1. Home
  2. Discover
  3. Business
  4. PitchBook News

PitchBook News - Did VC fly too close to the sun?

Investors hold breath on China; SumUp valued at $8B+ as fintech startups struggle; Electric Hydrogen fuels up with $198M; fusion specialist nabs $160M
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Daily Pitch: VC
June 24, 2022
The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data
Ads
In today's Daily Pitch, you'll find:
  • Our latest analyst note takes an early look at 2022 VC fund performance and the impact of growing pessimism on private market portfolios.

  • US investor interest in Chinese companies could face a roadblock as Congress weighs broader federal scrutiny.

  • SumUp has raised new funding at a valuation of more than $8 billion, less than half what it was reportedly seeking earlier this year.
 
Today's Top Stories  
A cloudy end to VC's day in the sun
Financial markets have sustained a series of gut punches over the last two quarters. With falling growth stocks, a recent wave of layoffs and central banks scrambling to tame inflation, the tailwinds benefiting venture capital funds over the prior two years appear to have reversed.

As a consequence, fears of recession and anecdotes of dealmaking troubles have VC fund LPs wondering what will come of their outsize paper returns.

Our latest analyst note takes an early look at 2022 VC fund performance and the impact of growing pessimism on private market portfolios. Key takeaways include:
  • Preliminary data for Q1 suggests markdowns in net asset values have started occurring, with 68.1% of reporting VC funds showing a drop in valuations from their 2021 peaks. That puts VC funds in worse shape than other private fund strategies.

  • With over $1.4 trillion in unrealized value sitting in VC funds, a sizable and sustained drop in valuation multiples could result in billions of dollars in value wiped away from LP portfolios.
read it now
 
Share: Email LinkedIn Twitter Facebook
US could target tech investors' favored sectors in China
(Nicolas Asfouri/Getty Images)
Revived investment in Chinese companies by US firms could face a roadblock as Congress weighs imposing broader federal scrutiny of US capital flowing into China and other commercial rivals.

US investors' appetite for Chinese investments—in particular for venture deals—has bounced back in the last few years, according to PitchBook data.

In 2021, US firms participated in $44.6 billion worth of deals in China, almost double 2019's $23.1 billion.
read more
 
Share: Email LinkedIn Twitter Facebook
 
A message from RBC Capital Markets  
How is volatility influencing private equity M&A activity?
Private equity M&A activity in 2021 was 50% higher than the previous record. Private equity firms executed 8,500 transactions worth over $1.2 trillion in aggregate last year and the outlook remains strong despite market volatility. The IPO backlog has grown and private equity firms are turning to M&A to deploy capital and make the right investments to drive returns.

Where are the current challenges for M&A dealmaking? How are private equity sponsors evolving their strategies? Which sectors are seeing strong growth opportunities?

Understand the evolving private equity and M&A landscape with insights from RBC Capital Markets' experts.
Share: Email LinkedIn Twitter Facebook
 
SumUp settles for $8B+ valuation as fintech startups lower targets
(Courtesy of SumUp)
SumUp's new funding round has raised the company's valuation to about $8.4 billion—less than half the target the UK payments specialist was reportedly seeking earlier this year.

The company isn't alone in its challenges, however. The new capital comes at a time when many startups, even in hot sectors such as fintech, are having to reconsider their valuation ambitions amid a tougher macro environment.
read more
 
Share: Email LinkedIn Twitter Facebook
Recommended Reads
How a recession could weaken the work-from-home revolution. [The Atlantic]

Titanium dioxide is the latest addition to the growing list of chemicals deemed unsafe in Europe that are still used in the US. [The Guardian]

In 2020, Varo became the first consumer neobank to secure a federal banking license. Now, it's the latest fintech to run up against financial trouble. [Forbes]
 
Ads
Since yesterday, the PitchBook Platform added:
12
VC valuations
1874
People
526
Companies
20
Funds
See what our data software can do
 
Quick Takes  
  The Daily Benchmark  
  2011 Vintage Global Secondaries Funds  
  VC Deals  
  Electric Hydrogen picks up $198M  
  Zap Energy collects $160M  
  Medallion nabs $35M  
  Magnetic Insight raises $17M  
 
 
Ads
The Daily Benchmark  
2011 Vintage Global Secondaries Funds
Median IRR
15.74%
Top Quartile IRR
17.85%
1.62x
Median TVPI
Select top performers
AlpInvest Partners Fund V - Secondary Investments
CS Strategic Partners V
Partners Group European Small & Mid-Cap Buyout 2011
*IRR: net of fees
16 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
VC Deals  
Electric Hydrogen picks up $198M
Electric Hydrogen has raised $198 million in a round led by Fifth Wall Climate Tech. The company produces fossil-free hydrogen for industrial and infrastructure applications.
View round
 
View similar company »
 
Zap Energy collects $160M
Zap Energy has raised a $160 million Series C led by Lowercarbon Capital. Founded in 2017, the Seattle-based company is building a compact and scalable fusion reactor designed to support sustainable energy production.
View round
 
View 5 competitors »
 
