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The Daily Pitch: VC

January 20, 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 latest analyst note explores how placement agents can help level the playing field between established managers and firms raising first-time funds.

Multistage-focused firm B Capital Group has closed its largest fund, a $2.1 billion venture growth vehicle.

We take a look at what may lie ahead in the PE landscape.

Today's Top Stories

What a placement agent can do for GPs

Facing a harsher fundraising environment, some general partners might benefit from working with a placement agent, who can help them find the right institutional investors, prepare marketing and due diligence documents, and more.

Our latest analyst note explains the role that placement agents play in the fundraising process and how they can help level the playing field between established managers and firms raising first-time funds. Key takeaways include:

Experienced managers made up nearly 85% of the capital raised through Q3 2022.

About 12.5% of the 2,760 funds closed through Q4 2022 involved a placement agent.

Since the pandemic, funds that retained agents took more time to close than those that didn't. In 2021, funds working with placement agents spent more than 18 months in the market, while others spent over 16 months.

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B Capital raises $2.1B growth fund as late-stage prices slowly fall

From left, B Capital Goup co-founders Raj Ganguly and Eduardo Saverin. (Courtesy of B Capital Group)

Multistage-focused firm B Capital Group has closed its largest growth fund. The $2.1 billion venture growth vehicle comes even as backing for late-stage companies has dropped substantially last year from its peak in 2022.

Venture capitalists have slowed their investment pace in growth companies in large part because investors were unwilling to pay the prices entrepreneurs were expecting.

Valuations are expected to dip later this year, providing an opportunity for B Capital to invest at attractive prices.

Recommended Reads

VCs are betting big to disrupt the $100 billion lotto industry. [Forbes]

Time and money are running out for India's startups. [The Economist]

Uber is hoping to develop vehicles with lower top speeds and smaller footprints that could be more efficient and cost-effective for its ridehailing and delivery drivers. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

21

VC valuations

2080

People

654

Companies

15

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2011 Vintage Global Secondaries Funds
	VC Deals
	PhonePe soars to $12B valuation
	Outrider hauls in $73M for autonomous trucks
	Cloudian scores $60M
	Lithium extractor Summit Nanotech secures $50M
	Rx Redefined raises $8M Series A
	Exits & IPOs
	Possible sale could value Vice Media under $1B
	Fundraising
	Courtside closes $100M fund

The Daily Benchmark

2011 Vintage Global Secondaries Funds

Median IRR

15.18%

Top Quartile IRR

18.45%

1.63x

Median TVPI

Select top performers

NewQuest Asia Fund I

AlpInvest Partners Fund V - Secondary Investments

CS Strategic Partners V

*IRR: net of fees

16 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

PhonePe soars to $12B valuation

India-based payments startup PhonePe has raised $350 million at a more than $12 billion valuation, TechCrunch reported. General Atlantic led the round for the company, which has previously raised funding from prominent players like Walmart and Tencent.

View round

View 14 competitors »

Outrider hauls in $73M for autonomous trucks

Colorado-based startup Outrider has raised a $73 million Series C for its autonomous yard trucks, used at distribution centers across the US. FM Capital led the round, which included backing from chip giant Nvidia's venture arm NVentures.

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View similar company »

Cloudian scores $60M

Data management software startup Cloudian has secured a $60 million investment from Intel's venture capital arm, Silicon Valley Bank, Digital Alpha and others, bringing the California-based company's total funding to $233 million.

View round

View 8 competitors »

Lithium extractor Summit Nanotech secures $50M

Summit Nanotech, a startup specializing in clean and sustainable lithium extraction, has closed a $50 million Series A led by Evok Innovation and BDC Capital's Climate Tech Fund. Lithium is highly desired for electric vehicles, and the company has deployed its technology to Chile for testing.

View round

View 5 competitors »

Rx Redefined raises $8M Series A

Rx Redefined, a healthcare startup that provides medical supplies to doctors and patients, has closed an $8 million Series A led by Crosscut Ventures Management. The company also received backing from Tusk Venture Partners and Jeff Immelt, the former CEO of General Electric.

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View similar company »

Exits & IPOs

Possible sale could value Vice Media under $1B

Vice Media has been looking for a buyer amid pressure from lender Fortress Investment Group, and the company may agree to sell for under $1 billion, CNBC reported. Vice's backers include PE firms such as TPG and Sixth Street and media companies including The Walt Disney Company and A&E Networks.

View details

View 37 competitors »

Fundraising

Courtside closes $100M fund

Early-stage VC investor Courtside Ventures has closed its Fund III on $100 million. The firm is targeting startups in gaming, sports and lifestyle. Its investments include The Athletic, a sports news site that was acquired by The New York Times, and online marketplace StockX.

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View 74 investments »

Chart of the Day

Source: PitchBook's 2022 Annual European Venture Report

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