PitchBook News - Christmas for climate tech

Plus: VC's rise and retreat in Latin America, PE fundraising for Asia cools, are CVCs pulling back? & more
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Weekend Pitch
August 7, 2022
Presented by ATLAS
(Jenna O'Malley/PitchBook News)
When tech investor Abe Yokell heard about the $369 billion bill to fund climate investment in the US, he almost fell out of his seat.

Yokell, a managing partner at Congruent Ventures, wasn't alone. Climate tech investors and advocates were shocked by the agreement between Senators Joe Manchin and Chuck Schumer that, if passed, would be the largest investment in decarbonization the US has ever made.

Just weeks ago, the Democrats' push to fund climate initiatives seemed dead. Now, with Arizona Senator Kyrsten Sinema's support, the bill appears poised to pass.

If it does make it all the way to President Biden's desk, the package will supercharge an already strong environment for climate tech investment. US VC funding for climate tech has been on a tear in recent years, topping $16 billion in 2021, more than double the prior year, according to PitchBook data. And leading private equity firms from TPG to Brookfield Asset Management have raised billions to finance green projects.

"The Inflation Reduction Act is probably a bigger deal for our actual climate than it is for the climate tech community. But it's still a very big deal for the investing community," Yokell said.

This is the Weekend Pitch, and I'm James Thorne. You can reach me on Twitter @jamescthorne or by email at james.thorne@pitchbook.com.

Investors say the bill will reduce the green premium on pricey technologies, speed up the network effect of electric vehicles and renewable electricity, and provide capital that goes where VCs won't. In short, it's Christmas for climate tech.

Here's what three VCs have to say about the bill.
Share: Email LinkedIn Twitter Facebook
 
A message from ATLAS  
Simplify cross-border investments, mergers and acquisitions
When investment activity requires rapid entry into new markets, it can be complicated, drawn-out and costly. Deals are bound by strict timelines, but how quickly and compliantly can you establish presence in new international locations if you lack the time and resources to set up a legal entity? Can your portfolio companies flexibly expand into new countries without significant fixed costs and HR admin headaches?

An Employer of Record can accelerate cross-border deals by:
  • Supporting speedy market expansion through its own local entities
  • Minimizing compliance risk through knowledge of local tax and labor laws
  • Managing traditional HR and payroll administration
Learn how to accelerate your cross-border investments.
Share: Email LinkedIn Twitter Facebook
 
 

Quote/Unquote

"Everybody's hurting, so of course CVCs are pulling back, but they are behaving more similarly to their institutional peers than ever before. A few will quietly 'press the pause button,' but they are not abandoning ship like they did in previous downturns."

—Touchdown Ventures President Scott Lenet, on whether corporate venture capitalists will slow investments amid a downturn in global markets.
 

Deal flow

São Paulo (Caio Pederneiras/Shutterstock)
SoftBank is a notable example of a retreat among investors that last year pushed startup investment in Latin America to new highs. Since 2019, the Japanese firm was involved in more than a third of LatAm VC deals by value and was a lead investor in 15% of them, according to PitchBook data.

VC investment in the region fell to $2.04 billion in Q2 2022, a 71% decline from a quarterly high of $7.12 billion in Q3 2021. SoftBank participated in LatAm VC deals worth $1.57 billion in the first half of 2022, down from $4.31 billion in the preceding two quarters.
 

Did you know ...

(MirageC/Getty Images)
… In the first half of 2022, 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.
 

Datapoints

Rolling one-year IRRs through Q4 2021 were robust, though lower than in prior quarters due to macroeconomic headwinds, according to our latest Global Fund Performance Report, which includes preliminary 2022 figures.

