Greetings, Term Sheeters

　　Luisa Beltran, finance reporter here, bringing you the latest developments in the IPO market.

　　Arm Holdings' Successful IPO: A Positive Sign for the Market

　　The IPO market witnessed a significant milestone on Thursday with the successful debut of Arm Holdings, a semiconductor designer owned by SoftBank Group. The company's shares surged nearly 25% in its first day of trading, signaling a positive outlook for the overall IPO market.

　　Arm's IPO, which raised about $4.9 billion, is the largest of the year so far. Its strong performance bodes well for the rest of the IPO market, which has been relatively dormant since 2021. Two more significant deals are scheduled for next week: Instacart, a grocery technology business, and Klaviyo, a data and marketing automation firm.

　　Matt Kennedy, senior IPO strategist at Renaissance Capital, expressed optimism about the fall IPO market in light of Arm's successful trading. He noted that Arm is the first major tech IPO this year and that there is significant pent-up demand for new tech issuers.

　　The IPO market has outpaced last year's performance so far, with 73 IPOs raising $14.8 billion compared to 72 offerings in all of 2022 that collected $7.7 billion.

　　Arm's IPO: A Test for Goldman Sachs and Other Underwriters

　　The Arm IPO was also a crucial test for Goldman Sachs, one of the four banks leading the offering. Goldman is also the lead underwriter for Instacart, Klaviyo, and Birkenstock.

　　Instacart and Klaviyo both revealed IPO valuations below their last funding rounds. Instacart is seeking a $9.3 billion valuation, significantly lower than its $39 billion valuation in 2021. Klaviyo is targeting an $8.3 billion valuation, down from $9.5 billion in May 2021.

　　Arm also adopted a cautious approach, initially aiming for a valuation between $60 billion and $70 billion. However, when its IPO priced late Wednesday, Arm was valued at $52.3 billion, which soared to nearly $65 billion by the market close on Thursday.

　　Kennedy advised other companies considering an IPO to follow a similar playbook. "Be conservative or else," he emphasized.

　　Venture Deals

　　Databricks, a platform that allows companies to combine data, AI, and analytics, raised $500 million in funding led by T. Rowe Price Associates.Generate:Biomedicines, a biotherapeutics company using machine learning to engineer new medicines, secured $273 million in Series C funding.Pixis, a marketing platform using AI to enhance strategies, raised $85 million in Series C1 funding led by Touring Capital.Swan, a startup integrating banking services into company products, raised €37 million ($39.4 million) in Series B funding.Linear, a platform for managing software project workflows, secured $35 million in Series B funding led by Accel.Prisma Photonics, a startup using AI to monitor and manage large-scale infrastructure, raised $20 million in Series C funding led by Insight Partners.Moment, a startup designing tools for bond trading and fixed-income securities, raised $17 million in Series A funding from Andreessen Horowitz.Iomed, a company using AI to analyze hospital data, secured €10 million in Series A funding led by Philips Ventures and XTX Ventures.Series AI, a company developing AI-powered tools for building video games, raised $7.9 million in seed funding from A16Z GAMES, BITKRAFT, and others.Raylo, a company allowing customers to lease tech products, raised £5 million ($6.2 million) in funding from Macquarie Group and Channel 4 Ventures.Databutton, a platform for building and sharing AI-powered apps, secured $5.1 million in seed funding from Skyfall Ventures and Maki.vc.Sailes, a startup developing an AI bot for sales teams, raised $5.1 million in Series A funding led by Lewis Clark Ventures.Patronus AI, a platform monitoring and evaluating the efficiency of companies' large language and AI models, secured $3 million in seed funding led by Lightspeed Venture Partners.

　　Private Equity

　　Clearlake Capital, Charlesbank Capital, and Fortress Investment recapitalized Learfield, a company managing multimedia and sponsorship rights for college sports, for $600 million in debt and $150 million in equity.BGB Group, backed by TPG, acquired Kx Advisors, a management consulting firm for pharmaceutical, biotech, and medical technology companies. Financial terms were not disclosed.SK Capital acquired a majority stake in Ecopol, a producer of water-soluble and biodegradable packaging products. Financial terms were not disclosed.

　　Exits

　　Ardian acquired ICQ Holding, a portfolio of renewable energy assets, from Italian Renewable Resources. Financial terms were not disclosed.Francisco Partners and H.I.G. Capital acquired RBmedia, an audiobook publisher, from KKR. Financial terms were not disclosed.GI Partners agreed to acquire ASK4, a telecommunication and internet services provider for multi-tenant buildings in Europe, from Bowmark Capital. Financial terms were not disclosed.

　　Other

　　Justworks agreed to acquire Via, a global payment and employment platform. Financial terms were not disclosed.

　　Funds + Funds of Funds

　　Cervin Ventures, a venture capital firm, raised $162 million for its fifth fund focused on software, data, AI, and cybersecurity startups.Verdane, a private equity fund, raised €1.1 billion ($1.17 million) for its 11th fund focused on companies digitizing and decarbonizing the economy.

　　People

　　Cervin Ventures hired Scott Brown as partner and head of platform.Norwest, a private equity firm, promoted Gabe Stauber to vice president.OceanSound Partners, a private equity firm, hired Sam Todd as vice president, Caroline Weakland as senior associate, and several other associates.Unusual Ventures, a venture capital firm, hired Ryan Wexler as a vice president.Sign up for Term Sheet, a daily newsletter on the biggest deals and dealmakers, delivered free to your inbox.