PitchBook News - VC dealmaking decline levels off

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The Daily Pitch: VC

April 26, 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:

There are signs of hope at the seed and angel stages as the VC dealmaking decline levels off.

Our analysts found plenty of AI optimism at the conference of the Healthcare Information and Management Systems Society.

Ares Management's new $1.5 billion private debt fund tapped into the vast retail market as a source to raise capital.

Today's Top Stories

Dealmaking decline levels off: US VC trends in 5 charts

(r.classen/Shutterstock)

Later-stage companies had a rough run in Q1 with VC capital in short supply. The sluggish exit market continues to tie up LP capital, and investors remain wary in an unforgiving tech market.

But it's not all doom and gloom: The dealmaking decline is leveling off from 2022, and seed valuations are ticking up. Five charts reveal what you need to know about the market right now.

Recommended Reads

Why Europe's stock markets are failing to challenge the US. [Financial Times]

These companies are hoping to keep false information from triggering the next bank run. [Bloomberg]

Wes Edens, co-founder of Fortress Investment Group, wants to kickstart US high-speed rail. [Forbes]

Since yesterday, the PitchBook Platform added:

12

VC valuations

2342

People

663

Companies

29

Funds

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The Daily Benchmark:
2020 Vintage North American Debt Funds

Median IRR

11.29%

Top Quartile IRR

14.56%

0.18x

Median DPI

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Castlelake V Dislocated Opportunities

WestRiver Innovation Lending Fund VIII

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People

Bowmark Capital has appointed Simon Kaufman as a partner. He developed the PE firm's managed IT and software practices and joined in 2016 after eight years at KPMG.

VC Deals

Finnish electric vehicle charging specialist Virta has raised €85 million in a round led by Jolt Capital.

Ontario-based Cyclic Materials, a metals recycling startup, has raised a $27 million Series A led by Energy Impact Partners and BMW i Ventures.

Mandatum Asset Management has led a €22 million investment in Finland-based internet-of-things startup Haltian.

PreAct, which designs sensors, has raised a $20 million Series B led by iSquared Capital.

Neteera Technologies, a Jerusalem-based medtech startup that offers patient monitoring tools, has raised around $13 million in a Series B led by Aescuvest.

Ox has raised a $12.6 million Series A co-led by BBG Ventures and MaC Venture Capital for its AI-powered healthcare platform.

Zaptic, a UK-based provider of a frontline operations platform for manufacturing companies, has secured a $10 million Series A led by Molten Ventures.

Reverion, a German producer of clean power plants, has raised €8.5 million from investors including UVC Partners, Green Generation Fund and Extantia.

London-based rail ticketing app Seatfrog has raised £6 million from investors including Pembroke, Octopus Ventures and Praetura.

Kluster, a London-based revenue strategy platform, has secured a $5 million Series A led by Foresight Group.

Don't miss our upcoming webinar

This webinar examines the Q1 2023 PitchBook-NVCA Venture Monitor and how ongoing market turmoil, culminating in the sudden collapse of Silicon Valley Bank, may impact the venture industry in Q2 and beyond.

In partnership with NVCA and sponsored by Dentons, J.P. Morgan, and Insperity, a panel of experts will discuss the venture environment and key findings from the recently released report. Key takeaways include:

Venture growth stage pre-money valuations have fallen to roughly 2018 levels, 64% below 2021's peak.

Crossover investors have pulled back, leaving a gap in financing needs and available equity funds.

Preliminary data shows exit value at a low of $5.8 billion, suggesting the IPO market won't thaw in the near term.

Register now to secure your spot.

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PE Deals

BPEA EQT has agreed to acquire Florida-based sports education company IMG Academy for $1.25 billion.

PAI Partners has agreed to set up a joint venture with Swiss food and drink conglomerate Nestlé for the company's frozen pizza division in Europe.

True Green Capital Management has acquired a controlling stake in Faradae, a French distributed solar power company that targets real estate investment trusts and other corporate customers.

Genesis Park has invested debt and equity in Good Feet Midwest, a franchisee of The Good Feet Store. Exaltare Capital Management and Tecum Capital also took part in the deal.

I Squared Capital has made a growth capital investment in RPower, a distributed energy resource platform that provides microgrids for commercial and industrial customers.

Berkshire Partners has invested in on-site first aid, fire, and life safety services provider Thompson Safety.

TowerBrook Capital Partners has acquired UK telecom network services company TXO and UK-based EV installation engineering company Envevo.

Aviva Capital Partners is investing £20 million in TopHat, which builds low carbon modular homes.

All Seas Capital has made a minority investment in UK ground maintenance and green services business Nurture Landscapes.

Fundraising

Solum Partners has closed its second fund on $850 million. The firm, which spun out from Harvard Management Company in 2020, invests in the large-scale agricultural production of crops including coffee, almonds, apples and berries.

Chart of the Day

"The only strategy to see an increase in the amount of dollars raised was core plus, which raised $8.3 billion in 2022 versus $5.2 billion in 2021. This is likely because although the strategy is relatively low risk, there are also opportunities to add value, and thus increase the return profile, while also generating stable income returns and using lower amounts of leverage compared with other strategies, aside from core."

Source: PitchBook's H2 2022 Global Real Estate Report

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former Salesforce executive sustainable investing practices vast retail market Management Systems Society The Daily Pitch VC dealmaking decline PitchBook Newsletters Healthcare

PitchBook News - VC dealmaking decline levels off

Key phrases

Older messages

Who wants to buy a unicorn?

A surge in small funds ebbs

Zombie funds could rise again

The rise of GP-led secondaries

Seeking sanctuary in secondaries

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