PitchBook News - How US PE adapted in 2022

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The Daily Pitch: VC

January 13, 2023

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 2022 Annual US PE Breakdown explains how the industry's activity has slowed and evolved.

Microsoft's investment into OpenAI would be an unprecedented milestone for generative AI.

Laws favorably impacting the cannabis industry could be passed this year. Here's what that would mean for investors.

Today's Top Stories

How US PE adapted to 2022's harsh environment

For all the headwinds that hit the private equity world in 2022, firms still managed to do over $1 trillion in deal value—down 18% from 2021. Early in the year, the record-breaking pace of new deals, exits and fundraising collided with higher interest rates. By mid-year, traditional debt markets closed, and PE firms had to adjust to make deals happen and keep the LBO machine humming.

Our 2022 Annual US PE Breakdown, sponsored by Stout, CBIZ Private Equity Advisory, Golub Capital, and Apex, explains how the industry's activity has slowed and evolved.

The market stayed resilient: That's, in large part, due to availability of debt from private credit funds.

Deals count was stable: The number of deals fell only 5% year-over-year, but deal sizes were smaller, adding up to less value overall.

Exits plummeted: For just the second time in 14 years, exit value failed to keep up with fundraising and new platform investments.

Dry powder found a home: The new year capped the best two-year run for PE take-privates in 15 years.

read it now

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Just how big would Microsoft's $10B OpenAI deal be? Unprecedented.

Sam Altman, CEO of OpenAI, speaking at TechCrunch Disrupt.
(Steve Jennings/Getty Images)

The hottest topic in tech right now is Microsoft's planned $10 billion investment into generative AI startup OpenAI. The screenshots of the startup's viral ChatGPT have clogged social media feeds. But just how big is this deal?

A dive into PitchBook's data suggests it is unprecedented. Read more about how the deal stacks up to those in the past and what it could all mean for generative AI startups' values in the future.

Recommended Reads

Discoveries that push science in new directions are happening less often than they did in the last century, according to a new study. [Axios]

The value of corporate pension assets fell dramatically. Here's why that doesn't matter. [Institutional Investor]

One writer's thoughts on how ChatGPT shouldn't be banned in schools and how it might instead be used as a tool. [The New York Times]

Since yesterday, the PitchBook Platform added:

16

VC valuations

2142

People

701

Companies

29

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2016 Vintage Global Real Estate Funds
	VC Deals
	CoVenture invests $60M in consumer insights specialist
	No Meat Factory snags $42M
	Butter nabs $21.5M
	Oula secures $19M+
	Portfolio Companies
	Stripe slashes internal valuation again
	Microsoft takes stake in Paige

The Daily Benchmark

2016 Vintage Global Real Estate Funds

Median IRR

12.70%

Top Quartile IRR

15.83%

1.43x

Median TVPI

Select top performers

Blackstone Edison Managed Partners

Bensell Host US Fund

FCP Realty Fund III

*IRR: net of fees

69 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

CoVenture invests $60M in consumer insights specialist

Consumer Edge, which provides multinational data and insights on consumer spending and behavior, has raised $60 million from CoVenture.

View details

View 4 competitors »

No Meat Factory snags $42M

Plant-based protein maker No Meat Factory has raised a $42 million Series B led by Tengelmann Growth Partners. The Canadian startup plans to use the funding to expand its North American manufacturing.

View details

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Butter nabs $21.5M

Payments platform Butter has raised a $21.5 million Series A with backing from Norwest Venture Partners and Atomic, Forbes reported. The startup focuses on preventing accidental churn for clients because of failed payments. The company's raise puts its valuation close to $100 million.

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View similar company »

Oula secures $19M+

Maternity care clinic Oula has raised a $19.1 million Series A led by 8VC. The startup also has backing from Metrodora, Chelsea Clinton's investment fund. Oula has opened two clinics in the New York City area.

View details

View similar company »

PitchBook webinar: 2023 European Private Capital Outlook

Join us for a webinar examining developments in the European private capital markets and the outlook for 2023. PitchBook analysts will discuss important deals, exit trends and fundraising activity, along with what could be on the horizon for the landscape in a time of global market uncertainty. Key takeaways include:

The European VC and PE dealmaking landscape in 2022 and beyond.

An update on the exit environment and its impact on PE- and VC-backed companies.

Challenges and opportunities within fundraising for GPs and LPs.

Register now to secure your spot.

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Portfolio Companies

Stripe slashes internal valuation again

Stripe has reduced its internal valuation by another 11%, The Information reported. The fintech startup, which now has an implied valuation of $63 billion, has cut its internal valuation by around 40% in total during the last six months, according to the report. Stripe's previous backers include Sequoia, Baillie Gifford, General Catalyst and GV.

View details

View 104 competitors »

Microsoft takes stake in Paige

Microsoft has furthered its investment in AI by taking an undisclosed stake in AI pathology startup Paige. The company is also partnering with the startup to provide its platform within the Azure cloud suite of products.

View details

View 17 competitors »

Chart of the Day

Source: Q4 2022 PitchBook-NVCA Venture Monitor

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The Daily Pitch

PitchBook News - How US PE adapted in 2022

Key phrases

Older messages

PE's year of transition

How resilient is healthcare, really?

Why is VC dry powder still piling up?

The future of infrastructure investing

Europe's fintech startups to watch

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