PitchBook News - What patents portend for startups

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The Daily Pitch: VC

February 7, 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:

Analysts introduce PitchBook's growing patent data collection, explaining how patents can signal a company's success.

A State Street survey shows that institutional investors are still bullish on the private markets—and in particular, private equity.

Investors were hoping that startups could grow into their sky-high valuations, but even those with lots of runway may struggle to catch up.

Today's Top Stories

When scrying a startup's future, try looking at patents

To measure a fledgling company's success, investors and other observers look at revenue and growth, but clever ideas—the startup's intellectual property—and the ways they're protected can also be a key predictor of what comes next.

Startups with patents and patent applications in progress raise larger VC rounds on average. They also raise capital at much higher valuations than startups without such protection on their ideas, especially when it comes to angel investors, and achieve higher exit values down the line.

That's according to PitchBook's latest analyst note, which introduces our growing patent data collection and takes a quantitative approach in detailing how patents impact startups.

read it now

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Private market investor sentiment holds strong, LP survey shows

(oatawa/Shutterstock)

Inflation anxieties, rising interest rates and underperforming assets dragging on portfolios may be putting pressure on investors, but that doesn't mean they're giving up on the private markets.

If history tells us anything, some of the strongest funds arise from periods of recession, and a recent State Street survey shows that institutional investors are putting this to the test as they continue to allocate to private market asset classes—and in particular, private equity.

Recommended Reads

VC firms have slowed dealmaking, which poses a dilemma for investors looking to make a name for themselves. [The Wall Street Journal]

One stock, Alpha Dhabi parent International Holding Company, has driven the meteoric rise of Abu Dhabi's stock market. [Financial Times]

The climate crisis is threatening Spain's saffron crop. [Wired]

Since yesterday, the PitchBook Platform added:

12

VC valuations

1717

People

427

Companies

31

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2015 Vintage Global Secondaries Funds
	People
	Eurazeo CEO departs after reshuffle
	Exits & IPOs
	TPG-backed pet specialist files for bankruptcy protection
	Fundraising
	Greenbriar raises $3.4B+ fund
	Ovni holds first close on $54M vehicle
	Nex Cubed launches $40M HBCU founders fund
	Investors
	Seraphim Space accelerator kicks off with $150M
	Waud Capital commits $100M to healthcare services
	Rothschild family aims to take control of investment bank
	Corporate M&A
	Public Storage bids $11B for competitor

The Daily Benchmark

2015 Vintage Global Secondaries Funds

Median IRR

15.12%

Top Quartile IRR

25.54%

1.39x

Median TVPI

Select top performers

Siguler Guff Secondary Opportunities Fund

SG/NMERB Secondary Fund I

Mantra Secondary Opportunities I

*IRR: net of fees

12 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Eurazeo CEO departs after reshuffle

Virginie Morgon has stepped down as CEO of Paris-based private equity firm Eurazeo. William Kadouch-Chassaing has been named the new CEO and co-chair of the executive board.

View details

VC Deals

Nurse staffing platform provider ShiftMed has raised a $200 million round led by Panoramic Ventures.

Voyager Space has raised $80.2 million to continue developing its commercial space station, TechCrunch reported. Backers included Midway Venture Partners, NewSpace Capital and Industrious Ventures.

IgGenix, a startup developing therapeutics for severe allergies, has raised a $40 million Series B led by Alexandria Venture Investments. Eli Lilly and Khosla Ventures also participated, among others.

Code-completion startup Magic.dev has raised a $23 million Series A led by Alphabet's CapitalG.

Liminal, which provides data and analytics for electric vehicle battery manufacturing, has raised a $17.5 million Series A2 led by ArcTern Ventures.

PitchBook webinar: Fueling success in the Medicare Advantage market

Private equity firms have become leading consolidators of primary care practices focused on Medicare Advantage. However, the market is extremely competitive, so firms must enable providers to improve patient outcomes and lower costs while also partnering effectively with payers.

In our upcoming webinar, PitchBook's lead healthcare analyst, Rebecca Springer, and senior Optum strategists will explore how PE firms can evaluate opportunities, navigate risk and win in the Medicare Advantage market. Key topics include:

How payer competition and macro trends are shaping unique geographic markets.

An actuary's perspective on financial risks and opportunities.

A model for provider success in progressively more sophisticated value-based contracts within a typical PE investment cycle.

Register now to secure your spot.

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PE Deals

Sixth Street is preparing a bid for a stake in the media and commercial rights of the Bundesliga, Germany's top-flight soccer league, the Financial Times reported. The deal could be worth up to €18 billion.

CVC Capital Partners has invested in Denmark-based transport company Scan Global Logistics.

Ara Partners has invested growth equity in UK- and Czech Republic-based automated carbon reduction provider Wattstor.

Vistria Group has invested in Really Great Reading, which provides literacy curriculums for pre-K through high school students.

Snow Peak Capital-backed Sandy Alexander has acquired printing management company Abbott Communications Group.

Thompson Street Capital Partners has made a growth equity investment in Sabai Global, a biosafety and regulatory review consultancy that serves pharmaceutical researchers.

Exits & IPOs

TPG-backed pet specialist files for bankruptcy protection

TPG-backed Independent Pet Partners, the owner of a series of pet care stores, has filed for Chapter 11 bankruptcy protection and plans to sell roughly one-third of its stores. IPP's chains include Natural Pawz and Kriser's Natural Pet.

View details

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Fundraising

Greenbriar raises $3.4B+ fund

Greenbriar Equity Group has closed its Greenbriar Equity Fund VI on $3.475 billion, marking the firm's largest vehicle to date. The fund targets investments in the supply chain, business services and advanced manufacturing sectors.

View fund

View 164 investments »

Ovni holds first close on $54M vehicle

French VC Ovni Capital has held a first close for its €50 million (around $54 million) fund, TechCrunch reported. The vehicle will be used to back early-stage European startups in areas including fintech, climate tech, foodtech and cybersecurity.

View details

View 1 investments »

Nex Cubed launches $40M HBCU founders fund

Nex Cubed has launched a $40 million fund to support founders from historically black colleges and universities, known as HBCUs, TechCrunch reported.

View details

View 75 investments »

Investors

Seraphim Space accelerator kicks off with $150M

British VC firm Seraphim Space has launched a $150 million accelerator program, Reuters reported. The firm will target 12 US-based early-stage startups in sectors including climate and defense.

View details

View 62 investments »

Waud Capital commits $100M to healthcare services

Waud Capital Partners has committed to investing $100 million or more in the home healthcare services and post-acute healthcare services markets, in partnership with Steve Jakubcanin, who served as CEO of Cornerstone Healthcare Group until its sale to ScionHealth.

View details

View 366 investments »

Rothschild family aims to take control of investment bank

The Rothschild family's holding company Concordia has announced it intends to take control of the Paris-listed investment bank Rothschild & Co. Concordia holds a 38.9% share in Rothschild & Co.

View details

View 2,725 serviced firms »

Corporate M&A

Public Storage bids $11B for competitor

Public Storage has bid $129 per share, unsolicited, for competitor Life Storage, The Wall Street Journal reported. The bid marks Public Storage's third attempt to buy the company in recent months.

View details

View 3 competitors »

Chart of the Day

"Large amounts of committed capital among fewer funds mean large fund sizes. After a pandemic-induced dip, step-ups were higher than ever, at 66.7% for funds that closed in 2021."

Source: PitchBook's Q3 2022 Global Real Assets Report

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PitchBook News - What patents portend for startups

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