Don't burn bridges.

• That might be the top takeaway from yesterday's news that The Raine Group has acquired Code Advisors, the tech and media M&A adviser whose repeat clients have included Spotify, Twitter and Vox Media.

Backstory: Code was formed in 2010 by Quincy Smith, Mike Marquez and Fred Davis.

• Davis left four years later to join Raine, in part to focus more on music industry deals within a larger platform (he once was an EVP at EMI Records, and his dad is legendary producer Clive Davis).
• It was a surprising split, but Davis kept in touch with his former colleagues and Code even worked alongside Raine on a few deals. About three years ago, Davis told Quincy Smith to begin paying attention to what was happening at Raine, which was expanding its media and entertainment business.
• Smith did just that, and last year began a series of Embarcadero walk-and-talks with Raine partner John Salter. Raine then invited Smith to a firm offsite, after which the merger was effectively sealed.
• "This was really masterminded by Fred years ago," Smith says. "If there was a deal cube here, he'd get it."

The big picture: Code is the first acquisition in Raine's 14-year history, and reflects the New York-based firm's desire to deepen its Silicon Valley footprint, particularly in software.

• "We really don't have much overlap," says Salter, who explains that each firm tends to focus on a small number of core clients.
• The merger also will help Raine's booming sports business (e.g., WWE, Chelsea FC, Manchester United, etc.) leverage Code's software industry expertise.

The bottom line: "Things didn't work out with Fred at Code, but that doesn't mean there had to be bad blood," says Smith, who'll become a San Francisco-based partner with Raine. "Deals are all about relationships."

Savvy Games, owned by Saudi Arabia's sovereign wealth fund, will pay $4.9 billion to buy Scopely, the Culver City, Calif.-based maker of mobile games like Marvel Strike Force, Monopoly GO and Scrabble GO.

Why it's the BFD: This is the sixth-largest gaming acquisition ever, per Gamesradar, and the second-largest of a VC-backed publisher.

ROI: Scopely raised nearly $1 billion in venture funding, plus over $500 million in debt, including a $340 million Series E round in October 2020 at a $3.4 billion valuation.

• Backers include Greycroft, Evolution Media Capital, Highland Capital Partners, Anthem Venture Partners, Sands Capital, Cross Creek. Revolution, Pritzker Group VC, NewView Capital, Scale-Up Venture Capital, Carbon Arrow Capital, and Wellington Management.

The bottom line: Savvy was launched by Saudi Arabia's Public Investment Fund in early 2021, via a $1.5 billion purchase of two esports companies, and is part of the Kingdom's plans to invest $38 billion in the gaming sector.

• Honeycomb, an SF-based observability platform, raised $50m in Series D funding. Headline led, and was joined by insiders Insight Partners and Scale Venture Partners. https://axios.link/40MTuzN

• Staytuned Digital, a New York-based provider of e-commerce tools, raised $34m in equity and debt funding, per Axios Pro. TenOneTen Ventures led the equity tranche, and was joined by Rembrandt Venture Partners, Hawke Ventures, DragonX Capital and FJ Labs. https://axios.link/3MlFXe8

• AMSilk, a German developer of plant-based silk proteins, raised €25m in Series C extension funding. Insider Anthos led, and was joined by Novo Holdings, Cargill and MIG Capital. https://axios.link/3Mhkzqm

• M^ZERO Labs, a German decentralized infrastructure project that touts reduced counterparty risk, raised $22.5m. Pantera Capital led, and was joined by Road Capital, AirTree, Standard Crypto, The SALT Fund, ParaFi Capital, Distributed Capital, Kraynos Capital, Mouro Capital and Earlybird. www.m0.xyz

🚑 Oxos Medical, an Atlanta-based X-ray tech startup, raised $23m in Series A funding from Parkway VC and Intel Capital. https://axios.link/3KfWm1d

