PitchBook News - How VC powers information security

Healthcare services' slippery outlook; what the future holds for private capital; a muted start for Europe's female founders
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The Daily Pitch: VC
February 6, 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:
Today's Top Stories  
Market Map: Information security guards against economic threats
Information security budgets remain steady even amid volatile economic conditions, with companies and governments alike continuing to invest in the sector.

This steadiness was embodied in Q4 2022 as VC deal value stayed roughly flat from Q3. Still, there remains limited room for growth as dealmaking emphasis shifts to take-privates for more proven companies.

Our Information Security Market Map lays out where VCs are investing their money.
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Healthcare services deal activity continues to slip in Q4
While 2022 was the second-best year on record for PE investment in healthcare services, dealmaking declined throughout the year and rounded out Q4 at pre-pandemic levels.

And PitchBook analysts don't see a rebound on the horizon quite yet. The staffing crunch, liquidity constraints and a rocky fundraising market will likely continue to drag deal count down in the first half of 2023.

Our Q4 2022 Healthcare Services Report, sponsored by UnitedHealthcare, breaks down recent PE trends, investment strategies and key regulatory developments in the healthcare services market. The report also spotlights opportunities in rheumatology, value-based care enablers and Medicaid/CHIP pediatric dentistry.
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A Message from Founder Shield  
Your 2023 guide to de-risking the IPO process
IPO deal proceeds plummeted 94% in 2022 as pre-IPO companies altered their plans after seeing their public market peers plunge. This has resulted in a huge backlog of late-stage companies that have to find an exit at some point.

Whether you're still planning your IPO or revisiting your strategy, we've got you covered with our 2023 Going Public Roadmap, a guide to de-risking the IPO process with 90+ pages, and 9 different case studies featuring advice from the experts at Founder Shield, CFOs, lawyers, investment bankers, and consulting firms who have already seen success in going public.

No matter where you are in the IPO process, this roadmap will help you de-risk at every step of your journey. Download your copy.
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VC dealmaking continues to decline for European female founders
(Julia Midkiff/PitchBook News)
Data from PitchBook's European VC Female Founders Dashboard shows that VC dealmaking hasn't gotten out of its winter slump yet as 2023 gets off to a muted start.

In January, there were 110 VC deals involving companies with at least one female founder worth a combined €461 million (about $498 million), according to PitchBook data. Deal activity has declined for four months.
  • Relative to the overall European VC market, this downturn has not disproportionately affected female-founded companies. Through Q4 2022 and the start of 2023, they have raised 14.3% of European VC capital, compared to 12.2% in all of 2022, while companies with only female founders comprise roughly 1% of capital.

  • In January, the largest financing was Amsterdam-based ecommerce platform Creative Fabrica's $74.9 million debt and equity round.

  • The UK continues to lead the way in terms of deals completed and deal value for companies with at least one female founder, with 31 deals worth €127 million closed for startups based there. The Netherlands was second with 10 deals for €120 million.
explore the dashboard
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Private market AUM growth will slow, but it won't die
Persistent global market headwinds will likely blunt the growth of total private capital AUM, but they won't stop it altogether. As the alternatives industry heads into a period of uncertainty, private closed-end funds are likely in for a progressive slowdown in capital commitments.

Our aggregate model suggests that global private capital AUM will reach a total of $13 trillion by 2027, a cumulative growth of 20.7% and a steep drop from the over 200% AUM growth over the past decade.
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Recommended Reads
Patagonia CEO Ryan Gellert is fighting climate change from the C-suite. [The Wall Street Journal]

How Amazon's brick-and-mortar dreams hit a wall. [The Information]

Antiwar activists in Russia are coming to terms with the fact that messaging app Telegram is not as secure as they once thought. [Wired]
Since yesterday, the PitchBook Platform added:
See what our data software can do
Quick Takes  
  The Daily Benchmark  
  2016 Vintage Global Real Assets Funds  
  Carlyle picks ex-Goldman exec Schwartz as CEO  
  Stripe CFO to depart  
  Portfolio Companies  
  Shareholders reject KKR-backed bid for Nitro Software  
  German government launches $1B+ VC climate fund  
  March Capital wraps up $650M+  
  Shamrock raises $600M for media rights  
  Hanover Investors secures $181M  
  Global Brain launches $38M CVC vehicle  
The Daily Benchmark  
2016 Vintage Global Real Assets Funds
Median IRR
Top Quartile IRR
Median TVPI
Select top performers
AIM Storage
Tembo Capital Mining Fund II
AIM Landfill
*IRR: net of fees
50 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
Carlyle picks ex-Goldman exec Schwartz as CEO
Carlyle Group has chosen former Goldman Sachs executive Harvey Schwartz as its new chief executive, according to reports. The appointment follows the resignation of the firm's former CEO, Kewsong Lee, in August. Schwartz left Goldman Sachs in 2018 after more than 20 years with the investment bank.
Stripe CFO to depart
Dhivya Suryadevara, the CFO of ecommerce startup Stripe, is leaving the company, Bloomberg reported. Earlier this week it was reported that Stripe is raising a $2.5 billion round, lowering its valuation.
View details
VC Deals  
Google has announced a partnership with Anthropic, a generative AI startup founded by former OpenAI employees, and invested $300 million in the company, the Financial Times reported.

