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The Daily Pitch: VC

March 17, 2020

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

Today's Top Stories

Highly capitalized private markets are not immune to impact of COVID-19

Our latest analyst note assesses what's in store for PE and VC firms in the wake of recent market volatility and an impending economic slowdown. Dissecting historical performance and fundraising data, our analysts highlight how private markets have fared in past downturns and discuss the key differences in the newest bear market. The report also discusses how emergent technologies will help companies and consumers weather the coming storm:

read it now

More coronavirus news: Continuing coverage from PitchBook

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As pandemic anxieties worsen, mental health startups rise to the challenge

(Sean M. Haffey/Getty Images North America)

COVID-19's spread is accelerating throughout the globe, roiling the stock market and forcing many local governments to shutter bars, restaurants and schools.

Stress levels may be swelling by the day, but a slew of mental health startups in the US are unveiling offerings to treat pandemic-related anxieties:

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Unpacking the VC trends driving the agrifood tech value chain's evolution

SPONSORED

Finistere Ventures, an agrifood tech-focused venture firm, has released its 2019 AgriFood Tech Investment Review, developed in collaboration with PitchBook. Now in its fourth edition, the review provides in-depth insight on global venture financing activity across agtech and, for the first time this year, foodtech. The full report examines subsector trends, regional variations and much more.

Highlights include:

• A new foodtech taxonomy and review of financing across core subverticals, including alt protein & alt dairy, meal kits & delivery and more

• A map charting the sophisticated investor networks that have emerged to support the development of the agtech market over the past decade

• Analysis of the many drivers behind the venture investment cycle in both agtech and foodtech

Download the full review

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Impossible Foods nabs $500M as rival's stock craters

Plant-based burger pioneer Impossible Foods has raised roughly $500 million in funding led by Mirae Asset Global Investments, a new investor. Existing investors Khosla Ventures, Horizons Ventures and Temasek also participated in the round, which brought the company's valuation to nearly $4 billion, according to Reuters.

The funding shows the investors aren't too fazed by significant disruptions posed by the coronavirus. Rival Beyond Meat's stock has fallen by nearly half since mid-February alongside the broader sell-off.

Burger King parent Restaurant Brands, which markets the Impossible Whopper, reportedly shuttered half of its stores in China, but it isn't clear what impact the virus will have on its US locations. Many fast-food restaurants are moving to drive-thru service only, and sales have already fallen 9% in coronavirus-stricken Washington state, according to credit card processing startup Gravity Payments.

Impossible Foods CEO Patrick Brown remains focused on the long term, saying in a statement that the company hopes to double production every year for the next 15 years. The Bay Area business, which has raised $1.3 billion to date, recently dropped the wholesale price of its burger patties by 15% thanks to economies of scale.

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Europe launches $41B initiative to protect businesses during COVID-19 crisis

European Commission headquarters in Brussels
(Leon Neal/Getty Images News)

Europe is facing a crucial fight against the coronavirus pandemic, counting more than 63,000 confirmed cases of the virus since the outbreak began.

In response, the continent is rolling out a €37 billion (around $41 billion) package to aid struggling businesses, as well as a €164 million fund to promote those that can help fight the virus:

Recommended Reads

In the face of pay cuts, layoffs and downright shutdowns, startups are seeking investors to help shore up balance sheets that suddenly look much more precarious. [The Wall Street Journal]

Until the prime minister proposed using it to track the spread of the coronavirus, the world at large was unaware of a trove of secretly collected cellphone data in Israel that can be used to retrace people's movements. [The New York Times]

The Wright brothers' triumph of flight is a reminder that sometimes curiosity can solve thorny problems better than expertise. [Scientific American]

War and famine have done their share of damage to human populations over the millennia. But the deadliest of apocalyptic horsemen has always been pestilence. [The Walrus]

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Today's Headlines


	The Daily Benchmark
	2002 Vintage Global PE Funds
	VC Deals
	Bakkt banks $300M Series B
	HashiCorp closes $175M round
	Proxy pounces on $42M
	Rancher Labs rakes in $40M
	ZeroNorth secures $10M for cybersecurity services
	Exits
	Hotmart pays $250M for edtech startup
	Fundraising
	Young firm targets $100M cannabis fund

The Daily Benchmark

2002 Vintage Global PE Funds

Median IRR

17.01%

Top Quartile IRR Hurdle Rate

26.78%

1.8x

Median TVPI

Select top performers

Lime Rock Partners II

OCM Opportunities Fund IVb

Charterhouse Capital Partners VII

*IRR: net of fees

35 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Bakkt banks $300M Series B

Bakkt has raised $300 million from investors including Intercontinental Exchange and M12. The company offers a trading platform for cryptocurrency and other digital assets; it plans to launch a consumer app in the summer.

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HashiCorp closes $175M round

DevOps management specialist HashiCorp has raised a $175 million round led by Franklin Templeton, resulting in a $5.1 billion valuation. Last week PitchBook reported the deal was in progress. Also participating in the Series E deal were T. Rowe Price, Geodesic Capital and return investors like GGV, IVP and Mayfield.

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Proxy pounces on $42M

San Francisco-based Proxy, a creator of keyless entry technology for workplaces, has announced a $42 million Series B round led by Scale Venture Partners, according to TechCrunch. Existing backers Kleiner Perkins and Y Combinator also reportedly took part in the round, as did new investors West Ventures and Silicon Valley Bank. Proxy was valued at $300 million in August, according to PitchBook data.

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Rancher Labs rakes in $40M

Rancher Labs, a developer of open-source software for enterprises, has raised a $40 million Series D led by Telstra Ventures. The California-based company raised $25 million in July at a $170 million valuation, according to PitchBook data.

Additional Investors:

F&G Ventures, GRC SinoGreen, Mayfield, Nexus Venture Partners

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ZeroNorth secures $10M for cybersecurity services

ZeroNorth has raised a $10 million Series A+ led by Crosslink Capital. ClearSky, Rally Ventures and Petrillo Capital also participated in the funding. The Boston-based cybersecurity startup is the creator of a platform that provides companies with orchestrated risk management for their applications and infrastructure. Crosslink partner Matt Bigge has joined ZeroNorth's board.

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Exits

Hotmart pays $250M for edtech startup

Brazil-based online education company Hotmart has acquired Teachable for around $250 million, according to TechCrunch. Teachable is the developer of a platform where educators can create and sell their own online courses. The New York-based startup has raised prior backing from Accomplice VC, Hemisphere Ventures and others, including a $4 million round in 2018.

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Fundraising

Young firm targets $100M cannabis fund

Cannabis investor 12/12 Ventures has raised nearly $5.7 million toward a $100 million goal for its first flagship fund, according to an SEC filing. Based in the Bay Area, the firm largely targets brands that grow and sell various cannabis strains and related products.

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