• 4.screen, a Munich-based driver interaction platform, raised €21m in Series A funding co-led by S4S Ventures and Continental VC. https://axios.link/43acsly

• Chroma, an SF-based open-source embedding database for generative AI, raised $18m in seed funding led by Quiet Capital. www.trychroma.com

• True Anomaly, a Colorado Springs, Colo.-based space security startup, raised $17m in Series A funding. Eclipse led, and was joined by Riot Ventures, Champion Hill Ventures, Space.VC and Narya. https://axios.link/3m5SYy1

• Hype (fka Pico), a creator CRM startup, raised $10m in Series A funding. King River Capital led, and was joined by Bullpen Capital, Precursor Ventures, Bloomberg Beta, Tapestry VC, and Sterling Road. https://axios.link/3MiR1Zu

🚑 Tally Health, a New York-based longevity startup, raised $10m in seed funding. Forerunner Ventures led, and was joined by L Catterton. www.tallyhealth.com

• Lightmetrics, an Indian commercial fleet telematics startup, raised $8.5m from Sequoia Capital India. www.lightmetrics.co

• InvestNext, a Detroit-based real estate investment platform, raised $8.25m in Series A funding. Whitecap Venture Partners led, and was joined by Detroit Venture Partners, Hyde Park Venture Partners, Grand Ventures and ID Ventures. www.investnext.com

• Helical Fusion, a Tokyo-based helical fusion developer, raised $6m led by SBI Investment. https://axios.link/3nQ1GAE

• Aqua Cultured Foods, a Chicago-based alt seafood startup, raised $5.5m in seed funding. Stray Dog Capital led, and was joined by H Ventures, Aztec Capital Management and Amplifica Capital. https://axios.link/3GoQKjX

• Roboto, a Seattle-based developer of data infrastructure for robotics companies, raised $4.8m in seed funding. Unusual Ventures led, and was joined by A12 and Fuse Ventures. www.roboto.ai

🐮 Alga Biosciences, developer of a kelp-based feed additive for cows, raised $4m. Collaborative Fund led, and was joined by YC, Day One Ventures, Cool Climate Collective, Pioneer Fund and Overview Capital. www.alga.bio

• Finst, a Dutch cryptocurrency exchange, raised €4m in seed funding from Deribit's parent company Sentillia. https://axios.link/3KzVjdK

• Flyby Robotics, an LA-based drone automation and delivery startup, raised $4m in seed funding. Mac Venture Capital led, and was joined by Weekend Fund, Anthemis and Evening Fund. www.flybydev.com

• Native.ai, a New York-based market intelligence platform, raised $3.5m in seed funding. JumpStart Ventures and Ivy Ventures co-led, and were joined by 11 Tribes Ventures and Connetic Ventures. www.gonative.ai

• LaLa, a marketplace for digital film and TV collectables, raised $3m in seed funding from Seven Seven Six, per Axios Pro. https://axios.link/40Ycs68

• Billy, a New York-based construction insurance startup, raised $2.5m co-led by Entrada Ventures and MetaProp. https://axios.link/3zBUPxm

• Coast, an API demo platform for sales teams, raised $2.1m in seed funding from YC, Liquid2 Ventures, GTMFund and Brickyard. https://axios.link/3Ky3FTk

⚡ Nuru, a Congo-based solar mini-grid startup, is closing on $60m in Series B funding from IFC and Renewable Energy Performance Platform, per Bloomberg. https://axios.link/413ngjz

Crypto challenges aside, blockchain technology has become an attractive and unexpected M&A target.

Looking ahead: Understand the opportunities and challenges ahead for M&A with insights from RBC Capital Markets’ expert bankers on Strategic Alternatives, the RBC M&A podcast.

Listen now.

