Investors bet on agtech to ease supply woes

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The Daily Pitch: VC

February 20, 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 market map highlights notable companies in the precision agriculture segment.

Preliminary data for Q3 2022 shows PE and VC dragging down private capital returns—with strategies like secondaries keeping the overall figure in the positive.

Smaller PE firms have carved out niches such as sports media and entertainment in order to secure commitments.

Today's Top Stories

Explore the many fields of agtech

(OlegRi/Shutterstock)

Last year was a difficult one for agriculture: The war in Ukraine cut off global access to a critical grain supply, avian flu outbreaks sent egg prices soaring and climate change took a toll on harvests with wildfires and droughts. Investors are betting on agtech to help ease these challenges.

Our Q4 2022 Agtech Market Map lays out the key areas investors are focusing on to make a difference, broken out by segment with notable companies.

explore the market map

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Secondaries, real estate buoy private capital through Q2 2022

While the S&P 500 plummeted in the first three quarters of 2022, a handful of private markets strategies surprised investors with their resilience. Asset classes like secondaries and real estate buoyed overall private capital returns through Q2 2022 while PE and VC headed into negative territory.

Our Global Fund Performance Report uses data through Q2 2022, as well as some preliminary Q3 figures, to provide a comprehensive look at how private market strategies have held up across PE, VC, real estate, real assets, private debt, funds-of-funds and secondaries.

read the report

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A message from Configure Partners

Delivering capital structure solutions in the face of uncertainty

The era of cheap and easy money is over. Weakened corporate fundamentals and similarly lacking credit quality have resulted in a more conservative lending environment. Hold sizes and leverage are down, while pricing and scrutiny are up, significantly complicating the process of sourcing financing.

Sponsors turn to Configure to increase capacity, scale their business, and secure optimal financing. In a challenging credit environment, outsourcing debt placement allows Configure clients to better allocate resources to finding, underwriting, and ultimately closing deals. Download the latest Sponsor Finance Report for capital markets insights and more information on how Configure helps its clients win.

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Emerging managers go niche to score in tough fundraising climate

(Vasyl Shulga/Shutterstock)

After a record fundraising year in 2021, PE managers found it hard to attract capital in 2022, particularly those raising a first-time fund.

Smaller PE shops have discovered that deep industry connections and a targeted strategy can go a long way toward securing commitments, even when some limited partners are dialing back their alternatives exposure.

Recommended Reads

As more VCs are forced to continue managing previous investments while failing to raise their next fund, investors are preparing for a zombie hoard. [CNBC]

A look at hedge funds' highest earners in 2022. [Bloomberg]

One writer's unsettling conversation with Bing's new chatbot. [The New York Times]

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Quick Takes

	The Daily Benchmark
	2016 Vintage North American Secondaries Funds
	Exit & IPOs
	Apollo, EQT sell Blume Global for $414M
	Hilco considering Cath Kidston sale
	Fundraising
	Northleaf closes secondaries fund on $1.3B
	EIF commits $32M to Rivage Investment's climate debt fund
	Corporate M&A
	Qatari consortium plans $6B bid for Manchester United

The Daily Benchmark

2016 Vintage North American Secondaries Funds

Median IRR

24.15%

Top Quartile IRR

33.05%

1.73x

Median TVPI

Select top performers

Industry Ventures Special Opportunities Fund III

Industry Ventures Secondary VIII

Timber Bay Fund I

*IRR: net of fees

23 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Genetic medicines specialist Aera Therapeutics has raised $193 million in a combined Series A and B led by Arch Venture Partners, GV and Lux Capital.

Cargo drone airline Dronamics has raised a $40 million pre-Series A. Investors in the round included Founders Factory, Speedinvest and Eleven Capital.

GrainChain, a fintech startup for the agricultural industry, has secured $29 million from investors including Overstock.com, Pelion Venture Partners and Brigham Young University.

Corporate catering startup Zerocater has raised a $15 million Series C led by Cleveland Avenue.

Puzzle, which offers accounting software, has raised a $15 million Series A led by General Catalyst.

Berlin-based Dance has secured €12 million in a round led by HV Capital, Eurazeo and BlueYard for its electric bike subscription service.

SendOwl has raised $9 million in a round led by The General Partnership. The startup provides the infrastructure needed to sell digital products.

Mexico-based fintech startup Vexi has secured an $8 million Series A led by Magma Partners.

VivaCity, which offers traffic monitoring and smart traffic control sensors, has secured £7 million. Investors in the round included EnBW New Ventures, Foresight Group and Gresham House Ventures.

Andreessen Horowitz has led a $6 million investment into crypto security startup Stelo.

Web3 gaming startup Unagi has raised a $5 million seed round led by Sisu Game Ventures, TechCrunch reported.

PE Deals

Brokerage PCF Insurance Services has raised a $500 million preferred equity investment co-led by The Carlyle Group's global credit arm and HGGC. Crescent Capital and Owl Rock also took part in the deal, which values PCF at $4.7 billion.

Exponent has agreed to purchase Flavor Specialty Ingredients for $220 million from IFF. The company manufactures base aroma chemicals.

Antin Infrastructure Partners has invested in PearlX, which uses solar panels, battery storage and electrification to decarbonize multifamily rentals.

Aliter Capital has made a follow-on investment in engineering services company Edwin James Group. The firm first invested in the company in 2017 and backed its subsequent five acquisitions.

Arlington Capital Partners-backed Tex Tech Industries has acquired some of SGL Carbon's assets at a site in Gardena, California, where high-temperature materials are manufactured for applications including aerospace and defense.

Exit & IPOs

Apollo, EQT sell Blume Global for $414M

Apollo Global Management, EQT and other investors have sold Blume Global, a North American intermodal freight manager, to Sydney-based logistics software company WiseTech Global.

View details

View 115 competitors »

Hilco considering Cath Kidston sale

Hilco Capital is considering a sale of fashion retailer Cath Kidston, Sky News reported. The firm purchased the company just eight months ago.

View details

View 43 competitors »

Fundraising

Northleaf closes secondaries fund on $1.3B

Toronto-based Northleaf Capital Partners has held the final close of its third flagship secondaries fund, Northleaf Secondary Partners III, on $1.3 billion, more than 60% larger than its predecessor fund.

View fund

View 208 investments »

EIF commits $32M to Rivage Investment's climate debt fund

The European Investment Fund has committed €30 million (around $32 million) to Rivage Investment's impact debt fund as a cornerstone investor. The European Climate Debt Solutions Fund has a target of €250 million and will provide growth debt to around 40 climate-tech companies.

View details

View 96 investments »

Corporate M&A

Qatari consortium plans $6B bid for Manchester United

A Qatari consortium including the country's former prime minister Hamad bin Jassim bin Jaber Al Thani is preparing a roughly $6 billion bid for English soccer team Manchester United, Bloomberg reported.

View details

View 11 competitors »

Chart of the Day

Source: Introducing PitchBook Patent Research

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latest market map precision agriculture segment private capital returns The Daily Pitch Smaller PE firms

Investors bet on agtech to ease supply woes

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