PitchBook News - First-time funds in a crisis

SaaS valuations slide for late-stage deals; test your private markets knowledge; UP.Partners elevates Ally Warson to partner; Yummy lands $47M
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The Daily Pitch: VC
June 3, 2022
The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data
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In today's Daily Pitch, you'll find:
  • Our latest analyst note looks back to the global financial crisis to explore how first-time managers fare in an uncertain market.

  • A list of the most active global PE investors in healthcare.

  • Test your private markets knowledge with this week's PitchBook News Quiz.
 
Today's Top Stories  
How emerging managers fared during the global financial crisis
First-time managers have been riding the venture capital boom with more than 200 new managers closing venture funds each year since 2017. But now, as the market faces a downturn, investors are hiking up the premium on experience in the fundraising market. While established managers are still flush with capital, Q1 data shows that emerging managers are already struggling to close their funds.

Our latest analyst note looks back to the global financial crisis to explore how first-time managers fare in an uncertain market. While the most difficult years are likely yet to come, the data is promising for managers that raise their first funds in the years leading up to a crisis.
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SaaS valuations slide for late-stage deals
(Nuthawut Somsuk/Getty Images)
Shares of fast-growing SaaS companies have tumbled about 60% off their recent 12-month highs, and startup valuations are expected to follow suit.

But so far this year, the valuation descent has only been seen in late-stage deals, while median seed and early-stage software deal prices have reached record levels. Only time will tell if VC-backed SaaS startups' ultimate tumble is as pronounced as their publicly traded counterparts. However, analysts expect the valuation slump for private companies to be less severe.
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A message from Ontra  
The 10 side letter terms shaping your relationships with investors
Some are surprising.

Asset managers are handling more side letters than ever, and these agreements are becoming increasingly complex. While firms strive to keep up with investors' expectations and prepare for evolving compliance issues, many are struggling.

Side letter terms often vary subtly, whether with regard to fees, disclosures, restrictions, or ESG standards. And these variations can have a significant impact on firms' compliance efforts and relationships with investors.

Ontra's guide details the top 10 evolving side letter provisions. Actively and efficiently managing these terms and other investor obligations can make or break a firm's reputation.

Download the guide now.
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PitchBook News Quiz: June 3, 2022
(Chloe Ladwig/PitchBook News)
Did you follow the private markets news this week? Take the PitchBook News Quiz to see how you stack up.

This week: Tiger Global losses, crypto layoffs and affordable genome sequencing.
take the quiz
 
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Who are the most active PE investors in healthcare?
(Andriy Onufriyenko/Getty Images)
Healthcare dealmaking remained steady entering this year, with the first quarter headlined by mammoth buyouts targeting sizable companies such as Australian private-hospital operator Ramsay Health Care and cloud-based health IT vendor Athenahealth.

Even amid a series of macro headwinds, private equity firms poured billions of dollars into healthcare assets during that period, extending a string of mega-deals and a surge in exits that started last year. And more capital is expected to be allocated to healthcare assets—a defensive sector—amid macro headwinds and market volatility, PitchBook analysts say.

We put together a list of global PE investors that have been the most active in healthcare buyouts since 2017.
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Golden State Warriors or the Celtics? Either way, a PE firm wins
(Gearstd/Getty Images)
The Golden State Warriors and the Boston Celtics are vying for the NBA's most coveted honor, and so are PE firms. Regardless of who wins, a private investment firm will have a hand in raising the Larry O'Brien Trophy.

Both teams have significant ties to private equity, with the Warriors being principally owned by Joe Lacob, a partner at Kleiner Perkins; Artcos Sports Partners owns a 13% stake in the franchise. The Boston Celtics' managing partner is Stephen Pagliuca, co-chairman of Bain Capital.
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Recommended Reads
Why private equity may not be the defensive play some claim it is. [The Wall Street Journal]

Wall Street assumed that one investor's prowess in the markets would translate into leading a multibillion-dollar money manager, a bet that has culminated in billions in losses and the shuttering of Melvin Capital Management. [Bloomberg]

After raising record funds last year, most Indian startups are now struggling to survive. [Al Jazeera]
 
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Quick Takes  
  The Daily Benchmark  
  2016 Vintage Global Funds-of-Funds  
  People  
  UP.Partners promotes Ally Warson to partner  
  VC Deals  
  Guild hits $4.4B valuation  
  Upstream Bio launches with $200M  
  Constrafor locks down $100M+ in debt and equity  
  JupiterOne banks $70M  
  Yummy lands $47M  
  Fundraising  
  Ten Eleven Ventures collects $600M for third fund  
 
 
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The Daily Benchmark  
2016 Vintage Global Funds-of-Funds
Median IRR
22.71%
Top Quartile IRR
29.20%
1.70x
Median TVPI
Select top performers
Adams Street Venture Innovation Fund
SVB Strategic Investors Fund VIII
Hamilton Lane Venture Capital Fund (Series 2016)
*IRR: net of fees
38 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
People  
UP.Partners promotes Ally Warson to partner
UP.Partners, an early-stage VC firm, has promoted Ally Warson to partner. Warson worked at ACME Capital and Google before joining UP.Partners in 2020.
View details
 
 
 
VC Deals  
Guild hits $4.4B valuation
Guild has raised a $175 million Series F at a $4.4 billion valuation in a round led by Wellington Management. The Denver-based company is the developer of a workforce education and upskilling platform.
View round
 
View 23 competitors »
 
Upstream Bio launches with $200M
Upstream Bio has raised a $200 million Series A led by OrbiMed and Maruho. The biotech company develops therapeutics for inflammatory and allergic diseases.
View details
 
View 485 investments »
 
Constrafor locks down $100M+ in debt and equity
Constrafor has raised more than $100 million in seed funding, comprising an equity round led by Fintech Collective and a credit facility from CoVenture. The company offers a SaaS construction procurement platform.
View round
 
View 13 competitors »
 
JupiterOne banks $70M
JupiterOne has raised a $70 million Series C led by Tribe Capital. The funding values the company at more than $1 billion. Based in North Carolina, JupiterOne offers a cyber asset security platform.
View round
 
View 72 competitors »
 
Yummy lands $47M
Yummy has raised $47 million in a round led by Anthos Capital. Founded in 2020, the company operates an on-demand delivery and transportation platform across Venezuela and Bolivia.
View round
 
View similar company »
 
 
Don't miss our upcoming webinar
The investing environment has fundamentally shifted in the past several months, with inflation at a 40-year high, the Fed tightening monetary policy and growing fears of an economic recession.

In this webinar, our analysts will discuss the broader macroeconomic backdrop, how it has influenced the recent volatility and sell-off in public equity markets, and what it means for private markets now and going forward. The webinar will be held June 7 at 8 a.m. PT/11 a.m. ET.

Register now
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Fundraising  
Ten Eleven Ventures collects $600M for third fund
Ten Eleven Ventures has raised $600 million for its third generation fund. The firm plans to deploy the new capital into security companies across seed to growth stages.
View fund
 
View 41 investments »
 
 
Chart of the Day  
Source: PitchBook's Q1 2022 US PE Breakdown
 
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