'Big oil' funding troubles some founders

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The Daily Pitch: VC

March 29, 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:

Fossil fuel CVCs are increasingly investing in climate-tech startups, posing a conundrum for many founders looking to raise funding.

Torch Capital has closed over $200 million across two funds.

Will European governments be able to create the next generation of deep-tech unicorns?

Today's Top Stories

'Big oil' bankrolls more climate VC deals, a dilemma for founders

(Joe Portlock - Formula 1/Getty Images)

More than one-fifth of all VC dollars that flowed into climate-tech startups in 2022 was in deals with participation from "big oil": $6.79 billion out of a total $36.47 billion invested, PitchBook data shows.

But taking money from fossil fuel companies is a conundrum for many founders. "As a founder your best bet would be to take their money if you need it, but keep them at arm's length," said Wes Selke, a partner at Better Ventures.

Recommended Reads

Regulatory reform and high oil prices have kick-started a surge of IPOs in the Middle East, with 2022 marking a record year. [Financial Times]

Many startups operate without a CFO, relying instead on their banks or venture backers for financial guidance. That created a challenge as SVB collapsed. [The Wall Street Journal]

Startups and investors are rushing to build networks of charging stations for electric semitrucks. [Wired]

Since yesterday, the PitchBook Platform added:

13

VC valuations

1972

People

694

Companies

29

Funds

See what our data software can do

The Daily Benchmark:
2018 Vintage European Debt Funds

Median IRR

8.00%

Top Quartile IRR

12.55%

1.17x

Median TVPI

Select top performers

Inveready Venture Finance III

Blantyre Special Situations Fund I

Cross Ocean Partner European Special Situations Fund III

*IRR: net of fees

15 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Munich-based satellite launch services company Isar Aerospace has raised a $165 million Series C. Investors in the round included Earlybird, HV Capital and Lakestar.

Ridesharing platform Cabify has secured $110 million from investors including Orilla Asset Management, Axis and Fond-ICO Next Tech.

Networking startup Graphiant has raised a $62 million Series B led by Two Bear Capital with additional backing from Sequoia, Atlantic Bridge and Harpoon Venture Capital Partners.

Salubris Biotherapeutics has secured a $35 million investment from China-based Shenzhen Salubris Pharmaceuticals.

Boston-based autonomous logistics startup Venti Technologies has raised a $28.8 million Series A led by LG Technology Ventures .

New York-based fintech startup Spiral has raised a $28 million Series A led by Team8.

Smalls, a New York-based cat food startup, has secured a $19 million investment from Left Lane Capital and 301, the venture capital arm of General Mills.

Talpa Solutions, a German provider of analytics and business intelligence software for heavy industry, has closed a €15 million Series B led by Bosch Ventures and MIG Capital.

Edited, a London-based startup offering retail data and analytics, has received $15 million from Delta-v Capital.

Berlin-based Atlas Metrics has raised €5.2 million for its ESG tracking and reporting platform in a seed round led by B2venture. The company aids businesses around the world in becoming ESG compliant.

London-based climate-tech company Connect Earth has raised over $5.6 million in a seed round led by Gresham House Ventures.

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PE Deals

KKR is preparing a sale of audiobook publisher RBmedia for as much as $2 billion, PE Hub reported. KKR acquired the company in 2018 from Shamrock Capital Advisors.

Superstep Capital has made a strategic growth investment in Zaelab, a B2B digital commerce consulting company.

Spanish data processing group Nabiax has sold its Latin American operations to London-based Actis. The transaction was valued at $500 million, Reuters reported.

Advent International-backed international food ingredients company IRCA has completed its acquisition of the sweets ingredients portfolio of Ireland's Kerry Group.

EQT Growth has agreed to acquire German photography software developer GotPhoto.

Exit & IPOs

Singaporean sovereign wealth fund Temasek is considering a US IPO of Advanced MedTech Holdings, a former spinout of Accuron Technologies, after talks for a potential acquisition of the medical device manufacturer failed, Bloomberg reported. A potential share sale is expected to raise between $200 million and $300 million.

Fundraising

SR One has closed its second fund on over $600 million, exceeding its target of $500 million.

London-based pre-seed investor Playfair has launched its third fund, targeting $70 million.

Investors

Ares Management is considering raising $400 million for a SPAC, Bloomberg reported. In February 2021, the firm raised a $1 billion SPAC, Ares Acquisition.

Chart of the Day

Source: PitchBook's 2023 Nordic Private Capital Breakdown

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