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The Daily Pitch: VC

June 10, 2022

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

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

Our latest analyst note explores how LPs are evaluating today's challenging market.

PE mega-deals have a tough act to follow this year after a lucrative 2021.

Ireland and the UK continue to pull in the lion's share of startup investment in Europe. We've mapped out the key trends, including insights into dealmaking, fundraising and exit activity.

Today's Top Stories

Allocator perspectives on 2022's market challenges

Various forces have disrupted the global markets over recent years. While supply chain issues caused by the COVID-19 pandemic and Russia's invasion of Ukraine have upset global markets and blindsided analysts, many investors that have anticipated a resurgence of inflation since the stimulus coming out of the global financial crisis may feel better prepared to address the current environment.

It remains to be seen if the supply-driven inflation can be rectified structurally before lasting damage occurs. Reports of hiring freezes have become prevalent, even as unemployment remains at historically low levels.

Our latest analyst note discusses factors LPs are considering in 2022, including the denominator effect, call and distribution activity, and opportunistic tactics for the current environment. Key takeaways include:

Overall, there is still plenty of dry powder available to support existing portfolios, though that will vary from fund to fund.

Inflation and rising interest rates can be destructive to investment returns, but LPs are tactically eyeing cash, real estate, real assets and private debt for potential areas of relief.

LPs are likely to take a breath at times of market volatility, though how long that breath lasts can depend on factors such as governance and the portfolio's purpose.

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Mapping the UK, Ireland VC ecosystem

(belterz/Getty Images)

As Europe's leading VC destinations in terms of capital invested, Ireland and the UK have continued to pull in the lion's share of startup investment in the region, and this year is no different.

We've mapped out some of the key trends that have shaped the two countries over the past decade, including insights into dealmaking, fundraising and exit activity.

Recommended Reads

VC firms typically start out with money, adding legal support, marketing help and the like as they get bigger over time. Meet the new firm that's taking the exact opposite approach. [Forbes]

Elon Musk may have made headlines recently with his disparaging remarks on remote work, but some investors are on the same page. [Protocol]

The promise and perils that could result from a potential breakthrough in machine intelligence. [The Economist]

Since yesterday, the PitchBook Platform added:

20

VC valuations

2107

People

679

Companies

32

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2015 Vintage European Secondaries Funds
	VC Deals
	Shield AI raises $165M in equity and debt
	Mexico-based Klar banks $90M
	Middesk nabs $57M
	Ever/Body collects $55.5M
	OhmConnect secures $55M
	Degron Therapeutics raises $22M

The Daily Benchmark

2015 Vintage European Secondaries Funds

Median IRR

15.63%

Top Quartile IRR

17.80%

1.48x

Median TVPI

Select top performers

Hollyport Secondary Opportunities Fund V

Ardian Secondary Fund VII

Coller International Partners VII

*IRR: net of fees

6 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Shield AI raises $165M in equity and debt

Defense tech specialist Shield AI has raised $90 million in equity and $75 million in debt financing. The round was led by Snowpoint Ventures. Based in San Diego, the startup is developing AI-based self-driving tech for aircraft. The funding values the company at $2.3 billion.

View round

View 4 competitors »

Mexico-based Klar banks $90M

Klar has raised $90 million in a round led by General Atlantic. Founded in 2019, the company offers a digital financial services platform to users in Mexico.

View round

View 31 competitors »

Middesk nabs $57M

Middesk has raised a $57 million Series B co-led by Insight Partners and Canapi Ventures. Based in the Bay Area, the company offers a business identity platform that helps financial institutions verify their customers and automate onboarding processes.

View round

View 27 competitors »

Ever/Body collects $55.5M

Ever/Body has raised a $55.5 million Series C led by Addition. The New York-based company provides cosmetic dermatology treatments. Investors including Tiger Global and Imaginary Ventures also participated in the round.

View round

View similar company »

OhmConnect secures $55M

OhmConnect has raised a $55 million Series D led by ClearSky, Sidewalk Infrastructure Partners and TELUS Ventures. The Oakland, Calif.-based company helps residents manage their at-home electricity and rewards them for reducing their energy use during times of peak demand.

View round

View 24 competitors »

Degron Therapeutics raises $22M

Degron Therapeutics has raised a $22 million Series A led by Med-Fine Capital. The biotech company is developing molecular glue-based medicines that degrade target proteins during treatment for cancer, inflammation, metabolic disease and rare diseases.

View round

View similar company »

Chart of the Day

"The median early-stage software pre-money valuation reached €12.2 million in Q1 2022, pacing 50.8% higher than 2021's figure and nearly double 2020's. Software companies disrupting sectors such as food delivery, ecommerce, and financial services have displayed robust traction during the past two years, as companies and individuals have focused on online models."

Source: PitchBook's Q1 2022 European VC Valuations Report

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PitchBook News - LP perspectives on market challenges

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