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The Daily Pitch: VC

July 20, 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 VCs focus on keeping portfolio companies afloat as dealmaking drops

Now at a $4 billion valuation, Kim Kardashian's Skims hopes to avoid direct-to-consumer pitfalls

The 10 most active accelerators investing in European startups

Today's Top Stories

Dark clouds settle over Europe's venture market

Venture deal count in Europe fell considerably in the first half of the year, but recovery in the public markets could signal a light at the end of the tunnel, according to our Q2 2023 European Venture Report.

Deal value is down 60.8% from H1 2022, and more attention has been focused on follow-on funding and restructuring portfolio companies' operations to extend cash reserves.

Exit activity in Europe has also slowed to decade lows, with acquisitions remaining the most popular liquidity route despite a 93.2% decline in exit value from 2022.

read the report

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Techstars tops list of 10 most prolific accelerators in Europe

Techstars CEO Maëlle Gavet
(Bruno de Carvalho/Getty Images)

Techstars has topped a list of the most active accelerators backing European startups since the start of 2018, with 661 investments.

Of the top 10, four are investors headquartered in the US, while the rest are based in Europe.

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People

Long-time Sequoia partner Michael Moritz is leaving Sequoia to focus on independent wealth management fund Sequoia Heritage, The Information reported.

Warburg Pincus' head of southeast Asia and Asia-Pacific real estate, Jeffrey Perlman, will be the firm's next president. Current president Timothy Geithner will become chairman.

VC Deals

Seoul-based online fashion platform Musinsa has raised a $190 million Series C led by KKR.

Preply, an online language learning marketplace, has raised $70 million in debt and equity led by Horizon Capital.

Neura Robotics, a German maker of cognitive robots, has secured $55 million in a round led by Lingotto, Vsquared Ventures, Primepulse and HV Capital.

SensorFact, a Dutch provider of smart monitoring technology designed to identify energy waste, has raised €25 million in a round led by Blume Equity.

At-home blood-testing startup SiPhox Health has raised $27 million in funding including seed financing led by Khosla Ventures and a Series A led by Intel Capital.

P0x Labs, a privacy-preserving Web3 startup, has reached a $500 million valuation after raising a $25 million Series A led by Polychain Capital and Qiming Venture Partners.

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PE Deals

TPG has agreed to acquire Nextech, a healthcare IT provider for medical specialists, from Thomas H. Lee Partners for $1.4 billion.

Apax Partners, BC Partners and Heart Communications have backed out of an auction for UK-based Ascential's consumer data business WGSN, Reuters reported.

Linden Capital Partners- and Thomas H. Lee Partners-backed orthodontic support organization Smile Doctors has raised more than $550 million from investors and doctors.

Bow River Capital has acquired Vitruvi Software, which provides utility construction management software.

Kliro Capital Partners has acquired the UK-based owner of alcoholic drink brands Cactus Jack and Veroni Amaretto, Intercontinental Brands Limited.

Fundraising

Davidson Kempner Capital Management has closed its sixth opportunities fund on $3 billion. The vehicle will invest in less liquid and longer-duration assets in areas including real estate and infrastructure.

Fremman Capital has closed its debut fund, which will target companies across Europe, on over €600 million.

Eurazeo has closed its second smart city fund on €400 million. The vehicle will target investments in areas including renewable energy, logistics and mobility.

KKA Partners has closed its second fund, which will target small and medium-sized companies in Germany, Austria and Switzerland, on €230 million.

Cryptocurrency-focused firm Polychain Capital has closed a roughly $200 million fourth fund, according to reports.

Tel Aviv-based Flora Ventures has raised $50 million in the first close of its $80 million fund. The firm invests in early-stage startups in areas including sustainable agriculture and food security.

Big Sky Capital has raised a $20 million debut fund to invest in early-stage companies, TechCrunch reported.

Chart of the Day

"PE fundraising activity in Europe looks strong, as megafunds get more mega. In H1 2023, capital raised in European PE funds sat at €49 billion, with 2023 on track to land above 2022's total of €68.2 billion. This was raised over fewer vehicles—51 total—evidencing more resilience in larger funds within fundraising markets."

Source: PitchBook's Q2 2023 European PE Breakdown

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PitchBook News - Has Europe's VC market bottomed out?

Older messages

ESG difficulties split for Europe, North America

Offshore energy production sets sail

Startups' precarious 2023

US PE's big bounce in exits

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