PitchBook News - US VC trudges through Q3

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The Daily Pitch: VC

October 6, 2022

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In today's Daily Pitch, you'll find:

A first look at the data from our upcoming PitchBook-NVCA Venture Monitor.

The pandemic and cyberthreats have forced many local governments into the digital age, providing plentiful opportunities for govtech startups.

The combined valuation of unicorns created in Q3 2022 was the lowest since the early pandemic era.

Today's Top Stories

US venture market trudges through Q3

The dust has yet to settle on the VC market's swift decline, with US VC deal count continuing to trend downward for the second quarter in a row, despite remaining high on a historical basis. Deal value hit a nine-quarter low in Q3, with only $43 billion invested in VC deals across all stages.

Exit activity also remained lethargic, to say the least, despite the announced $20 billion acquisition of Figma by Adobe. Just $14 billion in exit value was generated in Q3, the lowest total since Q4 2016, according to a first look at the data from our upcoming PitchBook-NVCA Venture Monitor.

The full report, sponsored by Insperity and J.P. Morgan, will be released next week.

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Unicorn formation falls to lowest quarterly total since early in pandemic

The PitchBook Unicorn Tracker shows that the formation of billion-dollar VC-backed companies continues to remain depressed.

Only 10 new unicorns were created last month, for a total of 35 minted throughout the quarter, the lowest quarterly total since Q2 2020. The combined valuation for unicorns created in Q3 2022 was the lowest total since Q1 2020 at $57.1 billion.

Some notable rounds in September included power generator manufacturer Mainspring's $290 million Series E at a $1 billion valuation, according to PitchBook data. The parent company of Swiss crypto startup 21Shares raised $25 million at a valuation of around $2 billion, in a round led by London-based hedge fund Marshall Wace.

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A message from Ansarada

Ansarada has made access to its Deals™ platform free for advisors

Access to Ansarada's Deals™ platform is now free for investment banks, M&A advisory, law practitioners, accountancy firms, and financial sponsors until the first guest user logs in.

Ansarada is on a mission to protect dealmakers, because the current macro environment has advisors and their clients worried.

Inflationary pressures, rising interest rates, geopolitical unrest, stock market dives, and fears of an impending recession are bringing uncertainty and added risk to M&A and other transactions.

Ansarada has removed risk by making its Data Rooms free for deal advisors, who only pay if their deal moves forward.

Now, advisors can open their Data Rooms for free and start preparing for their deal immediately—long before they need to sign a contract.

Get started with an instant online quote

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Govtech startups reimagine software for a post-pandemic future

(jabiru/Shutterstock)

Digital transformation by local governments has led to new opportunities for govtech startups creating SaaS tools that engage communities, schedule virtual town hall meetings, mitigate ransomware attacks and more.

Here's a closer look at notable govtech deals since the beginning of 2020.

Recommended Reads

One writer's thoughts on why asset managers may regret becoming the new banks. [Financial Times]

A new report from Credit Suisse paints a dramatic picture of the future of the climate economy. [The Atlantic]

How small businesses are getting squeezed out in the push for warehouse space. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

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Quick Takes

	The Daily Benchmark
	2016 Vintage Global VC Funds
	A Message from Moss Adams
	How tech is adapting to ongoing turmoil across economies and markets
	VC Deals
	Mvmnt picks up $20M in a16z-led round
	EcoCart brings in $14.5M
	Qunnect raises $8M Series A
	Halp nabs $4M seed round
	Investors
	Amazon to invest $150M in underrepresented entrepreneurs

The Daily Benchmark

2016 Vintage Global VC Funds

Median IRR

33.10%

Top Quartile IRR

40.36%

2.47x

Median TVPI

Select top performers

Medicxi Ventures 1

Red Dot Capital Partners

USV 2016

*IRR: net of fees

71 Funds in Benchmark »

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A Message from Moss Adams

How tech is adapting to ongoing turmoil across economies and markets

Markets are in turmoil, with some of the hottest tech stocks from 2021 seeing significant declines, while stock indices overall continue to experience significant volatility. Dealmaking reached record highs in the 2010s; by midyear 2022 the volume hasn't abated but is facing some headwinds.

Read more here

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VC Deals

Mvmnt picks up $20M in a16z-led round

Mvmnt, a developer of freight management software for enterprise customers, has raised a $20 million Series A led by Andreessen Horowitz.

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EcoCart brings in $14.5M

EcoCart has raised a $14.5 million Series A led by Fifth Wall Climate, TechCrunch reported. The company is a developer of built-in ecommerce infrastructure intended to help online buyers purchase sustainably.

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Qunnect raises $8M Series A

Qunnect has raised $8 million in a round led by Airbus Ventures. The New York-based company is a developer of hardware intended to scale quantum-secure networks.

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Halp nabs $4M seed round

Halp has raised $4 million in a round led by Lerer Hippeau and Serena Ventures. The company is the developer of a digital coaching platform intended to help international students apply to universities and qualify for scholarships.

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View 3 competitors »

PitchBook webinar: Best practices for cash flow forecasting

Don't miss our webinar on the best practices for cash flow forecasting.

We'll discuss the best strategies that allocators and private market investment advisers can use to manage alternatives portfolios. Our analysts will touch on best practices for setting commitment schedules and thinking about liquidity needs due to uncalled commitments. Key takeaways include:

Hear about cash-tiering strategies for uncalled commitments from PitchBook analyst and former LP Hilary Wiek.
Learn how our analysts approach commitment pacing challenges by focusing on data and patience.
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Investors

Amazon to invest $150M in underrepresented entrepreneurs

Amazon plans to invest $150 million across venture capital funds, accelerators, incubators and venture studios to support entrepreneurs from underrepresented backgrounds. The company expects to support over 200 startups through 2023.

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View 219 investments »