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The Scherzer Deal Report: November 24-28, 2025

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International.

Sign up: Get private equity and venture capital deals delivered to your inbox every week!

Note: Because of the Thanksgiving holiday and the shortened business week, this edition of The Scherzer Deal Report is abbreviated.

Fundraising for PE & VC Funds

Heartwood Partners
$245M
Single-asset continuation fund

Private Equity Deals

Courizon Partners
Air Burners
Undisclosed amount
Palm City, FL-based provider of burner systems for on-site disposal of wood and vegetative waste

SoftBank
Ampere Computing
Undisclosed amount
Santa Clara, CA-based chipmaker

Smith Ventures and Commerce
OneGreen Dot
Undisclosed amount
Austin, TX-based financial tech and bank holding company

Guardian Capital Partners
Raptor Power Systems
Undisclosed amount
Eatontown, NJ-based maker of power products serving data centers

Truelink Capital
SouthernCarlson
Undisclosed amount
Omaha, NE-based provider of construction and industrial fasteners, tools, and packaging

Venture Capital Deals

FT Partners, YC, QED, 13Books, Latitude, and Local
GlobeModel ML
$75M
San Francisco, CA-based automation platform for financial services

Standard Capital, Dropbox Ventures, YC, FCVC, Transpose Platform, and Karman Ventures
Momentic
$15M
San Francisco, CA-based AI testing startup

YL Ventures, Mayfield, Hetz Ventures, Squared Circle Ventures, and Maple Capital
Opti
$20M
Palo Alto, CA-based enterprise identity security platform

Yosemite, Canaan Partners, F-Prime Capital, and Lilly Ventures
Quarry Thera
$32M
New Haven, CT-based cancer and immunology biotech

Scale Venture Partners, Gradient Ventures, Cathay Innovation, and 53 Stations
Range
$60M
San Francisco, CA-based provider of flat-fee financial planning services to mass affluent households

BrightMind Partners, Mayfield, and Gradient
Vijil
$17M
Menlo Park, CA-based AI agent security startup

Jane Street, Ark Invest, Corner Capital, Galvanize, Hood River Capital Management, Reaves Asset Management, XTX Ventures, Ares Management, Emerson Collective, NGP, and Segra Capital Management
X-energy
$700M
Rockville, MD-based developer of small modular reactors

December 3rd, 2025|Scherzer Deal Report|

The Scherzer Deal Report: November 17-21, 2025

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International.

Sign up: Get private equity and venture capital deals delivered to your inbox every week!

Fundraising for PE & VC Funds

BVP Forge
$1B
Second fund

DigitalBridge
$11.7B
Third digital infrastructure fund ($7.2B) and coinvestment commitments ($4.5B)

JP Morgan
$1B
Second private equity co-investment fund

Monogram Capital Partners
$350M
Third fund

Rockland Capital
$1.2B
Fifth power-focused fund

Tailwater Capital

$425M
Fifth flagship fund focused on energy infrastructure

The LegalTech Fund
$110M
Second fund

Private Equity Deals

TA Associates
Aeris
Undisclosed amount
San Jose, CA-based provider of IoT connectivity SaaS

Frontenac Co.
Beckway Consulting
Undisclosed amount
New York, NY-based consultancy focused on financial sponsors

Bain Capital
Concert Golf Partners
Undisclosed amount
Lake Mary, FL-based golf club operator

Tiger Infrastructure Partners
ELM Utility Services
Undisclosed amount
Peoria, IL-based outsourced public utility locating services company

GTCR
Fiduciary Trust Co.
Undisclosed amount
Boston, MA-based private wealth manager and trust company

Long Ridge Equity Partners
GoTu Technology
Undisclosed amount
Miami, FL-based dental talent marketplace

H.I.G. Capital
GT Independence
Undisclosed amount
Sturgis, MI-based provider of long-term home care and support solutions for Medicaid participants

Vance Street Capital
Injectech
Undisclosed amount
Fort Collins, CO-based provider of injection-molding and clean-room assembly to medical OEMs

Viking Global Investors
Machine Sciences
Undisclosed amount
Tualatin, OR-based aerospace component supplier and manufacturer

Arkview Capital
NeoTech
Undisclosed amount
Chatsworth, CA-based electronics manufacturer.

Blackford Capital
Texas Injection Molding
Undisclosed amount
Houston, TX-based manufacturer of injection molded industrial components

Leonard Green
Topgolf
Undisclosed amount
Dallas, TX-based tech-enabled golf company delivering leading golf equipment, apparel and entertainment

Venture Capital Deals

Forerunner, Benchmark, Craft Ventures, AlleyCorp, Antler, and Starting Line
Agentio
$40M
Brooklyn, NY-based platform for creator-led advertising

Mission BioCapital, Santé Ventures, Lightchain Capital, and Cobro Ventures
AI Proteins
$41.5M
Boston, MA-based miniprotein drug developer

U.S. Venture Partners, Swisscom Ventures, Vertex Ventures, and 33N Ventures
Apono
$34M
New York, NY-based cloud identity-security startup

TriEdge Investments, MFO Ventures, and WindRose Health Investors
Arbiter
$52M
New York, NY-based provider of health care orchestration tools

IAG Capital Partners, Hitachi Ventures, Bezos Expeditions, Venrock, Amazon Industrial, Innovation Fund, Samsung Ventures, Systemiq Capital, E12 Ventures, and Higher Life Ventures
Archetype AI
$35M
Palo Alto, CA-based developer of AI models for the physical world

