PitchBook News - Airbnb banks $1B from private equity

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The Daily Pitch: VC

April 7, 2020

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

Today's Top Stories

Airbnb raises $1B from private equity

Airbnb has turned to private equity barons rather than venture capitalists for its latest funding, pulling in $1 billion in a mix of debt and equity from Silver Lake and TPG Sixth Street Partners. The news comes a few days after a Financial Times report that Airbnb has cut its valuation to $26 billion, a drop of some 16% from the $31 billion valuation it attained with its most recent VC round in 2017, according to PitchBook data.

The investment will provide a cash boost to a company that has seen its bottom line take a hit from COVID-19, with pandemic lockdowns effectively bringing travel and tourism to a halt. The San Francisco-based company announced last September that it planned to go public sometime during 2020.

The new investment is an example of private equity firms deploying some of the industry's considerable dry powder to buy into a company with a newly reduced valuation. Silver Lake could soon be adding even more cash to its coffers: The Menlo Park-based tech investor is aiming to raise between $16 billion and $18 billion for its sixth flagship fund, according to Reuters. It closed its previous flagship effort on $15 billion in 2017.

Coronavirus news: Continuing coverage from PitchBook

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How startups are battling the spread of fake news during the pandemic

A challenge for Dr. Anthony Fauci has been debunking myths about the coronavirus. (Drew Angerer/Getty Images News)

Fake news can spread like wildfire. As the coronavirus overtakes the globe, misinformation about the disease is spreading nearly as fast as COVID-19, and startups that expose online falsehoods are stepping up to fight back.

Graphika uses technology like AI and machine learning to tackle large-scale deception across the internet

NewsGuard relies on a team of journalists to rank the credibility of news websites and has created a free tracker to identify sites publishing false information about the pandemic

"We have never experienced a time when most of the top headlines were really about a particular topic that has implications of life and death," said Matt Skibinski, general manager at NewsGuard

Recommended Reads

Masayoshi Son weighs in on WeWork, bankrupt portfolio companies and why he's still optimistic about SoftBank's $100 billion Vision Fund. [Forbes]

A home-schooled missionary named Renée Bach went to Uganda to save lives. Did she ultimately do more harm than good? [The New Yorker]

The timing isn't ideal for Quibi to launch its new streaming service designed for people on the go. That might not be the company's only problem. [Rolling Stone]

There are worse places to be quarantined than a five-star resort in the Maldives. Particularly if you and your new spouse are the only guests there. [The New York Times]

Since yesterday, the PitchBook Platform added:

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Today's Headlines


	The Daily Benchmark
	2002 Vintage Global PE Funds
	VC Deals
	PsiQuantum bags $215M
	Pure Harvest picks up $100M+
	WorkJam brings in $50M Series C
	Myriota grabs $17M for IoT satellite internet
	Exits
	Foursquare merges with location startup Factual
	Fundraising
	Deerfield raises $840M for second healthcare fund

The Daily Benchmark

2002 Vintage Global PE Funds

Median IRR

17.01%

Top Quartile IRR Hurdle Rate

26.78%

1.8x

Median TVPI

Select top performers

Lime Rock Partners II

OCM Opportunities Fund IVb

Charterhouse Capital Partners VII

*IRR: net of fees

35 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Webinar: Finding near-term liquidity during the pandemic

Investors are putting their portfolio companies under the microscope as they try to understand the true impact COVID-19 will have on revenue, cash flows and staff. Under the strain of the current market, firms may face liquidity problems with their portfolios—and knowing how to find near-term liquidity will be critical.

The webinar will address strategies firms can use to solve liquidity issues and how to leverage PitchBook to identify debt providers, investors, potential buyers and intermediaries.

Join us on Wednesday at 12 p.m. ET/9 a.m. PT. Register here to attend live or receive a recording of the event.

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VC Deals

PsiQuantum bags $215M

PsiQuantum, which is developing a quantum computer, has secured $215 million, according to Bloomberg. The Palo Alto-based company raised $230 million in September at a $529.7 million valuation, according to PitchBook data. It is backed by M12, Playground Global, Atomico, Redpoint Ventures, BlackRock and others.

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Pure Harvest picks up $100M+

Pure Harvest has secured over $100 million in financing from Wafra International Investment. The Abu Dhabi-based company provides sustainably grown produce.

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WorkJam brings in $50M Series C

Montreal-based WorkJam has raised $50 million in a round led by Inovia Capital, with participation from investors including Fonds de Solidarité FTQ, Claridge and Lerer Hippeau. Founded in 2014, the company offers an employee engagement app to manage frontline workers.

Additional Investors:

Harmony Partners, Blumberg Capital

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Myriota grabs $17M for IoT satellite internet

Myriota has brought in A$28 million (about $17 million) for its Series B, which was led by Hostplus and Main Sequence Ventures. Based in Australia, the company operates a constellation of satellites that provide low-power connectivity for internet of things devices. Myriota has now raised more than A$50 million to date.

Additional Investors:

In-Q-Tel, Right Click Capital, South Australian Venture Capital Fund, Singtel Innov8, Boeing HorizonX

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Exits

Foursquare merges with location startup Factual

Location technology companies Foursquare and Factual have announced they will merge for an undisclosed amount. The deal follows Foursquare's acquisition last year of location advertising startup Placed, which had been backed by Snap. Los Angeles-based Factual has raised more than $100 million and is backed by Andreessen Horowitz, Index Ventures and Upfront Ventures.

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Fundraising

Deerfield raises $840M for second healthcare fund

Deerfield Management Company has closed its latest VC investment vehicle, Healthcare Innovations Fund ll, on $840 million. The capital will be used to invest in healthcare companies pursuing new treatments and care delivery solutions. The New York-based firm has backed mindfulness startup Headspace, addiction treatment network Recovery Centers of America and cardiac imaging company Acutus Medical, among others. Deerfield's first healthcare-focused VC fund launched in 2015 with $550 million.

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