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The Daily Pitch: VC

February 10, 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:

SPACs are leading the way as recently public companies rebound, according to our indexes.

Nextracker and Hesai Technology went public on the same day, which could prime the IPO market for a lively 2023.

The median amount of VC capital raised by European startups continues to climb despite a challenging economic climate.

Today's Top Stories

SPACs lead rebound of recently public companies

(Drew Sanders/PitchBook News)

After a bruising 2022, companies that recently went public on US exchanges are off to a strong start this year, helped by a broad surge in tech stocks. Businesses that went public through a SPAC merger have seen the largest gains.

PitchBook's DeSPAC Index has climbed 25.7% in 2023.

The VC-backed IPO index is up 23.3%.

The PE-backed IPO index has risen 15.3%.

explore the indexes

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Nextracker, Hesai attempt to thaw IPO freeze

(VIEW press/Getty Images)

The IPO winter has been brutal.

Driven by an unstable market, a critical exit strategy has been closed off. But two tech companies, Nextracker and Hesai Technology, beat expectations this week in a pair of IPOs that offered hope for better days ahead. Eventually, fintech giant Stripe, semiconductor producer Arm and hordes of cash-hungry startups could go public—if conditions continue to improve.

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How bad was 2022 for VCs? It depends where you look

(Drew Sanders/PitchBook News)

Inflation. Crypto's implosion. Layoffs. 2022 was a challenging year for everyone, especially VC-backed tech startups, but how bad was it really?

According to PitchBook's data, it all depends on where you look. Here's the state of VC in six charts that lay out the complex picture and road ahead.

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Northvolt tops list of most-funded startups in Europe

(Courtesy of Northvolt)

Swedish battery maker Northvolt has emerged as the most-funded VC-backed company in Europe with $5.5 billion raised.

Despite a more challenging dealmaking environment, the median round amount in the region has also grown.

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Healthcare sector tops distressed bond and loan index leaderboards

(PopTika/Shutterstock)

Healthcare companies make up a disproportionately large percentage of distressed bonds and loans in the Morningstar US High-Yield Bond Index and the Morningstar LSTA US Leveraged Loan Index—23% for bonds and 28% for loans.

Rising personnel costs and the federal No Surprises Act on medical billing, which went into effect in 2022, have been cited for a hit to some healthcare providers' bottom lines.

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Recommended Reads

You've heard about hard and soft landings, but what about a rolling recession? [Bloomberg]

The Atlanta billionaire behind Goldman Sachs' latest consumer-lending push. [The Wall Street Journal]

Visualizing the biggest US tech layoffs since 2020. [Visual Capitalist]

Since yesterday, the PitchBook Platform added:

12

VC valuations

2182

People

618

Companies

25

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2014 Vintage Global Real Estate Funds
	Exit & IPOs
	Weight loss specialist Allurion to go public via SPAC
	Fundraising
	Triton Partners seeks $5.9B
	Athene holds first close on $2B
	Kainos raises $1B+ for Fund III
	eWTP Arabia nears $1B fundraise
	Earth & Beyond Ventures debuts with $125M
	Weinburg holds first close of French security, defense fund
	Carbon Equity launches second vehicle
	Investors
	Apollo profits in Q4
	Rothschilds in talks with wealthy French families
	Maven Capital closes Liverpool office
	Corporate M&A
	MGM Resorts ditches buyout plan for UK's Entain

The Daily Benchmark

2014 Vintage Global Real Estate Funds

Median IRR

10.62%

Top Quartile IRR

14.06%

1.49x

Median TVPI

Select top performers

Exeter Industrial Value Fund III

L-A Saturn Acquisition

Activum SG Real Estate Fund I

*IRR: net of fees

66 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Data observability startup Acceldata has raised a $50 million Series C led by March Capital.

JP Morgan, CVC Growth Funds and Pantheon have invested $50 million in cybersecurity startup Skybox Security.

Danish neobank Lunar has raised €35 million, TechCrunch reported. Lunar's previous investors include Kinnevik, Tencent and IDC Ventures.

Foundation Capital has led a $30 million round for Coincover, which specializes in protecting digital assets.

Refrigeration data specialist Therma has secured a $19 million Series A led by Zero Infinity Partners.

Yodawy, a pharmacy benefits manager in Egypt, has raised $16 million in the first close of its Series B. The round was led by Delivery Hero Ventures and Global Ventures.

Mino Games, a mobile game developer, has secured $15 million in a Series B led by Standard Crypto.

Cybersecurity startup Sendmarc has secured $7 million in a round led by Atlantica Ventures.

Warsaw-based Plenti has raised 23 million Polish zlotys (around $5.2 million) in a round led by 4growth VC. The startup's platform allows users to rent electronics.

