PitchBook News - VC looks ahead to brighter days

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The Daily Pitch: VC

August 29, 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 Quantitative Perspectives Report explores reasons for optimism in the US venture capital market.

Private equity dealmakers have found
take-private opportunities in the tech sector.

Leveraged loan issuers saw their earnings grow in Q2 despite fears of a recession.

Today's Top Stories

Despite exit headwinds, VC looks ahead to brighter days

The VC storyline this year has been a sea change from the record-shattering figures of 2021. Market volatility and falling valuations have altered the dealmaking and exit landscapes, and the future has, at times, seemed bleak.

Yet there are reasons for optimism, as public market performance has begun to stabilize and dealmaking carries on, according to our latest Quantitative Perspectives Report, which features more than 30 charts on VC deals, exits, valuations and more. Takeaways include:

Valuation multiples for recently public VC-backed companies have dropped sharply, as VC-backed listings had much further to fall than the broader market.

Although rising interest rates and market declines tend to reduce activity, VC dealmaking has remained above long-term trends across all stages and sectors.

Dealmaking has swung in favor of investors, and GPs are poised to capitalize on valuation declines amid a lively fundraising environment and a sharp increase in startups' demand for capital.

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Take-private dealmakers scoop up software targets at deep discounts

(STOP_WAR/Shutterstock)

Dealmakers are buying public companies at bargain prices following stock market declines earlier this year.

The turmoil has made deal targets for take-private transactions less expensive than a year ago, allowing PE firms and corporate acquirers to shop for attractive companies whose share prices are in the doldrums.

A flurry of recent deals have been in the technology sector, which has experienced significant valuation pressure in recent quarters.

Recommended Reads

The true value of the crypto market isn't the $3 trillion that its believers suggest, but it's nothing to sneer at, either. [Bloomberg]

To compete and help consumers become comfortable with ordering online, ecommerce retailers offered free returns, leaving themselves with what has become an expensive and tricky problem. [The Economist]

Will remote work make it easier to ship white-collar jobs overseas? [The Washington Post]

Since yesterday, the PitchBook Platform added:

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VC valuations

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People

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Companies

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Quick Takes

	The Daily Benchmark
	2018 Vintage Global Real Assets Funds
	VC Deals
	Seoul-based Tridge hits $2.7B valuation
	Thoma Bravo leads $130M Series D for Alma
	FourKites raises $30M
	Pogo banks $14M+

The Daily Benchmark

2018 Vintage Global Real Assets Funds

Median IRR

7.67%

Top Quartile IRR

18.04%

1.15x

Median TVPI

Select top performers

Hastings Equity Partners II

Intervale Capital Fund

EQT Infrastructure I

*IRR: net of fees

27 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Seoul-based Tridge hits $2.7B valuation

Tridge has raised a $37 million Series D led by DS Asset Management. The funding values the company at $2.7 billion. Tridge's agtech platform connects farmers and buyers directly, eliminating the need for intermediaries.

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Thoma Bravo leads $130M Series D for Alma

Alma has raised $130 million in a round led by Thoma Bravo, with support from investors including Cigna Ventures, Insight Partners and Optum Ventures. Alma's platform helps mental health care providers accept insurance and manage billing, scheduling, continuing education and more.

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View 20 competitors »

FourKites raises $30M

FourKites has raised $30 million as part of an $80 million target raise, TechCrunch reported. Based in Chicago, the company offers a supply chain visibility platform used by brands including Coca-Cola, Walmart and Dow.

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View 64 competitors »

Pogo banks $14M+

Pogo has raised $14.8 million, comprising a $2.5 million pre-seed round and a $12.3 million seed round led by Josh Buckley. The New York-based company's rewards app offers bank fee refunds, prescription savings, personalized shopping offers and more.

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View similar company »

Corrections

Wednesday's newsletter misrepresented cybersecurity dealmaking in 2022. As of Aug. 18, the sector has seen $34.9 billion in activity, compared to $36.4 billion total in 2021.

Chart of the Day

Source: PitchBook's Q2 2022 US PE Breakdown

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PitchBook News - VC looks ahead to brighter days

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