PitchBook News - Q&A: Venture debt post-SVB

Charting public venture lenders' performance; checking in on global markets; signs of recovery for French VC; Chamberlain Coffee brews up $7M
Read online | Don't want to receive these emails? Manage your subscription.
Log in
The Daily Pitch: VC
June 2, 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:
Today's Top Stories  
Q&A: Armentum's John Markell on venture debt post-SVB
(Courtesy of Armentum Partners)
It's easy to blame the challenges of raising venture debt wholly on the collapse of Silicon Valley Bank, once a leading provider of loans to early- and mid-stage startups. But that's not how John Markell sees it.

As a managing partner at venture debt adviser Armentum Partners, Markell has a front-row seat to the tribulations of the asset class. Bank failures aside, venture debt is becoming more difficult for a variety of reasons: Lenders have tightened standards, private credit firms are prioritizing less risky buyouts and the uncertain outlook for late-stage VC funding has spooked the market.
read more
Share: Email LinkedIn Twitter Facebook
How are pre-rate-hike LBOs faring amid skyrocketing debt costs?
Recent rate hikes are of special concern to leveraged loan issuers. Leveraged loans are floating-rate debt, so as the base rate soars, so does a loan borrower's cost of servicing its debt.

This can pose a fundamental challenge with LBOs. The success of these deals often depends on strong company performance going forward, as many were structured with aggressive, optimistic adjustments to the target company's EBITDA, such as "add-backs" and "synergies."

So, how might big LBOs that were structured in the pre-rate-hike era be faring in today's less-forgiving market? Some could be in for a rougher ride. By LCD's calculations, a 20% decline in EBITDA could leave some 2021 LBOs with a considerably thinner interest-coverage ratio.
read more
Share: Email LinkedIn Twitter Facebook
A message from PitchBook  
PitchBook's 2023 Media Kit released
With uncertainty across the private and public markets likely to continue, strong and insightful thought leadership is critical to your clients and prospects.

By partnering with PitchBook Media, you will have daily opportunities to reach 1.5M+ industry professionals in our newsletter, and you can broaden exposure of your brand through our core industry reports. We also help clients create custom research to share data-driven insights on the market.

Our 2023 Media Kit contains all the details to help your firm position itself in front of a VC or PE audience.

Click here to download it today or to speak to someone on the media team.
Share: Email LinkedIn Twitter Facebook
Venture debt BDCs thrive in VC, bank pullback
(eldar nurkovic/Shutterstock)
Five venture lending business development companies—tracked by PitchBook for our latest public BDC analyst note—posted solid Q1 2023 earnings, fueled by higher benchmark rates and a lender-friendly pricing environment. But ongoing market volatility and the prospect of a recession still pose risks to these venture debt providers.
read more
Share: Email LinkedIn Twitter Facebook
May wrap-up: One month in global markets
Our latest Global Markets Snapshot breaks down a month of trends in the equity, debt and commodities markets, tracking returns across a range of indexes and sectors. It also features private market activity, including major deals, fundraising, IPO performance, lending volume and unicorn creation.

In this monthly digest, we provide the datasets that the PitchBook Institutional Research Group is keeping an eye on as markets remain volatile.
read it now
Share: Email LinkedIn Twitter Facebook
5 charts: Signs of recovery for French VC are Q1 bright spot in Europe
(Audio und werbung/Shutterstock)
French venture capital has had a strong start to the year, with quarterly figures up for both deal count and value. We've isolated five key trends to illustrate how the country's venture dealmaking, exits and fundraising performed in Q1.
read more
Share: Email LinkedIn Twitter Facebook
Recommended Reads
Investors turn to AI-guided dealmaking to gain an edge over rivals. [Financial Times]

Two startups seek to prove that patches may solve the challenge of delivering vaccines to remote locations. [The Wall Street Journal]

Is the luxury sector recession-proof? [The Economist]
Since yesterday, the PitchBook Platform added:
VC valuations
See what our data software can do
The Daily Benchmark:
2012 Vintage Global Secondaries Funds
Median IRR
Top Quartile IRR
Median DPI
Select top performers
AlpInvest Partners Fund V—Secondary Investments
Secondary Overflow 2011
Pomona Capital VIII
*IRR: net of fees
18 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
VC Deals  
Minimax, a Chinese startup developing a generative AI chatbot similar to OpenAI's ChatGPT, is raising over $250 million from investors including a Tencent-linked firm, Reuters reported.

Berlin-based travel booking platform GetYourGuide has raised $194 million in debt and equity. Blue Pool Capital led the $85 million Series F.

Generative AI text-to-video startup Runway is raising roughly $100 million at a $1.5 billion valuation from investors including Google, The Information reported.

Measurabl, which offers a real estate-focused ESG platform, has raised a $93 million Series D co-led by Energy Impact Partners and Sway Ventures.

India's Capillary Technologies, a customer loyalty and engagement specialist, has secured a $45 million Series D from investors including Avataar Ventures, Filter Capital and Innoven Capital.

