A bad break for Europe's first-time funds

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The Daily Pitch: VC

July 27, 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:

A veteran dealmaker at Jefferies discusses the PE secondary market.

First-time VC funds in Europe are on track to record their lowest numbers in nearly a decade.

Our recent analyst note aims to demystify sustainable investing by diving deep into ESG and impact investing in real estate.

Today's Top Stories

First-time fundraising slows for European VCs

(twomeows/Getty Images)

VC fundraising as a whole has been resilient in 2022, but such success isn't universal for fund managers. The number of first-time venture funds in Europe is dropping, as market conditions create an increasingly challenging fundraising environment.

A total of 26 debut vehicles closed in the first six months of the year, putting 2022 on track to register the lowest fund count in nearly a decade.

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A guide to ESG and impact investing in real estate

Real estate touches every aspect of our lives—from our homes and offices to the land our food is grown on—yet many investors still have questions about how ESG and impact investing fit into this complex asset class.

Our recent analyst note aims to demystify the sustainable investing landscape by exploring ESG-related risks and sustainable investing opportunities presented in private market real estate investments, across strategies and property sectors. Our analyst breaks down the sector's opaque terminology and provides concrete examples of risk and opportunity areas, including climate change adaptation, supply chain management and green buildings.

read it now

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A message from Ansarada

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The current macro environment has advisors and their clients worried. The tremendous growth period in 2021 has shifted to a climate of cautiousness and apprehension.

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Q&A: Jefferies veteran dealmaker examines PE secondary market trends

(DNY59/Getty Images)

Falling valuations in public and private markets have put added pressure on the pace of private equity exits, which slowed in Q2 2022 for the second consecutive quarter. PE firms chose to hold on to portfolio companies longer, instead of selling investments at unattractive prices.

Yet the drop in exits, if followed by a decline in distributions, could lead to a flourishing secondaries market. On one side, many PE firms will pursue GP-led secondary deals to extend their ownership of valuable assets; on the other side, LPs may also resort to the secondary market to unload older assets and free up capital for new commitments.

We recently spoke to Andy Nick, a managing director at Jefferies' private capital advisory arm, about the private equity secondary market—including how it has fared amid sustained public market volatility and what to expect for secondary deal flow and pricing in the coming year.

Recommended Reads

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Shopify CEO Tobi Lütke admits his big bet on ecommerce hasn't paid off as planned, and now his employees are paying the price. [Fortune]

As psychedelic therapies for mental health go mainstream, companies are recruiting chemists to create patentable versions of hallucinogens. [Wired]

Since yesterday, the PitchBook Platform added:

14

VC valuations

1866

People

601

Companies

22

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2019 Vintage Global Funds-of-Funds
	VC Deals
	FlexGen snags $100M Series C
	Elation Health secures $50M Series D
	Cordial brings in $50M
	Allbound picks up $43M
	BMF raises $43M for 3D printing tech
	Sovrn secures $36M Series C
	Underdog grabs $35M Series B, hits $485M valuation
	GGV leads $30M round for Neon

The Daily Benchmark

2019 Vintage Global Funds-of-Funds

Median IRR

41.91%

Top Quartile IRR

49.79%

1.44x

Median TVPI

Select top performers

Adams Street 2019 Global Fund

TrueBridge Capital Partners Fund VI

HarbourVest Partners XI-Venture

*IRR: net of fees

37 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

FlexGen snags $100M Series C

FlexGen Power Systems has raised $100 million from investors including Vitol and Altira Group. The company is a developer of energy storage services and software for commercial developers, government agencies and others.

View round

View 3 competitors »

Elation Health secures $50M Series D

Elation Health has raised $50 million in a round led by Generation Investment Management. Based in the Bay Area, the company offers a healthtech platform that allows primary care providers to access and manage patient data in real time.

View round

View 49 competitors »

Cordial brings in $50M

Cordial has raised a $50 million Series C led by NewSpring. Based in San Diego, the company provides a cross-channel marketing and data management platform for brands such as Eddie Bauer and Boot Barn.

View round

View 65 competitors »

Allbound picks up $43M

Allbound has raised $43 million in a round led by Invictus Growth Partners. The company is the developer of a partner relationship management platform for sales and marketing teams.

View round

View 60 competitors »

BMF raises $43M for 3D printing tech

Boston Micro Fabrication has raised a $43 million Series C led by Shenzhen Capital Group. BMF, which has offices in the US, China and Japan, develops micro precision 3D printers for manufacturers.

View round

View similar company »

Sovrn secures $36M Series C

Sovrn has raised $36 million from investors including Foundry, Archer Venture Capital and Lexington Partners. Based in Colorado, the company offers monetization tools and data insights to online content creators.

View round

View 78 competitors »

Underdog grabs $35M Series B, hits $485M valuation

Investors including BlackRock and Acies Investment have participated in a $35 million Series B round for Underdog, a paid fantasy sports company, valuing it at $485 million.

View round

View similar company »

GGV leads $30M round for Neon

Neon, the developer of an open-source serverless database service for developers, has raised $30 million in a Series A1 round led by GGV Capital.

View round

View similar company »

Chart of the Day

"The proportion of exits to strategic buyers in Q2 was one of the highest figures seen in the post-GFC era, as sponsor-to-sponsor exits declined and public listings all but disappeared. High levels of balance sheet cash remain a key force for corporate acquisitions, although turbulent markets and concern for an oncoming recession make companies more cautious about transactions."

Source: PitchBook's Q2 2022 US PE Breakdown

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A bad break for Europe's first-time funds

Older messages

VC fundraising marches toward record

Venture lenders take the stage

Heat waves hold investors' feet to the fire

What ESG means for real estate

The pulse of private credit fundraising

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