PitchBook News - VC keeps space-tech funding aloft

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The Daily Pitch: VC

October 26, 2022

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

Our Q3 2022 European PE Breakdown explores how the industry is faring amid a new normal.

VC funding for space tech shows no signs of slowing down as startups raise more than $6 billion this year.

Today's Top Stories

Space tech aims for the stars with VC's continued funding

(Toria/Shutterstock)

Space tech is on track for another record year of venture investments as a ballooning number of startups—with offerings such as commercial space launch services, geospatial intelligence and satellite communications—drive commercial opportunities across the space industry.

So far in 2022, VC funding for global space-tech companies has reached $6.2 billion across 112 deals, roughly on par with the record capital raised in 2021.

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European PE dealmaking remains robust in difficult environment

European private equity dealmaking defied myriad economic headwinds in Q3, with deal count up 16.9% compared with the same period a year ago, while aggregate deal value remained flat.

Our Q3 2022 European PE Breakdown explores how the industry is dealing with the new normal of higher interest rates and inflation. Key takeaways include:

Take-privates and carveouts continue to be a major theme for the year due to currency devaluations and lower public market valuations.

Average PE deal sizes have trended upward, reaching €289.1 million in Q3.

Exit activity is expected to fall short of last year's highs.

European fundraising is on pace for its lowest total in a decade.

read the report

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A message from RBC Capital Markets

Will volatility in equity markets drive M&A?

2022 M&A activity has dropped below the highs of 2021, but remains strong compared to pre-pandemic levels. Slower economic growth, geopolitics and company actions to diversify supply chains are key factors feeding a trend toward more domestic M&A activity.

Which sectors are best positioned to capitalize on M&A growth? How is the current financing environment impacting dealmaking? Get the latest insights from RBC's expert bankers on M&A Inflection Points, a limited series podcast.

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What's next for PE in China?

(Jenna O'Malley/PitchBook News)

With the end of China's 20th Communist Party Congress in Beijing, there are signs that a more insular country is emerging—it's a worrying development for private equity, an asset class that thrives on international cooperation.

Chinese leader Xi Jinping used the event to confirm his unprecedented third term. He has used his power to expand state control of the economy and crack down heavily on parts of the country's giant tech sector. He has also, it appears, begun to turn his country inward, emphasizing economic self-reliance and asserting China's national interests on the global stage.

At the same time, the influence and power of China's private sector has declined. According to reports, significantly fewer executives from private groups were invited to this month's congress compared with previous years.

During this turbulent time, there are signs that PE's love affair with China may be waning. Both deals and fundraising activity have fallen from recent peaks—the country that is the jewel in Asia's PE crown has lost some of its sparkle.

Recommended Reads

Why Chinese President Xi Jinping's economic goals and picks for his new Politburo are worrying foreign investors. [The Economist]

Under SEC rules, SPACs are required to disclose any discussions they had with potential merger partners prior to going public. But what really qualifies as a "substantive" discussion? [The New York Times]

How one startup is using satellites to help farmers sell carbon credits. [Wired]

Since yesterday, the PitchBook Platform added:

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VC valuations

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People

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Quick Takes

	The Daily Benchmark
	2016 Vintage Global Real Estate Funds
	VC Deals
	ConnexPay banks $110M
	Vesttoo reaches unicorn status with $80M round
	RapidSOS lands $75M
	Normunity collects $65M Series A
	WeTravel hauls in $27M
	AgroSpheres raises $22M Series B
	Resonai picks up $20M Series A

The Daily Benchmark

2016 Vintage Global Real Estate Funds

Median IRR

12.66%

Top Quartile IRR

16.17%

1.40x

Median TVPI

Select top performers

Blackstone Edison Managed Partners

Perella Weinberg Real Estate Fund III

Bensell Host US Fund

*IRR: net of fees

69 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

ConnexPay banks $110M

ConnexPay has raised $110 million in a round led by FTV Capital. The company's technology enables businesses to both accept and issue payments on the same platform.

View round

View 44 competitors »

Vesttoo reaches unicorn status with $80M round

Tel Aviv-based Vesttoo has raised an $80 million Series C co-led by Mouro Capital and an unnamed private equity fund. Gramercy Ventures, Black River Ventures and Hanaco Ventures also participated in the round, which valued Vesttoo at $1 billion. The company's platform allows insurers to shift risk to investors.

View details

View 1 competitors »

RapidSOS lands $75M

RapidSOS has raised $75 million in a round led by NightDragon. The company is the developer of an emergency response data platform designed to connect citizens with first responders in real time.

View round

View 8 competitors »

Normunity collects $65M Series A

Normunity has raised $65 million in a round led by Canaan Ventures. The biotechnology company develops immune normalizers for use in cancer treatment.

View round

View similar company »

WeTravel hauls in $27M

Left Lane Capital has led a $27 million Series B for WeTravel. The company's platform helps multiday travel companies manage bookings and accept payments.

View details

View similar company »

AgroSpheres raises $22M Series B

Crop protection business AgroSpheres has raised $22 million in a round led by Lewis & Clark AgriFood and Ospraie Ag Science. Bidra Innovation Ventures and Cavallo Ventures also participated. The company makes products that decrease the harmful effects of pesticides.

View round

View similar company »

Resonai picks up $20M Series A

Resonai has raised $20 million from investors including Meitav-Dash and Blue Square Israel. Based in Tel Aviv, the company's operating system lets building owners access a wide range of applications.

View round

View similar company »

PitchBook webinar: The state of sustainable investing

Join PitchBook to discuss the findings from our 2022 Sustainable Investment Survey. Analysts Hilary Wiek and Annika Villegas will touch on report insights, including the politicization of ESG, the increasing popularity of impact investing and challenges in the sustainable investing ecosystem. Key topics include:

The politicization surrounding ESG in 2021 and 2022 has had far-reaching impacts on investors and service providers with US-based investments, clients and stakeholders.

Investors and advisers seeking to incorporate ESG into their portfolios have varying goals and philosophies, leading to the proliferation of greenwashing allegations.

How the lack of clarity around defining and measuring impact outcomes and difficulty benchmarking nonfinancial goals were both frequently cited among the top challenges of sustainable investing.

Register now to secure your spot.

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Chart of the Day

Source: PitchBook's H1 2022 Global Private Debt Report

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PitchBook News - VC keeps space-tech funding aloft

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