PitchBook News - Chinese VC seeks to regain its shine

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The Daily Pitch: VC

March 30, 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 Greater China Venture Report unpacks the state of VC in the region.

China's VC exit market is hot; Alibaba's split into six units could add to it.

ChatGPT has driven AI and machine learning startups back into the spotlight, but can they stay there?

Today's Top Stories

Chinese VC looks to regain its shine after difficult 2022

Venture capital activity in Greater China—defined as mainland China, Hong Kong, Macao and Taiwan—fell sharply last year as investors grappled with disruptive lockdowns and economic headwinds at home and abroad.

But a revamped IPO system and lifting of pandemic restrictions should improve prospects for startups and their investors. Our H2 2022 Greater China Venture Report, available in English, traditional Chinese and simplified Chinese, unpacks the state of VC in the region. Highlights include:

VC deal value fell to the lowest level since 2017 as mega-rounds became increasingly rare.

Fundraising fell by about half year-over-year, to $44.5 billion, which will drag on future investment in the region.

Exit activity benefited from a new, streamlined IPO system in China that supported a rebound in public listings during the second half of 2022.

read the report

Share:

Alibaba split spells good news for China's IPO market

(Nopparat Khokthong/Shutterstock)

In the fallout from Alibaba's split, most of its six new units will be making their way toward an IPO—adding fuel to an exit market in China that was already heating up.

"The units can … potentially become these six powerhouses," said PitchBook analyst Vincent Harrison.

Recommended Reads

The personalized stem cells that could one day treat Parkinson's disease and heart failure. [The Wall Street Journal]

Breaking down where clean energy technologies are manufactured. [Visual Capitalist]

The chemical menace trapped inside glaciers and icebergs. [Wired]

Since yesterday, the PitchBook Platform added:

34

VC valuations

2289

People

725

Companies

30

Funds

See what our data software can do

The Daily Benchmark:
2017 Vintage Global VC Funds with more than $250M

Median IRR

30.85%

Top Quartile IRR

35.49%

2.28x

Median TVPI

Select top performers

Flagship Pioneering Fund VI

Oak HC/FT Partners II

Frazier Life Sciences IX

*IRR: net of fees

23 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

UK-based blockchain startup Fetch.ai has secured a $40 million investment from DWF Labs, bringing its valuation to $250 million, according to reports.
Berlin-based content management platform Hygraph has raised a $30 million Series B led by One Peak.

Norsepower, a Helsinki-based provider of mechanical sails for large ships, has closed a €28 million Series C led by Mirova.

Glopal, a cross-border ecommerce software startup based in Paris, has secured a €20 million Series A. Investors in the round included Hi Inov, Dentressangle and Seventure.

Software company Env0 has added $18.1 million to its Series A, for a total raise of $35.1 million. The new funding was led by Venture Guides, with Microsoft's M12 among the participating investors.
Boston-based biotech startup Genialis has raised a $13 million Series A co-led by Taiwania Capital and Debiopharm Innovation Fund.
Holland Capital has led a €12 million Series B for Netherlands-based Sirius Medical. The startup's navigation system is designed to help surgeons locate and remove tumors.

New York-based payment technology startup Salt Labs has raised $10 million in pre-seed funding led by Fin Capital.
Deep Render, a London-based developer of AI-powered video compression technology, has raised $9 million. The funding includes a $6.3 million Series A led by IP Group and Pentech Ventures and a grant from the European Innovation Council.

London-based intimate body care brand Luna Daily has secured a $3.7 million seed investment from Redrice, Joyance and Velocity Juice.
Presta, a digital lending platform startup, has raised $3.3 million in pre-seed funding led by Distributed Ventures.

PE Deals

ICU Medical has partnered with Linden Capital Partners to bid for two of Medtronic's medtech units estimated to be worth between $8 billion and $9 billion, Reuters reported. GE Healthcare, The Carlyle Group and Clayton, Dubilier & Rice have submitted rival offers.

Northlane Capital Partners-backed SAI MedPartners has acquired PharmaForce, a market intelligence firm covering biotechnology and pharmaceuticals.

Sverica Capital Management has made a strategic investment in a welding robotics specialist Hirebotics.

Several private equity firms are considering making offers for the nuclear medicine business of drug distributor Cardinal Health, Bloomberg reported.

Payments specialist Ingenico, backed by Apollo Global Management, has acquired point-of-sale software company Phos.

JMI Equity has made a $90 million investment in academic operations software platform Coursedog.

Riveter Capital has added on Twelve Oaks Catering Company, a school meals provider, to platform company Healthy Lunch Box.

Exit & IPOs

Vista Equity Partners is considering a sale of software vendor Tripleseat for as much as $500 million, Reuters reported.

UK-listed retailer Next has bought Hilco-backed fashion and furniture brand Cath Kidston for £8.5 million.

Fundraising

EQT Life Sciences has closed its Dementia Fund on €260 million. The vehicle will be used to back up to 15 companies developing drug therapies and medical technologies focusing on neurodegenerative diseases.

Armen has held a first close of its first GP stakes fund on €150 million and secured a strategic minority investment from a group of French family offices. The firm is aiming to hold a final close of €400 million by year-end.

Schroders Capital has launched a climate-focused long-term asset fund to give UK pension fund investors access to illiquid and private assets related to energy transition.

Corporate M&A

The UK's competition regulator will investigate Broadcom's acquisition of VMware over concerns that the $61 billion deal could negatively impact the server market and increase the cost of computer parts.

Chart of the Day

"In some cases, state-level expansion of Medicaid dental coverage has created acute shortages due to pent-up demand. This demand-supply imbalance creates an attractive opportunity for PE platforms that can leverage scale and navigate changing state reimbursement landscapes—including policy changes and MCO procurement cycles—to create commercially viable pediatric dentistry practices for underserved communities."

Source: PitchBook's Q4 2022 Healthcare Services Report

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PitchBook News - Chinese VC seeks to regain its shine

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