• Crestview Partners invested $200m to help form Modern Wealth Management, a Monterey, Calif.-based RIA led by ex-Goldman Sachs and United Capital execs. www.modwm.com

• Grace Hebert Curtis, a Baton Rouge, La.-based architecture firm owned by Bernhard Capital Partners, acquired Pensacola, Fla.-based Bullock Tice Associates. https://ghc-arch.com

• Hunter Point Capital acquired a passive minority stake in Inflexion, a London-based midmarket private equity firm. www.inflexion.com

🚑 iNova Pharma, an Australian portfolio company of TPG, is in advanced talks to buy the OTC business of Mundipharma, the French drugmaker owned by the Sackler family (which is selling to help cover its opioid-related legal claims), per Bloomberg. https://axios.link/3KCPpZv

• KKR is in talks to buy more than 30% of WPP-controlled PR and financial communications firm FGS Global at around a $1.4b enterprise value, per the FT. https://axios.link/414nYgn

• Pavion, a Chantilly, Va.-based portfolio company of Wind Point Partners, acquired Security Source, a Wilmington, Mass.-based provider of video-based security and loss prevention systems for multi-location businesses. www.pavion.com

• Sky Island Capital acquired a majority stake in Kaufhold’s Kurds, an Ellsworth, Wis.-based maker of breaded cheese curds. www.kaufholdskurds.com

• Tandem Bank, a London-based digital bank owned by Pollen Street Capital, acquired money-sharing app Loop Money. https://axios.link/3ZNWCKl

• Temenos (Swiss: TEMN) is the subject of renewed private equity interest, after takeover talks failed last year, per Bloomberg. The Swiss digital banking software provider has a market cap of around $5.4b. https://axios.link/3GmGGbi

• Inflection Point Acquisition II, a SPAC formed by Kingstown Capital, filed for a $200m IPO. https://axios.link/438dpee

🚑 Ginkgo Bioworks (NYSE: DNA) acquired StrideBio, a Durham, N.C.-based gene therapy startup that raised $97m from Northpond Ventures, Novo Holdings, Pontifax, CaaS Capital Management, Sarepta Therapeutics and Octagon Capital. https://axios.link/3KCSBEn

• Havas Media Group of Paris acquired a majority stake in Noise Digital, a Canadian media performance and data analytics agency. www.havasmediagroup.com

• Toridoll (Tokyo: 3397) will pay £93m to buy Fulham Shore (LSE: FUL), a British operator of restaurant chains Franco Manca and The Real Greek. https://axios.link/3GkNZAl

⚡ Vantage Drilling International, a Houston-based offshore drilling contractor that trades OTC, is exploring strategic options that could include a sale, per Bloomberg. https://axios.link/43d6YGU

• Kensington Capital, a Toronto-based VC firm, held a C$150m first close on its third fund, which is targeting C$290m. www.kcpl.ca

• Lux Capital is targeting over $1b for its seventh flagship fund, which will combine both its early-stage and late-stage strategies. https://axios.link/3mavqrA

• Chrystalle Anstett joined Moelis as a managing director on the firm's private funds advisory team. She previously was with Sound Mark Partners as head of capital formation and co-COO. www.moelis.com

🎵 Carlos Cruz joined music royalties firm HarbourView Equity Partners as a managing director and head of capital markets. He previously was with Fifth Third Bank. https://axios.link/3KflB3I

• Ashish Jhaveri stepped down as head of India M&A at Barclays, to join Jefferies, per Bloomberg. https://axios.link/3Mi3AV2

Silicon Valley Bank's collapse has triggered a flood of cash into money market mutual funds, Axios' Matt Phillips writes.

• Meanwhile, the FDIC said yesterday that it's hired BlackRock to sell the securities portfolios of SVB and Signature Bank, valued at $87 billion and $27 billion, respectively.

Tech companies dominated M&A markets last year and are primed to stay on top in terms of transactions.

Expert advice: Understand the opportunities and challenges ahead for M&A with insights from RBC Capital Markets’ expert bankers on Strategic Alternatives, the RBC M&A podcast.

Listen now.

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