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The Daily Pitch: VC

August 31, 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:

Alternative asset managers had strong growth in Q2 due to GP stakes briskly changing hands

Fund managers now have more disclosure flexibility for GP-led secondary deals

Mythical Games was a Web3 gaming darling—then came layoffs, a down round and a lawsuit

Today's Top Stories

How Mythical became a cautionary tale of the Web3 gaming gold rush

(Jenna O'Malley/PitchBook News)

It seemed like good news: In June, Mythical Games had just held a first close of its Series C on $37 million, one of a few companies to raise money in a fading hype cycle for Web3 gaming.

Then the layoffs came. It was the latest in a string of challenging developments at Mythical that included canceled bonuses, a bitter lawsuit and a falling valuation. As VC investment in Web3 gaming plummets, PitchBook spoke to several former Mythical employees to understand how one of the sector's most well-funded companies has adapted to this harsh new reality.

Recommended Reads

The EU is desperate for its own AI giant. German startup Aleph Alpha might be its best hope. [Wired]

PE firms frustrated by the recruitment frenzy are seeking alternative ways to fill their junior ranks. [The Wall Street Journal]

VC firm Valor Equity's recent returns show the limits of Elon Musk's magic touch. [The Information]

Since yesterday, the PitchBook Platform added:

12

VC valuations

2136

People

440

Companies

11

Funds

See what our data software can do

The Daily Benchmark:
2018 Vintage European PE Funds

Median IRR

19.71%

Top Quartile IRR

23.82%

0.34x

Median DPI

Select top performers

Westbridge II

INVL Special Opportunities Fund

Compass Partners Investments GC Fund

*IRR: net of fees

34 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

SaaS risk and compliance startup Hyperproof has secured a $40 million growth investment led by Riverwood Capital.

Biotech company Epigenic Therapeutics has raised a $32 million Series A led by Qiming Venture Partners and OrbiMed.

Rewaa, a retail sales and management startup, has raised a $27 million Series A led by Wa'ed Ventures.

Clinical trial design specialist QuantHealth has raised a $15 million Series A led by Bertelsmann Investments and Pitango HealthTech.

Tel Aviv-based Radiaction Medical has secured $12.6 million in a Series C2 led by InnovaHealth Partners. The startup's technology is designed to protect medical teams from radiation during interventional procedures.

Branchspace, a provider of sales software to airlines, has raised £5 million from Gresham House Ventures.

Context.ai, which offers a product analytics platform for applications powered by large language models, has secured a $3.5 million investment from GV and Theory Ventures.

Reykjavik-based energy decarbonization startup Snerpa Power has raised €2.2 million from Crowberry Capital and BackingMinds.

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Misconceptions and assumptions of online merchants surrounding their pricing strategies.

Technical challenges and opportunities in optimizing and analyzing product pricing.

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PE Deals

Archimed has agreed to pay £203 million for London-listed life sciences software company Instem.

Priority Power, backed by Oaktree Capital Management and Ara Partners, has acquired Atlas Retail Energy, an energy procurement and management company.

Balance Point Capital has invested in Concord Servicing Corp., a loan servicer backed by Inverness Graham Investments.

Portfolio Companies

Sycamore Partners has merged three of its apparel brands—Ann Taylor, Loft, which the firm acquired in 2020, and Talbots, acquired for $391 million in 2012—into one company called KnitWell Group.

Exit & IPOs

Actera Group is looking at strategic options for its Istanbul-listed aviation services company, Celebi Ground Handling, including a sale or secondary public offering, Unquote reported.

Fundraising

Lithuanian early-stage VC firm Iron Wolf Capital has its eyes on €70 million for its second namesake fund, Unquote reported.

Investors

The Southern Ute Indian Tribe Growth Fund has formed a new PE firm, Kava Equity Partners, which will invest in lower-middle-market companies aligned with the Colorado tribe's cultural, economic and environmental values.

Chart of the Day

Source: Q2 2023 Global Private Market Fundraising Report

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Putting performance persistence to the test

Older messages

VC's clean energy charge

How VC can boost drug R&D in space

Mythical's cautionary tale for Web3 gaming

How to play the PE game without a fund

Predicting performance

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