in House District 121 in the Athens area northeast of Atlanta was held to replace Republican Marcus Wiedower, who was in the seat since 2018 but resigned in the middle of this term to focus on business interests.

Most of the district is in Oconee County, a Republican suburb of Athens, reaching into heavily Democratic Athens-Clarke County. Republicans gerrymandered Athens-Clarke to include one strongly Democratic district, parceling out the rest of the county into three seats intended to be Republican.

Gisler ran against Wiedower in 2024, losing 61% to 39%. This year was Guest’s first time running for office.

A Democrat briefly won control of the district in a 2017 special election but lost to Wiedower in 2018.

Gisler, a 49-year-old Watkinsville resident, works for an insurance technology company and owns a gourmet olive oil store. He campaigned on improving health care, increasing affordability and reinvesting Georgia’s surplus funds

Guest is the president of a trucking company and touted his community ties, promising to improve public safety and cut taxes. He was endorsed by Republican Gov. Brian Kemp, an Athens native, and raised far more in campaign contributions than Gisler.



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Rivian CEO says it’s a misconception EVs are politicized, with a 50-50 party split among R1 buyers

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If Rivian’s sales are any indication, owning an electric vehicle isn’t such a partisan issue, despite President Donald Trump’s rollbacks of mandates, incentives, and targets for EVs.

At the Fortune Brainstorm AI conference in San Francisco on Tuesday, Rivian CEO RJ Scaringe said it’s a misconception that electrification is politicized, explaining that most customers buy a product based on how it fits their needs, not their ideology. The questions car buyers ask, he said, are the same whether they’re purchasing one with an internal-combustion engine or a battery: “Is it exciting? Are you attracted to the product? Does it draw you in? Does the brand positioning resonate with you? Do the features answer needs that you have?”

Buyers of Rivian’s R1 electric SUV are split roughly 50-50 between Republicans and Democrats, Scaringe told Fortune’s Andrew Nusca. “I think that’s extraordinarily powerful news for us to recognize—that this isn’t just left-leaning buyers,” he added. “These are people that are saying, ‘I like the idea of this product, I’m excited about it.’ And this is thousands and thousands of customers. This is statistically relevant information.”

Buying an EV was once an indication of left-leaning politics, but the politics got scrambled after Tesla CEO Elon Musk became the top Republican donor and a close adviser to Trump. That drew some new customers to Tesla, and turned off a lot of progressive EV buyers, with many existing owners putting bumper stickers on their Teslas explaining that they bought their cars before Musk’s hard-right turn. Trump and Musk later had a stunning public feud, in part over the administration’s elimination of EV and solar tax credits.

But Scaringe said he started Rivian with a long-term view, independent of any policy framework or political trends. He also insisted that if Americans have more EV choices, sales would follow. Right now, Tesla dominates a key corner of the market, namely EVs in the $50,000 price range. Rivian’s forthcoming R2 mid-size SUV will represent a new choice in that market, with a starting price of $45,000 versus the R1’s $70,000.

Ten years from now, Scaringe said he hopes—and believes—that EV adoption in the U.S. will be meaningfully higher than it is today across the board, explaining that the main constraint isn’t on the demand side. Instead, it’s on the supply side, which suffers from “a shocking lack of choice,” especially compared to Europe and China, he added. EV options in the U.S. are limited by the fact that Chinese brands are shut out of the market.

More choices for U.S. EV buyers would presumably create more competition for Rivian—and indeed, the flood of low-priced Chinese EVs in other auto markets has created a backlash, with countries such as Canada imposing steep tariffs on them. But Scaringe appears to view more competition as positive for the market overall.

“I do think that the existence of choice will help drive more penetration, and it actually creates a unique opportunity in the United States,” he said.



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