1. Home
  2. Discover
  3. Business
  4. PitchBook News

PitchBook News - On the hunt for European capital

Sega eyes 'Angry Birds' maker; sizing up AI's staying power; agtech startups flounder amid rising costs
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Daily Pitch: VC
April 18, 2023
The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data
Ads
In today's Daily Pitch, you'll find:
  • Our European Venture Report examines how VCs and startups in the region are navigating a new normal.

  • Our Private Equity Barometer indicates the industry's Q1 returns are likely to step up to the historical average of around 3%—a sign of stability.

  • Sega's bid for Rovio, the maker of mobile game "Angry Birds," is a good sign for the VC exit market.
 
Today's Top Stories  
European VC navigates new normal
Capital efficiency and profitability drove Europe's VC market as both deal count and value fell in the first quarter. Startups are finding it harder to grow and capital is becoming harder to come by, as inflation and monetary policy tighten their grip.

Our latest European Venture Report breaks down how VCs and startups are navigating the new normal—and the opportunities that have emerged with the downturn. Other takeaways include:
  • Early-stage rounds accounted for nearly 35% of overall deal value in Q1.

  • M&A led the way for VC-backed exits, accounting for four out of the five largest deals.
read the report
 
Share: Email LinkedIn Twitter Facebook
Sega's $776M offer for 'Angry Birds' maker Rovio gives hope for M&A
(OlegDoroshin/Shutterstock)
Sega, the Japanese game studio behind the "Sonic the Hedgehog" series offered €706 million (about $776 million) yesterday to buy Finnish game-maker Rovio, whose mobile game "Angry Birds" launched a bevy of spinoffs and movies.

The exit ramp for gaming startups fell off sharply in 2022, and the significant deal for Rovio is a hopeful signal in an otherwise moribund exit landscape.
read more
 
Share: Email LinkedIn Twitter Facebook
 
A message from G-P  
Best practices to streamline your global talent search and acquisition
The rise of remote work has revealed unexpected benefits for businesses and employees alike. Around the globe, rural areas are seeing a boost in quality of life as governments begin investing in technology infrastructure and offering financial perks for remote workers. In developing nations, remote work is providing access to fair market wages, increasing private wealth.

For employers, downsizing physical offices in favor of remote work has resulted in savings. Furthermore, organizations are tapping into international talent hubs using global market rates for cost-efficiency. In turn, employers gain efficient workers with varied skills and fresh ideas.

Check out G-P's blog How Remote Work Breaks Down Barriers to learn about remote work benefits and which principles you can apply to your workplace!
Share: Email LinkedIn Twitter Facebook
 
Enterprises are rushing into AI, again. Will this time be different?
Startups are giving the Big Tech giants a run for their money when it comes to the AI and machine learning field. OpenAI, Cohere and Stability AI have made significant gains with their language models and technology, driving much of the attention and resources from investors.

The result has been an explosion in new AI web applications in recent months. But skepticism of AI tools runs deep in many enterprises, and the rapid adoption of these tools is far from certain. Our recent Emerging Tech Research delves into opportunities and risks in PitchBook's annual industry overview of the red-hot sector.
read the preview
 
Share: Email LinkedIn Twitter Facebook
Ynsect bags $175M, lays off staff as downturn hits agtech
(Sebastien Bozon/Getty Images)
Insect farming startup Ynsect has raised €160 million (roughly $175 million) and cut back its staff as higher costs eat into agtech startups' bottom lines.

In addition to widespread layoffs, the company has shut down its Dutch production facility as it pivots away from producing animal feed and toward consumer pet products.
read more
 
Share: Email LinkedIn Twitter Facebook
PE Barometer: Data indicates returns to recover from 2022 lows
(Drew Sanders/PitchBook News)
PitchBook's Private Equity Barometer indicates the industry's returns for Q1 are likely to step up to the historical average of around 3%—a sign of stability.

The barometer takes into account indicators such as PE returns, economic activity and credit conditions. It provides insights one quarter ahead of preliminary fund returns data. Factors that influenced the reading in Q1 include:
  • Consumer confidence remains low but is now trending positively.

  • Lending standards have tightened significantly.

