PitchBook News - Top VCs maintain check sizes for tech

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The Daily Pitch: VC

June 5, 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 Emerging Tech Indicator, which tracks investment at the world's top VC firms, shows median deal size on the rise.

Our latest analyst note breaks down the early-stage VC deals behind recent ecommerce trends.

Reforms to China's IPO system may help lure venture-backed tech companies to the country's exchanges.

Today's Top Stories

Top VCs maintain check sizes for tech

Median deal size stood out for emerging tech in Q1. VC growth and rising valuations have kept early-stage median deal sizes ticking up in recent years. Our Emerging Tech Indicator tracks angel-, seed- and early-stage investment at the world's top-15 most successful VC firms, giving insight into their strategy through the downturn.

The increase in total ETI deal value was small, roughly $200 million, but it reversed a three-quarter decline.

Biotech startups led the indicator in deal value, with the AI and machine learning sector following. Web3 and DeFi, a darling of top VCs in previous quarters, still generated enough interest to take second in deal count.

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The VC bets behind ecommerce trends

From B2B digitization to VR shopping, our latest analyst note breaks down the early-stage VC deals behind recent ecommerce trends.

While the sector has significant room for growth in Africa, supporting logistics and infrastructure are still catching up. Sabi's $42 million round shows that some investors are willing to play the long game.

Checkmate's mobile-first approach sets it apart from other discount aggregators and has earned it a $20 million seed round.

Despite near-term headwinds, Pietra's $17 million round signals investors are still bullish on the creator economy.

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China's IPO reforms promise to reignite VC-backed listings

(Hugo Hu/Getty Images)

VC-backed listings in China have fallen in recent quarters, but new reforms could spark fresh activity.

The switch to a registration-based IPO system is designed to make listings on Chinese exchanges easier than in previous years.

Recommended Reads

Buoyant Ventures co-founder Amy Francetic on why AI is the future of climate tech. [The Wall Street Journal]

Can "friendship clubs" cure the loneliness created by the remote work era? [The San Francisco Standard]

Apple is stepping into the metaverse. Will anyone care? [The New York Times]

Since yesterday, the PitchBook Platform added:

2

VC valuations

121

People

21

Companies

1

Funds

See what our data software can do

The Daily Benchmark:
2014 Vintage Global VC Funds with less than $250M

Median IRR

15.35%

Top Quartile IRR

23.97%

0.68x

Median DPI

Select top performers

Union Square Ventures Opportunity 2014 Fund

Group 11 Fund II

Union Square Ventures 2014 Fund

*IRR: net of fees

33 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Specialized cloud computing infrastructure provider CoreWeave has raised $200 million from Magnetar Capital to extend its Series B to $421 million. The startup has signed a billion-dollar, multiyear deal with Microsoft, CNBC reported.

Bengaluru-based satellite-image startup Pixxel has raised a $36 million round led by Alphabet, Reuters reported.

NexWafe, a green solar wafer manufacturer, has secured €30 million to construct a plant in Germany from investors including Reliance New Energy Limited, Aramco Ventures and ATHOS Venture. Additionally, NexWafe will receive funding from Aramco Ventures to build a facility in Saudi Arabia.

Tel Aviv-based social mapping platform Atly has raised $18 million from Target Global, Tal Ventures and FKA Brands.

XONAI, a London-based provider of cloud optimization solutions, has secured $3.5 million in a round led by Kadmos Capital.

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PE Deals

EQT has agreed to acquire UK-listed veterinary drugmaker Dechra Pharmaceuticals for £4.46 billion.

TPG has made an investment in Banyan Treatment Centers through its impact fund. Banyan operates 16 US facilities that treat substance abuse disorders and mental health problems.

PureTech Scientific, which is backed by Iron Path Capital, has agreed to acquire The Chemours Company's glycolic acid business for $137 million.

Portfolio Companies

Energy company Lightsource BP has secured $460 million in financing to operate two projects in Louisiana and Indiana with around 800,000 solar panels.

Fundraising

FF Venture Capital has launched a €60 million fund targeting Series A and late seed investments in Central European startups.

Australia's Aura Group is seeking up to A$200 million (around $132 million) for its latest PE fund targeting high-growth companies in Southeast Asia, the Australian Financial Review reported.

Investors

The Canada Pension Plan Investment Board has been looking for a buyer for a portfolio of private fund stakes worth up to $2 billion and a portfolio of direct stakes in private companies that could be valued at roughly $1 billion, The Wall Street Journal reported.

Chart of the Day

Source: Exploring European Buyout Multiples

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PitchBook News - Top VCs maintain check sizes for tech

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