PitchBook News - VC looks for sunnier skies

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The Daily Pitch: VC

January 11, 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:

The PitchBook-NVCA Venture Monitor points to signs of hope ahead

Three takeaways break down trends in US VC funding for female founders

Our analysts report the mood on PE deals is muted at JP Morgan's healthcare conference

Our Q3 valuations data for public companies in the AI and machine learning and mobility tech sectors

Today's Top Stories

VC looks for sunnier skies amid the clouds

Venture capital has had a tough 12 months. But despite a $71.6 billion drop in funding for the asset class compared to 2022—more than $88 billion if you leave out OpenAI and Anthropic's behemoth rounds—sunnier skies may be ahead.

VC deal count was still higher in Q4 2023 than in any quarter in the pre-2020 days, while public markets finished up for the year, according to the latest PitchBook-NVCA Venture Monitor, sponsored by J.P. Morgan, Dentons and Deloitte.

On the one hand, the IPO backlog keeps lengthening. On the other, the market is awash with dry powder, and many expect that economic uncertainty will lessen, bringing the market back into a stable state.

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3 takeaways from VC funding for female founders

(Joey Schaffer/PitchBook News)

Female founders ended 2023 on a strong note as the year closed with the third-highest amount of venture capital raised for female-founded or co-founded startups on record, according to PitchBook's US VC Female Founders Dashboard.

Companies with at least one female founder raised about $32.7 billion in VC funding across 3,230 rounds in 2023, while startups with exclusively female founders garnered $2.8 billion over 867 deals. But a disparity exists, with more capital going to mixed-founder teams than those founded solely by women.

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Since yesterday, the PitchBook Platform added:

12

VC valuations

2185

People

832

Companies

29

Funds

See what our data software can do

The Daily Benchmark:
2016 Vintage US PE Funds

Median IRR

21.53%

Top Quartile IRR

27.33%

0.91x

Median DPI

Select top performers

Francisco Agility Fund

Renovus Capital Partners II

Gemspring Capital Fund I

*IRR: net of fees

88 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Amsterdam-based online grocer Picnic has raised €355 million from investors including The Bill and Melinda Gates Foundation and Edeka.

Ji Xing Pharmaceuticals, a Shanghai-based clinical-stage biotech company, has raised $162 million from Bayer, which invested $35 million, and RTW Investments, which invested $127 million.

Digital blogging and social media company Quora has raised $75 million from Andreessen Horowitz to accelerate its AI chatbot development.

Nalu Medical, a medtech device company for chronic neuropathic pain, has raised a $65 million Series E led by Novo Holdings.

French AI-powered image editing company PhotoRoom is nearing a deal for between $50 and $60 million led by Balderton Capital, TechCrunch reported.

Milan-based Contents.com has secured an $18 million Series B led by Alkemia Capital and Thomson Reuters Ventures for its AI content generation platform.

Sqim, an Italian developer of natural materials using mycelium, has secured €11 million from investors including CDP Venture Capital, Kering Ventures, and ECBF VC.

Berlin-based micromobility startup Tier has agreed to combine operations with Amsterdam-based peer Dott. The deal is led by Tier backer Mubadala and Dott investor Sofina, which will invest €60 million in the joint business.

PitchBook webinar: J.P. Morgan Healthcare 2024 recap

Join PitchBook's healthcare analyst team live in San Francisco for a recap of the J.P. Morgan Healthcare Conference and a look at what's in store for the year ahead. Our team will dive deep into the most important takeaways from private company presentations, conference floor discussions, and the industry context behind the conference's biggest press releases. Topics include:

Private companies to watch in 2024.

Can't-miss announcements and what they mean for the healthcare private markets ecosystem.

Key emerging trends across the industry, from services to digital health to biopharma.

Register now to secure your spot.

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PE Deals

CVC Capital Partners is nearing a deal to acquire German vitamin and supplement company Sunday Natural, valuing it at around €900 million, Bloomberg reported.

Battery storage developer NineDot Energy secured a $225 million commitment from Manulife Investment Management and existing investor The Carlyle Group. Manulife committed $135 million and acquired an equity interest in the company.

Strategic Value Partners acquired the remaining 40% of fintech specialist IPC Systems that it did not already own.

Aquiline Capital Partners made a growth investment in LeaseCrunch, a North American lease accounting and management software company.

TA Associates made a strategic investment in CSI, a financial software and technology company.

Ambienta acquired The Rent Company. The Netherlands-based business loans out laptops and other devices to students.

Exits & IPOs

UK-based firm Bluegem sold Dr. Vranjes Firenze, a home fragrance brand, to L'Occitane Group.

Fundraising

EIB Global committed $30 million to Seedstars Africa Ventures' debut fund. The vehicle has a target of between $80 million and $100 million and will be used for early-stage investments.

Chart of the Day

"We believe that a substantial rate-cutting cycle will be the key impetus for the resumption of platform trades. Valuations have already come down a few turns (if not more) in most healthcare services categories, and sellers need to believe that they are exiting into the best market they can reasonably hope for."

Source: PitchBook's 2024 Healthcare Outlook

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PitchBook News - VC looks for sunnier skies

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