PitchBook News - Dissecting the direct listing die-out

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The Daily Pitch: VC

September 6, 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:

In which sectors are VC's most successful firms placing their tech bets?

Why the direct listing isn't catching on as an alternative to the traditional IPO

Our 2023 UK Private Capital Breakdown explores the numbers behind the country's PE and VC markets

With Butternut Box's largest-ever VC pet tech deal, personalized meal plans have gone to the dogs

Today's Top Stories

Why the direct listing is on life support

(Courtesy of Surf Air Mobility)

Shortly after Surf Air Mobility, a private jet company developing electric planes, went public via direct listing in July, its stock price started to nosedive.

Surf Air Mobility was the first significant direct listing in nearly two years—and it's likely to be one of very few in the near term.

In a market where late-stage companies don't have the cash runway they used to, founders are more incentivized than ever to secure the capital and big investors that come with the traditional IPO roadshow.

Recommended Reads

Midjourney's founder, David Holz, built an AI winner—without raising a cent from outside investors. [The Information]

Court cases allege PE firms used arcane tax deals to enrich executives at the expense of shareholders. [The Wall Street Journal]

Furniture used to last generations, but now it barely survives a move. Industry insiders reveal why. [The Washington Post]

Since yesterday, the PitchBook Platform added:

22

VC valuations

3112

People

722

Companies

10

Funds

See what our data software can do

The Daily Benchmark:
2017 Vintage Global Funds-of-Funds

Median IRR

23.28%

Top Quartile IRR

29.35%

0.26x

Median DPI

Select top performers

Top Tier Venture Capital VIII

Raspberry Street Fund II

Aberdeen U.S. Private Equity VII

*IRR: net of fees

41 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

UK-based holographics startup Envisics has raised a $100 million Series C from investors including M&G Investments and Hyundai Mobis, TechCrunch reported.

Mujin, a robotics startup based in Japan, has raised an $85 million Series C led by SBI investment Company and joined by Pegasus Tech Ventures and Accenture, among others.

Biotech company Star Therapeutics has raised a $90 million Series C led by Sofinnova Investments.

Israel's ThetaRay, which offers an AI-based anti-money laundering platform, has raised $57 million in a round led by Portage.

Ambient Photonics, a startup creating photonics-based technology, has raised a $30 million Series A2 led by Fine Structure Ventures.

Berlin-based cleantech startup Nuventura has secured a €25 million Series A led by Mirova.

SET Ventures has led a €9.5 million Series A for E-mobilio, which offers an electric mobility advisory and shopping platform.

Opna, the developer of a financing platform for carbon removal projects, has raised $6.5 million in a round led by Atomico.

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PE Deals

Dubai Holding has hired JP Morgan and Rothschild & Co to advise on a possible sale of its 25% stake in fashion retail company Azadea Group, Reuters reported.

ECI Partners has invested in business messaging company Commify in a €300 million deal.

Alternative investments firm Arcapita has acquired identity verification and compliance provider The DataFlow Group from EQT Private Equity.

Fundraising

Dubai-based Alkhair Capital has launched a $100 million fund to invest in healthcare technologies.

Logistics real estate developer IndoSpace has raised $150 million for its Logistics Parks IV fund, led by the Qatar Investment Authority and Grosvenor's diversified property investments division.

Investors

The Ontario Teachers' Pension Plan has agreed to acquire UK wealth manager Seven Investment Management from London-listed Caledonia Investments.

CVC Capital Partners is acquiring Dutch infrastructure investor DIF Capital Partners. The deal is worth roughly €1 billion, the Financial Times reported

Battery Ventures has acquired the software products division of GrammaTech, an applications security company backed by Reynolda Equity Partners.

Chart of the Day

"PE managers have had to adjust to make deals happen and keep the sputtering LBO machine from stalling. Deals have gotten smaller, making them more digestible and easier to finance."

Source: PitchBook's Q2 2023 US PE Breakdown

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PitchBook News - Dissecting the direct listing die-out

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