Supply chain tech readies for consolidation

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The Daily Pitch: VC

November 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:

The VC slowdown in supply chain tech is especially apparent in last-mile delivery

Biden meets with China's Xi amid a yearslong pullback of US LPs from Chinese VC and PE

Menlo Ventures' early AI bets helped the firm raise $1.35 billion across two funds

Smaller funds are advancing Germany's PE fundraising recovery

Today's Top Stories

Supply chain volatility moves back toward normal

Supply chain tech startups marked another step down in VC deals in Q3, as total deal value declined 26.7% from the previous quarter and 50.6% year-over-year. According to our latest Emerging Tech Research, the deal slowdown was especially apparent in last-mile delivery, a segment likely to see some consolidation next year.

Median pre-money valuations in venture-growth-stage supply chain companies also fell, from $490 million in 2022 to $143 million this year, a signal of the sparse capital available. But exciting opportunities can still be found in autonomous marine systems and produce payments startups such as Silo.

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Menlo Ventures raises $1.35B to 'play offense' on AI investing

(Skynesher/Getty Images)

At a time when many VC firms are finding it more difficult to raise capital, Menlo Ventures' early start on backing generative AI companies has helped the firm close on $1.35 billion in fresh funding.

About $550 million of new capital will go toward early-stage startups with less than $3 million in annual recurring revenue, while the remainder is earmarked for early-growth companies, according to Menlo partner Matt Murphy.

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Since yesterday, the PitchBook Platform added:

2147

People

639

Companies

24

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage European Debt Funds

Median IRR

7.40%

Top Quartile IRR

9.20%

0.90x

Median DPI

Select top performers

ICG Europe Fund VI

Veld Credit Opportunities Fund III

Alcentra European Credit Opportunities Advantage Fund

*IRR: net of fees

19 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

New Mexico-based life sciences startup Nature's Toolbox, or NTx, raised a $47.5 million Series B led by RA Capital Management.

Amsterdam-based Crisp secured €35 million from new and existing investors for its grocery app.

France's Upway raised $30 million in a Series B led by Korelya Capital for its e-bike marketplace.

Electric commercial vehicle fleet provider Revolv secured a $25 million investment from Greenbacker Capital Management.

New Orleans-based Inclusively raised a $13 million Series A led by Firework Ventures for its workforce inclusion platform.

Virdee raised a $12.4 million Series A led by Moneta Ventures for its hospitality software.

Game studio Bazooka Tango secured $5 million in a round led by Bitkraft Ventures.

Siena, a San Francisco-based startup developing AI-powered customer support, raised $4.7 million from investors including Sierra Ventures and SpaceStation Investments.

AireXpert, an aerospace and aviation automation startup, raised $3 million led by Reformation Partners.

PE Deals

Advent International has agreed to buy myPOS, a London-based payments company valued at more than $500 million, Reuters reported.

Thoma Bravo agreed to buy Berlin-listed compliance software provider EQS Group for around €400 million. Thoma Bravo will pay €40 per share, representing a 53% premium to the company's closing price Wednesday.

HIG's offer for UK-listed logistics company DX Group, which values the company at £315 million, has been accepted by the company's board.

CDPQ is investing C$200 million in Swedish battery research company Northvolt to aid it in building a battery factory in Canada.

Macquarie Asset Management plans to invest up to €175 million in Dutch alternative jet fuel supplier SkyNRG, Bloomberg reported.

Spectrum Equity has acquired a 20% stake in UK EV data provider Benchmark Mineral Intelligence, valuing the company at around $500 million, Reuters reported.

Arctos Partners made a minority investment in Aston Martin's Formula One team, which is valued at around $1.14 billion, according to Sportico. This is Arctos' first investment in Formula One racing.

Kingswood Capital Management and First Bev invested in New York-based energy drink brand G Fuel.

EnfraGen, a Latin American renewable power and grid stability joint venture of Partners Group and Glenfarne Group, acquired six renewable power generation assets in Panama and Costa Rica from Grupo Argos-backed Celsia.

Rainier Partners acquired Anytime Fitness franchisee Omega Fitness, which runs more than 60 gyms in Wisconsin, California and Florida.

Fulcrum Equity Partners acquired Defining Wellness Centers, a drug and alcohol addiction treatment facility in Mississippi.

Gemspring Capital Management acquired Fenceworks, a California-based fencing installer and distributor for homebuilders, general contractors and local fencing providers.

Exits & IPOs

Brookfield has abandoned its attempt to sell Center Parcs, which received some interest from buyers over the summer, for more than £4 billion, the Financial Times reported. The UK-based company operates six woodland holiday parks.

Fundraising

The Carlyle Group lowered the fundraising target for its latest pan-Asian PE fund, Reuters reported. Carlyle hopes to raise up to $6 billion of the original $8.5 billion target.

BlackRock has raised almost $1 billion for its Evergreen Infrastructure Fund to invest in transportation, digital infrastructure and the circular economy.

Chart of the Day

"For funds under $250 million, the -16.7% return was worse in Q1 2023 than in Q4 2022, in contrast to most other return slices, which saw some marginal improvement in terms of being down less. This is the first time since 2021 that small funds underperformed larger vehicles, though previous resilience may have been supported by lagged markdowns of portfolio valuations. Larger funds (those over $250 million) also experienced less inflated returns during 2021 and 2022, as larger firms may have had a better view on valuations."

Source: Q1 2023 Global Fund Performance Report (with preliminary Q2 2023 data)

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