PitchBook News - Tech takes on digital twins

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The Daily Pitch: VC

June 9, 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 analysts predict that the market size for digital twins—virtual replicas of real-world assets created by sensor data and analytics—will more than double by 2025.

Unicorn creation was up in May, but 2023 is still shaping up to be a lackluster year for billion-dollar valuations.

BlackRock's plan to acquire Kreos Capital demonstrates increased investor demand for exposure to venture debt and private credit.

Today's Top Stories

Digital twins are poised for massive growth

Digital twins are virtual replicas of real-world assets created by sensor data and analytics. As a concept, their roots stretch back to tools used by NASA in the 1960s; today, they're used in the automotive, energy, healthcare and manufacturing spaces.

According to PitchBook's estimate, the market size for digital twins reached $6.5 billion in 2022, and it's projected to grow to $15.6 billion by 2025. PitchBook's latest emerging space brief explains what's behind that growth, types of digital twin processes and different usages.

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BlackRock's latest acquisition signals venture debt appetite

(Tada Images/Shutterstock)

BlackRock announced yesterday that it will acquire Kreos, a provider of growth and venture debt in technology and healthcare. The acquisition demonstrates mounting optimism around opportunities for diversification and higher returns with venture debt.

Recommended Reads

How Lululemon's test-and-learn approach turned it into an $8 billion athleisure empire. [Fortune]

The generative AI boom is putting pressure on companies to get their data in order. [The Wall Street Journal]

Why the US is at least a decade behind China when it comes to manufacturing EV batteries. [Bloomberg]

Since yesterday, the PitchBook Platform added:

18

VC valuations

2377

People

560

Companies

13

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global Funds-of-Funds

Median IRR

21.44%

Top Quartile IRR

25.71%

0.62x

Median DPI

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TrueBridge Direct Fund

TrueBridge-Kauffman Fellows Endowment Fund IV

HarbourVest Partners X-Venture

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57 Funds in Benchmark »

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VC Deals

Upstream Bio has raised a $200 million Series B led by Enavate Sciences and Venrock Healthcare Capital Partners to develop allergic and inflammatory disease treatments.

Pigment, which offers a business planning platform, has raised an $88 million Series C led by Iconiq Growth.

Gene therapy startup Kate Therapeutics has raised a $51 million Series A led by Westlake Village BioPartners and Versant Ventures.

EvenUp, which offers an AI-driven support platform for personal injury lawyers, has secured a $50.5 million Series B led by Bessemer Venture Partners and joined by Bain Capital Ventures, among others.

Contextual AI has raised a $20 million seed round led by Bain Capital Ventures and joined by investors including Lightspeed and Greycroft. The startup is developing enterprise-focused language models.

Healthcare software specialist Laudio has raised a $13 million Series B led by Define Ventures.

HyperPlay, a Web3 game launcher, has raised a $12 million Series A co-led by Griffin Gaming Partners and Bitkraft Ventures.

Amsterdam-based insurtech startup Insify has raised €10 million in a Series A extension led by Munich Re Ventures, bringing the round's total to €25 million.

Germany's Delphai, which provides B2B company data, has raised €5 million in a Series A that included a €1 million grant from the German government.

PitchBook webinar: Emerging Tech Talks with Quantum Health

Healthcare and benefits navigation plays an important role in a healthcare ecosystem with ever-increasing complexity. PitchBook analyst Aaron DeGagne will host Zane Burke of Quantum Health, a PE-backed healthcare navigation company. Key topics include:

Data on current VC and PE funding in care navigation.

An overview of the competitive landscape and what makes Quantum Health's approach different than peers.

Opportunity and growth dividers in the care and health benefits navigation market.

Register now to secure your spot.

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PE Deals

Bain Capital has acquired Indian specialty chemicals company Porus Labs. The deal valued Porus at roughly $291 million, The Economic Times reported.

British PE firm Kingsway Capital is looking to sell its stake in Advanced Inhalation Rituals, a Dubai-based tobacco company, and has met with British American Tobacco and Japan Tobacco, Reuters reported.

MidOcean Partners has acquired QualiTech, which provides vitamins and micronutrients for animal feed and plant nutrition.

Fundraising

BlackRock is eyeing $7 billion for its fourth Global Renewable Power Fund, Reuters reported.

TJC is anticipating a first close on its Resolute Fund VI. The middle-market buyout firm is targeting a total of $5.5 billion, The Wall Street Journal reported.

London-based Just Climate has closed its first fund on $1.5 billion, exceeding its $1 billion target as it seeks to invest in impact solutions to reduce carbon emissions.

Nova Infrastructure, a middle-market PE firm that specializes in infrastructure, is targeting $1 billion for its second fund, a 77% increase from its debut fund, The Wall Street Journal reported.

Manulife Investment Management has committed up to $500 million to CleanCapital, an early-stage solar and energy storage project developer.

Capital Alignment Partners has closed its CAP Funds IV on $375 million. The fund will offer debt and equity deals to companies in the lower middle market.

Corporate M&A

Bunge, a NYSE-listed global grain handling business, is finalizing a $30 billion merger deal with Glencore-backed Canadian peer Viterra, Reuters reported.

Chart of the Day

Source: Q1 2023 PitchBook-NVCA Venture Monitor

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PitchBook News - Tech takes on digital twins

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