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The Daily Pitch: VC

August 17, 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 new market map explores the evolving landscape for fintech companies that specialize in digital payments.

PitchBook analysts examine emerging applications for hydrogen fuel cells in sectors like trucking, aerospace and warehousing.

Our analysts assess their predictions for US venture capital in 2022.

Today's Top Stories

Market Map: Fintech payment startups hold their own in uncertain times

(PCH-Vector/Getty Images)

The increasing digitalization of financial services has benefited fintech startups over the last few years, with the pandemic speeding up this trend. The payments segment, in particular, has seen rapid change, leading to the rise of venture-backed startups selling corporate credit cards, payroll software and checkout services.

Explore our fintech market map to see where investors are putting their money.

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Emerging opportunities bring hydrogen fuel cells back to the stage

Hydrogen fuel cell technology, once viewed as the future of green cars, has fallen by the wayside as lithium-ion batteries have gained traction as the primary means of powering electric vehicles. While many larger corporate and state players have made substantial investments in the space, VC activity has remained limited compared with investment into battery-powered mobility solutions.

Our latest Emerging Tech Research analyst note tracks recent VC deal activity in the hydrogen EV subsegment and explores emerging applications in trucking, aerospace, warehousing and marine vessels, sectors wherein the climate-friendly fuel has the potential to outperform its gas and electric peers.

read it now

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A message from Allvue Systems

Video: How to streamline management of combined equity and credit portfolios

Despite managing portfolios that include both private equity and private debt investments, many fund managers find their back-office workflows have been segregated by disconnected accounting systems.

In this two-minute demo, Robert Sims, Head of Solutions Engineering, Europe, shows how Allvue can change this. Allvue's credit investment accounting subledger seamlessly integrates with our private equity fund accounting general ledger, helping to streamline operations and reduce risk for diversified firms.

See how Allvue simplifies back-office workflows by giving you:

Operational control over complex assets
Customizable dashboards to easily view detailed position history
Automatically generated subledger entries
Agency support with notice generation

Watch now and see it in action

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Revisiting our 2022 US VC predictions

At the start of the year, PitchBook analysts mapped their projections for the US venture capital market in 2022. Midway through the year, trends are beginning to crystallize, and our recent analyst note updates the scorecard.

Takeaways include:

Roughly 1,173 corporate venture capitalists have made a deal in the US, which bodes well for our prediction of more than 1,500 for the year.

The 10 most active venture ecosystems are on pace to hit our projection of more than 400 deals each.

Macroeconomic forces have undercut our forecast of a year-over-year increase in public listings by VC-backed companies.

read it now

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Middle-market PE firms prepare for a shift

(PM Images/Getty Images)

As the private equity world begins winding down from a torrid year of dealmaking, some sponsors in the middle market have switched into "risk-off" mode.

The public markets' downturn and subsequent volatility, along with rising interest rates and the possibility of a recession, are leading middle-market sponsors to begin changing their approach to dealmaking after 2021's good times. Those factors are creating opportunities to scale platform companies through add-on acquisitions, and buy high-growth businesses held in VC portfolios at lower prices.

Recommended Reads

The head of Maersk's venture client unit is using her perspective as a former founder to improve the experience for startups working with corporations. [Sifted]

Climate tech startups are embracing the public benefit corporation, a formerly niche way of incorporating, as a way of holding themselves accountable. [Protocol]

SPAC market fumbles have touched even the king of SPACs, Chamath Palihapitiya, as two of his blank-check companies file to push back their deadlines to make acquisitions. [Bloomberg]

Since yesterday, the PitchBook Platform added:

44

VC valuations

2675

People

980

Companies

62

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2018 Vintage European VC Funds
	VC Deals
	Biotech startup Orna raises $221M
	Guesty brings home $170M
	Senda Biosciences secures $123M Series C
	Moximed scores $40M in debt and equity
	Modulate rakes in $30M Series A
	Omni launches with $27M in funding
	Talent development startup GrowthSpace picks up $25M
	Arc banks $20M to help startups raise nondilutive funding

The Daily Benchmark

2018 Vintage European VC Funds

Median IRR

42.75%

Top Quartile IRR

51.28%

1.85x

Median TVPI

Select top performers

Forbion Capital Fund IV

HV Holtzbrinck Ventures Fund VII

Capital300 Fund

*IRR: net of fees

9 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Biotech startup Orna raises $221M

Orna Therapeutics has held an initial close of a $221 million Series B, consisting of $121 million at signing and an additional $100 million subject to closing conditions. Investors included Merck, which contributed a reported $100 million and will partner on drug development with the company, which creates medicines using circular RNA.

View round

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Guesty brings home $170M

Guesty has raised $170 million in a round co-led by Apax Digital Funds, MSD Partners and Sixth Street. The company provides property management software for short-term rental companies and hospitality operators such as Airbnb, Booking.com and Vrbo.

View round

View 23 competitors »

Senda Biosciences secures $123M Series C

Senda Biosciences has raised $123 million from investors including Flagship Pioneering, Samsung Life Science Fund and Qatar Investment Authority. Based in the Boston area, the company is a developer of protein-based therapies and drugs for infectious, genetic, metabolic and autoimmune diseases.

View round

View similar company »

Moximed scores $40M in debt and equity

Moximed has raised $40 million in debt and equity financing led by Advent Life Sciences, with support from investors including NEA and Future Fund. The Fremont, Calif.-based company's implantable shock absorber helps patients suffering from knee osteoarthritis.

View round

View 18 competitors »

Modulate rakes in $30M Series A

Modulate has raised $30 million in a round led by Lakestar. Based in the Boston area, the company is the developer of a platform intended to help online game developers reduce toxic behavior online.

View round

View 1 competitors »

Omni launches with $27M in funding

Omni has raised $26.9 million, comprising a $17.5 million Series A led by Redpoint and $9.4 million in seed funding led by First Round. The startup, which announced its launch Tuesday, is the developer of a business intelligence platform.

View round

View similar company »

Talent development startup GrowthSpace picks up $25M

GrowthSpace has raised a $25 million Series B led by Zeev Ventures, with support from M12 and Vertex Ventures. The New York-based company provides a talent development platform with group coaching, mentoring and workshops for corporate employees.

View round

View similar company »

Arc banks $20M to help startups raise nondilutive funding

Arc has raised a $20 million Series A led by Left Lane Capital. Based in the Bay Area, the company's digital banking platform helps software-driven startups access nondilutive and nondebt funding alternatives. NFX, Y Combinator and Clocktower Technology Ventures also participated in the funding.

View round

View similar company »

PitchBook, NVCA and Beyond the Billion join forces for a deep dive into the state of women funders and founders at next year's SXSW.

Vote for their session "Investing in Inclusion: Women Funders and Founders" in SXSW Panel Picker to make sure they take the stage in March. Voting closes Sunday, Aug. 21.

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Chart of the Day

"As round sizes have grown larger, time periods to reach financing stages have remained relatively flat, indicating companies have attracted greater sums of capital in similar time frames to the past decade."

Source: PitchBook's Q2 2022 European VC Valuations Report

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PitchBook News - Payment startups hold their own

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PitchBook VC News:

Foodtech funding falls

Is recession a good time to launch a startup?

VC valuations amid uncertainty

Revisiting 2022 predictions for Europe

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