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The Daily Pitch: VC

December 7, 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 debut ecommerce report breaks down the market and examines the trends, opportunities and risks in Q3.

After months of going quiet, the secondary market is starting to show signs of life.

Chart of the Day: Private capital fundraising by manager experience, from our Global Private Markets Fundraising Report.

Today's Top Stories

Ecommerce VC market finds its footing after 2021 funding spike

The surge in online shopping through the pandemic was followed by a boost in VC funding for ecommerce specialists. While that extra lift has waned, the market has displayed strength through 2022, with $20 billion raised for an increase of 44.5% from 2020. When excluding 2021's sky-high numbers, this is in line with previous year-over-year increases, despite high inflation and supply chain obstacles.

VC funding has been weighted toward late-stage deals in recent years. Nearly 79% of 2022 deal value has fallen into that category, reflecting the maturity of the ecommerce ecosystem. At the same time, the number of deals has been more evenly distributed among deal stages, showing how investors continue to support emerging technologies, including VR and AR shopping and livestream commerce.

Our inaugural Emerging Tech Research report on the ecommerce VC market examines five segments and their various trends, opportunities and risks in Q3. These segments define startups that facilitate different steps in the sales process, from prepurchase to postpurchase, along with startups that span all categories.

read the report

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Secondary trading picks up as market settles into discount mentality

Stripe co-founder and CEO Patrick Collison
(Matt Winkelmeyer/Getty Images)

Secondary market trading of late-stage startups was mostly frozen in Q2 and Q3 2022. But over the last couple of months, buyers and sellers have begun to agree on deals at significant discounts to 2021 valuations.

Buyers, which now include sovereign wealth funds and traditional venture firms, are seeing opportunities to invest in strong companies at a large discount. Meanwhile, sellers have accepted that 2021 prices are not coming back anytime soon.

While low by historical standards, secondary market activity should increase next year as more founders, employees and early backers will look to get liquidity in companies that had been planning IPOs for 2022 and early 2023.

Recommended Reads

PepsiCo is well known for pumping out fizzy drinks and household snacks, but the company has another, more inconspicuous product: CEOs. [Fortune]

Researchers have developed what they hope is a one-and-done gene therapy for patients with severe hemophilia B. The price tag? $3.5 million. [Wired]

How upgrading small businesses' tech could reinvigorate supply chain resilience. [Harvard Business Review]

Since yesterday, the PitchBook Platform added:

14

VC valuations

2172

People

540

Companies

25

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2018 Vintage Global PE Funds
	A message from Stout
	Asset management industry spotlight: Valuation, dealmaking & market trends
	People
	A16z taps former CFTC commissioner
	VC Deals
	Fanatics reaches $31B valuation
	GameOn scores $35M for chat platform
	NeuReality lands $35M
	Omny raises $17M
	MetalSoft collects $16M
	Carputty nabs $12M+
	RepAir captures $10M round
	Fundraising
	Avalon wraps up $135M for biotech startups

The Daily Benchmark

2018 Vintage Global PE Funds

Median IRR

25.11%

Top Quartile IRR

42.35%

1.49x

Median TVPI

Select top performers

SSC Partners I

Creation Investments Social Ventures Fund IV

Tyree & D'Angelo Partners Fund II

*IRR: net of fees

154 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Stout

Asset management industry spotlight: Valuation, dealmaking & market trends

Asset managers are currently navigating financial market volatility, inflation and economic uncertainty, and geopolitical tensions. As a result, asset management firms face challenges in delivering returns for their investors, resulting in tightening margins for the asset management companies.

At the same time, dealmaking innovation in the sector continues to evolve with a variety of M&A deals, PIPE transactions, and GP stakes investments. Similarly, more sophisticated valuation approaches are recommended for asset management firms to accurately capture the drivers of value. This report provides an overview of asset management firm valuations and covers the latest market trends and capital market transactions.

Download the report now

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People

A16z taps former CFTC commissioner

Andreessen Horowitz has appointed Brian Quintenz as its new head of policy for crypto. Quintenz previously served as the commissioner of the Commodity Futures Trading Commission under Presidents Obama and Trump.

View details

VC Deals

Fanatics reaches $31B valuation

Licensed sportswear maker Fanatics has raised a $700 million round, valuing the company at $31 billion, The Wall Street Journal reported. Clearlake Capital led the round and was joined by LionTree. Previous investors including SoftBank, Silver Lake and Fidelity Management & Research also participated.

View details

View 2 competitors »

GameOn scores $35M for chat platform

Conversational chatbot maker GameOn has secured a $35 million Series B co-led by Mirae Asset Venture Investment, Mighty Capital and B3 Capital.

View details

View 1 competitors »

NeuReality lands $35M

AI inferencing chip startup NeuReality has raised a $35 million Series A led by Samsung Ventures, Cardumen Capital, Varana Capital, OurCrowd and XT Hi-Tech.

View round

View similar company »

Omny raises $17M

Healthcare data startup Omny Health has raised a $17 million Series B led by Chicago Pacific Founders.

View details

View 3 competitors »

MetalSoft collects $16M

Automation software startup MetalSoft has closed a $16 million Series A. DNS Capital led the round for the Chicago-based company, which offers software used in data centers.

View details

View 71 investments »

Carputty nabs $12M+

Carputty, a fintech company specializing in auto loans, has raised a $12.3 million Series A led by Fontinalis Partners and TTV Capital.

View details

View 2 competitors »

RepAir captures $10M round

Direct air carbon capture startup RepAir has raised a $10 million Series A led by Extantia and Shell Ventures.

View round

View similar company »

Fundraising

Avalon wraps up $135M for biotech startups

California-based venture capital firm Avalon BioVentures has closed its first venture vehicle, which will specifically target early-stage biotech startups, on $135 million.

View fund

View 3 investments »

Chart of the Day

Source: PitchBook's Q3 2022 Global Private Market Fundraising Report

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PitchBook News - Ecommerce VC market finds its footing

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