PitchBook News - Fundraising shows grim start to 2023

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The Daily Pitch: VC

May 25, 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 latest Global Private Market Fundraising Report breaks down fundraising trends across seven private market strategies.

Nordic pensions take the lion's share in a list of Europe's most active PE limited partners in terms of total commitments.

Discover the supply chain tech sector trends of Q1 in our Emerging Tech Research.

Today's Top Stories

Private market fundraising trends even lower in 2023

GPs say fundraising became more difficult in the latter half of 2022. The data shows they're right, and the pace of capital commitments in Q1 suggests that 2023 is already tracking well behind last year.

VC showed one of the steepest declines in the 12 months through Q1, dropping 38% year-over-year to $202 billion in commitments. Only one strategy—secondaries—managed to boost fundraising, and that's thanks to one firm's mega-fund closures in January.

Our latest Global Private Market Fundraising Report, sponsored by RSM, tallies closed capital commitments through Q1 across seven private market strategies. 

Funds over $1 billion are growing in number, but there's a chance that's a reflection of inflation.

Funds in Asia have fallen precipitously in their share of total private fundraising.

In almost all strategies, emerging managers account for a smaller share of private capital now than they did between 2008 and 2021.

read the report

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VC investors make careful supply chain tech bets in downturn

VC investment in the supply chain tech sector continued to drop in Q1. The latter half of the quarter reflected more of the slowdown, possibly in response to the crisis surrounding Silicon Valley Bank. In our recent Emerging Tech Research, the freight tech and inventory tracking industries get the spotlight, along with three companies: Verity, Plus One Robotics and Outrider.

The total value of deals for supply chain tech companies fell 45.3% from Q4 2022, while the number of deals was down 19.4%.

Enterprise supply chain management was the industry most able to hold fast.

read the preview

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A Message From Ansarada

5 sustainability lessons from digital winners (and losers)

In the early 2000s, companies hired web developers to embrace the digital revolution.

Today, the approaching sustainability revolution is forcing businesses to rethink their approach to Environmental, Social, and Governance (ESG) factors.

Digital technologies have completely transformed operations across industries over the last two decades. For companies to stay relevant and future fit, sustainability requires the same.

We're on the precipice of a tipping point. Attitudes are shifting, and it's widely recognized that business as usual isn't good enough. History has proven time and time again that all business models will eventually be disrupted by something new and more relevant.

In their latest report, Ansarada explores 5 lessons we can take from digital era winners (and losers) to stay ahead of the sustainability revolution.

Download the report

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Top 10: Nordic pensions dominate Europe's PE LPs in total commitments

(nitpicker/Shutterstock)

The European Investment Fund is again the most active limited partner in Europe's PE landscape. However, Nordic pension funds have collectively accounted for the largest share of global fund commitments over the past five years.

We've ranked the region's most active LPs by total fund commitments and mapped them out to show the spread by country and type.

see the data

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VC flight to quality on display at Fintech Nexus USA

Fintech Nexus USA, an annual conference focused on all things fintech, recently wrapped up in New York. Our analysts perceived an overwhelming consensus: Investors are focusing on quality startups and core fintech opportunities as deals and funding decelerate. Covering how generative AI will be integrated into fintech platforms, how fraud prevention is leading investor interest and what neobanks are considering to achieve profitability, it's all broken down in our analyst note on the conference.

read it now

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Recommended Reads

Venture capitalists face pressure to divest from China. [The Information]

European VC firm Moonfire thinks AI can help spot the next winning startup. [Fortune]

PE firms are regaining some negotiating power, but LPs expect the scales to tip a bit back into their favor. [Institutional Investor]

Since yesterday, the PitchBook Platform added:

18

VC valuations

2160

People

549

Companies

13

Funds

See what our data software can do

The Daily Benchmark:
2016 Vintage Global VC Funds with less than $250M

Median IRR

27.96%

Top Quartile IRR

39.00%

0.57x

Median DPI

Select top performers

Medicxi Ventures 1

Israel IoT Innovations - i3 Equity Partners

USV 2016

*IRR: net of fees

53 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Cell and gene therapy company ElevateBio has closed a $401 million Series D led by Matrix Capital Management's AyurMaya Capital Management Fund.

Esas Private Equity and Qatar Investment Authority have invested $105 million in Turkey's Insider, a VC-backed marketing specialist, in a late-stage round.

Figure, a startup developing autonomous humanoid robots, has raised a $70 million Series A led by Parkway Venture Capital.

Marketing tech startup NextRoll has secured $50 million in financing from Capital IP.

Germany's Sastrify, which offers a SaaS procurement platform, has raised a $32 million Series B led by Endeit Capital.

Israeli foodtech startup DouxMatok has secured a $30 million Series C led by DSM Venturing and Sienna Venture Capital.

Silicon photonics company Ayar Labs has added $25 million to its Series C, bringing the round's total to $155 million. Capital TEN led the new funding.

Medtech company Artelon has raised a $20 million Series B led by Vensana Capital.

DataOps.live has secured $17.5 million in a Series A from Notion, Anthos Capital and Snowflake Ventures. The London-based company offers a data operations platform.

Molten Ventures has led a £12.75 million investment in Satellite Vu. The British startup is developing a satellite that will measure global thermal emissions.

Ariadne, Munich-based location data and crowd analytics startup, has raised a $7 million Series A led by Marathon Venture Capital.

InProTher, a biotech company developing cancer immunotherapies, has secured €6 million in seed funding from investors including the European Innovation Council Fund.

PE Deals

Tech services-focused PE firm M/C Partners has invested in Celito, a managed service provider for businesses in North Carolina with its own fiber network.

Clubs in the German Football League voted to reject a proposal to sell 12.5% of profits from the league's television rights to a PE firm for €2 billion. Potential buyers had included Advent International, Blackstone and CVC Capital Partners, Deutsche Welle reported.

Portfolio Companies

Platinum Equity has reached a recapitalization deal that will cede all but 2% of its stake in Elevate Textiles to the company's lenders, The Wall Street Journal reported.

Fundraising

Blazehill Capital has held a £250 million final close on its second debt fund targeting middle-market businesses.

London-based Moonfire Ventures has raised $115 million for its early-stage VC fund.

Investors

Arctos has opened an office in London to aid in the growth of its sports franchising business, Private Equity International reported.

Chart of the Day

Source: Q1 2023 US PE Breakdown

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PitchBook News - Fundraising shows grim start to 2023

Older messages

Medtech startups battle incumbents

VCs fortify defense tech

Enterprise SaaS yields to market slowdown

Vice and the fragility of digital media

How low can valuations go?

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