The price of being a serial entrepreneur

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The Daily Pitch: VC

September 13, 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:

How serial founders pay a price for their smoother path to capital.

The momentum that propelled female-founded startups to their best-ever year in 2021 is fading.

How EQT's growth arm is seeking to help close the growth-stage funding gap in Europe.

Today's Top Stories

The price of being a serial entrepreneur

Besieged with pitch decks and fundraising requests, VCs seek to mitigate risk as much and as quickly as possible. Particularly in a challenging market, they have long favored experienced founders when choosing which investments to make.

Serial entrepreneurs outpace their unproven counterparts in nearly all aspects of startup funding. They raise more money with less time between rounds, receive higher valuations and command larger valuation step-ups, and these gaps don't close later in the venture lifecycle—they widen.

But serial founders also pay a price for their smoother path to capital, according to our recent analyst note, as they often give away more equity than novice entrepreneurs.

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Female founders' fundraising continues to slow down

PitchBook's Female Founders Dashboard shows that startups with female founders have raised less capital and completed fewer deals in 2022 than they had by this time in 2021.

The momentum that propelled female founders to their best ever year in 2021 is fading quickly, as deal activity is on pace for three consecutive quarters of declines.

So far this year, female founders have raised a total of $28.7 billion across 2,496 deals. While that activity lags behind the highs seen last year, 2022 is still on track to be the second-best year on record.

Software companies remain the strongest drivers of growth in Q3 2022, with startups in the industry raising $1.4 billion over 143 deals so far.

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A message from Twin Brook Capital Partners

Consistency of approach is key for credit managers

Twin Brook Founder and Managing Partner Trevor Clark recently sat down with Private Debt Investor for a discussion about the state of the private debt market and the impact of the ever-evolving macroeconomic environment.

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A tale of two markets: UK & Ireland sees strong VC activity as PE falters in H1

Venture capital activity in the UK and Ireland defied expectations in H1 2022 despite the economic downturn, while private equity dealmaking flattened.

In our 2022 UK & Ireland Private Capital Breakdown, we delve into the numbers behind the region's PE and VC markets, providing insight into dealmaking, exits and fundraising. Key takeaways include:

VC deal activity in 2022 is on track to match last year's record numbers, with £15.4 billion invested across 1,879 deals in H1.

PE deal count and value failed to reach 2021's halfway mark in the first six months of the year, registering 762 deals worth £75.6 billion.

Exit volume for PE-backed companies is pacing higher than last year as the VC exit market returns to pre-2021 levels.

Fundraising activity in both private markets fell slightly as conditions become more challenging.

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EQT raises $2.4B for maiden European growth fund

(T. Schneider/Shutterstock)

EQT's growth capital arm has secured more than $2.4 billion in total commitments for its first dedicated fund, which seeks to scale European and Israeli companies.

Europe still suffers from a relative lack of growth capital, despite significant increases in funding across its venture ecosystem, but the strategy appears to be gaining traction among domestic investors.

Recommended Reads

Wall Street firms are recovering lost ground in the talent war as layoffs and hiring freezes spread through Silicon Valley. [Financial Times]

The business of private credit isn't slowing down—at least for the largest asset managers. [Institutional Investor]

The scientists trying to unravel the mystery of why some people appear to be immune to the coronavirus. [Wired]

Since yesterday, the PitchBook Platform added:

36

VC valuations

1890

People

570

Companies

17

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2020 Vintage Global Real Assets Funds
	VC Deals
	Indoor farming startup Gotham Greens lands $310M
	Nimbus Therapeutics secures $125M
	Forge Biologics brings in $90M
	Pretzel Therapeutics raises $72.5M
	Primus Capital leads $40M round for PurpleLab
	Lumafield secures $35M Series B
	Exits & IPOs
	Bolt abandons $1.5B deal to buy crypto startup Wyre

The Daily Benchmark

2020 Vintage Global Real Assets Funds

Median IRR

17.30%

Top Quartile IRR

30.88%

1.08x

Median TVPI

Select top performers

HitecVision Private Equity VIII

Five Point Energy Fund III

DIF Infrastructure VI

*IRR: net of fees

29 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Indoor farming startup Gotham Greens lands $310M

Gotham Greens has raised a $310 million Series E co-led by Ares Management and BMO Impact Investment Fund. Based in New York, the company produces greenhouse-grown vegetables, herbs and more.

View round

View 6 competitors »

Nimbus Therapeutics secures $125M

Nimbus Therapeutics has raised $125 million from investors including Bain Capital Life Sciences and SV Health Investors. Based in the Boston area, the drug discovery company develops small molecule medicines.

View round

View 52 competitors »

Forge Biologics brings in $90M

Forge Biologics has raised $90 million in a Series C co-led by Drive Capital and Aisling Capital. Based in Ohio, the company provides a gene therapy contract manufacturing platform.

View round

View similar company »

Pretzel Therapeutics raises $72.5M

Pretzel Therapeutics has raised a $72.5 million Series A led by Arch Venture Partners and Mubadala. Based in the Boston area, the company is developing therapies for illnesses related to mitochondrial dysfunction, such as Alzheimer's disease and Parkinson's disease.

Primus Capital leads $40M round for PurpleLab

PurpleLab, the developer of a data and analytics platform for healthcare providers, has raised a $40 million Series B led by Primus Capital. Edison Partners also participated in the funding.

View round

View 23 competitors »

Lumafield secures $35M Series B

Lumafield has raised $35 million in a round led by Spark Capital, TechCrunch reported. The company offers a platform for engineers and designers to create 3D reconstructions of products.

View round

View similar company »

PitchBook webinar: H1 European private market update

Join PitchBook Sept. 14 for a webinar examining the progress of Europe's private capital markets for the first half of 2022. Our analysts will discuss notable deals and fundraising activity, along with what could be on the horizon for the landscape in the remainder of 2022. Key topics include:

European VC and PE dealmaking between portfolio companies and investors in H1 2022.
The exit market for PE- and VC-backed companies and investors.
The fundraising landscape for GPs and LPs.

Register now to secure your spot.

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Exits & IPOs

Bolt abandons $1.5B deal to buy crypto startup Wyre

Payments company Bolt Financial and cryptocurrency infrastructure provider Wyre Payments have decided to scrap a $1.5 billion merger plan announced in April. Wyre is backed by investors including Draper Associates and Boost VC.

View details

View 52 competitors »

Chart of the Day

Source: Q2 2022 PitchBook-NVCA Venture Monitor

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The price of being a serial entrepreneur

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