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The Daily Pitch: VC

August 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:

Enterprise fintech eyes generative AI use cases as dealmaking slows

KKR's purchase of Simon & Schuster marks a rare play in publishing for PE

SoftBank's Vision Funds turn a profit, but they're not out of the woods yet

PE investment in cybersecurity is holding steady in Europe. In the US, it's fallen off a cliff

Europe's female founders keep building up their record share of VC dealmaking in 2023

Today's Top Stories

How generative AI could fit into enterprise fintech

Enterprise fintech has been hitting the brakes from its highs in 2021 and 2022. Even counting Stripe's mega-deal of $6.9 billion, total VC deal value for Q2 2023 decreased 11.9% year-over-year. Still, generative AI is on the rise, and our latest Emerging Tech Research covers opportunities for enterprise fintech investors, especially in applying generative AI technology to segments such as fraud and compliance, sales, and productivity.

read the preview

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SoftBank Vision Funds profit chips away at $7.5B in cumulative losses

SoftBank Group CFO Yoshimitsu Goto speaks at yesterday's earnings call.

SoftBank's Vision Funds are finally back in the black.

The three funds reported a quarterly profit for the first time in six quarters after an investment gain of 134.7 billion Japanese yen (about $939 million).

But a major portion of that gain was from valuation growth logged by semiconductor giant Arm and payments business PayPay. And with a $7.5 billion cumulative deficit on the books, Masayoshi Son isn't out of the woods yet.

Recommended Reads

This startup is taking on Google's translation software by coupling AI with human native language speakers. [Forbes]

Where are immigrant founders of US unicorns from? [Visual Capitalist]

Why it's so hard to forecast wildfire smoke. [The New Yorker]

Since yesterday, the PitchBook Platform added:

8

VC valuations

2692

People

689

Companies

7

Funds

See what our data software can do

The Daily Benchmark:
2014 Vintage European Real Estate Funds

Median IRR

9.30%

Top Quartile IRR

12.11%

0.90x

Median DPI

Select top performers

Activum SG Real Estate Fund III

NREP Nordic Strategies Fund I

Moorfield Real Estate Fund III

*IRR: net of fees

19 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Transportation analytics startup Inrix has secured a $70 million investment from Morgan Stanley Investment Management.

Cybersecurity company Horizon3.ai has raised a $40 million Series C led by Craft Ventures.

Dutch cultivated meat startup Meatable has raised $35 million in a round led by Agronomics.

Wastewater treatment company Membrion has raised an additional $5.5 million for its Series B, bringing the round's total to $12.5 million. Investors included Samsung Venture Investment and Lam Capital.

Network security startup Stamus Networks has raised a $6 million Series A led by First Analysis.

Cytomos, a Scottish provider of cell analysis tech, has secured a £4 million investment led by Archangels.

Villari has raised a €2.5 million seed investment led by Forward.one. The Dutch company offers wireless crack detection systems for industrial structures.

PitchBook webinar: Improving behavioral health outcomes

The demand for behavioral healthcare has never been greater. Providers and payers are turning to measurement-based care to capture and manage clinical outcomes to improve the delivery of behavioral healthcare and generate financial ROI.

In this webinar, PitchBook lead healthcare analyst Rebecca Springer will speak with representatives from Aurora Mental Health & Recovery, Colorado Access, and Owl Health about the transformation of treatment and business models in the behavioral health industry.

Register now to secure your spot.

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PE Deals

GTCR has agreed to acquire home security company ADT's commercial security, fire and life safety business for $1.6 billion.

Advent International will buy a majority stake in Australian luxury fashion company Zimmermann. The deal values the brand at around $1.15 billion, Reuters reported.

The Carlyle Group plans to acquire a large minority stake in engineering services firm Quest Global, buying out existing investors Bain Capital and Advent International in a deal valuing the company at $2 billion, Reuters reported. Founder Ajit Prabhu will purchase an additional stake.

Nautic Partners-backed ExactCare Pharmacy has agreed to purchase Tabula Rasa HealthCare in a take-private deal valuing the target company at $570 million.

Apollo Global Management has acquired a majority stake in Accent from Crossplane Capital, which will stay on as a minority investor alongside the company's founding family. Accent provides equipment and services for the recycling industry.

Goldman Sachs Asset Management has invested in Synthica Energy, which owns renewable natural gas production facilities.

Exit & IPOs

Thoma Bravo and Madison Dearborn Partners have sold Syntellis Performance Solutions, an enterprise performance management software provider, to Roper Technologies for $1.4 billion in cash.

Fundraising

Clayton, Dubilier & Rice is on course to raise around $23 billion for the latest iteration of its flagship buyout fund, the Financial Times reported.

Revelstoke Capital Partners has raised $1.7 billion for its third flagship fund and affiliated vehicles. The PE firm targets investments in healthcare services companies.

Willowridge Partners has closed its secondaries fund Amberbrook IX on $900 million, The Wall Street Journal reported. The firm's secondaries strategy involves buying stakes in PE funds that are, on average, 10 years old.

GLP Capital Partners has reached a 4 billion yuan (about $555 million) close on its inaugural fund targeting investments in Chinese renewable energy and energy storage infrastructure.

Swiss VC firm L1 Digital has raised $152 million for a second crypto-focused fund, CoinDesk reported.

Symbol, an Israeli VC firm started by Onavo founder Yuval Ariav, has closed its debut fund on $50 million.

Chart of the Day

Source: PitchBook's H1 2023 Healthcare Funds Report

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PitchBook News - Can fintech leverage generative AI?

Older messages

Signs of stability for VC valuations

VC's looming deficit

Mixed signals for private markets

Down rounds are way up

Founders selling shares? Not just yet

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