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

PitchBook News - Window shopping for startups

Plus: SoftBank Vision Fund II's $10B piggy bank, crypto and fintech court consumers, valuations' downward spiral & more
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Weekend Pitch
May 14, 2023
Presented by the U.S. National Science Foundation
Acquisitions of VC-backed companies may have hit a decade low in Q1, but the number of conversations between potential buyers and sellers is far from that nadir.

"There is a lot of window shopping," said Sheila Patel, vice chair and general partner at VC firm B Capital Group.

For now, startups don't feel an immediate pressure to sell, and buyers—whether larger startups, publicly traded companies or private equity investors—are holding out for lower prices. But dealmakers and investors agree that by the end of this year or early next year, M&A activity will increase significantly.

They say that the timing comes down to simple math. The runways of many early and mid-stage startups are expected to expire in the next six to nine months.

"If companies can't raise money, where are they going to go?" said Navin Chaddha, a managing director at Mayfield. "I see a lot of consolidation."

I asked several dealmakers why what seems to be widespread flirting is leading to few marriages. Here's what they said.

This is the Weekend Pitch, and I'm Marina Temkin. You can reach me at marina.temkin@pitchbook.com or on Twitter @MTemkin.
read more
 
Share: Email LinkedIn Twitter Facebook
 
A message from the U.S. National Science Foundation  
Virginia-based Babylon Micro-Farms is on a mission to make micro-farming easy and accessible for educators, businesses, and healthcare organizations. Their sustainable vertical-farming wall appliance called Galleri is designed for indoor, year-round growing of over 40 plants. Babylon Micro-Farms (NSF-2035792) is one of hundreds of deep tech startups funded annually by the U.S. National Science Foundation (NSF), a government agency that plays a central role in accelerating discoveries into the marketplace.

Each startup can receive up to $2 million to support translational R&D. By investing roughly $200 million in startups annually, NSF helps teams navigate the earliest stages of technology translation. In the past five years, these companies have gone on to raise billions in follow-on capital, and the portfolio has had 300+ exits.

Learn more about NSF funding at seedfund.nsf.gov
Share: Email LinkedIn Twitter Facebook
 
 

Generative AI wave catches SoftBank on its back foot

(YUICHI YAMAZAKI/Getty Images)
SoftBank Board Director Yoshimitsu Goto declared Thursday that the firm "must not miss investment opportunities" in generative AI.

But the Japanese conglomerate, which has long positioned itself as an AI visionary, doesn't have the seemingly endless resources it used to. Moreover, SoftBank largely missed the initial wave of generative AI startups—and its investment pace has slowed to a trickle.

Even if the firm is able to free up capital and go on the offensive once more, it'll be doing so in a very crowded field.
Share: Email LinkedIn Twitter Facebook
 

Trivia
Crypto has had a bumpy ride over the past few months, but deal activity has largely stabilized. During the first quarter, startups raised $2.6 billion, but across how many deals?

A) 67 deals
B) 247 deals
C) 353 deals
D) 189 deals

Find the answer at the bottom of The Weekend Pitch!
 

Crypto and fintech's consumer play

Amid high-profile scandals, bank failures and recession fears, the crypto and fintech verticals have weathered difficult times and faced stagnating growth. But the two share an opportunity for growth: consumers.

Our latest Crypto Report breaks down how the vertical's underlying technology could be applied to the consumer security and privacy segments, while the newest Retail Fintech Report dives into opportunities for B2C fintech startups despite enterprise providers' domination in the space.
 

Valuations continue their descent

Venture capital valuations continued their downward spiral in Q1. The dearth of IPO exits, a pullback from nontraditional investors, and ongoing economic headwinds have all contributed to lower valuations and smaller round sizes for all stages except seed.

The most dramatic declines were observed among the most mature companies. Median valuations for venture-growth stage fell to $90 million, a nearly 75% drop from the prices these deals fetched in 2021. Find out more in our latest US VC Valuations Report.
 

Healthcare PE investors are loving cardiology
(UnderhilStudio/Shutterstock)
Practice valuations are high, and the path to delivering value-based care schemes is long and winding. But that’s not stopping healthcare-focused PE firms from investing in the buzzy speciality, which investors think is prime for expanding into more outpatient services.

Our quarterly Healthcare Services Report gives an exclusive look inside the tight-knit world, highlighting the biggest deals from Q1 across the industry and how recession risk could impact dealflow.
 

Quote/Unquote
"Every industry eventually goes through consolidation. … [The] alternatives industry is in the midst of this today."

—Bruce Flatt, CEO of Brookfield Asset Management, during the firm's Q1 earnings call Wednesday.
 

