1. Home
  2. Discover
  3. Business
  4. PitchBook News

PitchBook News - Mapping the retail fintech market

VC pipes record funding into hydrogen; global markets mixed amid uncertainty; August Bioservices rakes in $65M; Lumen lands $62M
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Daily Pitch: VC
December 2, 2022
The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data
Ads
In today's Daily Pitch, you'll find:
  • Joining our Emerging Tech Research coverage is a new report on retail fintech—a sluggish sector in Q3 that's still showing opportunities.

  • The global private markets are piping more money than ever into hydrogen-related companies.

  • Chart of the Day: Private capital cash flows from our Global Private Markets Fundraising Report.
 
Today's Top Stories  
Retail fintech VC deals down 48%, but outlook isn't gloomy
Retail fintech was a darling for VC investments during the COVID-19 pandemic, seeing unprecedented growth and expansion. Two years later, deal activity has declined amid macro headwinds, yet many investment opportunities remain.  

In our inaugural Q3 2022 Retail Fintech Report, the newest addition to our Emerging Tech Research coverage, PitchBook analyst Rudy Yang looks at the current state of retail fintech. This report maps out segments and deal activity, along with targeting the developing areas where investments can be made. Key takeaways include: 
  • VC deal values have declined almost 48% after a record 2021 but remain elevated compared to pre-2021 levels.

  • Exit activity continues to be muted due to challenging market conditions, with VC exits down 57% year-over-year as of Q3 2022.

  • Advances in underwriting technology, the rise of embedded finance and the continued proliferation of digital payments and banks continue to create key investment opportunities.
read the preview
 
Share: Email LinkedIn Twitter Facebook
Private investment in hydrogen breaks record
(rezoff/Shutterstock)
Private capital is pouring into startups and established companies tied up in the growing hydrogen economy at never-before-seen levels, PitchBook data shows.

VC and PE firms alike have deployed more capital into global companies making, moving or using hydrogen—or planning to do so—in 2022 than any prior year. And on the venture side, total deal count also broke a record this year.

Through most of 2022, PE firms spent $3.1 billion on hydrogen-related companies across 37 deals, while venture firms invested $2.6 billion in 192 startups. Since 2014, the number of annual VC hydrogen deals has more than tripled as PE deal count quadrupled.
read more
 
Share: Email LinkedIn Twitter Facebook
 
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
Share: Email LinkedIn Twitter Facebook
 
Global markets continue to recover amid uncertainty
While some private market asset classes are performing in line with past trends, others have collapsed in the face of the staggering pace of federal funds rate hikes.

Leveraged loan and high-yield bond issuance for leveraged buyout activity remains strong, while bond issuance for refinancing and acquisition activity has hit once-in-a-decade lows. Entering 2023, a determinedly hawkish Fed is intent on reining in inflation despite the short-term consequences for Wall Street and Main Street.

Our latest Global Markets Snapshot breaks down one month of trends in the US inflationary environment as tracked by several macroeconomic indicators. It also addresses the pace of rate changes and the targeted terminal rate hinted at by senior Fed officials—and how these will impact LBO activity and leveraged loan and high-yield bond issuance heading into 2023.
read it now
 
Share: Email LinkedIn Twitter Facebook
PE hangs in the balance as recession odds grow
Slower growth, higher short-term interest rates, tight labor markets—as one economic indicator after another points to an increasingly likely recession in late 2023 or early 2024, the rate of PE dealmaking hasn't shown such signs of weakness. But tougher financing conditions might finally slow down deal activity in coming quarters.

Our Q4 2022 Quantitative Perspectives Report breaks down the deteriorating macro backdrop and explores how those dynamics could affect the PE market next year. Key takeaways include:
  • A soft landing is becoming less and less likely, and the odds of a recession have risen to 65% in recent months, our model predicts.

  • The leveraged loan market, which has fueled the buyout engine for years, has nearly shut down as new debt issuance fell to the lowest volume in more than two years.

