PitchBook News - Analysts make VC 2024 predictions

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The Daily Pitch: VC

December 19, 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 analysts predict a decrease in healthcare dealmaking across PE and VC in 2024

What does Adobe and Figma's canceled deal portend for M&A in VC?

Predictions for VC in 2024: return of nontraditional investors and lower unicorn valuations

Today's Top Stories

7 predictions for US VC in 2024

PitchBook analysts see moderate improvements on the horizon for the VC ecosystem on the back of economic strength and signals of easing rates. Dive into our 2024 US Venture Capital Outlook to discover why.

Based on PitchBook fund distribution data, venture fundraising is expected to increase slightly over 2023, yet continue to fall short of recent years.

Startups' existing investors will maintain their amped-up role in leading deals. We expect outsiders to offer some relief as nontraditional investors reenter the asset class.

The number of unicorn companies and their collective valuation is set to decline as more are forced to raise capital.

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2024 in healthcare: GenAI, value-based care consolidation, surgical robots

Burned by cost inflation and negative reimbursement trends, US health systems are beleaguered. At the same time, healthcare investors have been spooked by some high-profile failed bets in biopharma. Our 2024 Healthcare Outlook predicts that both forces will have a depressing effect on healthcare deals in both VC and PE—with the possible exception of dealmaking for AI and anti-obesity drug companies.

No matter what happens, it's guaranteed not to be a dull year. Generative AI is set to disrupt fields from employee benefits to drug discovery, and surgical robots are poised for major funding upswings.

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A message from PitchBook

2024 PitchBook Media Kit released

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Figma investor: Busted $20B Adobe deal will 'chill startup M&A'

Figma CEO and co-founder Dylan Field
(Kimberly White/Getty Image)

Adobe's $20 billion deal to buy Figma collapsed yesterday due to regulatory roadblocks. This will cast a shadow over future deals that have the potential to attract scrutiny from anticompetition regulators in an already-depressed VC exit market, according to Avichal Garg, an angel investor in Figma's 2018 Series B.

It would have been the largest acquisition of a venture-backed company ever, promising a major windfall for Figma's investors, among them Index Ventures, Greylock Partners, Kleiner Perkins and Sequoia.

The Growth and Evolution of Private Markets—Research Report

The finance industry is undergoing a significant transformation. Several major trends are reshaping the space and opening new possibilities for investors and companies.

Get ahead of the trends with Apex's latest insights report, supported by PitchBook data. Apex experts explore how these new dynamics will impact investors and the market, giving you the facts, and insights, you need to navigate challenges and opportunities for your firm.

What insights can you expect from the report?

Exploring fundraising challenges
Ways to unlock opportunities
Trends in changing investor bases
ESG, fintech and new asset classes
Practical takeaways for fund management
Data insights from the numbers

To find out more, download the Apex Research report on the Apex Group website here.

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The Daily Benchmark:
2015 Vintage Global VC Funds

Median IRR

20.50%

Top Quartile IRR

28.04%

0.41x

Median DPI

Select top performers

Index Ventures Growth III

Armory Square Ventures

India Quotient II

*IRR: net of fees

64 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Saudi Arabia-based shopping and payments platform provider Tamara raised a $340 million Series C at a $1 billion valuation. The round was led by SNB Capital and Sanabil Investments.

French renewable energy startup Sweetch Energy raised a €25 million Series A led by Crédit Mutuel Impact.

Luma Vision, a cardiac imaging startup, raised a $22 million Series A3 led by EQT Life Sciences and Imec.xpand.

Materials company Lingrove raised a $10 million Series B led by Lewis & Clark Agrifood and Diamond Edge Ventures.

PE Deals

Clearlake Capital Group and Insight Partners acquired NYSE-listed software company Alteryx for $4.4 billion.

IBM agreed to buy data integration companies StreamSets and WebMethods for €2.13 billion in cash. Both businesses are owned by Software AG, a portfolio company of Silver Lake.

UK-based energy retailer Octopus Energy raised $800 million at a $7.8 billion valuation, including $326 million from the Canada Pension Plan Investment Board and $305 million from Origin Energy, the Financial Times reported.

Pacific Equity Partners invested $250 million in Australian electric vehicle charging company EVSE, the Australian Financial Review reported.

Guam-based broadband, wireless and cable landing provider GTA secured a $200 million strategic growth investment from Stonepeak.

Thoma Bravo will make a strategic growth investment in BlueMatrix, a content creator and distributor for investment research.

Yellow Wood Partners made a binding offer to acquire the Elida Beauty brand portfolio—which includes Q-tips, Caress, Timotei, Alberto Balsam and VO5—from Unilever.

London-based LDC backed the management buyout of B2B telephone answering company Message Direct.

Octavius Infrastructure, a transport infrastructure provider backed by Sullivan Street Partners, acquired specialist rail consultant Navitas Engineering Group.

Norwegian PE firm Verdane is taking stakes in media monitoring startup Meltwater and HR company Jobylon via an investment in Fountain Venture, an investment vehicle controlled by Meltwater founder Jørn Lyseggen.

Exits & IPOs

UK retail giant Frasers Group is in advanced talks to acquire Matchesfashion, the struggling luxury clothing site owned by Apax Partners, Sky News reported.

Fundraising

Jadwa, a PE firm based in Saudi Arabia, has plans to raise up to 2 billion riyals (about $530 million) for a new fund, Bloomberg reported.

Argonaut Private Equity, an Oklahoma-based buyout firm that invests in industrial businesses, has raised $500 million for its fifth namesake fund, the Wall Street Journal reported.

Turnspire Capital Partners, which primarily invests in lower-middle-market industrial and consumer businesses, has closed Fund II on $275 million.

Dutch early-stage VC firm Revo Capital is looking to raise $100 million for a new fund, Bloomberg reported. The vehicle will target AI-driven startups in Turkey and Central and Eastern Europe.

Investors

Paris-listed Tikehau Capital and Japan's Nikko Asset Management are in advance talks to set up a joint venture dedicated to Asian private markets.

Chart of the Day

Source: Q3 2023 Global Private Market Fundraising Report

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