PitchBook News - B2B fintech startups draw VC favor

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The Daily Pitch: VC

March 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:

VC fintech investors have shifted favor from retail fintech startups to those offering B2B services, as shown by our latest Emerging Tech Research.

Five VCs share which European startups they think are game changers in solving the world's climate crisis.

PitchBook analysts break down the causes and ramifications of LPs' pullback from private fund strategies.

Today's Top Stories

Enterprise fintech takes a bigger bite of the VC pie

The fintech industry remains one of the most well-funded spaces in the VC landscape. With the digitization of financial products and services brought about by the COVID-19 pandemic, the fintech ecosystem continues to present plenty of opportunities for growth.

Enterprise fintech startups are capturing more of the broader fintech VC pool, and our latest Emerging Tech Research explores why investors are paying attention to this segment. Key takeaways include:

Global VC investment in the broader fintech space reached $57.6 billion across 2,747 deals in 2022, declines of 40.7% and 18.1% year-over-year, respectively.

Within the vertical, enterprise fintech startups raised 60.9% of capital from investors compared to their retail counterparts. In 2020, that number was 48.2% of capital.

Exit activity sharply declined due to difficult economic headwinds, dropping 74.3% from last year to $18.1 billion.

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Startup radar: Europe's climate-tech startups to watch

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Venture dealmaking in European climate tech is expected to remain active this year, even as other sectors suffer.

We asked five VCs that invest in European climate tech which startups they think are game changers in solving the world's climate crisis.

Recommended Reads

The sketchy plan to build a Russian Android phone. [Wired]

As AI booms, lawmakers struggle to understand the technology. [The New York Times]

How gas from Texas becomes cooking fuel in France. [The Wall Street Journal]

Quick Takes

	The Daily Benchmark
	2020 Vintage Real Assets Funds
	Fundraising
	PSG targets $6.5B for software
	Indiana pension commits $450M to PE funds
	Gwyneth Paltrow to raise $75M
	Founders Fund slashes target
	Portfolio Companies
	Myne buys proptech startup VillaCircle
	Corporate M&A
	Equinor to buy Suncor UK

The Daily Benchmark

2020 Vintage Real Assets Funds

Median IRR

12.09%

Top Quartile IRR

20.73%

1.13x

Median TVPI

Select top performers

Lime Rock Resources V

Five Point Energy Fund III

NGP Royalty Partners

*IRR: net of fees

30 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Stability AI, the maker of generative AI model Stable Diffusion, is seeking to raise new funding at a roughly $4 billion valuation, Bloomberg reported. The startup was valued at $1 billion in October.

Electrify Video Partners, which invests in and buys YouTube channels, has raised a $50 million round led by MEP Capital.

Agtech startup Hectare has secured a $20 million Series A from undisclosed investors.

Italian industrial 3D printing startup Caracol has raised a €10.6 million Series A from investors including CDP Venture Capital, Primo Space Fund and Eureka! Venture.

South Korea's Indent, which helps shoppers leave video reviews, has secured an $8.1 million Series A led by SV Investment, TechCrunch reported.

Seattle-based SafKan Health has raised an $8 million Series A led by Unorthodox Ventures for its earwax removal device, according to reports.

OnePlan, a provider of digital mapping tools for event planners, has secured $6 million from Elysian Park Ventures and Verance Capital.

PE Deals

Sweden's EQT and the Public Sector Pension Investment Board have agreed to acquire Radius Global Infrastructure for $3 billion.

Aster DM Healthcare, a Dubai-based hospital operator, has been attracting potential acquirers, including PE firms, Reuters reported. The company hopes to sell a stake of at least 50%. Prospective buyers include Fajr Capital and Gulf Islamic Investments.

TRM Equity has acquired most of Gamma Aerospace's assets, including its headquarters in Mansfield, Texas, and two facilities that manufacture parts for the aerospace and defense industries.

Further Global Capital Management-backed Progeny Group plans to buy UK financial planning company Gibbs Denley. Following the deal, Progeny's AUM will rise to over £7.5 billion.

Cuadrilla Capital-backed Chartbeat has acquired two other SaaS companies: revenue management specialist Lineup Systems and Tubular Labs, a social video analytics platform.

Authentic Brands, backed by CVC Capital Partners and HPS Investment, is among those hoping to acquire British footwear brand Hunter Boot.

Fundraising

PSG targets $6.5B for software

PSG, which invests in software companies, aims to raise $6.5 billion for its sixth fund, a target that would far outpace the $4.5 billion committed to predecessor PSG V, The Wall Street Journal reported.

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Indiana pension commits $450M to PE funds

The Indiana Public Retirement System has committed capital to two PE funds, Private Equity International reported. Hellman & Friedman's vehicle Hellman & Friedman Capital Partners XI received $150 million from the pension fund, while a HarbourVest Partners fund received $300 million.

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Gwyneth Paltrow to raise $75M

Kinship Ventures, co-founded by Oscar-winning actress Gwyneth Paltrow, is in talks to raise $75 million for its first fund, Axios reported.

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View 1 investments »

Founders Fund slashes target

Founders Fund has cut the target size of its eighth flagship fund in half from $1.8 billion to $900 million, Axios reported.

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View 630 investments »

Portfolio Companies

Myne buys proptech startup VillaCircle

Germany's Myne, which enables customers to co-own vacation homes, has acquired VC-backed peer VillaCircle. VillaCircle is backed by JALE, JVH Ventures and Muzungu Capital. Myne's backers include Embedded/capital, TruVenturo and Rivus Capital.

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