OrbiMed, ARCH Venture Partners, Frazier Life Sciences, Revelation Partners, Medical Excellence Capital, S32, Axon Ventures, Lyfe Capital, and LifeForce Capital
Aspen Neuroscience
$115M
San Diego, CA-based personalized cell therapy company

Felicis, Initialized, Khosla Ventures, and Y
Automat
$15.5M
San Jose, CA-based enterprise workflow automation startup

Greylock, Mangusta Capital, Mantis VC, and Pier 88 Investment Partners
Bedrock Data
$25M
Menlo Park, CA-based data management platform

CapitalG, Sutter Hill Ventures, Valor Equity Partners, Atreides Management, and Maverick Silicon
Celero Communications
$100M
Laguna Beach, CA-based provider of digital signal processors for AI infrastructure

Viola Growth and OpenView
Chargeflow
$25M
New York, NY-based fintech that automates chargeback disputes

Canapi Ventures
Coverbase
16.5M
San Francisco, CA-based AI procurement and risk platform

Bessemer Venture Partners, George Kurtz, NTT Docomo Ventures, and Aurum Partners
Doppel
$70M
San Francisco, CA-based social engineering defense platform

Goldman Sachs Alternatives, Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC
Federato
$100M
San Francisco, CA-based provider of insurance workflow software

Redpoint Ventures, a16z, FirstMark, Battery Ventures, and Menlo Ventures
Function Health
$298M
Austin, TX-based longevity startup

Emergence Capital Partners, SBI Investment, LG Technology Ventures, Pavilion Capital, and Uphonest Capital
Genspark
$275M
Laguna Beach, CA-based developer of agentic AI for knowledge workers

Tiger Global and Generation Investment Management
Gridware
$55M
San Francsico, CA-based electric grid protection startup

Citadel Securities, Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital
Kraken
$800M
Cheyenne, WY-based crypto exchange

TWG Global and US Innovative Technology Fund
Lambda
$1.5B
San Francisco, CA-based cloud infrastructure provider

Humain, AMD Ventures, a16z, Amplify Partners, and Matrix Partners
Luma AI
$900M
Palo Alto, CA-based video generation platform

a16z, General Catalyst, Blackstone, Crossbeam Venture Partners, Forward Deployed Venture Capital, and Pax Ventures
Method Security
$26M
Saint Paul, MN-based dual-use cybersecurity company

Thrive Capital, New York Life Ventures, Northwestern Mutual, and Allegis
Modern Life
$20M
New York, NY-based provider of AI tools for financial advisors to offer life insurance

PEP Capital, Samsung Ventures, Top Material, General Motors Ventures, Catalus Capital, Itochu Corp., Fortistar Capital, and WindSail Capital Group
Nanoramic
$54M
Boston, MA-based battery startup

8VC, Blue Venture Fund, Amboy Street Ventures, and Socium Ventures
Nest Health
$22.5M
New Orleans, LA-based value-based care company focused on families

IVP, Menlo Ventures, Founders Fund, Alkeon, 8VC, Socii Capital, Access Industries, Friends & Family Capital, and Long Journey Ventures
Numeric
$51M
San Francisco, CA-based accounting automation startup

Gilde Healthcare, Vensana Capital, and USVP
Okami Medical
$45M
Aliso Viejo, CA-based vascular embolization tech startup

Prelude Growth Partners, Unilever Ventures, Willow Growth Partners, and Selva Ventures
Perelel
$27M
Los Angeles, CA-based maker of women’s supplements

CapitalG, Lux Capital, Thrive Capital, Jeff Bezos, Emergence, Index Ventures and T. Rowe Price
Physical Intelligence
$600M
San Francisco, CA-based developer of AI software for robots

Playground Global and Celesta Capital
PowerLattice
$25M
Vancouver, WA-based low-power chiplet developer

Altimeter, Bezos Expeditions, Spark Capital, Insight Partners, and Air Street Capital
Profluent
$106M
Emeryville, CA-based protein design AI startup

Apax
RapidSOS
$100M
New York, NY-based emergency response data platform

Yosemite, Abingworth, Ally Bridge Group, B Capital, Balyasny Asset Management, Merck, SymBiosis, Alexandria Venture Investments, AyurMaya Capital Management, DC Global Ventures, General Atlantic, and Surveyor Capital
Solve Therapeutics
$120M
San Diego, CA-based developer of ADCs for solid tumor malignancies

T. Rowe Price, VXI Capital, Yamaha Motor Ventures, and Overlay Capital
Sortera
$45M
Markle, IN-based aluminum-sorting startup

A16z, YC, and Felicis Ventures
Sphere
$21M
New York, NY-based tax compliance platform

A16z, Activant Capital, Khosla Ventures, 1984 Ventures, Carya Venture Partners, Page One Ventures, Vesey Ventures, and Valley Ventures
Stuut
$29.5M
New York, NY-based accounts receivables automation startup

Menlo Ventures, Hallwood Media, Lightspeed, Matrix, and NVentures
Suno
$250M
Cambridge, MA-based AI music platform

Permanent Capital, D.R. Horton, and Engineering Capital
Tidalwave
$22M
New York, NY-based AI platform for mortgage origination

GreenSoil PropTech Ventures
Tulu
$17M
New York, NY-based provider of on-demand access to appliances and entertainment devices for apartment building tenants

Eclipse, Woodline Partners, Principia Growth, XN and Alsop Louie Partners
Ursa Major Technologies
$100M
Berthound, CO-based rocket engine startup

S3 Ventures and Intuitive Venture
VahatiCor
$23M
Santa Clara, CA-based cardiac medtech

Notable Capital and Flight Fund
Wispr
$25M
San Francisco, CA-based dictation app

November 26th, 2025|Scherzer Deal Report|

The Scherzer Deal Report: November 10-14, 2025

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International.

