PitchBook News - Charting a VC exodus

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The Daily Pitch: VC

January 22, 2024

Presented by Affinity

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

Agricultural biologicals are in high demand, and VCs are taking note

Four charts highlighting the effects of VC's investor pullback

Mega-deals boosted 2023, but 2024 looks like another tough year for exits in Europe

India's IPO momentum, as other global exit markets stuttered, is expected to keep chugging

Today's Top Stories

VC's investor pullback in 4 charts

(Mike Hill/Getty Images)

Startups seemed to face a never-ending string of bad news in 2023: The collapse of Silicon Valley Bank and a frozen IPO environment were just two factors that propelled VC investors away.

Four charts from our latest PitchBook-NVCA Venture Monitor highlight the effects of this investor exodus.

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The Daily Benchmark:
2017 Vintage Non-US PE Funds

Median IRR

22.21%

Top Quartile IRR

26.75%

0.60x

Median DPI

Select top performers

Summit Partners Europe Growth Equity Fund II

HgCapital Mercury 2

HgCapital Genesis 8

*IRR: net of fees

36 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

OpenAI CEO Sam Altman is seeking to raise billions from investors to create a network of factories for AI-specific semiconductors, Bloomberg reported.

Swiss longevity startup Timeline has received a $66 million Series D led by L'Oreal corporate venture arm Bold.

San Diego-based biotech startup Tr1X has raised a $75 million Series A led by The Column Group.

MyRealTrip, which is based in Seoul and offers an online travel platform, has received a $56.7 million Series F led by BlueRun Ventures and IMM Investment.

France's Flowdesk has secured a $50 million Series B led by Cathay Innovation for its digital asset trading platform.

Kiln has raised $17 million in a round led by 1Kx. The Paris-based company has an enterprise-grade staking platform.

Toronto-based generative AI startup Cohere is in talks to raise up to $1 billion in new funding, the Financial Times reported.

Farm-ng, which designs autonomous robots for farming, has raised a $10 million Series A led by Acre Venture Partners.

Supply chain security software startup Kusari has raised an $8 million pre-seed and seed round co-led by J2 Ventures and Glasswing Ventures.

Don't miss our upcoming webinar

Given the strong public equities rebound back to 2021 highs, investors are wondering when PE will demonstrate similar results. Returns were uncharacteristically low in 2023, and deal activity ran at half speed.

In this webinar, our analysts will examine recent trends and look ahead to explore if this is the end of an era or a pause that will eventually revive the market. Key topics include:

How PE can kickstart the exit engine and return money to investors.

The effects of "higher for longer" interest rates.

How technology and healthcare are set up for PE outperformance.

Register now to secure your spot.

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PE Deals

Blackstone Real Estate Partners agreed to buy NYSE-listed Tricon Residential, a Canadian real estate company, for $3.5 billion.

NYSE-listed aerospace defense technology company Kaman was acquired by Arcline Investment Management for $1.8 billion.

Edgewater Equity Partners acquired VC-backed compliance software company Ascent Technologies.

KKR replaced Temasek-backed Heliconia Capital as the largest shareholder of Vietnam eye hospital chain Medical Saigon Group, Reuters reported.

US mid-market investor Charlesbank Capital Partners invested in Searchlight Cyber, a UK-based dark web intelligence company.

Silver Lake is planning to sell parts of entertainment company Endeavour Group following the completion of its take private, Bloomberg reported. Silver Lake owns a 71% voting stake in the company.

Accel-KKR agreed to buy Accertify, a provider of fraud prevention solutions, from American Express.

Exits & IPOs

Kaspi.kz, a Kazakhstan-based mobile app company backed by Asia Equity Partners, has raised just over $1 billion in its US IPO. Investors sold 11.3 million American depositary shares at $92 apiece.

Fundraising

Wynnchurch, a middle-market PE firm based in the Chicago area, closed on $3.5 billion for Wynnchurch Capital Partners VI.

I Squared Capital has closed its first dedicated climate fund in conjunction with US International Finance Development Corporation on $1.2 billion.

UK middle-market PE firm Bowmark Capital has raised £900 million for its seventh flagship fund, exceeding its £800 million target.

Korean asset manager Mirae Asset Financial Group has launched a debut $50 million VC fund. The vehicle will target seed to Series C investments in biotech startups.

Chart of the Day

Source: Q3 2023 US PE Middle Market Report

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PitchBook News - Charting a VC exodus

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