PitchBook News - Charting the course for IPOs

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The Daily Pitch: VC

October 25, 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 chart the course ahead in our first-ever IPO and S1 Navigator

PE's roll-up strategy is in the hot seat amid proposed changes to antitrust guidelines

OrbiMed's $4.3 billion fund trio stands out in a slow year for venture fundraising

Today's Top Stories

IPO rebound left in the lurch

2023 brought a limited crop of IPOs to market, and the results have been mixed—ranging from remarkable (Arm and Cava) to crummy (Instacart and Birkenstock).

Our inaugural IPO and S1 Navigator covers the essential data and valuation trends to chart a course for what's ahead. Key takeaways include:

Investors have high valuation expectations that are keeping a lid on the supply of new entrants.

These price expectations are at odds with a fresh dip in stocks and a higher-for-longer interest rate outlook.

Revenue growth is decelerating, pushing out the timeline for startups to grow into their former valuations.

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M&A, drug discovery hype propel OrbiMed's $4.3B healthcare fund trio

(Moussa Alshemeri/Getty Images)

OrbiMed has closed over $4 billion in fresh commitments across three funds, riding the momentum from a strong year for M&A in the pharmaceutical and biotech industries.

Tailwinds in drug and therapeutics innovation—combined with M&A deals that are finally freeing up some LP cash—are driving capital commitments in a dry market.

Recommended Reads

Founder to reality TV star: a shortcut to startup success? [Sifted]

Why healthcare workers are burning out. [The New York Times]

The world wants to regulate AI, but doesn't quite know how. [The Economist]

Since yesterday, the PitchBook Platform added:

11

VC valuations

788

People

307

Companies

23

Funds

See what our data software can do

The Daily Benchmark:
2020 Vintage Global PE Funds with between $250M-$500M

Median IRR

14.92%

Top Quartile IRR

24.89%

0.09x

Median DPI

Select top performers

Graycliff Private Equity Partners IV

Dominus Capital Partners III

BlueGem Capital Partners III

*IRR: net of fees

16 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Aiolos Bio, a biopharmaceutical company targeting patients with inflammatory and respiratory conditions, launched with a $245 million Series A led by Atlas Venture, Bain Capital Life Sciences, Forbion and Sofinnova Investments.

Singapore-based space-tech specialist Qosmosys raised a $100 million seed round to develop lunar lander tech.

Munich-based drone company Quantum Systems raised a €63.6 million Series B led by HV Capital and DTCP.

MangoBoost, a hardware company developing data processing units for machine learning technologies, raised a $55 million Series A led by IMM Investment and Shinhan Venture Investment.

Censys raised a $50 million Series C led by Decibel Partners, GV, Greylock Partners and Intel Capital for its cybersecurity platform. It also secured $25 million in debt funding led by SVB Capital.

Colorado-based Husk Power Systems raised a $43 million Series D to grow its fleet of renewable energy minigrids in rural regions of sub-Saharan Africa and South Asia.

Greater Good Health, a primary care provider for older adults, raised a $20 million Series A led by Flare Capital Partners.

Oxolo, a Germany-based provider of text-to-video AI technology, secured a €13 million Series A led by DN Capital.

GoodBytz, a German developer of robotic kitchens, secured a €12 million Series A led by Oyster Bay.

Luxembourg-based battery upcycling startup Circu Li-ion raised €8.5 million led by BonVenture.

London-based mobility insurtech startup Laka secured €7.6 million led by Shift4Good. The startup also acquired French e-bike broker Cylantro.

PE Deals

Bain Capital and Chinese real estate developer DNE Group have formed a $250 million manufacturing park joint venture for new economy infrastructure such as chipmaking, data centers and robotics.

Hildred Capital Management bid $65 million to acquire Hello Bello, a Los Angeles-based diaper and baby care brand founded by actress Kristen Bell that had filed for bankruptcy protection, The Information reported.

Align Capital Partners acquired New York-based Counsel Press, a legal process outsourcer focused on appeals, from Gladstone Investment.

Ares Management agreed to acquire a minority stake in New Jersey-based Interstate Waste Services, a Littlejohn & Co.-backed vertically integrated solid waste collector serving greater New York City.

PSG agreed to make a growth investment in Boston-based AirWorks, a VC-backed geospatial data processor for developers and engineers.

Sixth Street made a minority growth investment in VC-backed Keyfactor, an enterprise identity security solution based in Ohio, that values the company at about $1.3 billion.

Kingland Capital has made an investment into UK cloud service provider Dynamic Networks.

Portfolio Companies

American Securities-backed Air Methods filed for bankruptcy protection. The Colorado-based medical helicopter company hopes to cut $1.7 billion in debt through a plan that would allow lenders to wrest control of American Securities' 95% stake.

Exit & IPOs

LDC has exited its investment in UK-based realtor technology solutions provider Iamproperty to Perwyn Advisors.

Fundraising

Norvestor, which invests in the Nordic region, closed its 11th flagship fund on €1.5 billion, exceeding its target of €1.25 billion.

Allianz Capital Partners closed its second infrastructure fund on €1 billion. The vehicle will focus on areas including energy transition, digital transformation and sustainable mobility.

Toronto-based Brookfield Asset Management is considering raising dedicated funds for investing in private equity and real estate in the Middle East, Bloomberg reported.

Chart of the Day

"We found that 35.7% of clubs have PE, VC, or private debt participation, whether it is a minority or a majority stake. To collect data on PE in football team ownership, we looked at the ownership structure of 98 clubs that make the 'Big Five' leagues in Europe by exploring company websites, company filings, and PitchBook data."

Source: PitchBook's Q3 2023 European PE Breakdown

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PitchBook News - Charting the course for IPOs

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