PitchBook News - Tribeca's down-round strategy

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The Daily Pitch: VC

March 28, 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 insurtech report examines key trends and VC opportunities in the space.

Tribeca Venture Partners is willing to play the "bad guy" with its growth strategy so existing investors don't have to.

A team of PE firms led by Brookfield has clinched this year's biggest energy buyout yet.

Today's Top Stories

Exclusive: Tribeca raising $200M downturn-oriented VC growth fund

Manhattan's Tribeca neighborhood
(Ryan DeBerardinis/Shutterstock)

Tribeca Venture Partners, a New York-focused early-stage firm, is raising its second growth-stage fund with a target of $200 million, according to people familiar with the firm's plans.

Hundreds of late-stage companies may have no choice but to raise a down round over the next couple of years. While existing investors may be reluctant to lower the valuation of their portfolio companies, Tribeca can use its growth fund to play the "bad guy" and price the round fairly.

Recommended Reads

AI researcher Margaret Mitchell was fired by Google. Now she's the chief AI ethics scientist at one of its startup rivals. [The Information]

While stock prices and sales for companies like Peloton and Zoom have dropped off since the end of pandemic quarantines, Crocs is a different story. [The New York Times]

Italy's shift away from Russian gas clashes with its climate targets. [Financial Times]

Since yesterday, the PitchBook Platform added:

22

VC valuations

2093

People

696

Companies

27

Funds

See what our data software can do

The Daily Benchmark:
2019 Vintage US PE Funds

Median IRR

26.21%

Top Quartile IRR

37.74%

1.32x

Median TVPI

Select top performers

Silver Canyon Building Fund

Sterling Investment Partners IV

Charlesbank Technology Opportunities Fund

*IRR: net of fees

135 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Lithium-ion battery maker Northvolt is in talks to raise more than $5 billion in debt funding, the Financial Times reported. The Swedish company's current backers include AMF and Baillie Gifford.

Pennsylvania-based biotech startup Arrivent has raised a $155 million Series B co-led by Sofinnova Investments and General Catalyst with backing from Sequoia China and Catalio Capital Management.

Boston-based AI life sciences startup Labviva has raised a $20 million Series A led by Biospring Partners with backing from Senator Investment Group.

Germany-based OQmented has raised a $20 million Series A from investors including Sharp and Vsquared Ventures. The startup enables tech companies and eyeglass manufacturers to build wearable AR or mixed-reality glasses.

Smart water tank startup Mixergy has secured £9.2 million from investors including EDP Ventures and Nesta.

Delaware-based video ecommerce platform Videowise has raised a $3 million seed round led by Slack Fund with backing from Underline Ventures, Mu Ventures and Ratio Ventures.

Biotech startup Cora Therapeutics, based in Toronto, has raised $1 million in seed funding led by Irongate Capital Advisors.

PE Deals

Advent International has launched its sale of Idemia, a French biometrics company, Les Echos reported. The deal is expected to be in the range of €5 billion to €6 billion.

NASDAQ-listed Blackbaud has rejected a buyout offer valuing the cloud software company at $3.78 billion from its largest shareholder Clearlake Capital.

Brookfield Asset Management is in talks to acquire Paris-based data-center operator Data4 from Axa Investment Managers in a deal valuing the company at nearly €3 billion, Reuters reported.

Activist investor Elliott Management is looking to take over parts of London-listed Cineworld, Sky News reported. The firm is interested in the company's operations in Eastern Europe and Israel.

SoftBank has agreed to a take-private of AI and robotics company Berkshire Grey. SoftBank, already a shareholder in the company, will pay $375 million in cash for the remainder.

Sound Partners and Calico Group have announced a joint acquisition of Tradewinds Mechanical, an HVAC and refrigeration services company.

Heartwood Partners has acquired NativeSeed Group, which offers native seeds and erosion control solutions.

Exit & IPOs

AnaCap has sold a minority stake in German insurance broker MRH Trowe to TA Associates. The deal is subject to EU antitrust approval.

Fundraising

Parthenon Capital has closed Parthenon Investors VII on over $4.5 billion, more than twice the size of the vehicle's predecessor.

VC firm OpenView has closed its seventh fund with $570 million to support software startups in the expansion stage.

DW Healthcare Partners has closed its latest vehicle on $210 million. The fund, which targets lower-middle-market healthcare companies, has already invested in TubeWriter and DermLite.

Investment firm Monarch Collective, which will invest exclusively in women's sports, has raised $100 million for its debut fund, according to reports.

Corporate M&A

Qatar's Sheikh Jassim bin Hamad Al Thani has made an offer to take over English soccer club Manchester United, Sky News reported. The bid came after Al Thani asked for a deadline extension Wednesday, according to the report.

Chart of the Day

"When comparing Q2 2022 to the previous five quarters, however, there has been a significant decline in secondaries returns ... This trend in declining returns likely reflects the markdowns in NAV that occurred over 2022 across fund strategies, as well as the extension of fund lives while exit conditions remain difficult. IRRs are heavily influenced by length of holding period."

Source: PitchBook's 2022 Global Fund Performance Report

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PitchBook News - Tribeca's down-round strategy

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