PitchBook News - Lightspeed's game changer

Read online | Don't want to receive these emails? Manage your subscription.

The Daily Pitch: VC

January 23, 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:

Former pro gamer Moritz Baier-Lentz will be putting his experience to use as Lightspeed's new head of gaming.

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

Vytautas Plunksnis, head of private equity at Lithuania's INVL, describes investment opportunities in Central and Eastern Europe.

Today's Top Stories

Lightspeed's new head of gaming wants to rethink investments in the vertical

Diablo II
(Courtesy of Blizzard)

Moritz Baier-Lentz is Lightspeed's new head of gaming. The German former pro gamer bankrolled his Stanford business school tuition selling in-game items for Blizzard's "Diablo II" in the early 2000s and started Goldman Sachs' games practice.

So, Baier-Lentz knows gaming—and he thinks VCs need to refocus their priorities when looking at the vertical.

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

A message from Ansarada

Get your capital raise in order with a free digitized template

Capital urgency, investor scrutiny, market uncertainty …

Raising capital in a chaotic market is challenging.

Using insecure legacy systems like spreadsheets and emails for disclosure leads to unjustifiable risk. The key to generating momentum is order. Organized businesses can raise faster, safer and more successfully in a VUCA environment.

Ansarada's purpose-built capital raising workflow template brings order to your raise to increase business value. It shows exactly how to structure information to avoid unnecessary time, cost and risk. By digitizing the end-to-end process, capital raising can be automated and executed at speed.

Now, companies can open a free Data Room, access the customizable capital raise template, and start preparing for a raise in minutes—with no risk or cost.

Access your free capital raise template

The future of infrastructure investing is sustainable and digital

The prospects of inflation, recession and market turmoil have often sent investors running for the stability of infrastructure funds. But as society evolves, so do the types of infrastructure we must rely on. Private fund investment in sustainable and digital infrastructure has grown rapidly over the last 15 years, and PitchBook analyst Anikka Villegas expects LPs will seek to gain more exposure to these burgeoning areas going forward.

As climate change and energy security challenges loom and the economy camps out in the cloud, our recent analyst note breaks down what you need to know about the forces shaping sustainable and digital infrastructure investing.

read it now

Q&A: Lithuania's INVL on private equity in Central and Eastern Europe

(Devis M/Shutterstock)

Nearly a year after Russia launched its invasion of Ukraine, all of Central and Eastern Europe has been impacted in one form or another.

Yet even now the region continues to attract capital from investors taking a long-term view on the region's prospects.

We spoke to Vytautas Plunksnis, head of private equity at Lithuania's INVL, about the opportunities he's seeing and what makes the region appealing.

Recommended Reads

The Turing test used to be the gold standard for proving machine intelligence. This generation of bots is racing past it. [The New York Times]

How a missing $4 billion brought down a century-old Brazilian retailer in just a week. [Bloomberg]

Here's why there's no quick fix for the problems of social media. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

118

People

Companies

See what our data software can do

Quick Takes

	The Daily Benchmark
	2013 Vintage Global Real Assets Funds
	VC Deals
	SetPoint Medical raises $80M
	ADARx lands $46M
	A16z leads $32M round for Plai Labs
	AiOla secures $25M
	Presso scores $8M for dry-cleaning robotics
	Portfolio Companies
	PE-backed Fanatics eyes sports betting deal
	Genesis files for bankruptcy protection
	Investors
	Boeing lands $425M from NASA for greener planes

The Daily Benchmark

2013 Vintage Global Real Assets Funds

Median IRR

5.61%

Top Quartile IRR

11.80%

1.39x

Median TVPI

Select top performers

Rockland Power Partners II

EQT Infrastructure Fund II

Grain Infrastructure Fund II

*IRR: net of fees

36 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

SetPoint Medical raises $80M

SetPoint Medical has secured $80 million in a preferred stock financing co-led by Norwest Venture Partners and Viking Global Investors. The startup specializes in treating chronic autoimmune diseases.

View round

View 14 competitors »

ADARx lands $46M

ADARx Pharmaceuticals has raised a $46 million Series B1 led by Ascenta Capital. The biotech startup, based in San Diego, is developing RNA-targeting therapeutics for a wide range of diseases.

View round

View similar company »

A16z leads $32M round for Plai Labs

Gaming startup Plai Labs has raised a $32 million seed round led by Andreessen Horowitz, TechCrunch reported. Plai was started by Chris DeWolfe and Aber Whitcomb, the co-founders of Myspace.

View round

View similar company »

AiOla secures $25M

AI language recognition startup AiOla has raised $25 million in a round led by New Era Capital Partners. The Israeli company has now raised a total of $33 million.

View round

View similar company »

Presso scores $8M for dry-cleaning robotics

Presso, which offers robotic dry-cleaning machines, has raised an $8 million seed round from investors including Uncork Capital, 1517 Fund and AME Cloud Ventures, TechCrunch reported.

View round

View similar company »

Don't miss our upcoming webinar

Join LCD for a webinar exploring the trends that defined the private credit and leveraged loan landscapes in 2022, along with what lies ahead for these spaces. LCD analysts will discuss the growth in the private credit market and the increase in distressed debt last year, along what investor demand for collateralized loan obligations looks like in 2023. Key topics include:

US leveraged loan market trends and analysis, including a look at volume, proceeds, leverage, returns, credit risk and supply vs. demand.