Sign up: Get private equity and venture capital deals delivered to your inbox every week!

Fundraising for PE & VC Funds

Glasswing Ventures
$200M
Third fund

Monomoy Capital Partners
$500M
Third credit opportunities fund

Neuberger Berman
$7.3B
Fifth private credit fund

Section Partners
$189M
Fifth flagship fund and second co-investment fund

Private Equity Deals

Coalesce Capital
DecisionHR
Undisclosed amount
St. Petersburg, FL-based provider of HR outsourcing solutions

Lindsay Goldberg
EMCO Chemical Distributors
Undisclosed amount
Pleasant Prairie, WI-based distributor of industrial chemicals

Goldman Sachs
Excel Sports Management
Undisclosed amount
New York, NY-based sports talent agency

Arcline
Novaria Group
Undisclosed amount
Fort Worth, TX-based maker of aerospace components

Francisco Partners
OEConnection
Undisclosed amount
Fairlawn, OH-based backend platform for automotive aftersales

Clearlake Capital Group
Pathway Capital Management
Undisclosed amount
Irvine, CA-based investment manager

Macquarie, UniSuper, and Partners Capital
Potters Industries
Undisclosed amount
Malvern, PA-based infrastructure services firm

H.I.G. Capital
Rely Home
Undisclosed amount
Edison, NJ-based home warranty provider

GTCR
Simplisafe
Undisclosed amount
Boston, MA-based smart security firm

Investindustrial
TreeHouse Foods
Undisclosed amount
Oak Brook, IL-based private-label foodmaker

Venture Capital Deals

Battery Ventures, Primary Ventures, Wing Venture Capital, Operator Collective, Harmonic Growth Partners and Success Venture Partners
1mind
$30M
San Francisco, CA-based AI sales startup

Greylock
AirOps
$40M
San Francisco, CA-based provider of AI search marketing solutions

Prysm Capital, Accenture, Liquid 2 Ventures, NextEquity, Friends & Family Capital, WndrCo, and SLW
Alembic Technologies
Undisclosed

San Francisco, CA-based causal AI startup

Madrona, Sandbox Industries, and a16z
Anzen
$16M
San Francisco, CA-based commercial insurance workflow startup

Neo, Forerunner Ventures, Bezos Expeditions, and Core
Arrived
$27M
Seattle, WA-based fractional real estate investing platform

Insight Partners, Vertex Ventures, Tenacity Ventures, and InfoEdge Venture Fund
Attentive.ai
$30.5M
San Francisco, CA-based AI platform for construction

Innoviva, GV, Nexus NeuroTech Ventures, S32, Catalio Capital Management, General Catalyst, Logos Capital, Casdin Capital, and Indicator Ventures
Beacon Biosignals
$86M
Boston, MA-based developer of neuro diagnostics and precision medicines

EQT Ventures and Index Ventures
Beside
$32M
Brooklyn, NY-based smart assistant for calls and texts

Wing VC, Atomic, Acme, Four Rivers, Thayer Investment Partners, the Fund of Operators Guild, and Gaingels
BoomPop
$25M
San Francisco, CA-based company events platform

Sequoia Capital, Silver Lake, Adidas, Baillie Gifford, Madrone, and Northgate
Carbon
$60M
Redwood City, CA-based 3D printing company

Valor Equity Partners
Chaos Industries
$510M
Los Angeles, CA-based maker of counter-drone radar systems

Bullhound Capital, Triatomic Capital, Temasek, QIA, EDBI, M12, Nautilus Venture Partners, Industry Ventures, and Mirae
D-Matrix
$275M
Santa Clara, CA-based AI chipmaker

Health2047, WGG Partners, Interwoven Ventures, and Mindset Ventures
Evidium
$22M
San Francisco, CA-based clinical reasoning startup

NEA and Intel Capital
Fabric8Labs
$50M
San Diego, CA-based electrochemical additive manufacturing startup

Greycroft, GTMfund, the NBA, NHL, and TMRW Sports
Fastbreak AI
$40M
Charlotte, NC-based provider of sports operations software

Moore Strategic Ventures, Salesforce Ventures, Franklin Templeton, Balyasny Asset Management, 645 Ventures, Hanwha Asset Management, 9Yards, XYZ Venture Capital, Enlightenment Capital, and Hedosophia
Forterra
$238M
Clarksburg, MD-based provider of autonomous commercial and military vehicles

Forbion, Eli Lilly, Versant Ventures, a16z, GV, and Arch Venture Partners
Gate Bioscience
$65M
Brisbane, CA-based protein elimination biotech

Scale Venture Partners, Northzone, Sound Ventures, Aglaé Ventures, SilverCircle Partners, News Corp, The Council, Vercel CEO Guillermo Rauch
GC AI
$60M
San Francisco, CA-based AI platform for in-house legal teams

Eldridge Industries and Valor Equity Partners
Gopuff
$250M
Philadelphia, PA-based rapid-delivery company

FedEx, Capricorn, THOR Industries, Ridgeline, Tiger Global, Leitmotif, Maniv Mobility, Schematic Ventures, Overture Climate, Ironspring Ventures, ArcTern Ventures, Litquidity Ventures, and The Coca-Cola System Sustainability Fund
Harbinger
$160M
Garden Grove, CA-based maker of commercial EVs

