PitchBook News - Private funds' last call drags on later

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The Daily Pitch: VC

December 5, 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 Global Private Market Fundraising Report examines which strategies are thriving or struggling

CoreWeave, which provides computing power critical to generative AI tech, closed a $642 million secondary sale

Analysts turn to the new Morningstar PitchBook Global Vertical Industry Indexes to see how late-stage startup valuations are trending

We rank the five most active PE investors in life sciences

Today's Top Stories

Closing time: Last call coming later and later for private funds

There are clear winners and losers in the competition to raise capital for investing in the private markets. New capital for VC and real assets plummeted in the 12 months ending in Q3, while PE secondaries was the only strategy to raise more money, not less.

In this less-than-generous environment, our latest Global Private Market Fundraising Report captures the story of which strategies are thriving and which are out of favor. Plus, our senior strategist has a message for GPs in the thick of raising new funds: Be patient.

read the report

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AI cloud startup CoreWeave secures $642M from Fidelity, JP Morgan

(Jasmin Merdan/Getty Images)

CoreWeave closed a $642 million secondary sale that has reportedly brought its valuation to $7 billion, up from $2.5 billion earlier this year. The startup has become popular among generative AI companies that rely on its cloud GPUs for the intensive computing the technology requires.

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Since yesterday, the PitchBook Platform added:

2

VC valuations

1754

People

492

Companies

38

Funds

See what our data software can do

The Daily Benchmark:
2020 Vintage Global Funds-of-Funds

Median IRR

12.33%

Top Quartile IRR

18.28%

0.06x

Median DPI

Select top performers

Banner Ridge DSCO Fund I

RCP SBO Opportunities Fund

PA Small Co Private Equity Fund IX

*IRR: net of fees

36 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Citizens

Seven capital management strategies for a mixed economy

In a mixed environment with tighter credit conditions, a mindset of financial flexibility can help middle-market companies align their capital with their strategic plans.

The possibility of a recession, driven in part by high interest rates, is leading many companies to deleverage and conserve cash. At the same time, the potential for continued growth, driven by a robust job market and strong consumer demand, is creating a push for M&A exploration and capex investments.

To help you balance these conflicting priorities, the latest Citizens article shares seven strategies for exercising caution while remaining ready to seize opportunities amid murky market conditions.

Achieve financial flexibility.

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VC Deals

Seismic Therapeutic, a machine learning-powered immunology company, has raised a $121 million Series B led by Bessemer Venture Partners.

MoveInSync, an Indian employee transportation management startup, is looking to raise up to $60 million, TechCrunch reported.

Software cybersecurity startup ArmorCode has raised a $40 million Series B led by HighlandX.

AM Batteries, an EV battery equipment startup, has raised $30 million led by Toyota Ventures, Axios reported.

Rentman, a Dutch software provider for the events and media production sector, has raised €20 million from Expedition Growth Capital.

Generative AI startup Extropic AI has raised $14.1 million in seed funding led by Kindred Ventures.

Indonesian construction technology specialist Gravel has secured $14 million from investors including NEA and East Ventures.

January has raised a $12 million Series B led by IA Ventures for its debt resolution platform.

PE Deals

Lee Equity Partners and Elements Health Investors recapitalized Carisk Partners, a Miami-based healthcare coordinator specializing in workers' compensation claims that was previously owned by MBF Healthcare Partners.

Francisco Partners sponsored the merger of San Francisco-based Muse Group, a music content and creation company, and Milwaukee-based sheet music publisher Hal Leonard.

Resurgens Technology Partners acquired Seattle-based Valant, which offers cloud-based electronic health records for behavioral health practices, from Gemspring Capital.

Bain Capital-backed Harrington Process Solutions acquired PumpMan, a New Jersey-based on-site wastewater system repair specialist, from Soundcore Capital Partners and Graycliff Partners.

Portfolio Companies

OpenAI agreed to buy $51 million worth of AI semiconductors from Rain, a startup backed by angel investor and OpenAI CEO Sam Altman, Wired reported.

Exits & IPOs

Kester Capital is considering selling UK pet food retailer Jollyes, The Times reported.

Aspen Insurance is planning a $4 billion IPO in New York next year, the Financial Times reported. The Apollo Global Management-owned specialty insurance provider is based in Bermuda but has significant operations in the UK.

Thoma Bravo has completed its sale of US cybersecurity company Imperva to French defense giant Thales.

Fundraising

Intuitive Ventures, the corporate venture arm of Intuitive Surgical, has closed its second fund on $150 million to invest in startups developing minimally invasive medical treatments.

Chart of the Day

Source: Q3 2023 PitchBook-NVCA Venture Monitor

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PitchBook News - Private funds' last call drags on later

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