  • Lags between public and private market reporting mean that many LPs' portfolios are likely overweight to private investments. That could make fundraising a greater challenge for GPs, especially those with unproven strategies.
read the report
 
Share: Email LinkedIn Twitter Facebook
Recommended Reads
Kanye West and Parler have agreed to end a deal for the rapper to purchase the social media platform. [The New York Times]

Stablecoins are used as anchors in the crypotocurrency system, but one such currency may be undermining that stability by lending, rather than selling, its coins to customers. [Wall Street Journal]

How the West's price cap on Russian oil could roil energy markets. [The Economist]
 
Ads
Since yesterday, the PitchBook Platform added:
11
VC valuations
1778
People
577
Companies
21
Funds
See what our data software can do
 
Quick Takes  
  The Daily Benchmark  
  2014 Vintage Global Real Assets Funds  
  A message from PitchBook Media  
  PitchBook's 2023 Media Kit released  
  People  
  Valor Ventures hires Lynne Laube as operating partner  
  VC Deals  
  August Bioservices raises $65M  
  Lumen lands $62M for weight loss tech  
  Hypr secures $25M  
  Web3 startup Fleek takes off with $25M  
  Shield nabs $20M  
  PictorLabs grabs $15.2M  
 
 
The Daily Benchmark  
2014 Vintage Global Real Assets Funds
Median IRR
8.30%
Top Quartile IRR
14.19%
1.34x
Median TVPI
Select top performers
Quantum Energy Partners VI
BP Natural Gas Opportunity Partners
Trilantic Energy Partners North America
*IRR: net of fees
50 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
A message from PitchBook Media  
PitchBook's 2023 Media Kit released
Year to date, PitchBook's newsletters have over 161 million impressions and over 744,000 report downloads. Partnering with PitchBook Media is a way to feature your firm's insights in one of the most popular venues for timely and relevant PE and VC articles, news, asset class reports and custom white label reports.

The brand-new 2023 Media Kit contains all the details to help your firm position itself in front of a VC or PE audience.

Click here to download it today or to speak to someone on the media team.
Share: Email LinkedIn Twitter Facebook
 
People  
Valor Ventures hires Lynne Laube as operating partner
Former Cardlytics CEO Lynne Laube has joined Atlanta-based seed investor Valor Ventures as an operating partner and investor.
View details
 
 
 
VC Deals  
August Bioservices raises $65M
Pharmaceutical development company August Bioservices has raised $65 million in a Series B led by Oak HC/FT.
View round
 
View 25 competitors »
 
Lumen lands $62M for weight loss tech
Health device maker Lumen has secured a $62 million Series B led by Pitango Venture Capital, TechCrunch reported.
View round
 
View similar company »
 
Hypr secures $25M
Passwordless identification startup Hypr announced a $25 million Series C1 led by Advent International's global tech fund.
View round
 
View 23 competitors »
 
Web3 startup Fleek takes off with $25M
Fleek, which is creating a developer platform for Web3 protocols, has raised a $25 million Series A led by Polychain Capital.
View round
 
View similar company »
 
Shield nabs $20M
Shield, which helps financial institutions track employee communications for compliance purposes, has raised $20 million in a Series B led by Macquarie Capital, TechCrunch reported.
View round
 
View 56 competitors »
 
PictorLabs grabs $15.2M
AI health startup PictorLabs has raised $15.2 million led by M Ventures, SCC Soft Computer and Koc Holding. The company uses AI to improve histopathology by applying virtual stains—rather than chemical ones—to tissue samples.
View round
 
View similar company »
 
 
Don't miss our upcoming webinar
Join us for a webinar discussing key components of the difficult market landscape, including tightening credit and liquidity conditions, slowing growth and sharp increases in short-term interest rates, and how these impact PE.

PitchBook analysts Zane Carmean and Andrew Akers will discuss how rising debt costs combined with continued pullback in financing availability will be a significant headwind moving forward. Key topics include:
  • The window for an economic soft landing has narrowed. Our quantitative recession model predicts that recession odds have risen sharply in recent months.

  • While core inflation has slowed modestly in recent months, it has also broadened out into core services.

  • Although the US is not currently in a recession, growth drivers such as consumer spending and nonresidential business investment have slowed.
Register now to secure your spot.
Share: Email LinkedIn Twitter Facebook
 
Chart of the Day  
"Based on conversations we've been having, the tone of those raising funds in Q4 2022 has turned extremely pessimistic as they recognize that the easy capital raises of recent years have come to an end."