  • Small-cap equities have rebounded after a bruising 2022, bringing the barometer up off recent lows.
explore the data
 
Share: Email LinkedIn Twitter Facebook
Unfazed by volatility, Europe's private credit lenders uncork 'golden era'
(YRABOTA/Shutterstock)
The burgeoning private credit segment in Europe snapped up almost every LBO financing that emerged in the first quarter—this was the case in the US as well—laying claim to a highly profitable domain once controlled by banks that arrange traditional syndicated credits. Private credit pros say this momentum will continue despite headwinds caused by bank failures in the US and Europe, a halting global economy, war, and rising rates.
read more
Share: Email LinkedIn Twitter Facebook
Recommended Reads
Why private equity firms still love enterprise software. [PE Hub]

First Republic doubled its assets in four years by wooing rich clients with bargain rates. Now, the stockpile of low-interest loans may be the bank's undoing. [Bloomberg]

The elusive dream of fully autonomous construction vehicles. [Wired]
 
Since yesterday, the PitchBook Platform added:
13
VC valuations
2353
People
605
Companies
31
Funds
See what our data software can do
 
The Daily Benchmark:
2017 Vintage Global PE Funds
Median IRR
21.41%
Top Quartile IRR
32.22%
0.50x
Median DPI
Select top performers
Spectrum Discretionary Overage Program
Falfurrias Capital Partners Fund III
Summit Partners Europe Growth Equity Fund II
*IRR: net of fees
133 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
A message from Apex Group  

Fund managers benefit from $3.8M savings with Apex Group
Forrester Consulting, in an independent study, interviewed key decision-makers across a number of large Apex Group clients, and the findings included in its Total Economic Impact™ study of Apex Group are compelling:
  • Around $5.4M in cost benefits
  • $2.75M Net Present Value over three years
  • 105% return on investment ROI
To find out more about the benefits and savings that Apex Group's single-source solution can provide, download Forrester's Total Economic Impact™ report.

Download now
Share: Email LinkedIn Twitter Facebook
 
VC Deals  
German ecommerce aggregator Razor Group has extended its Series C to a total of €80 million with participation from Upper90. The company also acquired peer Stryze Group.

Complement Therapeutics, a Munich-based biotech company, has closed a €72 million Series A led by Gimv and Forbion.

Yonder, a London-based credit card rewards startup, has raised £62.5 million in a Series A led by Northzone and RTP Global.

Amsterdam-based invoicing platform Factris has secured €50 million from Aegon Asset Management.

Paligo, a Swedish developer of a component content management system, has raised $29 million from GRO and Alfvén & Didrikson.

Capitola has raised a $15.6 million Series A led by Munich Re Ventures for its AI-powered insurance marketplace.

London-based medical imaging startup Scan.com has closed a $12 million Series A. The round was co-led by Aviva Ventures, YZR Capital, Oxford Capital, Triple Point and Simplyhealth.

Perci Health, a London-based digital cancer-support clinic, has secured a £3.4 million seed investment led by Octopus Ventures.
 
PE Deals  
Engineering company John Wood Group says it will engage with Apollo Global Management's final buyout offer of £1.66 billion. Wood has rejected four prior takeover proposals from Apollo.

The Carlyle Group has joined investors looking to buy a stake in English soccer club Manchester United, BBC reported. Other bids have come from Qatar's Sheikh Jassim and Ineos owner Jim Ratcliffe, among others.

Apollo Global Management has put in a takeover proposal for UK-listed ecommerce retailer THG. The company said in a statement that there is no certainty a firm offer will be made by the May 15 deadline.

PIF-backed AviLease is in the running to acquire the aviation finance unit of Standard Chartered, Bloomberg reported.

Aristotle Capital Management has acquired credit investor Pacific Asset Management from Pacific Life Insurance.

Polaris has acquired Sealing System, a Denmark-based supplier of automated packaging lines.

Atlas Credit Partners has provided a $125 million loan facility to SoundHound AI, a Nasdaq-listed company, for its conversational computer interfaces.
 
Portfolio Companies  
Athletic apparel brand Lululemon Athletica is considering a sale of in-home fitness equipment company Mirror, Bloomberg reported. Lululemon acquired formerly VC-backed Mirror in 2020 for $500 million.
 
Fundraising  
AEA Investors has closed a continuation fund for Singer Industrial, an industrial rubber and fluid power products distributor, on $384 million.

Insurance company Aviva has committed an additional £150 million to its VC arm, Aviva Ventures. The new funding has already been used to invest £1.5 million in medical imaging specialist Scan.com.
 
Corporate M&A  
Merck has agreed to buy Prometheus Biosciences for about $10.8 billion, strengthening the pharmaceutical company's position in the immunology market.
 
