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The Daily Pitch: VC

August 26, 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:

Add-ons are dominating the European buyout market as sponsors build up their current assets to weather the downturn.

VC funding for foodtech companies fell in Q2 amid a broader slowdown in venture activity, according to our Emerging Tech Research.

Today's Top Stories

Foodtech funding falls as VC appetite for dealmaking diminishes

VC funding for the foodtech industry continued to experience a pullback amid macroeconomic headwinds in Q2. Startups around the world raised $5.6 billion across 275 deals—representing quarter-over-quarter drops of 21.5% and 32.8%, respectively.

Our recent Emerging Tech Research update provides a detailed look at the foodtech landscape, exploring industry opportunities like ghost kitchens and molecular ingredients. Takeaways include:

The foodtech sector recorded a rise in exits, particularly acquisitions—as market volatility impacted fundraising for many startups, in turn boosting opportunities for strategic acquirers.

Despite the funding dip, valuations and deal sizes continued to surge to new highs, with pre-money valuations up at every VC stage.

Inflation and shifting consumer spending habits may create a tailwind for ecommerce-focused food suppliers that can minimize delivery and service fees.

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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.

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A message from Ansarada

Ansarada's Indicators data helps make sense of an uncertain market

Ansarada uses hundreds of thousands of anonymized data points to reveal emerging trends across deal types and industries in the new Deal Indicators Report.

Launched this week, the report is based on insights gathered through Ansarada's platform throughout the financial year. By including deals that are active and ongoing, Indicators is able to point to trends an average of 6-12 months before they're announced to the market.

Transactional insights surfaced in Indicators reveal a stabilization of the post-COVID boom, with an 8% decrease QoQ in new M&A deals, and a 25% increase in bankruptcies and insolvencies globally.

Read the full report for more, including capital raising, IPO, targeted acquisitions, impact on deal durations and M&A bidder groups, and in-depth industry breakdowns.

Download the FY23 Deal Indicators Report

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Add-ons dominate European buyout market with B2B leading the charge

(paulaphoto/Shutterstock)

Add-ons have accounted for the largest portion of European buyouts this year, as sponsors look to consolidate positions in certain markets.

While financial services snagged the add-on deal with the largest price tag, B2B and IT have dominated so far this year, accounting for 35.9% and 26.9% of total buyout deal value, respectively.

Recommended Reads

The story of what happened when one private equity firm took over a nursing home. [The New Yorker]

How deadly bacteria spread in a Similac factory—and caused the US formula shortage. [Bloomberg]

More than $100 million worth of NFTs were reported stolen in scams over the past year, underscoring officials' worries that they could present new paths for laundering money. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

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VC valuations

1730

People

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Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2011 Vintage Global Funds-of-Funds
	VC Deals
	Thirdweb hits $160M valuation
	Landing picks up $125M for subscription-based apartments
	Aktis Oncology adds $84 million to Series A
	3T Biosciences launches with $40M Series A
	Goldcast picks up $28M
	Fair Square Medicare banks $15M
	Avenda scoops up $10M for AI-driven cancer treatment
	Headroom collects $9M

The Daily Benchmark

2011 Vintage Global Funds-of-Funds

Median IRR

16.55%

Top Quartile IRR

20.30%

2.08x

Median TVPI

Select top performers

Franklin Park Venture Fund Series 2011

Weathergage Capital Investments A

Venture Investment Associates VII

*IRR: net of fees

56 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Thirdweb hits $160M valuation

Thirdweb has raised a $24 million Series A at a $160 million valuation in a round led by Haun Ventures. The company provides software development tools for building Web3 apps.

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Landing picks up $125M for subscription-based apartments

Landing has raised a $125 million Series C led by Delta-v Capital. The company operates a network of subscription-based apartments across more than 375 cities in the US.

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View 13 competitors »

Aktis Oncology adds $84 million to Series A

Aktis Oncology has gained a $84 million Series A extension from investors including ArrowMark Partners and Cowen Healthcare Investments. Based in the Boston area, the company develops targeted radiopharmaceuticals designed to treat a broad range of solid tumor cancers.

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View 1 competitors »

3T Biosciences launches with $40M Series A

3T Biosciences has raised $40 million in a round led by Westlake Village BioPartners, with participation from Lightspeed. Based in the Bay Area, the company is developing therapies for the treatment of solid tumors and other immune-mediated diseases.

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Goldcast picks up $28M

Goldcast has raised $28 million in a Series A led by WestBridge Capital, with support from Unusual Ventures. Based in the Boston area, the company helps B2B marketers host interactive virtual and hybrid events.

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View similar company »

Fair Square Medicare banks $15M

Fair Square Medicare has raised $15 million in a Series A led by Define Ventures. Based in San Diego, the company helps older adults find health insurance plans.

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View similar company »

Avenda scoops up $10M for AI-driven cancer treatment

California-based Avenda Health has raised a $10 million Series B led by VCapital to further develop its AI-based technology for diagnosing and treating prostate cancer.

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View 3 competitors »

Headroom collects $9M

Equal Opportunity Ventures has led a $9 million investment in Headroom, bringing the company's total funding to $14 million. Headroom offers a virtual meeting platform with AI-generated highlight reels and action items.

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View similar company »

Chart of the Day

Source: PitchBook's Q2 2022 Global Private Markets Fundraising Report

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