PitchBook News - Mapping the retail fintech market

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The Daily Pitch: VC

December 2, 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:

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

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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.

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Since yesterday, the PitchBook Platform added:

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1778

People

577

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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.

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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.

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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

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PitchBook News - Mapping the retail fintech market

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