PitchBook News - Global markets' hopeful start to 2023

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The Daily Pitch: VC

February 2, 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 Global Markets Snapshot breaks down one month of trends in the equity, debt and commodities markets

Vista Equity Partners has finalized a $4.6 billion acquisition of KnowBe4—it could be one of fewer large take-privates in 2023.

Our recent analyst note explores the imbalance between how much capital startups want and how much VCs are actually offering.

Today's Top Stories

A hesitant but hopeful start to 2023 for global markets

Global markets kicked off January strong after a challenging end to 2022. Central banks are starting to see a stickier enemy in the battle against inflation—housing services. While month-over-month progress against headline inflation has been accomplished by many central banks, inflation in services indexes will hold reserve system presidents and governors to their promises of elevated rates through 2023.

Our latest Global Markets Snapshot—now with data highlighting real estate trends—breaks down one month in the equity, debt and commodities markets, tracking returns across a range of indexes and sectors. It also features private markets activity, including major deals, fundraising, IPO performance, lending volumes and unicorn creation.

In this monthly digest, we provide the datasets that PitchBook's Institutional Research team is keeping an eye on as markets remain volatile.

read it now

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Capsule startup's $44M round fuels European space ambition

(Courtesy of the Exploration Co.)

Space-tech startup the Exploration Co., which has offices in Germany and France, has raised €40 million (about $44 million) in a Series A co-led by EQT Ventures and Red River West.

The company, which aims to build a sustainable, reusable space capsule called Nyx, joins a growing number of European startups attracting VC investments in the region's growing space industry.

Recommended Reads

Can the EU keep up with the US on green subsidies? [Financial Times]

Students from elite colleges used to funnel into Silicon Valley with the promise of turning internships into lucrative jobs. Now, that pipeline has broken down. [Wired]

How Indian businessman Gautam Adani made (and could lose) a $147 billion fortune. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

20

VC valuations

1727

People

443

Companies

22

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2018 Vintage Global Secondaries Funds
	Fundraising
	Tiger Global reduces target to $5B
	Patient Square closes first PE fund on $3.9B
	Ariel Alternatives raises $1.45B
	Tin Alley Ventures wraps up $71M
	Tykhe Block Ventures launches $30M blockchain fund
	Investors
	Just Climate backs decarbonization specialists

The Daily Benchmark

2018 Vintage Global Secondaries Funds

Median IRR

38.00%

Top Quartile IRR

55.20%

1.62x

Median TVPI

Select top performers

Glouston Private Equity Opportunities VI

Lexington Capital Partners IX

RCP Secondary Opportunity Fund III

*IRR: net of fees

14 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Egyptian fintech company MNT-Halan has raised $400 million at a $1 billion valuation, TechCrunch reported. The round consisted of $260 million in equity led by Chimera and $140 million in debt.

Our Next Energy has raised a $300 million Series B at a $1.2 billion valuation. The battery startup's round was led by Fifth Wall and Franklin Templeton.

Cannabis company LeafLink has raised $100 million in a Series D led by CPMG, L2 Ventures and Nosara Capital.

Agtech startup Enko has raised an $80 million Series C led by Eight Roads Ventures and Nufarm.

Risilience, a climate risk analytics company, has raised $26 million in a Series B led by Quantum Innovation Fund.

Tau, which makes components for electric motors, has raised a roughly $9.9 million Series B led by Solvay Ventures.

UK-based podcast production company Novel has secured about $6.2 million from VGC Partners.

Fibery has raised $5.2 million in a Series A led by Israel's Tal Ventures. The Cyprus-based company offers a work management platform.

Low-code tools specialist Instill AI has raised $3.6 million in a seed round led by RTP Global.