NEA and Town Hall Ventures
House Rx
$35M
San Francisco, CA-based developer of in-clinic specialty pharmacies

Acrew Capital and Boldstart Ventures
Humanix
$18M
Spokane Valley, WA-based protects large enterprises from social engineering attacks

Abingworth, Alexandria Venture Investments, Alumni Ventures, ARK, Ascenta, Catalio, Everbright Biofund, and Freeflow Ventures
Iambic Therapeutics
$100M
San Diego, CA-based AI drug discovery company

Bow Wave Capital, Lux Capital, SBI, Upfront Ventures, Grove Ventures, and Hetz Ventures
Majestic Labs
$100M
San Francisco, CA-based AI server developer

Sequoia Capital, Vy Capital, and Interlagos
Neros
$75M
El Segundo, CA-based military drone maker

Invivium Capital, Kennedy Lewis Investment Management, UCM Ventures, LYZZ Capital Advisors, and Lincoln Park Capital Fund
Onchilles Pharma
$25M
San Diego, CA-based developer of cytotoxic therapeutics for cancer

MarcyPen
Rebel
$25M
Kannapolis, NC-based recommerce marketplace for open-box and overstock goods

StepStone, Amplify Partners, Redpoint Ventures, Tiger Global, Morado Ventures, and New York Life Ventures
Scribe
$75M
San Francisco, CA-based workflow documentation startup

Goldman Sachs Alternatives and BDT & MSD Partners
Skims
$225M
Los Angeles, CA-based apparel brand

CRV, Sequoia Capital, Scale Venture Partners, and YC
Tavus
$40M
San Francisco, CA-based improver of enterprise AI agents

Capricorn Investment Group, Lockheed Martin Ventures, IBEX Investors, and VXI Capital
Teradar
$150M
Boston, MA-based developer of solid-state sensors

359 Capital, Bitkraft Ventures, Wise Ventures, and Left Lane Capital
The Snow League
$15M
New York, NY-based pro snowboarding and freeskiing league

Snowpoint Ventures, Day One Ventures, Dream Ventures, Riot Ventures, Balerion Ventures, Contrary, and Palmer Luckey
Valar Atomics
$130M
Hawthorne, CA-based developer of nuclear gigasites

Kleiner Perkins and NVentures
WisdomAI
$50M
San Mateo, CA-based AI data analytics startup

November 19th, 2025|Scherzer Deal Report|

The Scherzer Deal Report: November 3-7, 2025

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International.

Sign up: Get private equity and venture capital deals delivered to your inbox every week!

Fundraising for PE & VC Funds

Founders’ Co-op
$50M
Sixth fund

Generate Capital
$1B
Credit business

Teleo
$350M
Second fund

Private Equity Deals

WJ Partners
7 Brew
Undisclosed amount
Springdale, AR-based drive-thru coffee chain

Nexphase Capital Partners
Always Best Care
Undisclosed amount
Rocklin, CA-based in-home senior care company

Aquarian
Brighthouse Financial
Undisclosed amount
Charlotte, NC-based life insurer

Consello Capital
CleanBoss
Undisclosed amount

New York, NY-based maker of cleaning and disinfectant products

L Squared
Ergo
Undisclosed amount
New York, NY-based geopolitical and strategic intelligence firm

Brydon Group
Firm Prospects
Undisclosed amount
Scituate, MA-based legal-tech platform

Bonaccord Capital Partners
Kingswood Capital Management
Undisclosed amount
Los Angeles, CA-based private equity firm focused on midmarket buyouts

Five Arrows
NetVendor
Undisclosed amount
Tualatin, OR-based provider of vendor compliance management software

JLL Partners
Parks Medical Electronics
Undisclosed amount
Aloha, OR-based ultrasound manufacturer

Haven Capital Partners and Altaline
Saratoga Compliance Solutions
Undisclosed amount
New York, NY-based insurance compliance platform

Arsenal Capital Partners
ThermoSafe
Undisclosed amount
Arlington Heights, IL-based packaging business

Venture Capital Deals

Allumia Ventures, Artis Ventures, City Light Capital, LifeArc Ventures, and Limitless Ventures
Affect Therapeutics
$26M
McLean, VA-based gamified mental health startup

Goldman Sachs Alternatives, Evolution Equity Partners, and CapitalG
Armis
$435M
San Francisco, CA-based cyber exposure management

Third Rock Ventures, RA Capital Management, Yosemite, and Sozo Ventures
Azalea Therapeutics
$65M
Berkeley, CA-based genomic medicines startup that wants to apply CRISP to in vivo CAR-T

Forbion, OrbiMed, Enavate Sciences, and Frazier Life Sciences
Braveheart Bio
$185M
San Francisco, CA-based developer of therapeutics for hypertrophic cardiomyopathy

Lightspeed Venture Partners, Bessemer Venture Partners, Angular Ventures, and Uncork Capital
DualBird
$25M
Westborough, MA-based data workload acceleration startup

Unity Ventures, Kylinhall Partners, Vision Plus Capital, Xstar Capital, and the founders of Anker Innovations
Evotrex
$16M
Los Angeles, CA-based developer of power-generating RVs

Basis Set Ventures, Patron, USC Viterbi, AME Cloud Ventures, Matt Pittinsky, Afore Capital, and YC
Flint
$15M
New York, NY-based startup building AI tutors for schools