The growth in private credit and direct lending in 2022, compared to the broadly syndicated market along with where opportunities in private credit might lie in 2023.

How distressed debt hit its highest level since the pandemic onset toward the end of 2022, even as leveraged loan defaults remained scarce.

Register now to secure your spot.

Portfolio Companies

PE-backed Fanatics eyes sports betting deal

Armed with $1.9 billion in capital and $2.5 billion in credit secured in 2022, Fanatics is in talks to acquire app specialist BetParx sportsbook, CNBC reported, as Fanatics considers diving into sports betting. Greenwood Gaming & Entertainment backs BetParx.

View details

View 2 competitors »

Genesis files for bankruptcy protection

Crypto lender Genesis Global Holdco and two of its subsidiaries have filed for bankruptcy protection in New York. Genesis is owned by Barry Silbert's VC firm Digital Currency Group, which invested $140 million into the startup in November.

View details

View 7 competitors »

Investors

Boeing lands $425M from NASA for greener planes

NASA has agreed to award Boeing $425 million over seven years to back a project to design and build a single-aisle plane that requires roughly 30% less jet fuel than today's models. Boeing has agreed to spend an additional $725 million on the project.

View details

View 18 competitors »

Chart of the Day

"The departure of late-stage crossover and nontraditional participants and capital that have supported the outsize fundings of early-stage startups has caused investors at this stage to be more wary of allowing startup valuations to balloon to unsustainable levels. Without sufficient investor willingness and demand to fund these deals at the later stage, the upside potential for early-stage investment could be compromised if startups are forced to raise subsequent rounds at slightly higher or flat valuations."

Source: Q4 2022 PitchBook-NVCA Venture Monitor

About PitchBook | Terms of use | Advertise with us | Contact

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.

Key phrases

Former pro gamer The Daily Pitch

Older messages

Private debt braces for stormy seas

Sunday, January 22, 2023

Plus: Get smart about placement agents, an account from the analysts on healthcare conference, Europe's venture market stumbled in 2022 & more Read online | Don't want to receive these

The future of our infrastructure

Saturday, January 21, 2023

Also: The role of placement agents in GP fundraising; How leveraged finance is set up for this year; European PE holds strong while VC slows in 2022. Read online | Don't want to receive these

A placement agent primer for GPs

Friday, January 20, 2023

B Capital raises $2B+ growth fund; PhonePe hits $12B valuation; Courtside closes $100M vehicle; Outrider hauls in $73M for autonomous trucks Read online | Don't want to receive these emails? Manage

The rhyme and reason of impact investing

Friday, January 20, 2023

ReCode lines up gene therapy partnerships; insurtech startups flounder in a fragmented market; are startups' board members spread too thin? Read online | Don't want to receive these emails?

What's behind VC's dizzying trends?

Friday, January 20, 2023

Startup life expectancy expected to fall; BioNTech boosts AI drug discovery with InstaDeep deal; DeepL hits $1B valuation Read online | Don't want to receive these emails? Manage your subscription.

Is Negative Inflation Upon Us?

Friday, January 27, 2023

Listen now (8 min) | Inflation has been a multi-decade high, but maybe it will go negative in 2023? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Have you tried this marketing strategy?

Friday, January 27, 2023

It's Thank a 🪩 Plugin Developer Day, Reader... 👒🎩 Hats off to the people who make our lives easier! This newsletter is brought to you by the 10th annual Social Media Marketing World. In today's

Don't wait! SaaStr Annual ticket prices are going up

Friday, January 27, 2023

Save $249 now when you reserve your ticket To view this email as a web page, click here SaaStr Annual 2023 | Sept 6-8 | SF Bay Area save 20% off annual tickets Early attendance for SaaStr Annual 2023

🏠👨‍💻 Do you need a Chief Remote Officer?

Friday, January 27, 2023

Making your business the best place to work, every Friday. We'll all remember 2022 as the year of “quiet quitting,” the infamous buzzword for when employees put in the least required effort

Weekly Dose of Optimism #27

Friday, January 27, 2023

Atomic AI, Blueprint, GLP-1s, Hydrogen Aviation, Biden's America, and DIMO ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Interested in learning paid traffic? 👀

Friday, January 27, 2023

A start-to-finish method on earning affiliate commissions with FaceBook ads Spark If you have ever had any interest in paid traffic... We have just the course for you! Generating Traffic with Facebook

When dry powder stays dry

Friday, January 27, 2023

Europe's movers and shakers of 2022; Stripe plots IPO, stock sale; Senken bags $7M+ for carbon offsets platform Read online | Don't want to receive these emails? Manage your subscription. Log

Scrollbar None

Friday, January 27, 2023

The ups and downs of scrollbar design. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

"Notes" of An Elder

Friday, January 27, 2023

Don't take life too seriously. Nobody gets out alive. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Weekend Edition #82

Friday, January 27, 2023

BetMGM update, LVS analyst reaction, Houlihan Lokey's digital outlook, Caesars analyst takes, sector watch +More ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