PitchBook News - A mixed bag for late-stage VC

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The Daily Pitch: VC

May 3, 2022

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

In today's Daily Pitch, you'll find:

Despite stock market declines dampening enthusiasm for supersized startup deals, the number of late-stage transactions hit a record high in Q1.

Our Q1 PitchBook-NVCA Venture Monitor explores the recent slowdown in VC activity—and now includes league tables ranking the industry's most active players.

Our Q1 European Venture Report delves into the key trends that shaped the quarter—breaking down activity by deals, exits, fundraising and region.

Today's Top Stories

Late-stage VC investment lags despite record deal count

(Malte Mueller/Getty Images)

Large late-stage deals, an indicator of the exuberance in venture capital in recent years, weren't completed at the same pace in Q1 as they were throughout 2021.

While stock market declines dampened enthusiasm for these supersized startup transactions, the first three months of 2022 set a record for number of late-stage deals.

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US VC remains strong while navigating market of uncertainty

Despite many data points remaining historically high, the first quarter of 2022 showed signs of a slowdown for venture dealmaking in the US, suggesting an imminent but healthy recalibration period. On the exit front, interest rates, inflation and geopolitical uncertainty contributed to a stark dip in public listings.

The latest PitchBook-NVCA Venture Monitor, sponsored by Insperity and JP Morgan, now includes league tables ranking the industry's most active players. The report details how dealmaking, exits, fundraising and valuations responded to the changing economic climate of Q1. Key takeaways include:

Venture-backed companies attracted nearly $71 billion during Q1. Even though the figure was off pace from every quarter in 2021, it still exceeded pre-2021 quarterly totals.

Fundraising maintained the momentum of 2021, with 199 funds raising $73.8 billion in commitments.

Public listings slowed significantly from the highs of recent years amid public market volatility.

read the report

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Partner Perspectives

The red-hot gaming industry

Even before the pandemic, the gaming industry was rapidly gaining ground as a popular form of entertainment. And over the past two years, gaming cemented its role as a social outlet for millions of people. With a massive and growing user base, the gaming industry is attracting more attention from private market investors. Beyond the games themselves, the sector is fueling impressive innovation, with tools and applications that can be used in the real world.

In partnership with PitchBook, CohnReznick has released Game Changer: Red-hot gaming industry offers new opportunities for investors. The report features VC, PE and corporate transactions across the industry, with innovative teams and established game titles fetching billions of dollars.

To download the report, click here.

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European VC sees strong start to 2022 despite global uncertainty

After a bumper 2021, Europe's VC ecosystem kept up momentum in Q1 with €27.5 billion invested. Investment levels may have remained elevated despite a rise in interest rates, but the surge in the cost of living and ongoing uncertainty surrounding the war in Ukraine could make the rest of 2022 a challenging year.

Our Q1 European Venture Report takes a deep dive into the key trends that shaped this first quarter, breaking down activity across dealmaking, exits and fundraising, as well as regions.

Highlights include:

Late-stage VC continues to dominate deal value figures, accounting for 71.6% of total capital invested.

Exit value plummeted from 2021's heights amid a widespread tech public equity sell-off.

VC fundraising got off to a solid start in terms of capital raised, but fund count dropped significantly.

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Recommended Reads

Nearly two dozen Congress members signed a letter imploring the Environmental Protection Agency to make sure crypto mining didn't violate regulations. A group of bitcoin evangelists think they have it all wrong. [Protocol]

A look at the US cities that have had the most luck getting their workers to come back into the office. [Fortune]

Some 23 million Americans have adopted a new pet during the pandemic. Now, there's demand for dog-friendly offices. [The Washington Post]

Since yesterday, the PitchBook Platform added:

18

VC valuations

1362

People

373

Companies

34

Funds

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Quick Takes


	The Daily Benchmark
	2013 Vintage Global Real Estate Funds
	People
	QED hires Victoria Zuo as principal
	VC Deals
	Hello Heart brings in $70M
	Tribe Capital leads $50M round for LinearB
	Concerto banks $21M
	Accern secures $20M Series B
	Network Perception picks up $13M Series A
	Ownwell bags $5.75M seed round for property tax analysis

The Daily Benchmark

2013 Vintage Global Real Estate Funds

Median IRR

10.18%

Top Quartile IRR

13.67%

1.41x

Median TVPI

Select top performers

KTR Industrial Fund III

LaSalle Asia Opportunity Fund IV

Cabot Industrial Value Fund IV

*IRR: net of fees

51 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

QED hires Victoria Zuo as principal

Victoria Zuo has joined QED Investors as principal. Zuo was most recently an early-stage investor at Gradient Ventures.

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VC Deals

Hello Heart brings in $70M

Hello Heart has raised a $70 million Series D led by Stripes. The company's app monitors blood pressure, pulse, medications, weight and activity to track and improve users' heart health. Based in Menlo Park, Calif., Hello Heart was valued at $295 million in May 2021, according to PitchBook data.

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Tribe Capital leads $50M round for LinearB

LinearB, the provider of an engineering analytics and workflow optimization platform for software teams, has raised a $50 million Series B led by Tribe Capital. Operating out of Los Angeles and Tel Aviv, the startup has now raised around $70 million in funding.

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View 7 competitors »

Concerto banks $21M

Concerto has raised a $21 million round led by Matrix Partners. The Austin-based company helps brands launch credit card programs for their customers. PayPal Ventures and GoldenTree Asset Management also participated in the funding.

Accern secures $20M Series B

Accern has raised a $20 million Series B led by Mighty Capital and Fusion Fund. The company's no-code natural language processing platform enables domain experts and business analysts to derive insights from unstructured data.

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View 57 competitors »

Network Perception picks up $13M Series A

Network Perception has raised $13 million in a round led by The Westly Group. The Chicago-based company offers a network security and infrastructure protection platform.

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View 49 competitors »

Ownwell bags $5.75M seed round for property tax analysis

First Round Capital has led a $5.75 million seed round for Ownwell. The Austin-based startup's property tax analysis services are intended to help commercial and residential owners save money.

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View similar company »

Chart of the Day

"PE exit activity soared across the IT sector in 2021, more than doubling 2014's previous exit value record of €9.5 billion. Cash-rich corporates eager to keep pace with industries' digital transformations through scale acquisitions as well as red-hot public markets drove the heightened IT exit activity."

Source: PitchBook's 2022 Nordic Private Capital Breakdown