Benchmark
Fomo
$17M
New York, NY-based social crypto trading app

Menlo Ventures, Mayfield, Innovation Endeavors, NVentures, M12, Snowflake Ventures, and Databricks
Inception
$50M
Palo Alto, CA-based developer of diffusion LLMs

Atomic, Foresite Capital, and Polaris Partners
Indomo
$25M
Boston, MA-based provider of at-home prescription dermatology treatments

LionTree, Eldridge Industries, Slow Ventures, DFJ, Vista Credit Partners, SoftBank, and Tekne Capital
Metropolis
$500M
Los Angeles, CA-based tech-enabled parking lot network

A91 Partners and Goldman Sachs Alternatives
MoEngage
$60M
San Francisco, CA-based customer engagement platform for consumer brands

ABL Bio
Neok Bio
$75M
Palo Alto, CA-based cancer drug developer

Catalyst Investors, Battery Ventures, Tower Research Ventures, K Street Capital, and Blu Ventures
Procurement Sciences
$30M
Dunstable, MA-based provider of government contracts software

Khosla Ventures and Kleiner Perkins
Reevo
$70M
Santa Clara, CA-based go-to-market platform

Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace
Ripple
$500M
San Francisco, CA-based cryptocurrency company behind XRP

Double Point Ventures, Arch Venture Partners, Khosla Ventures, Bezos Expeditions, NTI, METIS, Australian National Reconstruction Fund, T.Rx Capital, QIA, K5 Global, Protocol Labs, and IQT
Synchron
$200M
New York, NY-based non-surgical brain-computer interface startup

Sofreh Capital
Tala Health
$100M
Santa Monica, CA-based developer of an agentic platform for health care

M13, Primary Venture Partners, and Lerer Hippeau
Teleskope
$25M
New York, NY-based data security startup

Intel Capital, a16z, Abstract Ventures, and Lytical Ventures
Truffle Security
$25M
San Francisco, CA-based enterprise credentialing startup

A.P. Moller, Galvanize, Ora Global, and Sequoia Capital
Upway
$60M
New York, NY-based provider of refurbished e-bikes

November 12th, 2025|Scherzer Deal Report|

Independent Contractors, Misclassification, and the FCRA: Lessons from Joel Galarza’s Eleventh Circuit Case

The Eleventh Circuit’s recent decision in Galarza v. One Call Claims, LLC sent ripples through compliance and risk management circles. At its core, the case addressed whether three insurance adjusters labeled as independent contractors were actually employees under the Fair Labor Standards Act (FLSA). The court applied the economic realities test and concluded that a jury could reasonably find these workers were employees, reversing the district court’s summary judgment in favor of the companies. Five of six factors favored employee status, including:

Control over work: The companies dictated schedules, monitored performance, and approved overtime.
Economic dependence: Adjusters worked exclusively for the companies for nearly two years.
Integral role: Their work was central to the companies’ operations.
Permanency: Long-term, exclusive engagements suggested employment rather than independent contracting.

Why This Matters for Employment Background Screening

While the Galarza case was decided under the FLSA, it raises a critical question for compliance professionals: Should independent contractors be treated as employees for purposes of the Fair Credit Reporting Act (FCRA)?

Under the FCRA, requirements such as stand-alone disclosures, written authorization, and pre-adverse action notices apply when a consumer report is obtained for “employment purposes.” The statute defines this as evaluating a consumer for employment, promotion, reassignment, or retention as an employee. Although Federal Trade Commission (FTC) staff reports have suggested that the FCRA’s “employment purpose” provision may extend to certain independent contractors, courts have generally taken a narrower view. For example, in Smith v. Mutual of Omaha (S.D. Iowa), the court held that background screening for contractor roles did not trigger the FCRA’s employment-related protections.

However, the Galarza decision underscores a practical risk: labels don’t control legal outcomes. If a contractor is later deemed an employee under an “economic realities” or similar test, a company could face exposure—not just under wage laws, but potentially under FCRA if the screening process didn’t meet employment-purpose requirements.

Compliance Takeaways

Don’t Rely on Labels Alone
Contracts calling someone an “independent contractor” won’t shield you if the working relationship looks like employment. Courts focus on substance over form.
Assess Classification Before Screening
If the role involves long-term, exclusive work under significant control, treat the individual as an employee for FCRA compliance. This means providing proper disclosures, obtaining written consent, and following adverse action procedures.
Update Policies and Vendor Agreements
Ensure your background screening policies clearly address contractor roles and include contingency plans if classification changes.
Monitor Legal Trends
The Eleventh Circuit’s ruling aligns with broader enforcement trends emphasizing misclassification risks. Expect more scrutiny in wage-and-hour and consumer reporting contexts.

Bottom Line

The Galarza case is a wake-up call: misclassification isn’t just a wage-and-hour issue—it’s a compliance risk that touches background screening and FCRA obligations. When in doubt, err on the side of treating high-control, long-term contractors as employees for screening purposes. It’s a small step that can prevent big liability

Disclaimer: This communication is for general informational purposes only and does not constitute legal advice. The summary provided in this alert does not, and cannot, cover in detail what employers need to know about the amendments to the Philadelphia Fair Chance Law or how to incorporate its requirements into their hiring process. No recipient should act or refrain from acting based on any information provided here without advice from a qualified attorney licensed in the applicable jurisdiction.

November 11th, 2025|Compliance Corner, FCRA|

The Scherzer Deal Report: October 27-31, 2025

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International.

Sign up: Get private equity and venture capital deals delivered to your inbox every week!