PE Deals

The Carlyle Group is in talks to buy healthtech company Cotiviti for nearly $15 billion, according to reports. The deal is expected to include a $5.5 billion private loan.

A consortium led by Japan Industrial Partners has submitted a takeover offer for Toyko-listed conglomerate Toshiba. The offer is understood to be worth $15 billion.

PE firm Francisco Partners is close to acquiring software provider Sumo Logic for about $1.7 billion, The Wall Street Journal reported.

The Carlyle Group has made a tender offer for Japanese lighting solutions provider Iwasaki Electric that values the business at roughly $266 million, Deal Street Asia reported.

Macquarie-backed Wavenet has agreed to buy London-listed managed services provider Adept Technology for about $61 million.

Blackstone plans to sell a minority stake in travel industry software provider IBS Software after a failed attempt at a foreign listing, Mint reported. The PE giant has reportedly hired JP Morgan to sell 40% of its 44% stake in the company.

Chicago Pacific Founders-backed Ascend Vision Partners has acquired Cohn Eye Center and R&E Optical.

Investcorp has invested in Swiss cybersecurity company Terra Quantum.

Exit & IPOs

Weight loss specialist Allurion to go public via SPAC

Allurion, a healthtech company specializing in weight loss, has agreed to merge with blank-check company Compute Health Acquisition Corp. and go public on the NYSE. The new company is expected to be valued at $500 million, including debt, Bloomberg reported.

View details

View 3 competitors »

Fundraising

Triton Partners seeks $5.9B

Triton Partners is seeking €5.5 billion (about $5.9 billion) for the firm's latest fund. Triton VI will focus on businesses in Western Europe in sectors like industrial tech, healthcare and business services.

View fund

View 423 investments »

Athene holds first close on $2B

Financial services firm Athene has held the first close of its Apollo/Athene Dedicated Investment Program II, which is meant to aid the firm's growth strategy, on roughly $2 billion.

View fund

View 16 investments »

Kainos raises $1B+ for Fund III

Kainos Capital, a PE firm that invests in the food and consumer products industries, has closed its third namesake fund on more than $1 billion, making it the firm's largest vehicle so far.

View fund

View 48 investments »

eWTP Arabia nears $1B fundraise

VC firm eWTP Arabia, which is backed by ecommerce giant Alibaba and Saudi Arabia's Public Investment Fund, is closing in on $1 billion for a fund targeting technology startups in Asia and the Middle East, Bloomberg reported.

View fund

View 3 investments »

Earth & Beyond Ventures debuts with $125M

Israel-based Earth & Beyond Ventures has launched with a $125 million fund dedicated to investments in early-stage space-tech startups. The fund has backing from Corning, NASA and Japanese electronics giant Kyocera.

Weinburg holds first close of French security, defense fund

Paris-based Weinberg Capital Partners has held a more than €100 million (about $107 million) first close of its buyout fund targeting French small and medium-sized businesses and mid-cap companies in the security and defense sector.

View details

View 61 investments »

Carbon Equity launches second vehicle

Amsterdam-based Carbon Equity is targeting €75 million (around $81 million) for its second fund. The vehicle will be used to back climate-tech companies with a minimum ticket size of €100,000.

Investors

Apollo profits in Q4

Apollo Global Management saw a profit in the fourth quarter after a prolonged period of quarterly write-downs. The asset manager reported net income of $584 million in Q4, more than double what it earned in Q4 2021.

View details

View 784 investments »

Rothschilds in talks with wealthy French families

The Rothschilds are meeting with France's wealthiest families to enlist help in buying out minority owners in the family's investment bank as part of a plan to privatize the firm, the Financial Times reported. Rothschild & Co is currently valued at nearly $4 billion.

View details

View 173 investments »

Maven Capital closes Liverpool office

Maven Capital Partners is closing its Liverpool office, which opened last year. Now, the firm will share regional offices with wealth management company Ludlow, which is also owned by listed wealth manager Mattioli Woods.

View details

View 391 investments »

Corporate M&A

MGM Resorts ditches buyout plan for UK's Entain

MGM Resorts International will no longer pursue a buyout of sports betting and gaming firm Entain, Reuters reported. Entain previously rejected an $11 billion takeover attempt by MGM.

View details

View 8 competitors »

Chart of the Day

"Strategic buyers accounted for a healthy 38.8% of all middle-market PE exits in Q3, in line with prior quarters in recent years. However, this bears watching moving forward, especially with the PE exits engine now firing on just two of its three cylinders."

Source: PitchBook's Q3 2022 US PE Middle Market Report

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PitchBook News - SPACs lead a rebound in our indexes

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