PitchBook News - A preview of VC's final 2023 data

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The Daily Pitch: VC

January 4, 2024

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

In today's Daily Pitch, you'll find:

Take a first look at data from our upcoming PitchBook-NVCA Venture Monitor

Get a peek at the data from our upcoming US and European PE Breakdown reports

NFX's Morgan Beller talks about similarities between the generative AI and crypto crazes

PE dealmakers expect a rebound in exits in 2024

Today's Top Stories

First look at year-end data for global VC markets

The collapse of Silicon Valley Bank. A frozen IPO market. Down rounds galore. Venture capitalists are closing the books on a tough year, in which VC deals, exits and fundraising all plunged.

According to our First Look data packs, global VC funding fell to roughly $345 billion, down from $531 billion in 2022. The decline in VC fundraising was even steeper, with firms collecting $161 billion versus $307 billion a year ago. Dive into the details on global and European VC ecosystems, in addition to the PitchBook-NVCA Venture Monitor First Look at US data.

see the data

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PE heads deeper into the storm

Private equity just limped through its worst year since 2016 in combined deal activity. Capital deployed declined 29%, while exit value fell 26%.

Our First Look data packs precede the release of our 2023 annual US and European PE Breakdown reports, providing additional insight on how much further PE has fallen.

see the data

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Q&A: NFX's Beller hears echoes of crypto in generative AI fever

NFX general partner Morgan Beller
(Jenna O'Malley/PitchBook News)

Morgan Beller co-created Meta's Libra cryptocurrency before making her way back to VC as a general partner at NFX.

She now sees similarities between generative AI and cryptocurrency: wacky valuations and "fruit fly" founders flocking to the hottest thing. But she says the hype is attracting the smartest people in tech.

We spoke to Beller about this latest craze and the echoes of crypto she sees in the generative AI fever.

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Market rally sets PE, VC IPOs up for double-digit gains in 2023

Newly public companies have benefited from the recent rally in US stocks, capping an up-and-down year on a high note, according to PitchBook's IPO indexes.

Our VC-backed IPO index is up 15.4% through early December. The PE-backed IPO index has grown 14.7% in 2023.

Companies that went public through SPACs, however, declined 12.8% during the period.

explore the indexes

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Since yesterday, the PitchBook Platform added:

20

VC valuations

1936

People

558

Companies

10

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global PE Funds

Median IRR

18.40%

Top Quartile IRR

26.22%

1.12x

Median DPI

Select top performers

Gridiron Capital Fund III

Oaktree Power Opportunities Fund IV

DouglasBay Capital II

*IRR: net of fees

120 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Brazilian acai brand Oakberry secured a $67 million Series C from BTG Pactual.

Boston's Aqua Security, a cloud security startup, secured $60 million led by Evolution Equity Partners.

Remix Therapeutics, a Massachusetts-based biotech startup, raised $60 million led by The Column Group.

Radionetics Oncology, a San Diego-based radiopharmaceutical specialist, raised a $52.5 million Series A led by Frazier Life Sciences, 5AM Ventures and DCVC Bio.

French biotech startup Enyo Pharma raised a €39 million Series C led by OrbiMed and Morningside Ventures.

Robin AI raised a $26 million Series B led by Temasek. The London-based company is the developer of an AI-powered legal tool.

PitchBook webinar: Biopharma VC in flux

Though multiple biotech sub-industries showed initial promise, setbacks have pushed VC capital toward new therapeutic applications. PitchBook senior analyst Kazi Helal, who covers biotech, and a panel of biotech VC investors will unpack findings from our newly launched biopharma Emerging Tech Research and discuss key themes expected for 2024.

Remaining opportunities for investors amid the craze for weight-loss drugs.

Why gene therapies have under-delivered—and where investors are looking next.

What it will take for AI to transform drug discovery.

Register now to secure your spot.

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PE Deals

KKR finalized its acquisition of a 37% stake in life insurance provider Global Atlantic Financial Group, bringing its ownership to 100%. The PE giant first acquired a majority interest in 2021.

Avathon Capital struck a deal to sell Big Blue Marble Academy to Leeds Equity. The Atlanta-based company provides early childhood education in the southeastern US.

Portfolio Companies

Short-term rental provider Frontdesk laid off its 200-person workforce after failing to raise fresh capital, TechCrunch reported. The Wisconsin-based startup is backed by investors including JetBlue Ventures and Stormbreaker Ventures.

Exits & IPOs

KKR-backed BrightSpring Health Services has filed for a US IPO. The healthcare services provider is hoping to raise $1 billion, Bloomberg reported in September.

Fundraising

Goldman Sachs Asset Management closed a $650 million life sciences fund that will make PE investments in early- and mid-stage therapeutic companies.

The European Bank for Reconstruction and Development has committed €20 million to Czech PE firm ARX Equity Partners' fifth fund. It will target lower-middle-market companies in the Czech Republic, Slovakia, Slovenia, Hungary and Poland.

Corporate M&A

HSBC has submitted an offer to acquire Tesco Bank, the banking unit of UK supermarket chain Tesco, Sky News reported. Other suitors are said to include Barclays and Lloyds Banking Group.

Chart of the Day

Source: Q3 2023 US PE Middle Market Report

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PitchBook News - A preview of VC's final 2023 data

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