PitchBook News - When dry powder stays dry

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The Daily Pitch: VC

January 27, 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 newest analyst note breaks down the imbalance between how much capital startups want and how much VCs are actually offering.

While Blackstone's real estate funds weighed on its Q4 earnings, its PE portfolio held strong.

Many European PE players switched jobs in 2022, so we've highlighted some notable moves.

Today's Top Stories

A case of chronic dry powder

There's a hiccup in the private markets that almost no one is talking about: the disconnect between the capital startups are seeking and the money VC firms are actually investing.

Our latest analyst note dives into this imbalance and explores what it means for valuations, deal terms and startups going forward. Key takeaways include:

Capital demand outpaced supply in some cases by over 145% in Q4 2022. Overall, more than twice as much capital was requested than supplied.

The PitchBook Dealmaking Indicator shows a sharp turn toward a more investor-friendly environment.

All venture stages are affected, but the late-stage VC market shows the greatest imbalance.

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Blackstone's earnings fall, but PE holdings show strength

Blackstone CEO and co-founder Stephen Schwarzman
(Alex Wong/Getty Images)

Blackstone reported a significant year-over-year decline in its earnings on Thursday after the asset manager struggled to sell investments in the fourth quarter of 2022.

The depreciation in the firm's two main real estate investments in Q4, coupled with slower realization activity, weighed on its earnings figures.

There is a silver lining to the lackluster quarterly results. The value of the firm's corporate private equity and private credit investments climbed in the last quarter.

Recommended Reads

Can ChatGPT make a market-beating ETF? [Bloomberg]

Why the US' last washboard factory isn't ready to throw in the towel. [The Wall Street Journal]

Are institutional investors actually responsible for the housing crisis? [The Atlantic]

Since yesterday, the PitchBook Platform added:

9

VC valuations

778

People

298

Companies

18

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2020 Vintage North American PE Funds
	VC Deals
	Pearl Health secures $75M
	Angle Health lands $58M
	Crux raises $50M
	iLife nabs $17M
	Method collects $16M
	Senken bags $7.5M for CO2 platform
	Exits & IPOs
	Stripe plots IPO, stock sale

The Daily Benchmark

2020 Vintage North American PE Funds

Median IRR

24.05%

Top Quartile IRR

39.00%

1.24x

Median TVPI

Select top performers

SSC Partners II

Lindsay Goldberg V

Invicta Pilot Fund

*IRR: net of fees

95 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Pearl Health secures $75M

Andreessen Horowitz and Viking Global Investors have led a $75 million Series B into healthtech startup Pearl Health. The company offers a platform for physicians and has raised $100 million in total.

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Angle Health lands $58M

Health insurance startup Angle Health has raised a $58 million Series A led by Portage, Axios reported. The company offers customizable insurance plans for small to medium-sized businesses.

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Crux raises $50M

Crux, a cloud-based data startup, has raised $50 million in venture funding led by Two Sigma and Goldman Sachs Asset Management. Crux works with clients like Google and AWS to offer access to secure data.

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iLife nabs $17M

iLife, an insurance distribution platform provider, has raised a $17 million Series A led by Foundation Capital, Brewer Lane Ventures and Scor Ventures.

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Method collects $16M

Method, which offers a debt payment platform, has raised a $16 million Series A led by Andreessen Horowitz. Method has previously secured backing from Y Combinator and Leonis Capital.

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Senken bags $7.5M for CO2 platform

Carbon offset credit trading platform Senken has secured a $7.5 million investment led by Obvious Ventures and joined by Kraken Ventures and Climate Capital.

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Don't miss our upcoming webinar

Join PitchBook in examining the EU's new Sustainable Financial Disclosure Regulation, which will require private market investors to disclose ESG performance starting in June 2023. A panel of ESG experts will provide an overview of the requirements and how they will affect investors and portfolio companies. Key topics include:

What is SFDR (SDR-, UK- and their related disclosure requirements), and who will be most affected by its conditions?

What are the differences between SFDR Articles 6, 8 and 9? What are the implications of nonadherence and avenues of collecting data to become compliant?

What is the burden on portfolio companies? How long is the process of becoming compliant?

Register now to secure your spot.

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Exits & IPOs

Stripe plots IPO, stock sale

Within the next year, Stripe is planning to either go public or allow its employees to sell their shares in a private-market transaction, according to reports. The payments processing startup has hired JP Morgan and Goldman Sachs to assess investor interest.

View details

View 104 competitors »

Chart of the Day

"Cross-border M&A between Europe and North America has always been active in both directions, and as recently as 2016, it favored the US as a recipient of net flows. 2022 was a different story. M&A involving North American acquirers of European companies totaled $315.3 billion for the year, or 21.2% of all European M&A value."

Source: PitchBook's 2022 Annual Global M&A Report

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PitchBook News - When dry powder stays dry

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