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The Daily Pitch: VC

November 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:

Our inaugural Infrastructure SaaS Report covers the $400 billion-plus market for tools that power digital transformation

Some PE firms found success in healthcare staffing companies while others lost billions—it's all about the business model

VC funding for US-based defense-tech specialists has surged since 2021, amid a push for military innovation

Today's Top Stories

Tracking the SaaS tools for growth

Infrastructure SaaS, encompassing the tools powering digital transformation, has grown into a $400 billion-plus market that's projected to nearly double in size by 2027. With clients such as Microsoft, IBM and Salesforce, infrastructure SaaS companies are the backbone of industries like cloud computing, AI and data analytics.

That's why we're rolling out dedicated research coverage of the vertical with our Q3 2023 Launch Report: Infrastructure SaaS. Explore the players in M&A, the risks and potential rewards for fledgling startups, and the leading players in everything from DevOps to application infrastructure.

read the preview

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Sizing up the VC boom in defense tech

(Glowimages/Getty Images)

Recent wars and rising tensions with China have highlighted the Pentagon's ongoing need to retool its arsenal with the latest technologies. VCs increasingly believe startups will play a meaningful role in these innovations.

US-based companies in the defense-tech sector have collected nearly $100 billion in VC funding since 2021, a figure that's about 40% higher than what was invested in the seven prior years combined.

Recommended Reads

Meta's free AI isn't cheap to use, companies say. [The Information]

Electric planes, once a fantasy, start to take to the skies. [The New York Times]

Visualizing the global wealth pyramid. [Visual Capitalist]

Since yesterday, the PitchBook Platform added:

1

VC valuations

44

People

25

Companies

See what our data software can do

The Daily Benchmark:
2019 Vintage Global Real Assets Funds

Median IRR

13.56%

Top Quartile IRR

20.16%

0.16x

Median DPI

Select top performers

Pacific Equity Partners Secure Assets Fund

Scout Energy Partners V

Ridgewood Energy Oil & Gas Fund IV

*IRR: net of fees

41 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

German insurtech startup WeFox raised $55 million at a $4.5 billion valuation from Deutsche Bank and UniCredit, CNBC reported.

Gynesonics, which develops treatments for uterine fibroids, raised $42.5 million led by investors including Bain Capital, Endeavour Vision and Kaiser Permanente Ventures.

Talus Renewables raised a $22 million Series A led by Material Impact and Xora Innovation for its green ammonia infrastructure system.

Superhog, a UK-based risk management platform for property managers, has raised £5.5 million in a round led by 6 Degrees Capital, Hambro Perks and Solano Partners.

Open-source coding platform developer Charm raised $6 million led by Gradient.

Vienna-based biotech startup HeartBeat.bio has closed a €4.5 million pre-Series A co-led by i&i Biotech Fund, Invest, AWS Grunderfonds and Tensor Ventures.

Smalt, a Berlin-based B2B solar installation services company, has secured a €4.1 million pre-seed investment led by La Famiglia.

Don't miss our upcoming webinar

Underwhelming stock performance thwarted the hope for a resurgence in IPOs this year, which was led by Instacart and Klaviyo's Q3 listings. An increasingly investor-friendly market is expected to further slow the pace of dealmaking, compress deal metrics and set an even higher bar for startups across the VC lifecycle. Our speakers will highlight findings from the Q3 2023 PitchBook-NVCA Venture Monitor, sponsored by Insperity, J.P. Morgan, Dentons, and Deloitte, and what investors should be aware of for 2024.

The liquidity crunch and shuttered IPO window have left startups across all VC stages with fewer options for receiving capital.

Dry powder figures appear strong, but without a consensus on whether the market has hit bottom, investors are more cautious than ever about deploying capital.

Portfolio markdowns, the denominator effect and interest rates have diminished LP interest in the VC asset class.

Register now to secure your spot.

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PE Deals

EQT has revived its efforts to acquire Global Switch in a deal that could value the Chinese data center company at around $6.5 billion, Bloomberg reported.

Cinven’s €2.2 billion bid for German medical diagnostic specialist Synlab has been met with a neutral response from the company's board, neither urging shareholders to accept nor decline the offer.

The Jordan Company is in exclusive talks to acquire Tidi Products, a Wisconsin-based medical equipment maker, from Roundtable Healthcare Partners for at least $900 million, Reuters reported.

TA Associates made a growth investment in KatRisk, a software company based in the Bay Area that models global catastrophes for flood and wind risk for insurance companies.

Exits & IPOs

Cardinal Equity Partners and Oxford Financial are considering selling Indiana-based PolyWood, a maker of recycled plastic outdoor furniture, at a valuation of around $1 billion, Reuters reported.

Fundraising

Norrsken22 has closed its debut African technology growth fund on $205 million.

Chart of the Day

Source: PitchBook's Q3 2023 Global M&A Report

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PitchBook News - Tracking the SaaS tools for growth

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