Fundraising for PE & VC Funds

Arlington Capital Partners
$6B
Seventh fund

Insignia Capital Group
$500M
Third fund

Sequoia Capital
$950M
New early-stage fund ($750M) and a new seed fund ($200M)

Private Equity Deals

Incline Equity Partners
Advanced Solutions International
Undisclosed amount
Alexandria, VA-based provider of engagement management software for associations, trade unions and nonprofits

Platinum Equity
Anuvu
Undisclosed amount
Lombard, IL-based provider of entertainment and high-speed connectivity for airlines

Verite Capital Partners
Buffalo Biodiesel
$300M
Buffalo, NY-based used-cooking-oil recycler and renewable green energy fuel producer

Francisco Partners
Jamf
$2.2B
Minneapolis, MN-based enterprise security and management platform for Apple devices

Forward Consumer Partners
Justin’s
Undisclosed amount
Wood-Ridge, NJ-based peanut butter brand

Centerbridge Partners
MeridianLink
Undisclosed amount
Costa Mesa, CA-based credit reporting and lending platform

Ares Management and Makorora Management
Plymouth Industrial REIT
$2.1B
Boston, MA-based real estate investment trust

Great Hill Partners
Ren
Undisclosed amount
Indianapolis, IN-based provider of donor-advised fund solutions

Blackstone
Shermco
$1.6B
Irving, TX-based provider oflectrical equipment services

Venture Capital Deals

DBL Partners, Nuveen, Autotech, Allison Transmission, Rethink Food, and Black Forest Ventures
Agtonomy
$18M
South San Francisco, CA-based provider of agriculture and land management software

TCV, Bessemer Venture Partners, CRV, and Entrée Capital
Archy
$20M
San Jose, CA-based dental practice software platform

ACME Capital, Ridge Ventures, and Twelve Below
Arya Health
$18.2M
New York, NY-based developer of post-acute-care agents

Greycroft, CrowdStrike Falcon Fund, Accel, and Felicis Ventures
ConductorOne
$79M
Portland, OR-based identity security and access governance startup

Tribeca Venture Partners, NEA, SineWave Ventures, Harrison Metal, Singtel Innov8, Samsung Next, Nimble Partners, and Alumni Ventures
CoreStory
$32M
San Francisco, CA-based code modernization platform

Luma Group, First Spark Ventures, Techas Capital, Micah Spear, Civilization Ventures, LifeX Ventures, Incite Labs, Mintaka Ventures, and NZVC
Curve Biosciences
$40M
San Mateo, CA-based chronic disease blood-testing and monitoring startup

Lightspeed, Index Ventures, Evantic, and Sequoia Capital
Fireworks AI
$250M
Redwood City, CA-based AI inference startup

Norwest Venture Partners, Cthulhu Ventures, Leap Forward Ventures, Wyoming Venture Capital, Echelon, Wyoming Business Council, and Sand Hill Angels
Frontline Wildfire Defense
$48M
Jackson Hole, WY-based fire sprinkler and detection startup

JPMorgan Asset Management led, Ray Dalio’s family office
Fruitist
$150M
Los Angeles, CA-based healthy snackmaker

a16z
Harvey
$150M
San Francisco, CA-based legal AI startup

Yttrium, International Airlines Group, World Kinect, and Shell Ventures
i6
$20M
Lodi, NJ-based provider of digital fuel management for aviation

Atomic, Foresite Capital, and Polaris Partners
Indomo
$25M
San Francisco, CA-based provider of an at-home prescription corticosteroid injection for acne

NEA, 776, Accel, a16z, and Carpenter Capital
Kaizen
$21M
New York, NY-based developer of e-government solutions

Bessemer Venture Partners, Iconiq, General Catalyst, Redpoint Ventures, Benchmark, and YC
Legora
$150M
New York, NY-based collaborative AI platform for lawyers

Zeev Ventures
Lettuce Financial
$28M
San Francisco, CA-based fintech platform that provides automated tax and accounting services for solopreneurs, freelancers, and contractors

Kindred Ventures, Basis Set Ventures, Peak XV Partners, GitHub Fund, and YC
Mem0
$24M
San Francisco, CA-based AI memory infrastructure platform

Communitas Capital, BTG Pactual, and L2 Point Management
SimSpace
$39M
Boston, MA-based enterprise cyber defense simulator

Georgian, Avenir, 01A, Index Ventures, IVP, Citi Ventures, and Slow Ventures
Sublime Security
$150M
Washington, DC-based agentic email security platform

Venrock and Two Seas Capital
Syllo
$30M
New York, NY-based legal tech startup

OpenAI Startup Fund, Lux Capital, and Founders Fund
Valthos
$30M
San Francisco, CA-based biodefense startup

DST Global, CapitalG, Sequoia Capital, Greycroft, a16z, Avra, and Bond
Whatnot
$225M
Culver City, CA-based live-shopping platform

T1D Fund, Polaris Partners, AbbVie, Regeneron, Sanofi, Mission BioCapital, Lightspeed, KdT Ventures, Boxer Capital, and Pear VC
Zag Bio
$80M
Cambridge, MA-based developer of thymus-targeted medicines for autoimmune diseases

November 5th, 2025|Scherzer Deal Report|

A Unified Credit Reporting System: CFPB Clarifies Federal Preemption Under the FCRA

On October 28, 2025, in a significant move toward regulatory clarity, the Consumer Financial Protection Bureau (CFPB) issued a new interpretive rule reaffirming the broad preemptive scope of the Fair Credit Reporting Act (FCRA) over state laws. This rule replaces the narrower interpretation issued in July 2022, which the CFPB formally withdrew in May 2025.

