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The Daily Pitch: VC

September 7, 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:

Analysts find a fresh spark in the pairing of AI and ecommerce

Private investment firms are becoming more entrenched in the ownership of professional sports franchises

Europe's most valuable tech startups are lagging the herd, our Unicorn Indexes show

Today's Top Stories

VC helps generative AI go shopping

AI and ecommerce aren't a new pairing, but the latest wave of innovation with large language models has ignited a fresh spark between the two. Our latest Emerging Tech Research covers how technologies are being used to propel each sector forward. Among the findings:

VC investment in generative AI tools with ecommerce applications totaled $2.5 billion in 2022.

Customer service and contact center tech led other categories in funding.

Key deals included GupShup's $340 million raise and Builder's $250 million Series D.

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Major league investors: Private equity's pro sports ties

(Mara Potter/PitchBook News)

Our new dashboard tracks private equity investments in MLB, NBA, NHL and MLS—the four North American men's pro sports leagues that allow PE ownership. Key takeaways include:

Private equity sports investment is on the rise. The four major leagues that allow PE investment have recorded 18 PE deals since 2020.

61 major North American sports teams have PE connections, either to a firm or an individual dealmaker.

33% of teams in the NBA are backed by private equity, making the league the most popular target for dealmakers.

explore the dashboard

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More private investors take shots at sports, but do they score?

(Jenna O'Malley/PitchBook News)

In early 2021, the NBA opened the door to private equity funds for the first time, allowing institutional investors to own up to a 20% stake in a single franchise. Three months later, a young private investment firm struck up a deal with the NBA's Golden State Warriors: a 5% ownership stake at a $5.5 billion valuation.

As private investment firms become further entrenched in the ownership structures of professional sports franchises, time will tell if these sports-focused funds generate outsized returns for LPs.

Recommended Reads

In its first monopoly trial of the modern internet era, the US sets its sights on Google. [The New York Times]

Regional banks' exposure to commercial real estate is more substantial than it appears. [The Wall Street Journal]

Firearms, paranoia and Amazon's endless quest for convenience have combined to create deadly risks for the internet retailer's growing fleet of gig drivers. [The Information]

Since yesterday, the PitchBook Platform added:

12

VC valuations

2553

People

644

Companies

18

Funds

See what our data software can do

The Daily Benchmark:
2016 Vintage North American VC Funds

Median IRR

22.35%

Top Quartile IRR

31.11%

0.55x

Median DPI

Select top performers

USV 2016

Cervin Ventures II Opportunities Fund

Sierra Ventures XI

*IRR: net of fees

58 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Dave Clark, CEO of logistics startup Flexport, has stepped down from his role, just over a year after he joined the company from Amazon.

Bregal Investments has hired Delaney Brown as its head of capital solutions. Brown was previously head of PE funds and secondaries at the Canada Pension Plan Investment Board.

VC Deals

Ascend Elements, a lithium battery company, has announced a $460 million Series D and an additional $82 million from earlier this year. The Series D was led by Decarbonization Partners—a joint venture between Temasek and BlackRock—as well as Qatar Investment Authority and Temasek.

Generative AI for data centers startup d-Matrix has raised a $110 million Series B led by Temasek.

Josys, a Tokyo-based SaaS and device management startup, has closed a $93 million Series B led by Global Brain and Globis Capital Partners.

Arduino, an open-source hardware startup, raised a $22 million extension of its Series B, bringing its total funding to $54 million. The extension was led by CDP Venture Capital and Anzu Partners.

Snack startup SkinnyDipped has raised a $12 million Series A led by David Grutman.

Rejuvenation Technologies, a biotech startup, has raised a $10.6 million seed round led by Khosla Ventures.

Deskbird, a Swiss provider of workplace management software, has completed a $13 million Series A from investors including Alstin Capital, AVP Ventures and Rivus Capital.

Atomico has led a $10.8 million Series A in Strise, an Oslo-based provider of anti-money laundering software.

Cafler, a Barcelona-based company for on-demand car services, has raised €8 million in a round led by Seaya Ventures.

Firstcard, a fintech startup targeting college students, has raised a $4.7 million seed fund from AngelList Early Stage Quant Fund.

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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

KKR has agreed to take a joint controlling stake in UK battery storage company Zenobe alongside existing investor Infracapital in a deal valuing the company at roughly £800 million.

HIG-backed German digital communication infrastructure company ICG Group has acquired Dutch telecoms towers business TripleA to widen the range of services to its customers.

Nasdaq-listed NextGen Healthcare, a healthcare solutions provider, has agreed to be acquired by Thoma Bravo.

Francisco Partners has invested in Accela, a cloud solutions provider for governments.

Exit & IPOs

KKR plans to take Japanese chipmaker Hitachi Kokusai Electric public in Q4, aiming for a valuation of 400 billion yen (around $2.7 billion), Nikkei reported, which would make it the largest IPO in the country since 2018.

Baird Capital has exited CAV Systems, a company that develops ice protection and drag reduction technology for aircraft, to US aerospace company Loar Group.

Cibus Capital has agreed to sell Spanish olive oil producer Innoliva to Fiera Comox Partners.

Fundraising

China is launching a $40 billion state fund for its semiconductor sector, a record-sized fund by the China Integrated Circuit Industry Investment Fund, Reuters reported.

Blackstone has attracted $2.4 billion in capital inflows for its flagship private credit fund targeting wealthy individuals, Bloomberg reported.

VC firm 500 Global has closed on $143 million for its third 500 Southeast Asia fund, focusing on early-stage investments.

Pentathlon Ventures has launched its second fund with a target of $55 million. It plans to invest in early-stage B2B SaaS startups.

Lisbon-based Apex Capital has launched a €50 million fund targeting early-stage startups focusing on sports, media and entertainment.

Catalyst Fund has held a first close for its $40 million vehicle targeting climate-tech startups in Africa.

Investors

London-listed Bridgepoint Advisers has acquired US infrastructure specialists Energy Capital Partners in a deal that values the firm at £835 million.

The SEC has fined Prime Group Holdings $20.5 million for failing to adequately disclose millions in fees paid to a real estate brokerage firm owned by Prime Group's CEO.

Chart of the Day

Source: Q2 2023 PitchBook-NVCA Venture Monitor

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PitchBook News - VC helps generative AI go shopping

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