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The Daily Pitch: VC

March 27, 2023

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In today's Daily Pitch, you'll find:

First Citizens Bank has agreed to buy most of Silicon Valley Bank, weeks after the lender’s collapse sent shockwaves through the banking system.

Unpacking emerging opportunities for retail fintech investors in loyalty and rewards, alternative investments and more.

A tighter debt market has created opportunities for alternative lenders.

A nuanced analysis of the top five arguments against the use of ESG strategies.

Today's Top Stories

Credit card perks and loyalty bonuses: Retail fintech fights inflation's bite

Retail fintech deal activity has aggressively reverted to pre-2021 levels and last quarter was no different. Our Q4 2022 Retail Fintech Report uncovers the recession indicators within the data: Deal values, exits and counts fell across the board, while loyalty programs and alternative assets present winning opportunities in today's high-inflation era.

Retail fintech VC deal value declined 73.4% year-over-year in Q4, reaching its lowest level since Q3 2018. Late-stage retail fintechs had a particularly hard fall: Exit value dropped from $195.3 billion in 2021 to $5.7 billion in 2022.

Fintech investors are shifting toward B2B: Just 38.4% of all fintech VC deal value for 2022 was in retail. Meanwhile, B2C digital banks like Chime and Varo are facing the heat as investors remain unconvinced of profitability and higher borrower delinquencies risk hurting bottom lines.

Alternative asset providers are another niche primed for takeoff, ranging from NFTs and fine-wine investing to real estate.

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Failed SVB to be taken over by First Citizens

(NurPhoto/Getty Images)

North Carolina-based First Citizens Bank has agreed to buy most of SVB just weeks after the lender’s collapse.

SVB’s startup and venture customers will now have a new home but the failure of the leading tech lender will have lasting impacts on the VC industry.

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Despite steps to support small Black-owned businesses, there remains a lack of support or funding for those trying to break through the UK's glass ceiling. [Financial Times]

Strategy Capital, a tech-focused hedge fund, is a reminder that one year of performance doesn't make or break a manager. [Institutional Investor]

Most carbon emissions caused by businesses are hidden from sight. US and California regulators are pushing to require companies to fully disclose them. [Wired]

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VC Deals

B2B data integration specialist Adeptia has raised $65 million in a round led by PSG.

Savings and investment marketplace Raisin has secured a €60 million Series E from investors including M&G Investments and Goldman Sachs.

GT Medical Technologies, which makes medical devices for patients with brain tumors, has raised $45 million in a Series C led by Gilde Healthcare Partners.

Spatial biology startup Lunaphore has raised 40 million Swiss francs (about $44 million) in a round led by EGS Beteiligungen.

Axios HQ, a software business spun off from digital publisher Axios, has raised $20 million led by Glade Brook Capital Partners and Greycroft Partners, The Wall Street Journal reported.

Smart basketball hoop startup Huupe has raised $11 million led by Protagonist VC, Marvan Ventures, TRI Investments and Kawn VC, TechCrunch reported.

Tel Aviv's Daily.dev, which offers a professional network for software developers, has secured an $11 million seed investment from investors including Aleph, Jibe Ventures and Secret Chord Ventures.

Climate-tech startup Lun has raised €10.3 million from investors including Norrsken VC, Partech and Lowercarbon Capital.

Grocery delivery company Good Eggs has taken a 94% hit to its valuation, The Information reported, closing a $7 million down round led by Glade Brook Capital Partners. The company previously raised $60 million in late 2020.

PE Deals

Bain Capital has proposed a take-private buyout of Estia Health for A$775 million (about $517 million). Estia runs residential care facilities for the elderly in Australia.

LDC has invested in Idwal Marine Services, a UK-based shipping sector inspection services provider. The company has a presence in the UK, Greece, China and Japan.

Alpine Investors-backed lifestyle and emotional wellness platform Ingenio has acquired Kasamba, a website that provides customers with online psychic readings, from LivePerson.

Exit & IPOs

Apollo Global Management-backed German bank Oldenburgische Landesbank has halted its plans for an IPO, Bloomberg reported. The lender had been considering a float in May.

Mental health services company SonderMind has acquired the assets of Mindstrong, a telehealth startup for mental well-being previously backed by VCs including General Catalyst and Arch Venture Partners.

HIG Capital has sold Brazilian specialty chemical manufacturer Elekeiroz to Oswaldo Cruz Química, another Latin American chemical company.

Fundraising

In April, buyout firm KPS Capital Partners plans to begin raising $8 billion to $10 billion for its latest main fund, KPS Special Situations Fund VI, The Wall Street Journal reported.

Corporate M&A

Brazilian lender BTG Pactual has agreed to buy Luxembourg's FIS Privatbank. The bank's clients include high net worth individuals, family offices and institutional investors.

Chart of the Day

Source: PitchBook's 2022 Annual Global Private Debt Report

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PitchBook News - Retail fintech fights inflation's bite

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