Why This Matters

The FCRA, enacted in 1970 and amended multiple times since, governs the creation and use of consumer reports. It has always included a preemption clause, but the scope of that clause has evolved. In 1996, Congress expanded FCRA’s preemption to cover specific subject matters, aiming to prevent a fragmented regulatory landscape. This expansion was made permanent in 2003 to support a unified national credit reporting system.

The CFPB’s latest interpretive rule confirms that the FCRA broadly preempts state laws that touch on the subject matter regulated by the federal statute. This clarification is intended to promote consistency across the credit reporting industry and ensure that consumers and businesses operate under a single, coherent set of standards.

The Shift from 2022

The 2022 interpretive rule argued for a narrow reading of FCRA’s preemption clause, suggesting that states could regulate areas like medical debt, rental information, and arrest records unless those regulations directly conflicted with specific FCRA provisions. The CFPB now asserts that this interpretation was flawed, both legally and practically.

According to the Bureau, the language of the FCRA—particularly section 1681t(b)(1)—uses broad terms like “no requirement or prohibition” and “with respect to any subject matter regulated under,” which indicate Congress’s intent to occupy the field of consumer reporting. The phrase “relating to” further expands the scope, encompassing any state law connected to the topics covered by the FCRA.

Legal and Legislative Support

The CFPB’s position is supported by legislative history and judicial precedent. Congress explicitly aimed to create national standards to avoid a “patchwork system of conflicting regulations.” Courts have consistently interpreted the FCRA’s preemption clause broadly, finding that state laws addressing the same subject matter as federal provisions are preempted even if they don’t mirror the exact language of the FCRA.

Implications on Compliance

While the CFPB’s interpretive rule provides helpful guidance, it is important to note that interpretive rules are not binding on any court. Courts may choose not to adopt the CFPB’s interpretation, and legal challenges could arise depending on jurisdiction and context.

October 31st, 2025|Compliance Corner, FCRA|

The Scherzer Deal Report: October 20-24, 2025

Here is this week’s Deal Report for private equity and venture capital activity for US-based PE and VC firms and portfolio companies, brought to you by Scherzer International.

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Fundraising for PE & VC Funds

BoxGroup
$550M
Seventh flagship VC fund ($275M) and its fourth follow-on fund ($275M)

Burnt Island Ventures
$50M
Second fund

Diversis
$1.2B
Third fundHigh

Vista Strategies

$270M
14th VC fund

Private Equity Deals

Sixth Street
CR Fitness Holdings
Undisclosed amount
Brandon, FL-based Crunch Fitness franchisee

BDT & MSD Partners
Designs for Health
Undisclosed amount
Palm Coast, FL-based supplements maker

Mainsail Partners
FieldFlo
Undisclosed amount
Denver, CO-based provider of project and safety management software for subcontractors

SkyKnight Capital
Force Electrical Services
Undisclosed amount
San Francisco, CA-based electrical distribution and transmission infrastructure services firm

River Pines Capital Growth
Loop
Undisclosed amount
New York, NY-based marketing tech company

FFL Partners
Janus Rx
Undisclosed amount
Montgomery, AL-based long-term care pharmacy for patients with serious mental illnesses

6North Partners and Carlyle
NEP Group
Undisclosed amount
Pittsburgh, PA-based provider of media services for live sports and entertainment

Ministry of Environment of South Korea, IMM Investment, Woori Private Equity Asset Management, and AB CarVal
Peregrine Energy Solutions
Undisclosed amount
Boulder, CO-based utility-scale renewables and energy storage develope

Carrick Capital Partners
Veritas Prime
Undisclosed amount
Orlando, FL-based provider of SAP SuccessFactors and payroll tech solutions

Curewell Capital
Wilmington Pharmatech
Undisclosed amount
Christiana, DE-based drug manufacturer

Venture Capital Deals

Spark Capital, Sapphire Ventures, Khosla Ventures, Sequoia Capital, and Index Ventures
Anrok
$55M
San Francisco, CA-based sales tax compliance automation startup

Lowercarbon Capital, Voyager Ventures, Gigascale Capital, and Marathon Petroleum
Arbor Energy
$55M
El Segundo, CA-based power and carbon removal startup

General Catalyst
Chainguard
$280M
Kirkland, WA-based open source security startup

Two Bear Capital, Allegis Cyber, and Gula Tech Adventures
Conceal
$26M
Augusta, GA-based cybersecurity startup

Mainsail Partners
CourtReserve
$54M
St. Augustine, FL-based provider of tennis and pickleball club management software

Insight Partners, UpWest, and Resolute Ventures
Darwin AI
$15M
Chicago, IL-based AI adoption startup for government agencies

XYZ VC, The General Partnership, Bloomberg Beta and WndrCo.
Defakto
$31M
Palo Alto, CA-based startup that secures automated interactions

Nextech, EQT Life Sciences, Sanofi, HBM Healthcare Investments, and Mubadala
Electra Therapeutics
$183M
San Francisco, CA-based biotech focused on immunology and cancer

M13, Firstmark, and Operator Partners
Estuary
$17M
New York, NY-based enterprise data platform

Flagship Pioneering
Expedition Medicines
$50M

Cambridge, MA-based AI drug discovery startup using quantum covalent chemistry

Sequoia Capital and Kleiner Perkins
Fal.ai
$250M
San Francisco, CA-based provider of media AI models for developers