Jeff, which offers business services for entrepreneurs, has raised a €90 million (about $97 million) Series C led by DX Ventures. The investment includes both debt and equity.

Jokr, a Luxembourg-based grocery delivery specialist, has raised a $50 million Series C led by GSquared, TechCrunch reported.

Triple Whale, which offers an analytics platform for Shopify services, has raised a $27.7 million Series A led by Elephant VC.

One House, which specializes in security and data observability, has closed a $25 million Series A led by Greylock Partners and Addition.

Recycleye, which uses computer vision and AI to automate recycling, has secured a $17 million Series A led by DCVC.

Mexico City-based Beek, a startup that creates Spanish versions of audiobooks, has raised a $13 million Series A led by Lightspeed, TechCrunch reported.

Cloud data transfer startup Samooha has secured a $12.5 million round, with participation from Snowflake Ventures and Altimeter Capital, TechCrunch reported.

Kewazo, a Munich-based robotics construction company, has raised a $10 million Series A led by Fifth Wall.

Nigerian cleantech specialist SunFi has raised a $2.3 million seed round led by Factor[e] and SCM Capital Asset Management. The company provides solar energy to clients with a payment plan.
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  
Brookfield Infrastructure Partners has agreed to buy a 30% stake in FirstEnergy's regulated transmission business for $3.5 billion in cash. The deal adds to Brookfield's earlier purchase of a 19.9% stake in FirstEnergy Transmission in May for $2.4 billion.

Pristine Sun has collected $250 million in commitments from PE firms and family offices to build out a portfolio of solar power-generation projects under development in Texas, Louisiana and California.

Diversis Capital-backed Fishbowl Inventory, which provides enterprise resource-planning software, has acquired Sellware, an ecommerce manager for small and medium-sized businesses.

SilverTree Equity has acquired software provider Thesis from Advent International. The company offers a platform for automating university administrative tasks.

Slovakia-based Sandberg Capital has acquired a 70% stake in chair retailer Phase.
Portfolio Companies  
Shareholders reject KKR-backed bid for Nitro Software
KKR-backed software developer Alludo has failed in its attempts to acquire Nitro Software, as the acquisition target's shareholders voted to turn down Alludo's A$526.9 million (about $371.8 million) bid. Alludo made a new, off-market takeover bid after the vote.
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German government launches $1B+ VC climate fund
The German government has launched its DeepTech & Climate Fund through the Federal Ministry of Economics and Climate Protection and the Federal Ministry of Finance. The new vehicle will look to invest up to €1 billion (about $1.08 billion) in climate technology. The funds come from the German government and the European Union.
View details
View 6 investments »
March Capital wraps up $650M+
VC firm March Capital has closed its fourth flagship fund on more than $650 million, with plans to target cybersecurity and cloud data startups.
View fund
View 78 investments »
Shamrock raises $600M for media rights
Shamrock Capital has held the final close of Shamrock Capital Content Fund III on $600 million. The fund targets the creation of a global media rights portfolio, including film, TV, music, video game and sports rights.
View fund
View 96 investments »
Hanover Investors secures $181M
UK-based Hanover Investors has raised £150 million (about $181 million) for its third private equity vehicle. The fund, which is targeting £300 million, will focus on acquisition opportunities in small-cap public markets.
View fund
View 24 investments »
Global Brain launches $38M CVC vehicle
Japanese VC investor Global Brain has launched a fund in partnership with the Meiji Yasuda Life Insurance Company. The new vehicle, Meiji Yasuda Future Innovation Fund, has 5 billion Japanese yen (around $38 million) in committed capital.
View details
View 387 investments »
Chart of the Day  
Source: PitchBook's 2022 Annual Global M&A Report
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