Source: Q3 2022 Global Private Markets Fundraising Report
 
Ads
 
Who's in the newsletter today?
People
Lynne Laube
Investors
Advent International
Koc Holding
M Ventures
Macquarie Capital
Oak HC/FT
Pitango Venture Capital
Polychain Capital
SCC Soft Computer
Valor Ventures
Companies
August Bioservices
Cardlytics
Fleek
Hypr
Lumen
PictorLabs
 
About PitchBook | Terms of use | Advertise with us | Contact
Follow us: in twtr fb

This email was sent to you via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

© 2022 PitchBook. Win what's next. All rights reserved.

Key phrases

Private capital cash flows Emerging Tech Research coverage The Daily Pitch

Older messages

Why a new stage of VC is needed

Monday, December 12, 2022

Also: How to manage the denominator effect; All-new AI & ML and fintech research; Which private strategies are surviving the fundraising trail? Read online | Don't want to receive these emails?

FTX collapse exposes a power imbalance

Monday, December 12, 2022

Plus: Pinning down dry powder, retail fintech focuses on the future, navigating the denominator effect & more Read online | Don't want to receive these emails? Manage your subscription. Log in

Supply chain tech funding weakens

Monday, December 12, 2022

Q&A: How to attract talent in a downturn; female founders struggle for deals; Anduril secures $1.4B+ for defense tech; KreditBee raises $80M Read online | Don't want to receive these emails?

Taking the temp on healthtech

Monday, December 12, 2022

Generative AI attracts tech VCs; Israel's VC funds buck trend; ILPA names Jennifer Choi CEO; BeeHero buzzes with $42M Read online | Don't want to receive these emails? Manage your subscription.

Ecommerce VC market finds its footing

Monday, December 12, 2022

Secondary market's revival; Norway's Oda sheds unicorn status; a16z taps former CFTC commissioner; Fanatics scores $31B valuation Read online | Don't want to receive these emails? Manage

You Might Also Like

Quiet Quitting vs. Setting Healthy Boundaries: Where's The Line?

Monday, April 29, 2024

One in three employees are quiet quitting in 2024. Is quiet quitting synonymous with setting healthy boundaries — or does it suggest a deeper problem? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

See who's speaking at SaaStr Annual this year

Monday, April 29, 2024

And save 20% before prices go up May 1 To view this email as a web page, click here SaaStr Annual 2024 | Sept 10-12 | SF Bay Area Hey SaaStr Community, We're gearing up for SaaStr Europa 2024 in

There Is So Much Money Sloshing Around The System

Monday, April 29, 2024

Listen now (2 mins) | READER NOTE: This Thursday I am hosting a free webinar for anyone who is trying to transition into a new job in the bitcoin and crypto industry. Previously, my team and I have

Agtech's big valuation reset

Monday, April 29, 2024

Corporate buyers lead on IT deals; layoffs drag down gaming stocks; RevenueCat bags $12M for subscription management Read online | Don't want to receive these emails? Manage your subscription. Log

Cycling Mikey

Monday, April 29, 2024

Before we as leaders have a difficult conversation, we need to understand how we present the information is as important as the information itself. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Core Update Homework ✏️

Monday, April 29, 2024

To-dos after a Google Core Update. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

🔔Stagflation & the miserable economy

Monday, April 29, 2024

One metric shows how the US today compares the painful landscape of the 1970s ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Here's what I know about the EA Sports College Football 25 cover athletes

Monday, April 29, 2024

Plus a topheavy NFL Draft and everybody trying to sue the NCAA ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Scoop: Tipico ‘set to sell’ its US platform

Monday, April 29, 2024

Tipico's US platform sale, Novig shuts in Colorado, GLP on deal flow, startup focus – SBC First Pitch +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

The proven formula of the next unicorn

Monday, April 29, 2024

Today's hack The formula of the next unicorn: "Accruing benefits" + "Mounting losses" GreylockPartners, who backed 4 of 5 $10B companies during their earlier stages (series A/B)