Global fundraising hits $639B through Q2

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The Daily Pitch: VC

August 18, 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:

Real assets fundraising is on pace to reach a decade-plus high, according to our Q2 Global Private Markets Fundraising Report.

Startups are tapping the debt market to buy themselves more time before embarking on a new equity round.

Equity crowdfunding specialist Seedrs has launched a venture partner program to support European founders.

Today's Top Stories

Rising real assets, declining dry powder and other global fundraising trends

Private fundraising totaled $639 billion in H1, roughly on pace to reach 2021's figure. LPs were largely undeterred from making commitments, as record distributions soothed fears about the private markets seizing up and the chance to capitalize on dipping valuations kept investors coming back to the table.

But what does the latter half of the year hold? Our Q2 2022 Global Private Markets Fundraising Report (formerly known as the Global Private Fund Strategies Report) follows the flow of capital, tracking the ups and downs of different strategies. The report, sponsored by Altvia, also includes a spotlight on the state of dry powder. Among the takeaways:

PE fundraising grew 46% in Q2 from Q1 to top $137 billion, but the slow exit environment is reducing capital flow back to LPs, potentially hindering future commitments.

The uncertain exit landscape, coupled with portfolio markdowns, is also putting pressure on VC fund returns, which may slow new fundraising through the rest of the year.

Real assets surpassed $44 billion in Q2, a slight dip from Q1, but 2022 remains on pace to overtake not only 2021's record, but potentially annual totals going back to 2008.

Dry powder looks to be on the decline, falling 13% from 2020's high to a total of $3.2 trillion as of June 30, with the trend felt more sharply in private equity.

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Venture lending flourishes amid VC funding pullback

(Watchara Ritjan/Shutterstock)

Once a placid backwater in the startup funding world, venture lending has received more attention in recent quarters as pre-profitable companies resort to debt and other alternatives to stretch their liquidity runways before they gain access to the next equity round.

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How Bill Gates quietly lobbied to save Biden's climate bill. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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644

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Quick Takes

	The Daily Benchmark
	2020 Vintage North American PE Funds
	VC Deals
	DriveNets picks up $262M
	General Atlantic leads $150M Series D for HiBob
	VidMob collects $110M
	ThreatX secures $30M
	Fundraising
	CoinFund launches $300M vehicle
	Shima secures $200M for debut fund
	Stage 2 raises $150M for Fund III

The Daily Benchmark

2020 Vintage North American PE Funds

Median IRR

29.13%

Top Quartile IRR

49.58%

1.20x

Median TVPI

Select top performers

Dyal Capital Partners V

Wellington Hadley Harbor Partners III

Clearlake Capital Partners VI

*IRR: net of fees

84 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

DriveNets picks up $262M

DriveNets has raised a $262 million Series C led by D2 Investments. The Israeli company's cloud-native software enables telecom providers to build virtual networks that run on cheaper, shared infrastructure.

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View 75 competitors »

General Atlantic leads $150M Series D for HiBob

HiBob has raised $150 million in a round led by General Atlantic. The company provides an HR platform intended to develop and retain talent. Bessemer Venture Partners also participated in the funding.

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View 65 competitors »

VidMob collects $110M

VidMob has raised a $110 million Series D led by Shamrock Capital. The New York-based company offers a performance-tracking platform for marketers.

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View 15 competitors »

ThreatX secures $30M

ThreatX has raised a $30 million Series B led by Harbert Growth Partners. Based in Boston, the company is the developer of an API protection platform designed to detect and manage attacks in real time.

View round

View 91 competitors »

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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Fundraising

CoinFund launches $300M vehicle

CoinFund, a Web3- and crypto-focused firm, has launched Ventures I with a target of $300 million. The early-stage fund will seek investments in blockchain.

View fund

View 85 investments »

Shima secures $200M for debut fund

Shima Capital has launched its first flagship fund and raised $200 million. The firm invests in blockchain startups at the pre-seed and seed stages.

View fund

View 183 investments »

Stage 2 raises $150M for Fund III

Stage 2 Capital has secured $150 million for its third flagship fund. The vehicle will focus on early-stage B2B software and marketplace investments, helping founders with their go-to-market strategies.

View fund

View 28 investments »

Chart of the Day

"While these $5 billion+ funds often count on the largest pensions, endowments, and foundations for the bulk of their capital, many allocators are already maxing out their ability to write nine- to ten-figure checks. With so many gargantuan vehicles in the market and a slowing exit environment reducing capital flow back to LPs, it could become more difficult for GPs to find LPs willing to commit large amounts of capital with ease, or close mega-funds or raise funds as smoothly or as quickly as they used to."

Source: PitchBook's Q2 2022 US PE Breakdown

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