PitchBook News - Synthetic data augments gains in AI

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The Daily Pitch: VC

March 31, 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:

Synthetic data has gained popularity as a useful tool for the advancement of AI and machine learning.

Co-investments are on the rise as fund managers seek new sources of capital and LPs look to reduce fee burden.

A slight majority of PE firms believe they have the right executives in place at their portfolio companies, but returns hinge on leadership.

Today's Top Stories

Synthetic data moves to the fore with computer-augmented datasets

Generative AI is seemingly all the rage these days, but there's another field of computer-generated data that's hitting a new stride. Synthetic data, which is made up of computer-generated outputs supplementing real-world observations, is gaining more attention as AI and machine learning rapidly advance.

Pitchbook's latest emerging space brief has the background and breakdown you need to understand the growing space. According to our estimations, synthetic data is on track to hit $1 billion in market size within the next four years.

read it now

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GPs tap co-investments as debt capital dries up and fundraising lags

(Gajus/Shutterstock)

Fundraising for PE-led co-investments, which allow LPs to invest alongside a fund manager, has soared over the last decade as managers turn to these transactions to expand their access to capital and LPs are attracted by low- and no-fee structures.

Co-investments not only allow GPs to fill the equity gap in buyout deals when cheap debt financing is harder to come by but also give them more time to raise their next fund. Dealmakers anticipate this strategy will continue to gain momentum as fundraising remains challenging.

Recommended Reads

Personal coaches to PE executives report that their clients are increasingly worried about their impact on their employees, business and even the world. [Institutional Investor]

Telemedicine startups are wary of a regulatory shift in the war on opioid addiction. [The Wall Street Journal]

On today's battlefields, better camouflage is needed to hide from new electronic sensors. [The Economist]

Since yesterday, the PitchBook Platform added:

14

VC valuations

2038

People

622

Companies

29

Funds

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The Daily Benchmark:
2016 Vintage North American Funds-of-Funds

Median IRR

26.40%

Top Quartile IRR

32.71%

2.01x

Median TVPI

Select top performers

Weathergage Capital Investments 2016

Adams Street Venture Innovation Fund

Next Coast Ventures I

*IRR: net of fees

29 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Blockchain security specialist Ledger has raised a $108 million Series C extension from investors including True Global Ventures and VaynerFund, according to reports.

Green Labs, a South Korea-based agtech startup, has secured $38.4 million in debt financing from BRV Capital Management and Skylake Incuvest, TechCrunch reported.

Parloa, which offers an AI-based platform to automate customer communication, has raised €20 million in a round led by EQT Ventures.

Effy, a French home energy specialist, has secured €20 million from Felix Capital.

Inato, which offers a platform to connect pharmaceutical companies with clinical trial sites, has raised a $20 million Series A2 led by Cathay Innovation.

Anvil, a paperwork automation specialist, has raised a $5 million Series A extension, bringing the round's total to $10 million, with participation from Craft Ventures and Gradient Ventures.

Finverity, a supply chain finance specialist, has raised $5 million from investors including Outward VC, Acrobator Ventures and S16VC.

PE Deals

Vista Equity Partners has completed its $2.6 billion take-private of Duck Creek Technologies, an insurance solutions provider formerly listed on the Nasdaq.

Roark Capital Group is among the PE firms vying to buy sandwich chain Subway in a deal expected to reach $10 billion, Bloomberg reported.

Edotco Group, the wireless tower arm of Malaysian telecom group Axiata, has shortlisted bidders including CVC Capital Partners, I Squared Capital and Stonepeak Partners for a $750 million stake sale, Bloomberg reported.

Crossplane Capital has made an equity investment in Kaemark, a provider of millwork and equipment for spas, salons, medical clinics and veterinary clinics.

The Riverside Company has agreed to buy German cleanroom garment distributor Dastex. The firm has also acquired Swedish lab equipment specialist Vita Verita as its first add-on to the platform.

Endless has acquired poultry supplier Smithfield Murray, which it plans to merge with its existing portfolio company Yorkshire Premier Meat.

Exit & IPOs

WHP Global and Marquee Brands are among those interested in acquiring Three Hills Capital-backed footwear retailer Hunter Boot, Sky News reported. Authentic Brands Group, which is backed by CVC Capital Partners and HPS, submitted a bid for the company earlier this month.

Dubai-based fintech company Rasan is preparing to go public on the Saudi stock exchange, Bloomberg reported. Rasan operates Tameeni, an online insurance platform.

Fundraising

Prysm Capital has closed its debut growth equity fund on $305 million.

Paris-based VC firm Elaia Partners has reached a €200 million close on its fourth fund. The vehicle will be used to invest in up to 30 European early-stage B2B startups with a ticket size between €1 million and €15 million.

Goodwell Investments and Oxfam Novib have launched a €20 million fund targeting early-stage startups in Kenya, Uganda and Ethiopia, TechCrunch reported.

Investors

India's markets regulator will allow PE firms to invest in the mutual fund industry, Reuters reported. The Securities and Exchange Board of India said qualifying firms must have at least five years fund management experience and at least 50 billion rupees (around $609.3 million) in capital.

Chart of the Day

Source: PitchBook's H2 2022 Greater China Venture Report

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PitchBook News - Synthetic data augments gains in AI

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