PitchBook News - On the hunt for European capital

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The Daily Pitch: VC

April 18, 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 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

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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.

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

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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

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PitchBook News - On the hunt for European capital

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