PitchBook News - Unicorns close out a forlorn Q1

Read online | Don't want to receive these emails? Manage your subscription.

Log in

The Daily Pitch: VC

April 10, 2023

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

Surveying sustainable investing practices

We've launched our 2023 Sustainable Investment Survey, measuring how investors and other private market participants are thinking about impact strategies and/or ESG risk factors. Please share your firm's approach to sustainable investing and what drives it. The survey will take about 10 minutes.

All who complete the survey will have the opportunity to enter a prize drawing, and for each completion, PitchBook will make a donation to World Central Kitchen. Take the survey here.

Unicorn creation closes out a meager Q1

Only 18 unicorns were minted in Q1 2023 at a combined valuation of $27.1 billion, according to our unicorn tracker. This is the lowest quarterly new unicorn count since 2017.

Startups in North America made up the largest share of unicorns for the quarter. Africa got its fifth unicorn as Scroll, a Seychelles-based blockchain company, eclipsed the $1 billion valuation mark in March.

Notable deals included machine learning model developer Adept's $350 million Series B, reportedly at a more than $1 billion valuation, and fertility services provider Kindbody's $100 million round at a $1.8 billion valuation.

explore the tracker

Share:

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:

A message from McDermott Will & Emery

Premier digital health conference in NYC, May 17-18

Calling all digital health leaders and innovators!

Get ready for the McDermott Digital Health Forum 2023—an exhilarating two-day event on May 17 and 18 in NYC. There will be ample networking opportunities and robust panel discussions on pressing business, operational and policy issues impacting the future of healthcare. With a lineup of senior leaders who are shaping digital health, this is the perfect chance to connect with transformative players in the industry.

Don't miss out on this amazing opportunity to be part of an exclusive community of digital health leaders driving the industry forward. Register now and transform your knowledge and network like never before!

Promo code for $100 off registration: DHFPITCHBOOK

Register today!

Share:

The 20 most active LPs in direct PE investments

(MEzairi/Shutterstock)

Institutional investors have been ramping up their exposure to direct PE deals in recent years, as the strategy allows limited partners to take a direct stake in assets and bypass hefty fees charged by private equity funds.

The institutional investors that completed the most of these deals last year are sovereign wealth fund managers and pension plans based in the Middle East, Europe and Asia. Singapore's wealth fund GIC and the French state bank Bpifrance were the most active of the lot in 2022.

Share:

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.

Share:

Since yesterday, the PitchBook Platform added:

1

VC valuations

82

People

31

Companies

3

Funds

See what our data software can do

'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.

Share:

VC dealmaking in climate tech slows dramatically

(Mny-Jhee/Shutterstock)

VC dollars into climate tech slowed to its lowest pace in nearly three years in Q1, in a worrying sign for the industry.

Through the end of 2022, funding for green ventures had stayed resilient. But the startup market downturn may be finally catching up to them.

Share:

Hot software take-privates are low on leverage

(Matej Kastelic/Shutterstock)

Specialist SaaS investors and generalist GPs alike have recently announced big take-private deals in the software industry.

One easy trick to pulling off an LBO agreement during a crisis of confidence in the banking system? Use less debt and pony up more equity.

Share:

Why Europe struggles to scale its deep-tech startups

(Grenar/Shutterstock)

Europe has a reputation for deep-tech innovation but has historically struggled to scale startups in the sector.

While governments have sought to boost investment in deep-tech startups, the region still suffers from a dearth of late-stage investment needed to create the next generation of European unicorns in the sector.

Share:

About PitchBook | Terms of use | Advertise with us | Contact

This email was sent to you via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

other private market participants The Daily Pitch ESG risk factors World Central Kitchen sustainable investing practices VC dealmaking cools

PitchBook News - Unicorns close out a forlorn Q1

Key phrases

Older messages

Is Israel's tech hub status at risk?

The data on VC's brutal Q1

The end of a mega-funds era

No exit for VC

Two ends of the same mobility tech market

You Might Also Like

Why marketers are leveraging predictive, generative and autonomous AI

The marketing strategy you overlooked

Podcast app setup

Quiet Quitting vs. Setting Healthy Boundaries: Where's The Line?

See who's speaking at SaaStr Annual this year

There Is So Much Money Sloshing Around The System

Agtech's big valuation reset

Cycling Mikey

Core Update Homework ✏️

🔔Stagflation & the miserable economy