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The Daily Pitch: VC

February 6, 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:

Our Global Fund Performance Report unpacks returns across seven private market strategies

VCs are getting squeezed out of generative AI deals by corporate investors

LPs raise the bar for which VC funds they're willing to back

Q&A: Why the surge in secondaries will roll on in 2024

Brookfield's $10 billion first close showcases sustained interest in the energy transition

Today's Top Stories

What LPs look for in a VC fund

VC fundraising has become a brutal slog. Indeed, LPs' bar for backing a venture vehicle has risen significantly. Allocators are prioritizing funds whose predecessors converted returns into cash, remained disciplined during the 2021 market frenzy, and had a thoughtful strategy around fund size increases.

Emerging managers with unique networks and relevant industry experience can stand out from the pack. Our latest analyst note outlines expectations for smaller fund sizes, fewer new products and a shakeout of mediocre managers who struggle to adapt.

read it now

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Corporate influence over generative AI deals irks some VCs

(AerialPerspective Images/Getty Images)

Corporate investors are pouring huge sums into generative AI startups, rankling traditional VCs who are getting squeezed out of deals as they contend with soaring valuations and onerous deal terms.

CVCs were tied to 80% of VC deal value flowing into generative AI companies last year, PitchBook data shows. Some investors are wary that their influence will hinder startups in the long run.

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Since yesterday, the PitchBook Platform added:

14

VC valuations

1891

People

852

Companies

38

Funds

See what our data software can do

The Daily Benchmark:
2013 Vintage Global Real Assets Funds

Median IRR

6.10%

Top Quartile IRR

13.57%

0.69x

Median DPI

Select top performers

Rockland Power Partners II

EQT Infrastructure Fund II

Appian Natural Resources Fund

*IRR: net of fees

37 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Houston-based Procyrion, which makes medical devices for cardiac care, has raised a $57.7 million Series E led by Fannin Partners.

ProducePay, an agtech startup based in Los Angeles, has received a $38 million Series D led by Syngenta Group Ventures.

Lithuanian cryptocurrency payments startup Oobit has raised a $25 million Series A led by 468 Capital, Tether and CMCC Global.

StatusPro, a VR entertainment company based in California, has secured a $20 million Series A led by GV.

Jua has raised a $16 million seed round co-led by 468 Capital and the Green Generation Fund, TechCrunch reported. The Swiss AI startup creates models for weather prediction.

Chicago-based insurtech company Kin has secured a $15 million investment led by Activate Capital.

Paris-based Naboo has raised €7.5 million from investors including ISAI, Kima Ventures and CapHorn Invest for its corporate off-site booking platform.

Oslo-based industrial automation specialist OTee has received €1.25 million in a round led by RunwayFBU and Superangel.

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PE Deals

Thoma Bravo has agreed to take Nasdaq-listed event management software company Everbridge private in a roughly $1.5 billion all-cash transaction.

Investcorp's Strategic Capital Group made a growth investment in Banner Ridge Partners.

MRH Trowe, a German insurance broker backed by AnaCap, acquired four commercial brokers: Bavaria, Vertoura Versicherungsmakler, Frank Rauch & Kollegen Finanz-und Versicherungsmakler, and Asspert Versicherungsmakler.

A consortium of PE firms led by Bain Capital is buying Australian wine producer Accolade Wines from The Carlyle Group.

Exits & IPOs

HIG Capital is exploring a sale of Usalco, which provides water-treatment chemicals, that could fetch as much as $2 billion, Bloomberg reported.

EQT is reviving plans for an IPO of dermatology company Galderma, the Financial Times reported.

Fundraising

Carnelian Energy Capital has closed its fifth namesake fund on $975 million.

Chart of the Day

Source: 2023 Annual Global M&A Report

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PitchBook News - What LPs look for in a VC fund

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