Ceibo has raised a $30 million Series B led by Energy Impact Partners. The Chile-based company develops technology for the mining of copper and other critical minerals.

Hypervision Surgical, a surgical imaging and data analytics platform, has secured £6.5 million from investors including Redalpine and Heran Partners.

Coffee company Chamberlain Coffee has raised $7 million led by its founder, YouTuber Emma Chamberlain, Blazar Capital, and UTA Ventures, according to reports. The startup closed a $7 million Series A in August.
PE Deals  
Baird Capital has invested in London-based data consultancy JMAN Group.

Genstar-backed financial services provider Apex Group has closed its acquisition of UK-based Mainspring Fund Services after receiving regulatory approval.

Investment firm Edge Group Global has acquired Italian soccer team Casale FBC, which plays in the Serie D league, in an all-cash deal.

Kian Capital Partners has acquired HVAC distributor Team Air Distributing, the firm's first investment from its third fund.
Portfolio Companies  
GenesisCare, which is backed by KKR and China Resources Capital, has filed for Chapter 11 bankruptcy protection in Texas. The Sydney-based radiotherapy cancer treatment company plans to sell its US business.
Exit & IPOs  
Thompson Street Capital Partners has sold warehouse management software provider Made4net to Ingka Investments, the investing arm of Ikea Group.
China's Genbridge Capital has held a final close of its second fund on $400 million, Private Equity International reported.
Chart of the Day  
Source: 2022 Global Fund Performance Report (as of Q3 2022 with preliminary Q4 2022 data)
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.

Key phrases

Older messages

Generative AI transforms healthcare IT

Thursday, June 1, 2023

Solving generative AI's energy crunch; green light for secondaries; TotalEnergies folds corporate VC arm; slowdown hits enterprise SaaS Read online | Don't want to receive these emails? Manage

VCs fight emerging biosecurity threats

Wednesday, May 31, 2023

VCs invest $1.8B in medtech; French private markets defy downturn; Apollo bets on affordable housing; Zhongchu Guoneng Technology grabs $140M+ Read online | Don't want to receive these emails?

VCs count on great video games for great returns

Tuesday, May 30, 2023

Can Apple's VR debut shake up a stagnant sector?; generative AI startups get valuation leeway; indoor farms flounder Read online | Don't want to receive these emails? Manage your subscription.

Mapping the stars of information security

Monday, May 29, 2023

VCs fortify defense tech; the banks scooping up ex-SVB talent; will VCs leave behind women's health?; private credit's squid vs. whale battle Read online | Don't want to receive these

Endowments tap into alumni networks

Sunday, May 28, 2023

Plus: Wearable medtech's golden age, enterprise SaaS plays catch up, the struggles of emerging managers & more Read online | Don't want to receive these emails? Manage your subscription.

Email development for beginners, email examples to bookmark, and more

Thursday, September 28, 2023

The latest email resources from the Litmus blog and a few of our favorite things from around the web last week. ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 

Thrasio’s bankruptcy | Shopify’s new integrations [Crew Review]

Thursday, September 28, 2023

‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

How media execution partners are helping teams optimize campaigns

Thursday, September 28, 2023

Guide: As digital media execution evolves, agencies turn to MEPs ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[LIVE] 📆 ⏰ Revealed: How to make $684 a day as an affiliate

Thursday, September 28, 2023

$40k worth of ClickBank research to show you how to get $684 a day ClickBank We are LIVE! I've made it my mission to uncover why some people who started from scratch were able to become "Super

Watch our AI Summit on-demand

Thursday, September 28, 2023

Hey, 3 important things: 1) Today is the last day of the Summit (Day 3). ​ ​Only for paid members — get your access now 2) Also, today is the last day to purchase the Lifetime Access Pass at our

Creating a Culture of Inclusion: Revolutionizing Professional Standards

Thursday, September 28, 2023

The concept of professionalism is critical of BIPOC professionals. Let's discuss the constructed principle and how we move forward from it. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

IPOs are Back: Really, Really Good Ones

Thursday, September 28, 2023

Plus the latest news from SaaStr To view this email as a web page, click here saastr daily newsletter IPOs are Back! Really, Really Good Ones. It's Just — The Market Is a Bit “Meh” For Now By Jason

Ramit Sethi Exposed: How He Earns Millions Blogging

Thursday, September 28, 2023

Hi Reader, How's your blogging week been? Next week it will be October and that only leaves 3-months left in the year. But that's also 12 weeks to make money blogging. With Black Friday and

Find the platform to take your store to the next level

Thursday, September 28, 2023

Discover resources to help you make the right choice To view this email as a web page, click here BigCommerce Essentials START A TRIAL Does Your Ecommerce Platform Need an Upgrade? START A TRIAL Hi

ETH Futures ETFs on the Way

Thursday, September 28, 2023

Plus Binance debanked in Europe ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