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The Daily Pitch: VC

March 21, 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 new VC exit predictor uses machine learning and PitchBook data to help assess startups' prospects.

Lessons learned from the 2007-2008 financial crisis illuminate opportunities for today's investors and acquirers.

UBS is taking over Credit Suisse as regulators try to quell panic in the financial markets.

Today's Top Stories

Gain an edge with our new VC exit predictor

Of all the startups, which ones are worth putting time into as an investor? With our new VC exit predictor, answering that question just got easier. The tool uses machine learning and PitchBook data to provide insights into startups' prospects for a successful exit.

Our analyst note lays out how the tool works. Our analysts found that in a backtest of active VC-backed startups as of February 2018, those companies that ranked in the top decile were 3.1x more likely to exit successfully.

learn about the tool

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What investors and acquirers can learn from the global financial crisis

Both public and private markets experienced a period of decline during the 2007-2008 global financial crisis. However, corporate M&A and investment activity remained relatively resilient due to factors like record levels of capital on corporate balance sheets and a venture ecosystem that attracted nontraditional participants.

Our analysts compare the global financial crisis to current market conditions and describe the opportunities and benefits of corporate dealmaking in a difficult economic climate. For example, valuation declines have lowered the "entry cost" for corporate acquirers and investors, allowing many to make strategic plays that may have previously been out of reach. Additionally, corporations with more favorable capital structures relative to their competitors may be able to pursue innovation at a quicker pace.

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UBS deal signals the end of Credit Suisse

(Fabrice Coffrini/Getty Images)

Swiss bank Credit Suisse will be taken over by UBS as regulators aim to stem panic in the financial markets.

The 167-year-old institution's collapse was exacerbated by the failure of SVB, but its problems had already been mounting for several years after a string of scandals.

Recommended Reads

Silicon Valley Bank's collapse means startup founders of color have lost one of their biggest financial havens. [Fortune]

In an uncertain economy, companies post job listings they might not really be trying to fill. [The Wall Street Journal]

Barriers to global commerce that had been torn down are now being re-erected—and not only around Russia. [The Economist]

Since yesterday, the PitchBook Platform added:

20

VC valuations

2435

People

674

Companies

29

Funds

See what our data software can do

The Daily Benchmark:
2018 Vintage Global VC Funds

Median IRR

31.84%

Top Quartile IRR

44.10%

1.71x

Median TVPI

Select top performers

Forbion Capital Fund IV

Blume Ventures Fund III

Vivo Capital Fund IX

*IRR: net of fees

76 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

HR startup Rippling has raised a $500 million Series E led by Greenoaks in its push to help startups make payroll after the collapse of Silicon Valley Bank.

Reebelo, which offers a marketplace for refurbished consumer electronics, has raised a $29 million Series A extension led by Cathay Innovation, bringing the round's total to $50 million.

Hospitality specialist Operto Guest Technologies has raised a $25 million Series B led by Centana Growth Partners.

Candela, which makes long-range electric boats, has raised $20 million in a round led by EQT Ventures, Joel Eklund and Svante Nilo Bengtsson.

Cybersecurity startup Aembit has launched with a $16.6 million seed round from Ballistic Ventures and Ten Eleven Ventures.

Tavus has closed a $6.1 million seed round led by Sequoia, TechCrunch reported. The startup uses AI to generate personalized videos for sales and marketing teams.

Berlin's Monite, which offers a processing platform for B2B payments, has raised a $5 million seed round led by Third Prime, according to reports.

Preventative health startup Aera Health has secured €4 million from investors including Korify Capital.

Patch, a startup building co-working spaces in the UK, has raised £3 million. Investors in the round included JamJar Investments, Blue Wire Capital and Triple Point Ventures.

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PE Deals

KKR has agreed to buy a minority stake of 25% to 49% in Sempra Infrastructure's Port Arthur LNG project, an export terminal under development in Texas, for $64 million to $125 million. ConocoPhillips also owns a 30% stake in the project.

Tyree & D'Angelo Partners-backed Western Veterinary Partners, a veterinary support organization, has raised a minority investment from LGT Capital Partners, Hamilton Lane and Apogem Capital.

HASI has committed $30 million to Bioenergy Devco, which is also backed by Newlight Partners, Sagewind Capital and Irradiant Partners. Bioenergy develops facilities that convert food waste to renewable natural gas.

Peak Rock Capital-backed Middle Eastern and Mediterranean food brand owner Ziyad Brothers has acquired New Jersey-based Vintage Food Corp., a distributor of Turkish, Middle Eastern and Eastern European food and beverages.

ATL Partners has formed a new aerospace supplier called LightRidge Solutions, which incorporates the firm's acquisitions of Geost in 2021 and Ophir in 2022.

ICG has acquired a further stake in Ocea Smart Building, which specializes in smart water and heat metering infrastructure, from Crédit Agricole Assurances. The investment, made via ICG's €1.5 billion debut infrastructure fund, gives ICG a 100% stake alongside the management team.

Exit & IPOs

Actis and wind and solar company Mainstream Renewable Power have completed their sale of Lekela Power to Infinity Power, a joint venture between Egypt's Infinity and the United Arab Emirates' Masdar.

Fundraising

Eurazeo has held a further closing of its Transition Infrastructure Fund on around €420 million, reaching 80% of its initial target.

Atlanta-based TTV Capital has closed its Fund VI—its largest raise to date—at $250 million. The fund will invest in early-stage fintech startups.

Investors

Boston-based firm Great Hill Partners has opened a London office to support its investment activity in the UK and Europe. Managing director Drew Loucks will lead the new office.

Corporate M&A

Mitsubishi UFJ Trust and Banking will acquire UK credit specialist AlbaCore Capital via its subsidiary First Sentier as part of the Japanese bank's attempts to diversify its business.

Chart of the Day

"Private debt has surpassed the $200 billion mark for the third consecutive year but fell short of 2021's record pace by 19.7%. That shortfall was fully offset by the enormous growth in fundraising from nontraded business development companies (BDCs) and credit-oriented interval funds marketed to individual investors, which are not found in the call-down universe we draw upon for this report."

Source: PitchBook's 2022 Annual Global Private Debt Report

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PitchBook News - Introducing our VC exit predictor

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