ESG difficulties split for Europe, North America

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The Daily Pitch: VC

July 19, 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:

Europe's mega-funds get even bigger, boosting fundraising totals

The ESG hurdles investors in Europe and North America face are far from the same

European unicorns have their own version of the "PayPal Mafia"

Today's Top Stories

Red tape vs. red states: Europe, North America diverge on ESG hurdles

(Alexandre.ROSA/Shutterstock)

ESG and impact investing are thriving in Europe and North America, but their sustainable investing scenes are far from the same.

PitchBook's new survey data shows that the regions diverge in the greatest challenges they face: While Europe struggles with logistics like measuring the results of impact investments and parsing new regulations, North America's biggest barrier is the perception of negative returns.

Recommended Reads

Can Wikipedia help teach AI chatbots to get their facts right—without destroying itself in the process? [The New York Times Magazine]

At a global meeting on seabed mining policy, ocean adventurer and investor Victor Vescovo warned of "extraordinarily high" financial risks. [Bloomberg]

Indebted Chinese real estate giant Evergrande reveals a staggering $81 billion loss, nearly two years after its gradual collapse began. [The Washington Post]

Since yesterday, the PitchBook Platform added:

18

VC valuations

2046

People

713

Companies

36

Funds

See what our data software can do

The Daily Benchmark:
2013 Vintage Global Debt Funds

Median IRR

7.75%

Top Quartile IRR Hurdle Rate

9.19%

1.12x

Median DPI

Select top performers

York Special Opportunities Fund II

Davidson Kempner Long-Term Distressed Opportunities Fund II

Oaktree Real Estate Debt Fund

*IRR: net of fees

54 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Tractable, which uses AI to provide remote assessments of damage to cars and homes, has raised a $65 million Series E led by SoftBank's Vision Fund 2.

Carbon credit ratings company Sylvera has secured a $57 million Series B led by Balderton Capital.

Hammerspace has raised $56.7 million in a round led by Prosperity7 Ventures. The company's data orchestration system helps users access and leverage unstructured data.

Metaverse specialist Futureverse has raised a $54 million Series A led by 10T Holdings.

VitalConnect, a developer of wearable biosensor technology, has secured more than $30 million in a Series F led by Revelation Partners.

Isometric, a London-based carbon removal registry, has secured a $25 million seed investment led by Lowercarbon Capital and Plural.

ID verification platform Bureau has raised an additional $4.5 million from investors including GMO VenturePartners for its Series A, bringing the round's total to $16.5 million.

Rice Robotics, a Hong Kong-based developer of autonomous robots for businesses, has secured a $7 million pre-Series A.

PE Deals

Thomas H. Lee Partners has agreed to acquire a majority stake in fund administrator Standish for roughly $1.6 billion, Reuters reported. Sellers include the company's management, which will retain a 45% stake, and minority stakeholder Vitruvian Partners.

Spectrum Equity has invested more than $100 million in Netcraft, a UK-based cybercrime detection and disruption company that has also named a new CEO, tech executive Ryan Woodley.

Incline Equity Partners has acquired GME Supply from Platte River Equity. The company distributes fall protection, safety, repair and inspection products.

BVP Forge—the PE arm of Bessemer Venture Partners—has made a recapitalization investment in Parsec Automation, a software provider for manufacturing operations management.

Nordic Capital has invested in Hjo Installation, a Swedish company offering energy efficiency services.

Oakley Capital-backed Ecommerce One has acquired German ecommerce specialists Makaira and Marmalade.

Fundraising

Angelo Gordon has held the final close of AG Asset Based Credit Fund on more than $1 billion. The fund aims to make asset-based specialty private credit investments that the firm describes as flexible capital.

Goldman Sachs Asset Management has raised more than $200 million for its first European Long Term Investment Fund, which will allow individual investors access to private markets, according to reports.

Web3- and crypto-focused investment firm CoinFund has closed its Seed IV fund on $158 million. The vehicle will target investments in pre-seed and seed-stage startups.

Chart of the Day

"PE paid a median multiple of 4.0x revenue in megadeals of $2.5 billion or more in size, exactly twice the median multiple for all deals. While at first blush that may look like an enormous multiple and premium to pay, it was even higher last year at 4.8x and 117.2%, respectively, reflecting the fact that valuations have fallen harder in this segment of the PE deal market as leverage for large deals grew scarce."

Source: PitchBook's Q2 2023 US PE Breakdown

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ESG difficulties split for Europe, North America

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Startups' precarious 2023

US PE's big bounce in exits

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