PitchBook News - How COVID-19 will impact VC in the US

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The Daily Pitch: VC

April 1, 2020

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

How COVID-19 will impact US venture

Dr. Anthony Fauci at Tuesday's daily coronavirus task force briefing. (Win McNamee/Getty Images News)

Rising from the depths of the financial crisis, the US venture capital industry steadily evolved throughout the 2010s, culminating in recent record-breaking years. Now, as the coronavirus pandemic has transformed the entire world in just a few short months, US venture is changing again.

As part of our ongoing research coverage of COVID-19, the latest note from our venture analysts breaks down the pandemic's myriad ramifications for the US venture ecosystem. Among the key findings:

Deal terms have swung back in favor of investors
A flight to safety may push investors to keep capital closer to home
The IPO and M&A markets are both set for a slowdown

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More coronavirus news: Continuing coverage from PitchBook

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Checking investor sentiment

PitchBook is taking the pulse of investors on the effects of the pandemic crisis. If you're an LP or GP, please take a moment to participate in this brief, anonymous survey of your firm's investment outlook. We'll share the findings later this week.

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A message from SS&C Intralinks

Artificial intelligence: What dealmakers need to know

Decades ago, Intralinks created the first completely secure online platform for high-value, high-stakes transactions—the Intralinks Virtual Data Room—and triggered a revolution in finance.

Today, Intralinks maintains leadership of the fintech industry by integrating innovations like artificial intelligence into its global dealmaking platform. Advances like predictive data-driven analytics, intelligent deal marketing and AI-assisted buy-side due diligence let clients accelerate decision-making and streamline every phase of dealmaking, providing them with a unique and powerful competitive edge.

For more, download the white paper, 4 Things M&A Dealmakers Need to Know About Artificial Intelligence in 2020.

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As pandemic provides a wake-up call, smokers turn to startups to quit

A tobacco shop stays open during the outbreak in Milan.
(Annalisa Ranzoni/Getty Images News)

COVID-19 can be especially dangerous for those with already-damaged lungs, including the more than 1 billion smokers worldwide.

As the coronavirus outbreak grows, startups that work to help people quit smoking have seen their business rise in turn:

Recommended Reads

A high school student, a Waffle House cook, an anesthesiologist, a homeless advocate and 13 other residents of Georgia tell the story of one crazy month when a 21st century plague descended on their state. [Atlanta]

When it comes to coronavirus concerns, Arch Venture Partners co-founder Bob Nelsen was months ahead of the curve. What does he think will come next? [Stat]

How 3D-printers are helping to fight the coronavirus. [The New Yorker]

Across the US, places where many people are gathered in close proximity have turned into coronavirus hotspots. Including federal prisons. [Vice]

Since yesterday, the PitchBook Platform added:

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Today's Headlines


	The Daily Benchmark
	2007 Vintage Global Secondaries Funds
	VC Deals
	Affinia Therapeutics hauls in $60M Series A
	Cybersecurity startup lands $58M
	Olive brings in $51M
	Kyash collects $45M Series C
	Strivr picks up $30M
	Exits
	CloudGenix sells to Palo Alto Networks for $420M
	Fundraising
	General Catalyst raises $2.3B across three funds
	Gilde Healthcare Partners locks down $458M for latest fund

The Daily Benchmark

2007 Vintage Global Secondaries Funds

Median IRR

7.80%

Top Quartile IRR Hurdle Rate

8.00%

1.38x

Median TVPI

Select top performers

Vintage Ventures III

W Capital Partners Fund II

Pomona Capital VII

*IRR: net of fees

9 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Affinia Therapeutics hauls in $60M Series A

Gene therapy startup Affinia Therapeutics has raised $60 million in a Series A led by F-Prime Capital, NEA and Atlas Venture. Alexandria Venture Investments, Lonza and Partners Innovation Fund also backed the round. The Waltham, Mass.-based biotech company is developing treatments for muscle and central nervous system diseases.

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Cybersecurity startup lands $58M

Axonius, the New York-based provider of a cybersecurity asset management platform, has collected $58 million in Series C funding. Lightspeed led the financing, with participation from existing backers OpenView, Bessemer Venture Partners, YL Ventures, Vertex and WTI. Axonius helps companies gain a comprehensive view of their asset inventory, discover security coverage gaps and enforce security policies. The startup was valued at $110 million with a $20 million round in August, according to PitchBook data.

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Olive brings in $51M

Healthtech startup Olive has raised $51 million in a round led by General Catalyst. The Columbus, Ohio-based company is a developer of AI-based technology that helps hospitals and healthcare systems automate their administrative processes. Olive has received prior backing from investors including Drive Capital, Ascension Ventures and Oak HC/FT; it reached a $62.8 million valuation in 2018, according to PitchBook data.

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Kyash collects $45M Series C

Fintech startup Kyash has raised $45 million in a round co-led by Greenspring Associates and Goodwater Capital. Founded in 2015 and based in Tokyo, the company offers mobile banking and payment services. It raised $14 million in July.

Investors:

Greyhound Capital, Altos Ventures, Partech Partners, Broadhaven Capital Partners, Tekton Ventures, Jafco

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View 16 competitors »

Strivr picks up $30M

Strivr, which offers a virtual reality-based employee training platform, has raised a $30 million Series B led by Georgian Partners, with participation from Franklin Templeton and Prologis Ventures. The company raised $16 million in 2018 at a $66 million valuation, according to PitchBook data.

Additional Investors:

GreatPoint Ventures, Alumni Ventures Group

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Exits

CloudGenix sells to Palo Alto Networks for $420M

Palo Alto Networks has agreed to pay $420 million to acquire CloudGenix, a San Jose-based developer of software-defined wide-area networking services. The startup has raised around $100 million in prior VC from Intel Capital, Mayfield Fund, Bain Capital Ventures and others. It was valued at $190 million in April 2019, according to a PitchBook estimate.

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Fundraising

General Catalyst raises $2.3B across three funds

General Catalyst has brought in $2.3 billion for three new funds, according to Forbes, signaling confidence in the midst of a rapid economic slowdown. The firm is creating a $1 billion growth fund, a $600 million early-stage fund and a $700 million vehicle targeting companies with more than $100 million in sales, Forbes reported.

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Gilde Healthcare Partners locks down $458M for latest fund

Gilde Healthcare Partners has raised €416 million (around $458 million) for its fifth flagship fund, which will focus on venture and growth investments in digital health, medtech and therapeutics companies in Europe and North America. Gilde's fourth namesake vehicle closed on €250 million in 2016. The firm is based in the Netherlands but also has offices in Germany and the US.

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Chart of the Day

"As PE firms more broadly exhibit a mounting interest in tech investing, GPs have sought out tech companies from several sources, including other GPs' portfolios. Because of this, previously VC-backed companies often have multiple rounds of PE ownership. Once a startup has been acquired by a PE firm, they are more likely to be subsequently sold to another PE firm, as opposed to publicly list or be strategically acquired."

Source: PitchBook analyst note on VC-to-PE buyouts