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The Daily Pitch: VC

June 29, 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:

For years, VC funds have had the highest returns of any alternative asset class. Now, with a Q1 drop in TVPI, that run is being threatened.

As inflation and rising interest rates continue to rock global markets, private market investors are homing in on real assets.

An in-depth look at Central and Eastern Europe's VC ecosystem.

Today's Top Stories

Private investors home in on real assets

As rising inflation and interest rates continue to rock global markets, private market investors are increasingly focused on real assets, due to the stability and protection they offer in volatile times.

Our latest Global Real Assets Report explores trends within infrastructure, oil and gas, agriculture, and more, diving into the data on fundraising and performance. Key takeaways include:

Despite rising interest rates, North American core infrastructure assets drew strong investor interest, likely due to the policy landscape that has helped prime some infrastructure investments for success.

Oil and gas fundraising has represented less than 2% of real assets fundraising since the beginning of last year, but that is expected to change with the impact of the current macroeconomic tailwinds.

Funds targeting Europe and North America have led real assets fundraising in recent years at the expense of Asia. While Asia has represented 10% of overall fundraising since 2008, it accounted for just 3% of assets committed since the start of 2021.

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VC fund returns nosedive as private market pessimism grows

(erhui1979/Getty Images)

For years, venture funds have posted the highest returns of any alternative asset class—handily besting private equity, real estate, private debt and real assets. Now that run is being threatened by a radical repricing of fast-growing companies with little or no profits.

In Q1, more than 68% of venture funds suffered a drop in total realized and unrealized returns versus capital invested, according to a recent PitchBook analyst note on VC fund performance.

Recommended Reads

How China is reshaping one of the world's biggest startup scenes, but not necessarily for the better. [The Economist]

Though the pandemic-induced shift to remote work may have upended many cultural norms, new research shows that it hasn't done much for workplace equality. [Fortune]

Why the BuzzFeed SPAC fiasco is only getting worse. [Intelligencer]

Since yesterday, the PitchBook Platform added:

14

VC valuations

1688

People

511

Companies

17

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2013 Vintage Global Debt Funds
	VC Deals
	Pave secures $100M
	Gloat grabs $90M
	Front valued at $1.7B
	Eclipse Foods lands $40M+
	Atomo raises $40M for beanless coffee
	Socially Determined brings in $26M Series B
	Normalyze snags $22.2M Series A

The Daily Benchmark

2013 Vintage Global Debt Funds

Median IRR

7.88%

Top Quartile IRR

9.54%

1.19x

Median TVPI

Select top performers

Davidson Kempner Long-Term Distressed Opportunities Fund II

Oaktree Real Estate Debt Fund

York Special Opportunities Fund II

*IRR: net of fees

51 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Pave secures $100M

Pave has raised a $100 million Series C led by Index Ventures. Based in San Francisco, the company offers a real-time compensation platform that helps companies plan and benchmark compensation. Andreessen Horowitz and Craft Ventures also participated, among others.

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View 2 competitors »

Gloat grabs $90M

Gloat has raised a $90 million Series D led by Generation Investment Management. The New York-based company offers an AI-based career development platform that matches users with job opportunities in real time.

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View 9 competitors »

Front valued at $1.7B

San Francisco-based Front has raised a $65 million Series D led by Salesforce Ventures and Battery Ventures. The funding values the customer communications specialist at $1.7 billion.

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View 22 competitors »

Eclipse Foods lands $40M+

Eclipse Foods has raised more than $40 million in a Series B led by Sozo Ventures. Founded in 2019, the California-based startup produces plant-based dairy products.

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View similar company »

Atomo raises $40M for beanless coffee

Atomo Coffee has raised a $40 million Series A from S2G Ventures, AgFunder and Horizons Ventures. Based in Seattle, the foodtech startup reduces the environmental impact of coffee production by using upcycled ingredients rather than coffee beans.

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Socially Determined brings in $26M Series B

Healthcare analytics startup Socially Determined has raised a $26 million round led by Questa Capital. The Washington, DC-based company provides health plans, health systems, government agencies and others with intelligence on social risk dynamics and their effect on health outcomes and business performance.

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View 9 competitors »

Normalyze snags $22.2M Series A

Normalyze has emerged from stealth with a $22.2 million round led by Lightspeed and Battery Ventures. The startup offers a security platform that allows users to analyze, prioritize and respond to cloud data threats and prevent sensitive data loss. Normalyze has raised $26.6 million in total funding to date.

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View similar company »

Don't miss our upcoming webinar

Join PitchBook for a webinar this Thursday to discuss 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 and the metaverse. 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

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Chart of the Day

"We did see substantially more resilience on the secondary buyout and corporate acquisition side, accounting for 54.3% and 43.5% of exit volume, respectively. Sponsors are sitting on billions of euros of dry powder that must be put to work, and we therefore expect SBOs will continue to contribute the bulk of exit activity in 2022."

Source: PitchBook's Q1 2022 European PE Breakdown

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PitchBook News - Investors home in on real assets

Older messages

Surveying sustainable investing practices

Agtech harvests near-record funding

Crypto bosses rise amid wreckage

VC returns snap back to reality

Did VC fly too close to the sun?

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