PitchBook News - VC faces 'rational reality' reset

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The Daily Pitch: VC

June 17, 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:

The IPO and SPAC boom was a once-in-a-decade opportunity for investors in tech startups to cash out—now, public investors who bought in are paying the price.

At the 2022 SuperVenture conference in Berlin, the impact of macroeconomic volatility was at the forefront of the discussion, with most investors predicting tougher times ahead for startups.

Our latest ranking of the most active lenders in US PE.

Today's Top Stories

VC market faces 'rational reality' reset, investors warn

(spreephoto.de/Getty Images)

Venture investors expect a widespread reset in investment activity as the market shifts to favor sustainability over growth. At the 2022 SuperVenture conference in Berlin, the impact of macroeconomic volatility on capital raising and valuations was at the forefront of the discussion, with most investors predicting tougher times ahead for startups.

"I think now we're entering a more rational reality," Balderton Capital partner David Thévenon said in a panel discussion. "Last year, rounds were closed sometimes in a matter of days, but companies need to realize that isn't going to happen now."

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Scores of newly public companies worth less than they raised from VCs

(Spencer Platt/Getty Images)

More than 140 VC-backed companies that went public in the US since 2020 have market capitalizations that are less than the amount of venture funding they raised, according to PitchBook data.

The tally—which includes formerly bright stars of insurtech, mobility tech and retail—underscores the punishment that has been doled out to tech companies whose growth prospects have diminished.

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A message from RBC Capital Markets

How will challenges and opportunities in healthcare influence M&A dealmaking?

Following a record level of healthcare M&A deals last year, there is an anticipated reduction in activity, but M&A prospects remain strong. "A large wave of healthcare patents is coming due in two to five years' time," according to RBC's Co-Head of Global M&A, Vito Sperduto. Healthcare firms will respond by turning to the M&A market to bolster their commercial portfolios, harness innovation and drive top-line growth.

What are future growth drivers for the healthcare sector? How might volatility influence the dealmaking environment? What will be the focal points for M&A activity moving forward?

Explore the sector outlook with insights from RBC Capital Markets' experts.

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Ranking the most active lenders in PE

Four separate lenders took part in at least 50 deals each in the first quarter of 2022 in the US, even as volatility surged worldwide, roiling financial markets and economies.

Which firm closed the most deals? See our interactive Q1 2022 PE Lending League Tables, which can be sorted by deal type, geography, sector and more, for a detailed view of the lending landscape in private equity.

see the rankings

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SoftBank's listing plans for chipmaker Arm are a boost for UK market

(LUNAMARINA/Getty Images)

SoftBank may now allow the London Stock Exchange to host a partial listing of one of the UK's tech giants, despite previously stating that the Nasdaq would be the preferred place for the IPO of chip designer Arm.

The news is a potential boost for the UK government, which has introduced new rules in hopes of enticing global tech companies to list in London.

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BlackRock backs Europe's bid to cut reliance on Russian energy

(Westend61/Getty Images)

BlackRock has launched a new open-ended fund strategy to reduce both the use of fossil fuels and Europe's dependence on Russian energy.

The asset manager plans to fund utilities and providers of end-to-end renewable energy infrastructure. Additionally, it will put capital to work in applications such as data centers, battery storage systems, grid digitization technologies and facilities for the storage and transport of natural gas.

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Recommended Reads

Private investors are contending with a crisis of value as the looming recession promises an end to skyrocketing valuations. [Bloomberg]

Visualizing the coming shift in global economic power. [Visual Capitalist]

An object spotted by Nasa's Mars rover is reigniting fears about human space debris. [The Guardian]

Since yesterday, the PitchBook Platform added:

7

VC valuations

1653

People

429

Companies

34

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2008 Vintage Global Secondaries Funds
	A message from Grant Thornton
	The top trends in PE software dealmaking
	VC Deals
	Vendr picks up $150M
	AirSlate hits $1B+ valuation
	General Catalyst leads $40M Series C for Elevate K-12
	Lightning AI brings home $40M
	Transfr VR books $35M
	Base raises $15M

The Daily Benchmark

2008 Vintage Global Secondaries Funds

Median IRR

11.68%

Top Quartile IRR

13.93%

1.51x

Median TVPI

Select top performers

Industry Ventures Secondary Fund V

Fort Washington Private Equity Opportunities Fund II

OHIM Secondary Investments 2008

*IRR: net of fees

16 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Grant Thornton

The top trends in PE software dealmaking

Last year saw record-breaking PE dealmaking in software across the US, but this year is already off to a strong start. Median deal sizes are at all-time highs, eclipsing even the $60 million median set in 2021. In a data-driven snapshot, Grant Thornton summarizes the key trends defining this market, drawing on a select variety of PitchBook datasets spanning exits to deal metrics.

Read it now

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VC Deals

Vendr picks up $150M

Vendr has raised a $150 million Series B co-led by Craft Ventures and SoftBank's Vision Fund 2. Based in Boston, the company offers a SaaS buying platform.

View round

View 3 competitors »

AirSlate hits $1B+ valuation

AirSlate has raised $51.5 million at a $1.25 billion valuation in a round led by G Squared. Based in the Boston area, the company is the developer of a document management platform and other no-code workflow automation solutions.

View round

View 6 competitors »

General Catalyst leads $40M Series C for Elevate K-12

General Catalyst has led a $40 million Series C for Elevate K-12, a provider of livestreaming instruction for US K-12 classrooms. The Chicago-based company currently operates in 27 states.

View round

View similar company »

Lightning AI brings home $40M

Lightning AI has raised a $40 million Series B led by Coatue. Based in New York, the company offers a platform for building AI applications.

View round

View similar company »

Transfr VR books $35M

Transfr VR has raised a $35 million Series B led by Lumos Capital Group. Founded in 2017, the New York-based company's VR and AR simulation platform is designed to offer on-the-job training to employees in sectors including aerospace and advanced manufacturing.

View round

View 16 competitors »

Base raises $15M

Base, formerly known as Crowdvocate, has raised $15 million in a round co-led by Wing VC and Vertex Ventures Israel. The company offers a B2B customer marketing platform; its customers include HubSpot, Gainsight and Twilio.

View round

View 1 competitors »

Chart of the Day

Source: Q1 2022 PitchBook-NVCA Venture Monitor

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