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In today's Daily Pitch, you'll find:
- Our latest analyst note examines the exit options available for unicorns—and why they may be in for a bumpy ride.
- Our PitchBook Benchmarks, updated through Q3 2022, provide data for closed-end fund returns across strategies and vintage years.
- Six charts highlighting European private equity trends in Q1.
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Unicorn M&A trots down a tough path
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The number of unicorns—startups valued at a $1 billion or more—has grown exponentially over the past decade. In 2013, according to PitchBook data, there were 35 unicorns. At the end of 2023's first quarter, that number was 704. Since 2020 alone, 423 companies have vaulted to unicorn status.
But all is not well on the pasture. Record levels of capital availability drove the rise in unicorns, but the market has taken a decidedly different turn. And trouble could be on the horizon, with capital demand far outstripping supply and a difficult regulatory environment making acquisition prospects more difficult.
Our latest analyst note looks at the exit options available for unicorns. M&A, once a top driver of VC exits, has seen a precipitous decline since 2021. Unicorns may be on a rocky path. |
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24 VC firms, including Tiger Global, commit to a net-zero portfolio by 2050
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| (Nicole Glass Photography/Shutterstock) |
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Two dozen VC firms have committed to reducing carbon emissions to net-zero by 2030 and achieving portfolio-wide net-zero emissions by 2050.
While writing the charter of the Venture Climate Alliance, launched today, the managing partners of some participating firms argued for more aggressive goals. So, is the industry meeting the climate moment? |
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A message from the American Investment Council
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The critical role PE plays in America's energy transition
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Private equity has a long history in the energy sector, and today's investors are at the forefront of America's energy transition. Sponsors are investing in wind and solar farms at record levels—but beyond that, PE firms can help all their portfolio companies decarbonize. In other cases, sponsors can spur green-to-brown initiatives and upend traditional playbooks for how energy is produced in the US.
In conjunction with PitchBook, the American Investment Council has released The Critical Role Private Equity Plays in America's Energy Transition. Beyond the data, PE can help improve the world by implementing environmental initiatives for several portfolio companies at the same time.
To download the report and learn more, click here |
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PitchBook Benchmarks for PE, VC and more
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In the opaque world of private capital, finding a clear view of fund performance has never been easy—and macro headwinds have reinforced the need for transparency. That's where PitchBook Benchmarks come in, offering a window on the latest data for closed-end fund returns across strategies and vintage years.
The new edition is now available, updated through Q3 2022 with preliminary data for Q4. It features downloadable XLS tables, data visualizations and PDFs that reveal the numbers by strategy and geography. |
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First Republic deposits stabilize after $102B flight
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| (Spencer Platt/Getty Images) |
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San Francisco-based First Republic Bank had just one piece of good news in its latest earnings: Depositors have stopped fleeing the regional bank.
The silver lining on an otherwise brutal quarter suggests limited risks of further banking contagion.
First Republic lost 41% of its deposits in Q1 and is now considering strategic options as it seeks to overhaul its balance sheet. The company will also lay off up to 25% of its staff in the coming months. |
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Europe's Q1 PE dealmaking outlined in 6 charts
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| St. Paul's Cathedral in London (pcruciatti/Shutterstock) |
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European private equity remained strong in Q1 2023, with add-ons dominating, despite a drop in deal value from the previous quarter. The tough fundraising landscape was punctuated by a handful of closes for large funds.
We've put together six charts that highlight trends identified in our Q1 2023 European Private Equity Breakdown. |
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Bankers chase startups in Japan as funding dries up elsewhere. [Bloomberg]
Which countries are granted the most new patents? [Visual Capitalist]
The recent banking crisis boosted cryptocurrencies. Is the comeback for real? [Institutional Investor] |
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Since yesterday, the PitchBook Platform added:
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13
VC valuations
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2250
People
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511
Companies
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36
Funds
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The Daily Benchmark:
2019 Vintage US PE Funds
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Cosmose AI, a Singapore-based shopping analytics company, has secured a strategic investment from NEAR Foundation, valuing it at $500 million.
Home-electrification startup Span has raised a $96 million Series B2 led by Wellington Management and joined by backers including Congruent Ventures, Qualcomm Ventures and Amazon's Alexa Fund.
Fintech startup Super.com has raised an $85 million Series C led by Inovia Capital.
Avalanche Energy, a fusion energy company, has raised a $40 million Series A led by Lowercarbon Capital.
Radiant Industries, which is developing portable nuclear reactors designed to replace diesel generators, has raised a $40 million Series B led by Andreessen Horowitz.
Lowercarbon Capital has led a $31 million round for Woodoo. The startup uses substandard or damaged wood to make materials meant to replace steel, glass, leather and plastics.
Token, which offers wearable authentication devices, has secured a $20 million secured note and a $10 million convertible note from Grand Oaks Capital.
Quantum engineering startup Riverlane has raised a £15 million Series B led by Molten Ventures. |
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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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Activist investor Trillium Capital has proposed to buy out other Getty Images shareholders, including Koch Industries and Neuberger Berman, for $10 per share. The bid values the company just shy of $4 billion.
TPG has abandoned its $1.22 billion bid for Australian funerary services provider InvoCare, which had been announced in March. Following the bid, InvoCare declined to give TPG full access to the company for due diligence.
Authentic Brands Group has agreed to acquire a 75% stake in the intellectual property of clothing retailer Vince for $76.5 million in cash. CVC Capital Partners, HPS Investment Partners and Leonard Green & Partners are among the PE backers of Authentic Brands.
IK Partners' takeover offer for UK-listed Medica Group has been accepted, the company has confirmed. The offer of 212 pence a share values the company at around £269 million.
Kelso has increased its stake in UK-listed ecommerce firm THG following a take-private bid from Apollo. Kelso is said to be interested in THG's nutrition division.
Phoenix Equity Partners is to acquire UK risk analytics consultancy 4most as the company abandons its plans for an IPO. The employee-owned firm had planned to go public on London's Alternative Investment Market, seeking a valuation of £100 million.
A&M Capital has acquired UK-based World of Sweets and Bobby's, collectively IBG, from Sculptor Capital Management. The company distributes confectionery products, baked goods and savory snacks. |
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| Early-stage VC firm Ridge Ventures has closed its fifth flagship fund on $180 million. The firm invests in enterprise software and has previously invested in companies including Bolt and Discord. |
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| Schroders has cut the valuation of its stake in London-based bank Revolut by 46%, Bloomberg reported. As of Dec. 31, the holding was worth £5.4 million compared with £10.1 million at the end of 2021. |
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