Don't miss our upcoming webinar

The 2022 VC market struggled to match up with 2021 on multiple fronts. In particular, Q4 proved to be a low point in exits and liquidity yet contributed to a strong annual performance in fundraising and early-stage deals. Our webinar features PitchBook analyst Max Navas and industry experts from NVCA, Insperity, J.P. Morgan, and Dentons discussing the current VC landscape and what to expect in 2023. Key topics include:

A record-setting performance for annual raised capital, the second consecutive year exceeding $150 billion.

The continued decline in exit activity that resulted in the first dip below $100 billion since 2016.

The contribution of micro-funds and nontraditional investors to the growth of seed-stage deal sizes and pre-money valuations.

Register now to secure your spot.

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PE Deals

Thoma Bravo-backed QAD has acquired Redzone, which makes productivity software for the manufacturing industry. QAD agreed to pay roughly $1 billion for the company, Reuters reported.

MBK Partners has bought Japanese elder care provider Unimat Retirement Community for more than $300 million, Reuters reported.

Newlight Partners has made a $15 million growth-equity investment in marketing SaaS company Constellation.

Silver Lake has said it's considering a buyout bid for Qualtrics. The software maker is a Nasdaq-listed spinoff of SAP, which has been exploring a sale of its remaining 61% stake in Qualtrics.

Morgan Stanley Capital Partners has agreed to buy Apex Companies from Sentinel Capital Partners, which retains a minority stake in the environmental and infrastructure consulting and engineering firm.

IFM Investors has agreed to acquire a majority stake in renewable natural gas company GreenGasUSA via the firm's infrastructure fund.

MiddleGround Capital has acquired Quebec-based Megatech, which specializes in producing highly complex engineered parts.

Osceola Capital Management has acquired three water treatment companies—Aquaflow, Filter Pure Systems and Land O' Lakes Water Treatment—for newly formed platform Flotilla Partners.

Align Capital Partners-backed Schneider Geospatial has acquired Applied Data Consultants' WebGuide Xtreme product.

Fundraising

Tiger Global reduces target to $5B

Tiger Global is cutting its latest fund target from $6 billion to $5 billion, The Wall Street Journal reported. The New York-based venture capital firm raised $12.7 billion for its last vehicle.

View details

View 856 investments »

Patient Square closes first PE fund on $3.9B

Patient Square Capital has closed its first PE fund, dubbed Patient Square Equity Partners, on $3.9 billion. It's the largest first-time PE fund ever raised, as well as the largest PE, growth-equity or VC fund raised to date by a firm focused on healthcare, according to Patient Square.

View fund

View 14 investments »

Ariel Alternatives raises $1.45B

Ariel Alternatives has closed its first PE fund, Project Black, on $1.45 billion. The fund targets investments in middle-market businesses, particularly those with Black and/or Latino ownership, that can serve as suppliers to Fortune 500 companies.

View fund

View 1 investments »

Tin Alley Ventures wraps up $71M

Tin Alley Ventures has closed a roughly A$100 million (about $71 million) fund in partnership with the University of Melbourne to fund startups affiliated with the school.

View fund

View investment »

Tykhe Block Ventures launches $30M blockchain fund

Tykhe Block Ventures has closed its first blockchain growth fund on $30 million. The VC firm has said it will commit $10 million of the fund to startups in the Middle East working with Web3 technology.

View fund

View 16 investments »

Investors

Just Climate backs decarbonization specialists

London-based Just Climate has made its first three investments. The firm has backed ABB E-mobility, H2 Green Steel and Meva Energy. All three companies are focused on decarbonization.

View details

View 1 investments »

Chart of the Day

"PE fund performance, along with that of most asset classes, has felt the squeeze with the Q2 IRR returning -2.4% and our preliminary estimate for Q3 IRR 2022 being -0.6%. We have not had two consecutive negative quarterly IRRs for PE funds since 2009."

Source: PitchBook's 2022 Global Fund Performance Report (as of Q2 2022 with preliminary Q3 2022 data)

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PitchBook News - Global markets' hopeful start to 2023

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Private capital returns come down to earth

Information security feels the strain

Ranking VC's most active players

Portfolio balancing act

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