Medallion nabs $35M
Medallion has raised a $35 million Series C co-led by Spark Capital and GV. Based in San Francisco, the company provides a network management platform that offers licensing and credentialing solutions for healthcare organizations.
View round
 
View similar company »
 
Magnetic Insight raises $17M
Magnetic Insight has raised a $17 million Series B led by Celesta Capital. The California-based company provides diagnostic and monitoring technology designed to help clinicians directly monitor cell therapy cancer treatments.
View round
 
View similar company »
 
 
Don't miss our upcoming webinar
Join PitchBook for a webinar discussing emerging tech highlights for early-stage investors and forecasts for the landscape in the year ahead. Our analyst will explore notable themes like Web3 & DeFi, the metaverse and others. Key topics include:
  • ETI deal value is down from Q4 but retained its hold, reaching $8 billion in Q1 of 2022.
  • Large deals continue to surge, with 22 ETI deals valued at $100 million or larger.
  • For the third consecutive quarter, crypto topped deal value, with Web3 & DeFi leading the way as the largest ETI investment area.
Register now to secure your spot
Share: Email LinkedIn Twitter Facebook
 
Chart of the Day  
"Private equity (PE) deal activity in Europe's second largest PE ecosystem has had a record start to the year. €59.1 billion in sponsor dry powder, France undergoing its fastest GDP expansion in 52 years in 2021, and willing sellers contributed to the heightened deal activity."

Source: PitchBook's 2022 France & Benelux Private Capital Breakdown
 
Ads
 
Who's in the newsletter today?
Investors
Celesta Capital
Fifth Wall Climate Tech
GV
Lowercarbon Capital
Spark Capital
Companies
Electric Hydrogen
Magnetic Insight
Medallion
Zap Energy
 
About PitchBook | Terms of use | Advertise with us | Contact
Follow us: in twtr fb

This email was sent to you via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

© 2022 PitchBook. Win what's next. All rights reserved.

Key phrases

latest analyst note private market portfolios US investor interest broader federal scrutiny The Daily Pitch

Older messages

Investors home in on real assets

Thursday, June 23, 2022

Challenges linger for insurtech; HR specialist hits $8.5B valuation; FalconX mines $8B valuation; Glowforge scores $43M Read online | Don't want to receive these emails? Manage your subscription.

NFT startups bank funds

Wednesday, June 22, 2022

What supply chain tech holds for PE; StashFin lands $270M; Openly brings home $75M; LogRocket pockets $25M Read online | Don't want to receive these emails? Manage your subscription. Log in The

Agtech blooms with near-record funding

Tuesday, June 21, 2022

Mobility tech SPACs spin out; HomeLight lands $60M; Immutable launches $500M fund; Impulse Space powers up with $10M Read online | Don't want to receive these emails? Manage your subscription. Log

PE's regime change

Monday, June 20, 2022

Plus: Opening the PE club to the mass affluent, tracking global unicorns, foodtech's investment landscape and more Read online | Don't want to receive these emails? Manage your subscription.

Crypto meltdown forges fans and skeptics

Sunday, June 19, 2022

Plus: Startups tap into corporate sustainability; our latest foodtech market map; PE's most active infrastructure investors & more Read online | Don't want to receive these emails? Manage

You Might Also Like

Turnover on the rise at venture firms

Wednesday, April 24, 2024

What's driving crypto VC investment?; mega-rounds make a comeback in Europe; Exowatt picks up $20M from a16z, others Read online | Don't want to receive these emails? Manage your subscription.

💥 Making 6 Figures With Business Directories 💥 CreatorBoom

Wednesday, April 24, 2024

How a 19-year-old Built SE Asia's Go-To Tech Newsletter, 100+ Proven Growth Tactics and Playbooks, Paul Millerd on Writing The Pathless Path, ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Currency of Trust

Wednesday, April 24, 2024

Building trust isn't a one-time transaction — it's an ongoing process. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Show Your Math 🤖

Wednesday, April 24, 2024

AI transparency converts. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

ESPN Bet ‘can lay claim to No. 3’ in OSB

Wednesday, April 24, 2024

ESPN Bet's Tier 2 opportunity, Evolution's Asian success, Kindred's holding pattern, Kambi earnings review +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

🔔FTC wants to unlock the jobs market

Wednesday, April 24, 2024

Banning non-competes could raise employee wages by $400 billion over the next decade ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

He adds 30 signups per day!

Wednesday, April 24, 2024

In this case study, we learn how Dennis is scaling his server management tool. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Crazy 27% coversion from free to paid

Wednesday, April 24, 2024

Today's hack You see an awesome feature -> You hope and believe -> You act -> Bummer! It`s locked. -> You pay for Premium For freemium services, the average conversion rate into paying

What Zoho has that Google doesn’t

Wednesday, April 24, 2024

Also in today's edition: Bajaj hops on a new ride; Chinese bank sanctions incoming ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

What Zoho has that Google doesn’t

Wednesday, April 24, 2024

Also in today's edition: Bajaj hops on a new ride; Chinese bank sanctions incoming ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