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The Daily Pitch: VC

January 12, 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:

PitchBook Benchmarks offer the latest fund performance data across PE, VC and more

Healthcare-focused PE dealmaking fell over 60% in 2023, and more declines are likely to come

Startups are facing a cash supply shortage, our Dealmaking Indicator shows

Our Q3 valuations data for public companies in the agtech and foodtech sectors

Today's Top Stories

PitchBook Benchmarks for PE, VC and more

PitchBook Benchmarks offer a window on the latest data for closed-end fund returns across strategies and vintage years. The new edition is now available, updated through Q2 2023 with preliminary data for Q3. It features downloadable XLS tables, data visualizations, and PDFs that slice the data by fund type and geography.

see the data

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2023 snaps startup-friendly streak

(Drew Sanders/PitchBook News)

For more than four years, startups enjoyed the upper hand in deal negotiations with investors. That came to an abrupt end in 2023.

PitchBook's VC Dealmaking Indicator shows that startups continue to demand more capital than investors are willing to supply. Our early-stage capital demand-to-supply ratio hit a decade peak of 1.84x in Q4 2023.

But there are signs that conditions are easing for more mature companies. Q4 2023 saw this ratio drop from recent peaks for late-stage and venture-growth companies.

explore the indicator

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Healthcare PE investors proceed with caution in 2024

(David Sacks/Getty Images)

Healthcare-focused PE managers were less active in 2023 than years prior, and they're likely to maintain caution in 2024.

From its 2021 peak to the end of 2023, total healthcare-related PE deal value fell 60.4%—reaching its lowest point since 2016, according to our 2023 Annual US PE Breakdown.

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Foodtech stocks stand firm even as plant-based meats lose out

Kitchen tech providers set the upper limit of median 2023 growth for public foodtech companies, and the subsegment persevered in Q4 along with food delivery marketplaces to keep pace with the wider market. For 2024, estimates are pessimistic for alternative proteins stocks, while analysts expect strong growth for the restaurant and retail tech industry.

Our Q4 2023 Foodtech Public Comp Sheet and Valuation Guide tracks stock performance, valuations and market caps—as well as forecasts for revenue, EBITDA and earnings per share—for key publicly traded companies.

see the data

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Indoor farming shares end 2023 on sour note

Public agtech companies continued to droop in the tough market, with all segments underperforming in Q4 against major indexes. Animal biotech stocks had the best returns for the quarter, while a subsection of plant biotech showed the fastest yearly growth. Indoor farming's performance bore the brunt of 2023's inflation, high interest rates, and rising energy costs.

Our Q4 2023 Agtech Public Comp Sheet and Valuation Guide tracks stock performance, valuations and market caps—as well as forecasts for revenue, EBITDA and earnings per share—for key publicly traded companies.

see the data

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Since yesterday, the PitchBook Platform added:

21

VC valuations

2693

People

709

Companies

25

Funds

See what our data software can do

The Daily Benchmark:
2014 Vintage North American Real Estate Funds

Median IRR

10.82%

Top Quartile IRR

16.06%

1.07x

Median DPI

Select top performers

Exeter Industrial Value Fund III

L-A Saturn Acquisition

Wheelock Street Real Estate Fund II

*IRR: net of fees

44 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

IK Partners has promoted Carl Jakobsson and Frederik Jacobs to partner as part of the mid-cap investment teams in the Nordics and Benelux regions, respectively.

Christopher Ailman, the CIO of CalSTRS, the second-largest pension fund in the US, will step down from his role at the end of June, Pensions & Investments reported.

VC Deals

Finn raised a €100 million Series C led by Planet First Partners. The round values the Munich-based car subscription startup at over $600 million.

D-Orbit secured €100 million in the first close of its Series C. Marubeni Corporation led the round for the Italian space logistics specialist.

Norwegian robotics startup 1x raised a $100 million Series B from investors including EQT Ventures.

London's Hyperexponential raised a $73 million Series B led by Battery Ventures for its insurance pricing platform.

120Water, a water management startup based in New Jersey, secured a $43 million investment from Edison Partners.

Cactos, a Helsinki-based developer of smart energy storage systems, secured more than €26 million in funding led by OP Financial Group and The Finnish Climate Fund.

San Diego-based energy storage startup RedoxBlox secured $25 million across a Department of Energy grant, a Series A led by Khosla Ventures and another grant from the California Energy Commission.

Rune Labs, a San Francisco-based neurology software specialist, raised $12 million led by Nexus NeuroTech Ventures.

Rivero received a $7 million Series A led by 6 Degrees Capital and Inference Partners. The Swiss company's products digitalize and automate payment processes.

Don't miss our upcoming webinar

Join our analysts as they recap the biggest 2023 trends in European PE and VC and help you get prepared for 2024. Whether you're interested in dealmaking considerations, exit market conditions, potential risks ahead or updates on raised capital, our experts will help you win what's next.

Register now to secure your spot.

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PE Deals

Patrick Industries agreed to buy cab component manufacturer Sportech from Monomoy Capital Partners for approximately $315 million.

Aerospace company Barnes Group agreed to sell Associated Spring and Hanggi for around $175 million total to One Equity Partners.

IAC is selling its Mosaic Group app and IP suite to Bending Spoons for over $100 million, Bloomberg reported.

DecisionRx will receive a $100 million credit facility from The Carlyle Group. The company's platform helps physicians make prescription decisions.

PAG Private Equity agreed to buy a controlling stake in Food Union Europe, a European supplier of ice cream and other frozen treats.

Shareholders in Believe, including CEO Denis Ladegaillerie and TCV, are exploring taking it private, Reuters reported. Believe is a digital music company listed on the Paris stock exchange.

Exits & IPOs

Accenture has agreed to acquire Navisite, a US-based digital transformation and managed services provider, from Madison Dearborn Partners.

Fundraising

Ares Management is nearing a final close on a €20 billion direct-lending fund, Bloomberg reported.

The Carlyle Group has raised over $600 million for an equity fund to support collateralized loan obligation deals in the US and Europe.

Arcano Partners has launched its fifth PE secondaries fund, which will target €500 million.

Israeli VC firm Vintage Investment Partners has closed its fourth growth-stage fund on $200 million.

Corporate M&A

Chesapeake Energy is buying its rival, Southwestern Energy, in a $7.4 billion all-stock deal that will create the largest natural gas producer in the US.

Thomson Reuters has offered to buy Pagero, a Swedish e-invoicing and tax solutions company, for 6.4 billion Swedish kronor (around $627 million). The offer tops an earlier one from Vertex.

Chart of the Day

"US PE dealmaking finished the year similar to how it started: still struggling to find a bottom. ... For the full year, deal value declined by 29.5% to $645.3 billion, its lowest point since 2017 outside of the pandemic-induced lockdown of 2020."

Source: 2023 Annual US PE Breakdown

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