PitchBook News - Decade-low fundraising looms over VC

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The Daily Pitch: VC

October 17, 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:

Proposed antitrust rules could open a wider range of M&A deals to scrutiny

VC funds are on track to raise 67% less than they did last year

The UK hopes to hook more London listings with plans for a private markets trading venue

China leads with the biggest VC rounds in Asia in 2023, despite its investment drought

Today's Top Stories

VC fundraising on track for 67% decline with little relief in sight

(colleenbradley/Getty Images)

VC fundraising activity was worse during the first nine months of 2023 than during any other time in the last decade, says one LP.

Not only are VC funds on track to collect 67% less than they did last year, fund count is also on course for a decade low. And fundraising isn't likely to be more robust in 2024.

The Growth and Evolution of Private Markets—Research Report

The finance industry is undergoing a significant transformation. Several major trends are reshaping the space and opening new possibilities for investors and companies.

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Exploring fundraising challenges
Ways to unlock opportunities
Trends in changing investor bases
ESG, fintech and new asset classes
Practical takeaways for fund management
Data insights from the numbers

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VC Deals

Xpanceo, a Dubai-based developer of smart contact lenses, secured a $40 million investment from Opportunity Ventures, TechCrunch reported.

Cincinnati-based data observability specialist Pantomath raised a $14 million Series A led by Sierra Ventures.

Urban Sky a Denver-based stratospheric technology startup, raised a $9.75 million Series A co-led by New Legacy Ventures, Lerer Hippeau and Lavrock Ventures.

Creative Force, a workflow platform provider headquartered in Denmark, raised an $8.9 million Series A from the Export and Investment Fund of Denmark and Hearst Ventures.

Madrid-based Webel raised €2.1 million in a round led by Trind Ventures for its home services marketplace.

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PE Deals

Hg invested in JTL-Software, a German software developer for small and medium-sized businesses in the ecommerce sector.

KKR and Flerie backed Germany-based Coriolis Pharma. The investment comes via a newly formed pharma services platform, Frontier Biosolutions.

Elliott Investment Management is weighing a take-private of E2open, a NYSE-listed supply chain software company, Bloomberg reported.

Hg has attracted interest from several investors for its stake in Argus Media including Mubadala and CDPQ, Reuters reported.

Exit & IPOs

Paine Schwartz Partners-backed fruit farmer Prima has filed for bankruptcy and is planning to sell its business, Reuters reported.

The Canada Pension Plan Investment Board, British Columbia Investment Management and Public Sector Pension Investment Board may sell their stakes in Transelec SA, a Chilean power transmission company, which together account for 72% of the utility, Bloomberg reported.

Fundraising

Macquarie Asset Management is in talks to raise $11.5 billion across three funds, including a $4 billion Asia-Pacific infrastructure vehicle and two funds for investing in global renewables and the energy transition, Bloomberg reported.

Scottish VC firm Par Equity has launched a £100 million fund targeting startups in the north of the UK.

San Francisco-based Shield Capital has closed its inaugural fund on $186 million. The vehicle will target early-stage startups.

The Sidemen, a group of celebrity YouTubers, launched a VC fund called Upside VC, Sifted reported.

Influencer-backed VC firm LaPhair Capital Partners has launched its flagship Alpha Fund I with a $100 million. The fund will target companies focused on underserved communities.

Investors

Abrdn has agreed to sell its £7.5 billion European PE unit to Brazil's Patria Investments. It follows the sale of Abrdn's US-based private markets business to HighVista Strategies, completed Oct. 3.

General Catalyst is partnering with Berlin-based seed investor La Famiglia to expand its European offerings.

Chart of the Day

"Private credit funds run by the six largest US-listed alt managers recorded a median quarterly gross return of 3.0% and trailing 12-month (TTM) return of 9.9% as of Q2 2023. This compares to a median TTM return of 9.0% for private equity funds and 12.0% for the S&P 500 with far less volatility and dispersion in fund performance."

Source: H1 2023 Private Debt Report

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