PitchBook News - Early-stage startups' uphill battle

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The Daily Pitch: VC

November 24, 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 environment further tips to favor investors in early-stage dealmaking

Will Shell's new CEO change its game on cleantech?

Fund performance across the private markets settles after the highs of 2021

Today's Top Stories

Investors increasingly call the shots in early-stage deals

Early-stage startups now face tougher fundraising conditions than their more mature peers, according to the latest data in our VC Dealmaking Indicator.

Valuation step-ups for early-stage companies have slumped, and demand for capital in this cohort continues to grow faster than supply. Meanwhile, funding has increased for late-stage companies, and demand in the venture-growth stage has scaled slower than supply.

explore the indicator

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Will Shell Ventures' commitment to cleantech waver?

(Artas/Getty Images)

Shell Ventures has historically led the pack of fossil fuel companies in investing in cleantech, with 44 deals since 2018, according to PitchBook data.

But the oil giant's new CEO, Wael Sawan, has scaled back Shell's low-carbon solutions team as well as its hydrogen business while doubling down on natural gas and oil production. The moves raise questions about Shell's recent leadership in climate-tech deals at a time when fossil fuel company participation is at an all-time high.

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Since yesterday, the PitchBook Platform added:

1910

People

637

Companies

21

Funds

See what our data software can do

The Daily Benchmark:
2013 Vintage Global Secondaries Funds

Median IRR

12.90%

Top Quartile IRR

16.91%

1.19x

Median DPI

Select top performers

Industry Ventures Special Opportunities Fund II

Landmark—NYC Fund I

Industry Ventures Secondary Fund VII

*IRR: net of fees

19 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

CEO of cryptocurrency exchange Binance, Changpeng Zhao, has stepped down from his role and pled guilty to money laundering violations as part of a $4.3 billion settlement.

VC Deals

Drug testing biotech startup Vivodyne raised a $38 million seed round led by Khosla Ventures.

Credit card startup Kiwi raised $13 million led by Omidyar Network India.

Inclusively, the developer of a workplace inclusivity platform, raised a $13 million Series A led by Firework Ventures.

DoorFeed, a London-based investment platform for residential real estate, has closed a €12 million seed round from investors including Motive Partners, Stride, and Seedcamp.

London-based open banking B2B payments startup Crezco has completed a $12 million Series A from MMC Ventures and 13books Capital.

UK-based gut health brand Biomel has raised £5.5 million from Iris Ventures.

Charlotte-based home services startup Craftwork raised $6 million led by Forerunner Ventures.

Maia Oncology, a virtual cancer care coordination startup, raised a $4.25 million seed round led by Yosemite.

PE Deals

OpenGate Capital agreed to acquire Toronto-based Player One Amusement Group, which provides gaming and amusement equipment to North American venues, from Cineplex for C$155 million (about $113 million).

New Mountain Capital will lead an investment in Broadcast Music, or BMI, a New York-based performing rights organization that serves songwriters, composers and publishers.

INVL has agreed to acquire Lithuanian buckwheat producer Galinta Group.

The Central Bank of Ireland has given regulatory approval for Searchlight Capital Partners' take-private of London-listed Gresham House, clearing the way for the asset manager to delist on Dec. 20.

Portfolio Companies

The Federal Trade Commission is investigating Roark Capital's agreement to acquire Subway for $10 billion with concerns that Roark's ownership of Arby's, Jimmy John's, McAlister's Deli and Schlotzsky's would create a sandwich monopoly, Politico reported.

Fundraising

Boston-based Bain Capital raised $7.1 billion for its fifth pan-Asian buyout fund, according to reports, surpassing the firm's $5 billion target for the vehicle.

German state-backed fund-of-funds, Wachstumsfonds Deutschland (Growth Fund Germany), has raised €1 billion to invest in German and European vehicles focused on late-stage deals.

Avenue Capital Group, a New York-based private investor in distressed assets, plans to launch a fund with a target between $600 million and $800 million in 2024 focused on environmental impact investments in private credit, Reuters reported.

Chicago-based VC firm 53 Stations raised $190 million for Fund I from its single LP, The Pritzker Organization.

Morgan Stanley Investment Management closed Next Level Fund I on $50 million.

Chart of the Day

"Deal activity in the energy sector continues its decline and now sits at less than half of the peak $133.7 billion deal value witnessed in Q3 2022 when the industry had investors looking to capitalize on higher prices and higher demand amid the energy crisis caused by the Russia-Ukraine war."

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

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PitchBook News - Early-stage startups' uphill battle

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