One-year returns for PE funds leveled off at 46.6% as of Q4 2021, illustrating the impact of inflation, rising interest rates and other global factors. VC registered a 50.5% return in the year through Q4 2021.
Ads
 

Recommended reads

The best road trips in the US may be off the map for most electric cars. [Bloomberg]

How Tesla lost the race for affordable EVs to an unexpected rival. [Forbes]

A terrorist's Afghan hideout has chilled efforts to free up $3.5 billion in humanitarian aid. [Bloomberg]

These veterans have found a post-service mission: beekeeping. [Texas Monthly]

Throwing things, bugs and pointing—the secret to a great founders photo. [Sifted]

This edition of The Weekend Pitch was written by James Thorne and Ryan Prete. It was edited by Chris Noble and John Moore.

Were you forwarded The Weekend Pitch? Sign up at pitchbook.com/subscribe.
 
Since yesterday, the PitchBook Platform added:
7
VC valuations
184
People
34
Companies
See what our data software can do
 
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.

Older messages

Our VC predictions: revisited

Saturday, August 6, 2022

Also: Fintech investment slows; Global fund performance may revert to normal levels; Markets rebound in July; Revisiting our European PE & VC outlooks Read online | Don't want to receive these

Fund performance holds strong

Friday, August 5, 2022

Europe's most active VC healthtech investors; Afresh bags $115M; Plastiq to go public via SPAC; Ghost raises $15M Read online | Don't want to receive these emails? Manage your subscription. Log

Fintech investment simmers down

Thursday, August 4, 2022

Take our term sheet quiz; Parafin picks up $60M; Ulta Beauty launches tech fund; Nabr lands $48M for custom housing Read online | Don't want to receive these emails? Manage your subscription. Log

Revisiting our 2022 US VC predictions

Wednesday, August 3, 2022

Unicorn formation slows to a crawl; crypto firm emerges from stealth; Terabase grabs $44M; fish-skin therapeutics specialist nets $100M Read online | Don't want to receive these emails? Manage your

Global markets bounce back

Tuesday, August 2, 2022

SoftBank led LatAm's rise, and retreat; Redpoint raises $650M early-stage fund; Aurora lands $10M for clean hydrogen; Smarter Sorting collects $7M Read online | Don't want to receive these

FTSE hits record high

Monday, February 6, 2023

US jobs market surprises ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

3x increase in free trial & paying customers

Monday, February 6, 2023

Today's hack How Vero managed to achieve 3x increase in free trial & paying customers without acquiring new users... Vero used email marketing the same way as the majority uses it (=

India plays a slick passing game

Monday, February 6, 2023

Also in today's edition: Dominoes fall for Adani; WazirX decouples from Binance; The mystery of Balloongate; Disney's artistic licence ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Learn Notion in 2 hrs

Sunday, February 5, 2023

Learning Notion can be simple! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Software Spend is Still Growing; Plus the Top News and Content of the Week

Sunday, February 5, 2023

Overall IT spend is down but software spend is rising To view this email as a web page, click here Hey SaaStr Community, So the latest data from Gartner is out, and overall it's a mixed bag — but

Marketing Weekly #113

Sunday, February 5, 2023

Write a Blog? The 2 Best Tricks to Climb SEO Rankings • 3 Copywriting Ideas I Use to Transform a Boring Deal Pitch into One that Sells • Is This the Right Client for Me? • Is It Time to Fire Your Ad

The Profile: The CEO spending $2M to reverse his age & the unknown hedge fund that got $400M from SBF

Sunday, February 5, 2023

This edition of The Profile features Bryan Johnson, Modulo Capital, and more. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Sunday Thinking

Sunday, February 5, 2023

“Don't ask what the world needs. Ask what makes you come alive, and go do it. Because what the world needs is people who have come alive.” ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

VCs decide startups' fates

Sunday, February 5, 2023

Plus: Information security takes a hit, private debt gets comfy at the top of the charts, checking in on leveraged loans & more Read online | Don't want to receive these emails? Manage your

Brain Food: Growing Old

Sunday, February 5, 2023

To win, you have to avoid losing. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