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The Daily Pitch: VC

May 25, 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:

Investors have flocked to real estate as a hedge through high inflation, with Blackstone outpacing other PE firms when it comes to returns and fundraising totals.

Our latest Emerging Tech Indicator offers a look at technologies that are likely to drive growth opportunities over the next several years.

Today's Top Stories

In Q1, top VCs remained bullish on Web3, DeFi and the metaverse

The Emerging Tech Indicator provides a quarterly overview of startups receiving seed and early-stage investments from a limited subset of VC funds. In the first quarter of 2022, our analysts tracked 227 deals that involved the 15 top-performing VC firms.

The report takes a closer look at five Q1 emerging market segments—Web3 & DeFi, fintech, biotech, data tech and enterprise SaaS—serving as an indicator of technologies that are likely to drive growth opportunities over the next several years.

Key takeaways include:

Web3 & DeFi was the largest area of ETI investment for the third consecutive quarter, with $2 billion invested across 29 deals.

Fintech companies secured $614 million in ETI investment across 23 deals in Q1, with roughly half of that total collected by startups outside the US.

The metaverse has emerged as a strong theme within Web3 & DeFi, as several ETI startups in the gaming and crypto industry incorporated the term as a key part of their branding.

While Q1 VC activity has proven to be relatively resilient despite broader market turbulence, we expect Q2 data may show further retraction from the peak activity levels reported over Q4 and Q1.

read the report now

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Rising inflation acts as kindling for PE real estate deals

(Malte Mueller/Getty Images)

Real estate attracts investors throughout the economic cycle. This is especially true during periods of inflation, as the asset class is considered by many to be an inflation hedge, according to a recent PitchBook analyst note on private markets real estate fundamentals.

While all publicly traded firms tracked in our PE Earnings Dashboard have seen strong returns from their real estate holdings, Blackstone has been especially dominant, outpacing other firms in returns and real estate fundraising totals.

Recommended Reads

Meet Sara Nelson, head of the largest flight attendants' union, whose relentless efforts to build alliances with other unions and willingness to show up in person to support their battles have helped set her apart from many labor leaders. [The New Yorker]

As allocators looking for flagship fund access struggle to say no to GPs, some firms are using fear and intimidation tactics to raise money. [Institutional Investor]

In a notable pullback from its aggressive build-out, Amazon has quietly canceled plans for almost 10 million square feet of warehouse space. [The Information]

Since yesterday, the PitchBook Platform added:

21

VC valuations

1795

People

479

Companies

29

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2014 Vintage European PE Funds
	A message from Customers Bank
	Customers Bank Fund Finance Team financed more than $1B in deals during April
	VC Deals
	Semperis locks down $200M
	Clear Street closes Series B with $165M
	Mainspring nabs $150M+ in Series E
	Firework lands $150M in SoftBank-led round
	Monte Carlo brings in $135M for Series D
	Flowcarbon raises $70M
	Tidelift rises with $27M
	Moka.care scores $16M+ for mental health platform
	Exits & IPOs
	Delhivery sees stock leap over 10% in debut
	Fundraising
	Maveron wraps Fund VIII with $225M

The Daily Benchmark

2014 Vintage European PE Funds

Median IRR

22.50%

Top Quartile IRR

26.28%

1.63x

Median TVPI

Select top performers

CapVest Equity Partners III

Ufenau IV German Asset Light

Carlyle Europe Technology Partners III

*IRR: net of fees

20 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Customers Bank

Customers Bank Fund Finance Team financed more than $1B in deals during April

From Growth Equity Funds to Direct Lending Funds and more, the Customers Bank Fund Finance Team—with more than 50 years of fund banking experience—works diligently to help fund sponsors grow and operate more efficiently. Among deals in the month of April, Customers Bank financed a $160M subscription line to a vehicle advised by J.P. Morgan Asset Management.

Customers Bank consistently delivers high-tech, high-touch services to Fund Finance clients. A unique "single-point-of-contact" approach to client relationships improves operational efficiencies allowing fund sponsors to focus on raising capital and generating returns for their investors. Customers Bank's cash management solutions give fund sponsors and fund administrators the tools to run their cash management operations smoothly.

Learn more here

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VC Deals

Semperis locks down $200M

KKR has led a $200 million Series C for New Jersey-based Semperis, with participation from Paladin Capital Group, Ten Eleven Ventures and others. The company's security tech protects critical enterprise-directory services from cyberattacks, data breaches and operational errors.

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Clear Street closes Series B with $165M

Fintech startup Clear Street has raised a $165 million Series B led by Prysm Capital. Launched in 2018 and based in New York, the startup offers a cloud-based prime brokerage platform that lets users trade equities and options.

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Mainspring nabs $150M+ in Series E

Mainspring, a provider of clean on-site power generation, has raised over $150 million in a Series E led by Lightrock. Based in Menlo Park, Calif., the company works with customers in the commercial, industrial and utility sectors.

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Firework lands $150M in SoftBank-led round

Firework has raised a $150 million Series B led by SoftBank's Vision Fund 2. The Redwood City, Calif.-based company offers a livestreaming platform designed to help retailers, consumer brands and publishers create video content for their customers.

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Monte Carlo brings in $135M for Series D

Monte Carlo has raised $135 million in a round led by IVP. Based in San Francisco, the company is the creator of a data reliability platform that helps companies such as Affirm and Auth0 detect and manage data downtime.

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Flowcarbon raises $70M

Flowcarbon has raised $70 million through both the sale of its carbon-backed token and venture capital funding led by Andreessen Horowitz. The New York-based company is the developer of a climate tech platform designed to tokenize carbon credits and help project developers connect with buyers to purchase live carbon credits.

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Tidelift rises with $27M

Tidelift has raised a $27 million Series C led by Dorilton Ventures. The Boston-based startup offers security tools to organizations building applications with open-source software. Tidelift was valued at $102 million with a $25 million round in 2019, according to PitchBook data.

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Moka.care scores $16M+ for mental health platform

Left Lane Capital has led a €15 million (about $16.1 million) Series A in Paris-based Moka.care. The startup offers a mental health well-being platform for employees.

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Exits & IPOs

Delhivery sees stock leap over 10% in debut

Stock in Indian logistics specialist Delhivery rose more than 10% in its Tuesday debut in Mumbai, Bloomberg reported. The company, which has received backing from The Carlyle Group and SoftBank, listed its stock at 487 rupees (about $6.29) per share and raised some 52.53 billion rupees via the sale of new and secondary shares, the report said.

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Fundraising

Maveron wraps Fund VIII with $225M

Maveron has closed its eighth namesake fund with $225 million in commitments. Operating out of Seattle and San Francisco, the firm provides funding to seed- and early-stage consumer-focused companies. The fund's predecessor closed on $180 million in 2019.

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View 258 investments »