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| In today's Daily Pitch, you'll find:
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Pressure continues to mount on VC
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There is no denying the obvious: Venture capital has gone through a rough couple of months. Just when a difficult exit environment seemed like it couldn't get any worse, the sudden failure of Silicon Valley Bank further rattled investors' confidence. Deal activity dropped in all stages and sectors during the first quarter of 2023, and the fundraising momentum carried from 2021 has evaporated.
But is the outlook really all that pessimistic? The latest PitchBook-NVCA Venture Monitor, sponsored by Insperity, J.P. Morgan and Dentons, tells the story behind the data. Key takeaways include:
- The estimated deal count for Q1 2023 remains above 2020's quarterly figures, despite a drop from Q4 2022.
- Fundraising's momentum has all but come to a halt, with only $11.7 billion closed across 99 funds.
- Late-stage deal value has plummeted to a 21-quarter low, hitting only $11.6 billion.
- Venture growth deal value ticked upward in Q1, influenced heavily by Stripe's $6.5 billion raise. Deal count in the growth stage hit the lowest it has been since Q3 2020.
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SoftBank Ventures Asia sale reflects Masayoshi Son's pivot toward caution
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| (NurPhoto/Getty Images) |
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SoftBank CEO Masayoshi Son has sold the group's early-stage Asia-focused VC arm to his brother, Taizo Son, the founder of Japanese-Singaporean incubator Mistletoe.
Founded in 2000, SoftBank Ventures Asia manages $2 billion and has been a heavyweight in emerging Asian markets for years.
But as Masayoshi Son continued his cautious strategy to safeguard the group, he apparently decided the unit was superfluous. |
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A message from Allvue Systems
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Start here when tracking your portcos
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Portfolio monitoring is a key process that decodes what's driving performance. But such a simple idea isn't so simple in practice—from understanding which metrics to capture, to capturing them on a regular basis, to organizing them for proper analysis and insight.
Allvue's Fund Performance and Portfolio Monitoring solution has dozens of pre-built KPIs ready for tracking, and also offers managers the option to add their own custom trackable metrics.
Check out Allvue's list of more than 80+ KPIs for tracking portfolio company and fund-level performance to help you get started.
Download the list of 80+ PE portco KPIs here |
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Synthetic data moves to the fore with computer-augmented datasets
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| Generative AI is seemingly all the rage, but there's another field of computer-generated data that's hitting a new stride. Synthetic data—made up of computer-generated outputs supplementing real-world observations—is gaining more attention as AI and machine learning rapidly advance. Our recent emerging space brief examines a market that's expected to be worth $1 billion in the next four years. |
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Leveraged loan default rate hits 22-month high; distress level rises
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| (Zwiebackesser/Shutterstock) |
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US leveraged loan defaults topped $4.4 billion in March, more than in the previous five months combined, according to PitchBook LCD. The surge of bankruptcy filings brings the default rate to its highest point in almost two years, though it remains below the historical average for the asset class.
The level of distressed debt in the asset class began to rise again as riskier debt issuers navigate what has become a difficult operating environment. It now totals $87 billion. |
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Vietnam pledges to solve "pain points" for tech startups and VC firms. [Financial Times]
Why secretive short seller Fiat Lux Partners is challenging reports made by peers. [Institutional Investor]
The US cracked a $3.4 billion crypto heist—and bitcoin's anonymity—with the help of new tools to identify criminals through cryptocurrency transactions. [The Wall Street Journal] |
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Since yesterday, the PitchBook Platform added:
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17
VC valuations
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2437
People
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613
Companies
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31
Funds
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The Daily Benchmark:
2018 Vintage Global Real Assets Funds
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Investment advice software company Altruist has raised a $112 million Series D led by Insight Partners and Adams Street Partners.
Teamworks, a sports communication software company, has raised a $65 million Series E led by Dragoneer Investment Group. Teamworks will also acquire Arms Software
Economic data company Cybersyn has emerged from stealth with a $62.9 million Series A led by Snowflake.
Energy efficiency platform Hometree has secured a $46 million Series B led by 2150 and Energy Impact Partners. The London-based startup has also acquired BeWarm, a green home improvement financing platform.