Two Bear Capital, Gula Tech Adventures, and Next Frontier Capital
Gravwell
$15.4M
Minneapolis, MN-based data analytics and security platform

Anthos Capital, Harmonic Growth Partners, and Across Capital
HiveWatch
$33M
El Segundo, CA-based provider of physical security software

Healthier Capital, Norwest, Define Ventures, Bon Secours Mercy Health, and ServiceNow Ventures
Hyro
$45M
New York, NY-based developer of call-center agents for health care

IVP, Sequoia Capital, Benchmark, CapitalG, and Sapphire Ventures
LangChain
$125M
San Francisco, CA-based agent engineering platform

GV, Coatue, Conviction Capital, and Thrive Capital
OpenEvidence
$210M
Cambridge, MA-based AI medical assistant for doctors

Eclipse and Nvidia
Redwood Materials
$350M
Carson City, NV-based battery recycling and grid storage firm

Insight Partners and JP Morgan
Roller
$50M
Austin, TX-based venue management platform

Caffeinated Capital, Convective Capital, First Round Capital, Transition VC, Advance Venture Partners, Nextview Ventures, Bullpen Capital, Stepstone Group, DCVC, Offline Ventures, Roar Capital, and Slow Ventures
Seneca
$60M
San Francisco, CA-based maker of firefighting drones

Redpoint Ventures, First Round, General Catalyst, Box Group, Bessemer Venture Partners, and Chemistry
Serval
$47M
San Francisco, CA-based IT service management platform

Sequoia Capital and Spark Capital
Sesame
$250M
New York, NY-based smart glasses and conversational AI startup

Avenir, Bain Capital Ventures, Bessemer Venture Partners, and Menlo Ventures
Shop My Shelf
$70M
New York, NY-based curated commerce infrastructure company

Craft Ventures
Starbridge
$42M
Rochester, NY-based govtech startup for business sales teams

CDP Venture Capital, TTV Capital, P101, Monte Carlo Capital, 3Lines VC, Azimut, and Evolution VC
Streetbeat
$15M
Palo Alto, CA-based developer of agents for wealth managers

Canaan Partners, Coatue, Square Peg Capital, Zetta Venture Partners, Bloomberg Beta, AIX Ventures, Marc Benioff, and Nat Friedman
Sumble
$38.5M
San Francisco, CA-based sales intelligence startup

Lightspeed, Matrix Partners, Founder Collective, and Nat Friedman
Suno
$125M
Cambridge, MA-based AI music generator

Greenoaks, Thrive Capital, Sequoia, Ribbit Capital, and SV Angel
Tempo
$500M
San Francisco, CA-based blockchain-based payments startup

Nvidia, AMD, Snowflake Ventures, Databricks Ventures, NEA, March Capital, BNF Capital, National Grid Partners, and Prosperity7
Uniphore
$260M
Palo Alto, CA-based AI business cloud provider

OpenAI Startup Fund, Lux Capital, and Founders Fund
Valthos
$30M
New York, NY-based biodefense startup

Adjuvant Capital and RA Capital Management
VitriVax
$17M
Boulder, CO-based vaccine formulation company

October 29th, 2025|Scherzer Deal Report|

California Consumer Privacy Act (CCPA) and Employment Background Screening

Key Points:

Limited Applicability Due to AB 25

Initially, the CCPA broadly defined “consumer” to include job applicants and employees. However, Assembly Bill 25 (AB 25) amended the CCPA to temporarily exclude personal information collected from job applicants, employees, and independent contractors from most CCPA provisions.

This exclusion was in effect until January 1, 2023, after which some CCPA rights were extended to employees and job applicants. As of now, employers must comply with the following CCPA provisions when using background screening services:

Notice at collection–employers must inform applicants about:
What personal data is being collected (e.g., criminal history, credit data, identifiers)
The purpose of data collection (e.g., hiring decisions)

Data security obligations:
Employers must implement reasonable security measures to protect personal data. If a breach occurs due to negligence, affected individuals may sue for statutory damages.

Overlap with Other Laws

Employers in California must also comply with:

Fair Credit Reporting Act (FCRA)
Investigative Consumer Reporting Agencies Act (ICRAA)
Consumer Credit Reporting Agencies Act (CCRAA)

These laws govern how background checks are conducted, what disclosures are required, and how adverse actions must be handled.

October 27th, 2025|Compliance Corner, Employment Decisions|

Takeaways for Employers from the Grijalva v. ADP Screening Decision

The Ninth Circuit’s August 2025 ruling in Grijalva v. ADP Screening clarified how exclusions from federally funded healthcare programs and similar long-term listings, such as sex offender registries, can be reported under the Fair Credit Reporting Act (FCRA).

Key Implications for Employers:

Ongoing exclusions are reportable. Even if the exclusion began over seven years ago, it’s considered a current status and can appear in a background report.
The reason for the exclusion may not be reportable. If the underlying cause (e.g., an administrative action) occurred more than seven years ago and isn’t a criminal conviction, Consumer Reporting Agencies (CRAs) generally cannot report it unless the candidate is expected to earn $75,000 or more annually.
Employers can ask candidates directly. If you need context behind an exclusion or listing, you’re free to ask the candidate. CRAs may be restricted from providing that information due to FCRA limitations.
Convictions are treated differently. Criminal convictions are reportable regardless of age under the FCRA, but several states impose their own time-based restrictions.

October 24th, 2025|Compliance Corner, Employment Decisions|

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