Recommended Reads
Google Docs transformed the field of word processors, but it never mustered the will to truly dominate. [Wired]

Seven months after Washington unveiled trade barriers, Chinese companies are doubling down on homegrown supply chains to remake its chip business. [The New York Times]

Inside the attempt to steal trade secrets related to formulations for BPA-free coatings for the inside of Coca-Cola cans. [Bloomberg]
 

Stay tuned
Keep an eye out for these fresh insights and research reports coming out this week.
  • Q1 2023 Carbon & Emissions Tech Report
  • Q1 2023 European VC Valuations Report
  • Analyst Note: Analyzing Public BDC Venture Lender Q1 2023 Earnings
  • Q1 2023 Supply Chain Tech Report
 

Trivia
Answer: C)

In Q1 2023, crypto startups generated $2.6 billion across 353 deals. To learn more about the quarter and those deals, check out our Q1 2023 Crypto Report.

This edition of The Weekend Pitch was written by Marina Temkin, Jacob Robbins, Emily Burleson and Samantha Steele. It was edited by James Thorne and Laural Hobbes.

Were you forwarded The Weekend Pitch? Sign up at pitchbook.com/subscribe.
 
Ads
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

VC valuations feel the squeeze

Saturday, May 13, 2023

Also: PE's new healthcare play; Carbon fintech and green construction opportunities; Crypto stabilizes after months of decline; The dawn of the AI era Read online | Don't want to receive these

SoftBank's Vision Funds hemorrhage $39B

Friday, May 12, 2023

Unpacking crypto's potential; Survey: VC investors bet on AI; Amino Health bags $80M; enterprise tech exits fall Read online | Don't want to receive these emails? Manage your subscription. Log

Cardiology defies healthcare services slump

Friday, May 12, 2023

Will private debt fill the bank loan void?; synthetic biology energizes agtech; startups seek SAFE notes Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily

VC valuations extend slump

Friday, May 12, 2023

First Citizens vies to retain SVB clients; private market trends at Milken; stormy skies for European fintech valuations; Petal grabs $35M Read online | Don't want to receive these emails? Manage

Investors pan for retail fintech gold

Tuesday, May 9, 2023

Mayfield raises $955M; female founders' funding flounders; Liquido emerges from stealth with $26M Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily

You Might Also Like

Marketing Weekly #206

Sunday, November 17, 2024

Why The Right Bidding Strategy Will Make Or Break Your PPC Campaign • How to Use Audience Mirroring in Your Writing (and Why) • Ways To Write Great Sales Copy That Doesn't Sound Sleazy • How We

The Profile: The most powerful person in AI & the Gen Z influencer making Wall Street more accessible

Sunday, November 17, 2024

This edition of The Profile features Martha Stewart, Jensen Huang, Sydney Sweeney, and more. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Sunday Thinking

Sunday, November 17, 2024

"Success is not a comfortable procedure. Get comfortable being uncomfortable if you ever want to be successful." ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

💰 3 Quick Wins We Look for When Buying SaaS (20% Revenue Boost in 2 Weeks)

Sunday, November 17, 2024

Most SaaS sellers miss these obvious growth levers - here's how we spot and exploit them... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

#TA 175: 🤯 Overhead at the B2B Forum: Marketing takeaways & a vibe check

Sunday, November 17, 2024

It was honestly our best year ever. Click here to read this on the web. Ann Handley's biweekly/fortnightly newsletter, "Total Annarchy" Ann on the B2B Forum Stage, Boston Welcome to Issue

Post-election chill for climate startups

Sunday, November 17, 2024

Market upswing should lift fund returns, food and beverage sector hungry for deals & more Read online | Don't want to receive these emails? Manage your subscription. Log in The Weekend Pitch

Brain Food: Obsessed

Sunday, November 17, 2024

FS | BRAIN FOOD November 17, 2024 | #603 | read on fs.blog | Free Version Welcome to Brain Food, a weekly newsletter full of timeless ideas and insights you can use in life and work. Tiny Thoughts *

Recruiting Brainfood - Issue 423

Sunday, November 17, 2024

Global Power 150 Women in Staffing, Levelling up in Cities, 1 x brilliant essay on the difference between RPA and AI Agents and inevitably some chat on the US Department of Government Efficiency... ͏ ͏

Drawbacks & competition increase conversions

Sunday, November 17, 2024

We asked you if you'd like to see a mature company that offers quality product sourcing from vetted USA and Canadian suppliers that's built exclusively for dropshippers and ecom store owners.

The Fed locked us out of the housing market, Satoshi gave us a new set of keys.

Saturday, November 16, 2024

To investors, ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