PitchBook News - Fintech investment simmers down

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The Daily Pitch: VC

August 4, 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 Emerging Tech Research update on fintech breaks down the sector's dip in VC funding, emerging opportunities in alternative financing and more.

Asia-focused PE fundraising has slowed from last year's record pace as investors contend with challenges in global markets.

With the market shifting away from favoring founders, take our term sheet quiz to refamiliarize yourself with investor-friendly deal terms.

Today's Top Stories

Fintech investment simmers down in Q2

On the heels of a breakthrough year for fintech investment, VC activity in the sector is simmering down. In Q2 2022, VC investment in fintech companies fell 17.8% from the previous quarter to $24.1 billion, the largest percentage drop since Q3 2018. Exits have also stalled as IPO activity grinds to a halt, and analysts expect fintech startups will attract the attention of incumbents looking for M&A opportunities.

Our latest Emerging Tech Research update on fintech explores VC trends in the space and highlights emerging opportunities in DeFi lending and non-dilutive startup financing. The report also includes a comprehensive market map of key players across each fintech sub-segment and takes a closer look at companies such as Percent, Parafin, OpenNode and Celo.

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Are you on top of term sheets? Take our quiz

(Jenna O'Malley/PitchBook News)

For the first time since 2020, valuations and deal terms are trending in investors' favor. Entrepreneurs will have to adapt.

This brave new world is bringing back investor-friendly deal terms, several of which had fallen out of fashion in recent years. Consider this quiz your primer for venture capital's new reality.

take the quiz

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A message from DealCloud, by Intapp

Why CRE firms need a purpose-built pipeline solution

Today's commercial real estate (CRE) firms have both immediate and long-term motivations to implement a purpose-built CRM solution. Instead of wasting time on low-value data gathering, team members are empowered with the visibility, access, and trust they need to find and execute deals with the highest likelihood for success and with the highest potential returns for investors. The trick is finding a solution that equips every contributor and stakeholder along the investment and asset lifecycle with the most relevant, timely, and high-value information.

Download the guide to explore the importance of choosing and implementing a deal, relationship, and workflow management solution that prioritizes the unique deliverables contributed by each role in your CRE firm.

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PE fundraising for Asia cools in H1

(MirageC/Getty Images)

PE fundraising for Asia investments has slowed from last year's record pace, as investors contend with volatility and other challenges in global markets.

In the first half of the year, nine Asia-focused PE funds raised $10.6 billion, a roughly 64% decline from the $29.6 billion gathered by 39 vehicles during the same period last year, according to PitchBook data. Through the end of July, only $18.5 billion was raised, setting a pace that, if sustained, is unlikely to surpass last year's total fundraising value of nearly $41 billion.

Recommended Reads

The advocates making the case that bitcoin differs from the crypto projects that sent the market into a tailspin. [The New York Times]

Developing nations frozen out of global bond markets are turning to risky bank loans. [The Wall Street Journal]

In the wake of Russia's invasion of Ukraine, investors are reevaluating how they use emerging markets indexes. [Institutional Investor]

Since yesterday, the PitchBook Platform added:

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Quick Takes

	The Daily Benchmark
	2009 Vintage Global Funds-of-Funds
	VC Deals
	Tabby scores $150M in debt
	Aisera secures $90M Series D
	Parafin picks up $60M
	Homeward raises $50M to improve rural healthcare access
	Nabr collects $48M for custom housing
	Arena scoops up $32M Series A
	ZayZoon earns $25.5M for on-demand wages
	Boisson brings in $12M
	Fundraising
	VMG Catalyst collects $400M for Fund II
	Spur seeks $200M for seventh fund
	L'Attitude wraps up $100M+
	Ulta Beauty launches Prisma Ventures

The Daily Benchmark

2009 Vintage Global Funds-of-Funds

Median IRR

15.60%

Top Quartile IRR

17.26%

2.01x

Median TVPI

Select top performers

Horsley Bridge Strategic I

Spur Ventures III

Schroder Adveq Technology VI

*IRR: net of fees

43 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Tabby scores $150M in debt

Tabby, a Dubai-based buy now, pay later startup, has secured $150 million in debt financing, Bloomberg reported. The funding came in part from US-based firms Atalaya Capital Management and Partners for Growth.

View round

View 3 competitors »

Aisera secures $90M Series D

Aisera has raised a $90 million Series D led by Goldman Sachs and Thoma Bravo. The company offers an AI-driven platform that automates the resolution of IT, sales and customer service inquiries.

View round

View 6 competitors »

Parafin picks up $60M

Parafin has raised a $60 million Series B led by GIC. The San Francisco-based startup enables marketplaces, payment processors and other companies to offer one-click financing to sellers on their platforms.

View round

View 4 competitors »

Homeward raises $50M to improve rural healthcare access

Homeward has raised a $50 million Series B led by Arch Venture Partners and Human Capital. The company provides healthcare services to Americans in rural communities.

View round

View similar company »

Nabr collects $48M for custom housing

Nabr has raised $48 million in equity and debt in a round led by 2150. The direct-to-consumer housing startup's first building of rent-to-own apartments is planned for San Jose.

View round

View similar company »

Arena scoops up $32M Series A

Initialized Capital and Goldcrest Capital have led a $32 million Series A for Arena. The startup seeks to automate business decisions such as pricing, inventory management and manufacturing quality assurance.

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View similar company »

ZayZoon earns $25.5M for on-demand wages

ZayZoon has gathered $25.5 million in funding: $13 million in debt and $12.5 million in equity. Carpae Investments and Alpenglow Capital led the equity portion of the round. The Canadian company partners with US businesses to give employees access to their wages between paydays.

View round

View similar company »

Boisson brings in $12M

Boisson, a nonalcoholic beverage retailer, has raised $12 million in a seed round co-led by Connect Ventures and Blue Scorpion Investments. The funding brings the company's valuation to $47 million.

View round

View similar company »

Don't miss our upcoming webinar

US venture capital has been faced with market challenges in the first half of 2022, but segments of the VC ecosystem like early-stage startups and larger VC firms have stayed resilient and continued to flourish. In this webinar, our speakers will explore the causes behind these disparities and what they anticipate in the market's future, informed by the findings from our latest PitchBook-NVCA Venture Monitor.

Key topics:

Reviewing US venture activity from Q2 2022.
Analyzing the importance of a human capital strategy with Insperity.
Discussing developments in the venture ecosystem with J.P. Morgan.

Register now to secure your spot.

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Fundraising

VMG Catalyst collects $400M for Fund II

VMG Catalyst has closed its second flagship fund on $400 million. The firm, which launched in 2019, has now raised $650 million across its two vehicles.

View fund

View 71 investments »

Spur seeks $200M for seventh fund

Spur Capital Partners has raised nearly $74 million for its seventh core fund, TechCrunch reported. The firm, which has a target of $200 million for the new vehicle, invests in venture capital funds.

View fund

View 3 investments »

L'Attitude wraps up $100M+

L'Attitude Ventures has closed its debut institutional fund on more than $100 million. The firm invests in early-stage companies with Latino founders.

View fund

View 26 investments »

Ulta Beauty launches Prisma Ventures

Beauty products retailer Ulta Beauty has launched Prisma Ventures, a $20 million fund that will invest in early-stage emerging tech startups. The fund will target four areas: personalized and data-driven technology; AR, VR and the metaverse; technology-powered custom beauty products and in-store services; and social commerce.

View details

View 5 investments »

Chart of the Day

Source: PitchBook's Q2 2022 US PE Breakdown

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PitchBook News - Fintech investment simmers down

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