Citron, a Paris-based startup offering an energy management platform for companies, has raised €20 million from Eiffel Investment Group, Entrepreneur Invest and Bpifrance.
Medication engagement company Scene Health has raised a $17.7 million Series B led by ABS Capital Partners.
Quantica, a Berlin-headquartered developer of additive manufacturing technology, has received €14 million from investors including byFounders and Scale Capital.
MilkMate, which makes breast pumps for use in the workplace, has announced $5 million in seed funding. |
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Find the best VC opportunities with PitchBook's new exit prediction tool
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With venture-backed companies tripling in the last 10 years, finding the best investments has become increasingly complex. Now, you can source better deals in less time with our new VC Exit Predictor tool. Designed by the PitchBook Institutional Research Group, this PitchBook Platform feature allows users to see which venture-backed companies are most likely to exit, making it easier to identify potential investment targets.
The VC Exit Predictor uses AI and machine learning to synthesize our Platform data and research into metrics including exit probability, exit type (IPO or M&A) and expected return performance (Opportunity Score).
Discover PitchBook's VC Exit Predictor |
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Brookfield Infrastructure Partners has agreed to acquire Triton International in a take-private deal that would value the company at $13.3 billion. Brookfield would pay $68.50 in cash and $16.50 in its own stock per share of Triton, which leases intermodal containers.
Monthslong discussions between The Carlyle Group and Veritas Capital over the purchase of a stake in Veritas' company Cotiviti ended Tuesday, Bloomberg reported. The deal would have valued the healthcare analytics provider at $15 billion.
Third Point founder Daniel Loeb is weighing a take-private deal for SiriusPoint, per a regulatory filing. Third Point Reinsurance acquired Sirius International Insurance Group in 2021 to form SiriusPoint, which has a market cap of around $1.34 billion.
Lee Equity Partners and Twin Point Capital have agreed to acquire Nasdaq-listed Tessco Technologies, a tech distributor to manufacturers in the wireless communications industry, for $9 per share, valuing the company at $161 million.
Quinbrook Infrastructure Partners has acquired PurposeEnergy, which develops, owns and operates facilities that produce renewable fuels and biogas. The company's early backers included Leyline Renewable Capital, King Hill Capital and Clean Energy Venture Group.
HIG Capital has acquired a majority stake in German staffing company Office People. The company specializes in personnel placement and offers on-site management.
Mutares, Oaktree and Oxy Capital are among those entering bids for a 71.7% stake in Portuguese engineering firm Efacec. The loss-making company was nationalized in 2020.
Nuveen has partnered with UK self-storage operator Storage King to acquire four properties from Easistore. The firm said that Storage King has a 10% stake in the partnership. |
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London-based Pantheon Group has held the final close of its latest fund, Pantheon Global Co-Investment Opportunities Fund V, on over $2.4 billion in commitments. The firm's co-investments tend to focus on growth equity and small-to-midsized buyouts.
Warren Equity Partners has closed its newest flagship fund, Warren Equity Partners Fund IV, on more than $1.4 billion, its hard cap. The firm acquires and recapitalizes North American companies that maintain, operate or upgrade infrastructure.
Dutch VC firm 4impact capital has launched its second fund with a target of €100 million. The vehicle will be used for seed to Series A investments in European startups aiming to solve environmental and societal problems.
Overwater Ventures, a new impact-focused VC firm founded by ex-a16z partner Kristina Simmons, has closed on $20 million for its inaugural fund to invest in breakthrough health and climate technologies. |
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| London-based VC firm Atomico has opened new offices in Berlin and Stockholm. The investor also plans to expand its presence in Paris. |
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| Emerson has agreed to acquire NI, also known as National Instruments, for $60 per share, an equity value of $8.2 billion. The target company provides testing and measurement tools to customers in more than 40 countries. |
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"It's no secret that private equity has had its sights set on stealing the thunder from public markets and traditional capital formation for some time now. Since 2016, through all of the booms and busts in IPOs, SPACs, secondary offerings, and other forms of public underwriting, more equity capital has been raised from private markets than public markets. That phenomenon has expanded to parts of debt capital markets and lending as well."
Source: PitchBook's Q1 2023 US PE Breakdown |
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