Chart of the Day  
"The quarterly data has taken on the appearance of a stock chart trying to find support. While we are well above the pre-COVID-19 averages of roughly 1,400 deals and $180 billion in deal value, the trend is still flat to down, and we have yet to make a definitive bottom."

Source: PitchBook's Q1 2023 US PE Breakdown
 
Ads
 
Who's in the newsletter today?
People
Jim Ratcliffe
Investors
AEA Investors
Aegon Asset Management
Alfvén & Didrikson
Apollo Global Management
Aristotle Capital Management
Atlas Credit Partners
Aviva Ventures
Forbion
GRO
Gimv
Lululemon Athletica
Merck
Munich Re Ventures
Northzone
Octopus Ventures
Oxford Capital
PIF
Pacific Life Insurance
Polaris
RTP Global
Simplyhealth
The Carlyle Group
Triple Point
Upper90
YZR Capital
Companies
Capitola
Complement Therapeutics
Factris
Ineos
John Wood Group
Manchester United
Mirror
Pacific Asset Management
Paligo
Perci Health
Prometheus Biosciences
Razor Group
Scan.com
Sealing System
SoundHound AI
Standard Chartered
Stryze Group
THG
Yonder
Limited Partners
Aviva
 
 
Ads
 
About PitchBook | Terms of use | Advertise with us | Contact
Follow us: in twtr fb

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.

© 2023 PitchBook. Win what's next. All rights reserved.

Older messages

Fewer opportunities for opportunity funds

Tuesday, April 11, 2023

The SVB-shaped hole in venture debt; Reach Capital raises its largest edtech fund; will the latest surge in AI startups be different? Read online | Don't want to receive these emails? Manage your

Unicorns close out a forlorn Q1

Monday, April 10, 2023

Surveying sustainable investing practices; climate tech's VC dealmaking cools; Chinese VC seeks to regain its shine Read online | Don't want to receive these emails? Manage your subscription.

Is Israel's tech hub status at risk?

Sunday, April 9, 2023

Plus: A mega-fund nosedive, the search for fundamental value, a VC breakdown & more Read online | Don't want to receive these emails? Manage your subscription. Log in The Weekend Pitch April 9,

The data on VC's brutal Q1

Saturday, April 8, 2023

Also: The boom and bust for $1B+ VC funds; Recapping a chaotic March for private and public markets; Public comps for fintech, mobility tech, agtech. Read online | Don't want to receive these

The end of a mega-funds era

Friday, April 7, 2023

Airlines want green fuel, but will they invest in it?; dealmaking rebounds for Europe's female founders; Honeycomb snags $50M Read online | Don't want to receive these emails? Manage your

You Might Also Like

How This Weird Site Makes $88/month!

Friday, January 10, 2025

Each week on the Niche Pursuits podcast, we share a couple of weird niche sites. And every once in a while, these sites are making a SIGNIFICANT amount of money. I recently found a WEIRD website making

♦️ How saying no to (some) customers increases your chances of winning big

Friday, January 10, 2025

How Autodesk became a $60 billion company by staying specific... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Tripling your organic LinkedIn content visibility

Friday, January 10, 2025

Today's Guide to the Marketing Jungle from Social Media Examiner... Presented by social-media-marketing-world-logo It's National Thank Your Customers Week, so thank you Reader! We're

The Single Most Important Thing For Bitcoin Right Now

Friday, January 10, 2025

Listen now (4 mins) | To investors, ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Influence Weekly #371 - How The Military Recruitment Crisis Pushed The Pentagon To Fund MrBeast, TV Stars In A Bid To Woo Gen Z

Friday, January 10, 2025

PayPal Sued Over Browser Extension Allegedly Diverting Creator's Commission ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Weekly Dose of Optimism #126

Friday, January 10, 2025

Sana Biotechnology, Memory Processes, METAGENE-1, McDermitt Caldera, More Speech, Enron Egg, Telepathy Tapes x Jesse Michels ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

AI gets a third of VC cash

Friday, January 10, 2025

Fund performance data drop; Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC January 10, 2025 The Daily Pitch is powered by PitchBook's

"Notes" of An Elder ― 1.10.25

Friday, January 10, 2025

If you help enough people get what they want, you'll always get what you want. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Makin’ Lemonade 🍋

Friday, January 10, 2025

The Q1 vibes are real. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Issue #50: AI Hardware Revolution

Friday, January 10, 2025

Issue #50: AI Hardware Revolution ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