PitchBook News - Tracking public fintech valuations

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The Daily Pitch: VC

October 20, 2022

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

PE fundraising is weathering a tough year, and that environment is expected to continue in 2023.

How private valuations for fintech companies might fare, based on the performance of their public counterparts.

Ireland saw rapid growth in PE deal activity over the last five years.

Today's Top Stories

Public fintech valuations remain far off their highs

Many of the recent traditional IPOs and deSPAC transactions have not resulted in as big a payday as expected for late-stage fintech investors, as stocks of fast-growth, low-profit companies in the sector are 60% to 80% off their peak.

Our analysts believe a challenged IPO market with lower valuations means that executing an IPO will be more difficult and valuations will be lower, at least in the short term. The trend could affect the performance of certain growth equity and late-stage VC funds.

Our Fintech Q3 Public Company Valuation Guide tracks stock performance, revenue forecasts and market caps of key publicly traded fintech companies in sectors including payments, insurtech and property tech.

see the data

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Large-scale investors flock to venture debt's 'phenomenal returns'

(eamesBot/Shutterstock)

Venture debt was a small, poorly understood asset class a decade ago.

But as startups have grown, so have their borrowing needs. Large asset managers and private equity firms have been piling into venture debt in recent years, drawn to the asset class's surprisingly lucrative returns and relatively low risk.

However, venture debt's unique characteristics make it difficult for newcomers with traditional credit experience to transition to lending to unprofitable startups.

Recommended Reads

Are private equity firms ditching the leverage in leveraged buyouts? [Bloomberg]

Will the energy crisis crush European industry? [Financial Times]

Why Wellington Management is investing heavily into making itself a viable home for rising alternatives managers. [Institutional Investor]

Since yesterday, the PitchBook Platform added:

61

VC valuations

1953

People

421

Companies

7

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2016 Vintage Global Funds-of-Funds
	VC Deals
	Orionis Biosciences brings home $55M
	PIC Therapeutics raises $35M
	Nourish Ingredients bulks up with $28M+
	Credit Key unlocks $15M for B2B BNPL
	Fundraising
	Vertex Ventures seeks $500M for China-focused fund
	Investors
	Steve and Connie Ballmer back VC, PE firms with Black managers

The Daily Benchmark

2016 Vintage Global Funds-of-Funds

Median IRR

23.55%

Top Quartile IRR

32.48%

1.89x

Median TVPI

Select top performers

Weathergage Capital Investments 2016

SVB Strategic Investors Fund VIII

Fairview Private Markets Fund IV

*IRR: net of fees

39 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Orionis Biosciences brings home $55M

Orionis Biosciences has raised $55 million from investors including Cormorant Asset Management and Novartis. The medtech company will use the funding to advance its lead cancer immunotherapies through clinical trials.

View round

View similar company »

PIC Therapeutics raises $35M

PIC Therapeutics, a drug discovery company developing medicines for cancer treatment, has raised a $35 million Series A led by OrbiMed, with participation from Lumira Ventures and Harrington Discovery Institute, among others.

View round

View similar company »

Nourish Ingredients bulks up with $28M+

Nourish Ingredients has raised a $28.6 million Series A led by Horizons Ventures, TechCrunch reported. The Australian startup uses synthetic biology to develop animal-free fats.

View round

View similar company »

Credit Key unlocks $15M for B2B BNPL

Credit Key, a buy now, pay later specialist targeting B2B companies, has raised $15 million from existing investors RedBird Capital, Bonfire Ventures and Greycroft, Axios reported. The company also secured a $100 million debt facility from Fortress Investment Group.

View round

View 8 competitors »

PitchBook webinar: US leveraged loan market outlook

With rising rates, distress and volatility, the leveraged loan market is currently facing significant instability and wariness from investors. Join our experts from LCD as they explore market trends, CLOs and the potential role of PE in this environment and answer your questions about the future of leveraged loans.

Register now to secure your spot.

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Fundraising

Vertex Ventures seeks $500M for China-focused fund

Vertex Ventures is raising a $500 million vehicle that will target China-based tech companies. The firm is backed by Singapore's sovereign wealth fund Temasek.

View details

View 121 investments »

Investors

Steve and Connie Ballmer back VC, PE firms with Black managers

Former Microsoft CEO Steve Ballmer and his wife, Connie Ballmer, have committed $400 million of personal capital to back Black PE and VC managers, The Wall Street Journal reported. The Ballmers committed $150 million to two new funds-of-funds—managed by Goldman Sachs and GCM Grosvenor—that will back firms with Black owners or managers. They committed another $250 million to Black-founded asset managers Ariel Investments and Fairview Capital.

View details

View 2 investments »

Chart of the Day

Source: PitchBook's Q2 2022 US PE Middle Market Report

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PitchBook News - Tracking public fintech valuations

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