PitchBook News - VCs face natural selection

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The Weekend Pitch

January 14, 2024

Presented by U.S. National Science Foundation

(Chloe Ladwig/PitchBook News)

Holiday jet lag isn't the only thing keeping VCs up at night.

Countdown Capital's announcement last week that it is shutting down marked a rocky start to 2024 for emerging managers. Jai Malik, founder and GP of the early-stage industrial tech investment firm, wrote in a LinkedIn post that, despite strong performance, "the future of this space favors larger firms than mine."

Emerging managers are worried: Many are giving LPs more leeway on terms and extending their fundraising time frames, and even top-tier firms are holding off on introducing premium carry. 2024 will be a year that decides which GPs turn into tenured players.

Even VC firms that have been around for decades aren't immune to market forces. OpenView, a Boston-based investor founded in 2006 that backed the likes of Calendly and Cogito, laid off most of its staff in December.

Most will simply fade away—not go out with a bang like OpenView and Countdown.

This is the Weekend Pitch, and I'm Rosie Bradbury. You can reach me at rosie.bradbury@pitchbook.com or @_RosieBradbury on X.

Trivia

It's only two weeks into the new year, yet there's already been a mega-fund close. Which PE firm raised the $14.5 billion vehicle?

A) Cinven
B) Blackstone
C) Apollo Global Managment
D) The Carlyle Group

Find your answer at the bottom of The Weekend Pitch!

VC in 2023: AI versus everyone else

(Nicolamargaret/Getty Images)

Suffering from a case of the post-holiday blues and in need of some cheer?

The Q4 2023 PitchBook-NVCA Venture Monitor has dropped, and our analysts have many positive predictions for what's in store for 2024—especially if you're building or investing in AI. The Nasdaq finished up last quarter on a very high note, and it's looking like interest rate hikes are on hold for a while.

Private equity is dehydrated

PE needs an exit reboot. Following its worst year in dealmaking since 2016, the asset class is thirsting for liquidity.

Our 2023 Annual US PE Breakdown explores the root causes of the industry's dry season and how a slew of exits could replenish its health.

Public performance lights paths for private peers

As startups and investors look down the road to potential IPOs, keeping tabs on recently public companies of the same sector gives a view of the industry's health.

Our Public Comp Sheets and Valuation Guides have compiled Q4 data on stock performance, valuations, revenue growth, EBITDA growth, free cash flow and earnings per share using the PitchBook Excel plug-in. The comp sheet series for Q4 will cover nine sectors including fintech, AI and machine learning, foodtech, and gaming.

Quote/Unquote

(Joey Schaffer/PitchBook News)

"I do see some light at the end of the tunnel because I'm seeing more female founders now."

—Thomson Reuters Ventures managing director Tamara Steffens, speaking to PitchBook News about the outlook for female VC founders.

Stay tuned

Keep an eye out for these insights and research reports coming out this week:

Emerging Space Brief: Humanoid Robotics
2023 Annual European PE Breakdown
2023 Annual European Venture Report
Analyst note: 2023 JPM Healthcare Conference recap

Trivia

Answer: A)

London-based Cinven closed a $14.5 billion mega-fund Tuesday. Read our article about how it stacks up to its peers here.

This edition of The Weekend Pitch was written by Rosie Bradbury, Jacob Robbins, Jessica Hamlin and Clarinda Simpson. It was edited by James Thorne and Clarinda Simpson.

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PitchBook News - VCs face natural selection

Trivia

VC in 2023: AI versus everyone else

Private equity is dehydrated

Public performance lights paths for private peers

Quote/Unquote

Stay tuned

Trivia

Older messages

Why PE is set to rebound in 2024

Our freshest fund performance data

VCs hold fire on continuation funds—for now

VC looks for sunnier skies

Coinbase leads VC's crypto retreat

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