PitchBook News - AI drives infrastructure SaaS forward

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The Daily Pitch: VC

March 4, 2024

Presented by SRS Acquiom

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

Our analysts examine startups fueling the use of AI in the infrastructure SaaS sector

GP stakes dealmakers are ready to deploy capital in 2024

Our latest Global Markets Snapshot breaks down one month of trends in the equity, debt and commodities markets

Our analysts' guide to investing in specialized healthcare funds

Today's Top Stories

How will AI propel infrastructure SaaS?

Startups in the infrastructure SaaS market are ready to capitalize on the sea change that AI is bringing. The sector saw an uptick in VC funding in Q4 2023—reaching $2.2 billion compared to Q3's $1.9 billion.

There is still plenty of room for growth, especially for companies focusing on data software and systems, according to our latest Emerging Tech Research. Senior analyst Derek Hernandez examines startups supporting AI and other key trends in the infrastructure SaaS space.

read the preview

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The GP stakes market is ready for a comeback

(Design Pics/Getty Images)

The world's largest asset managers spent less money on GP stakes in 2023 than they have in a decade, but they're ready to deploy capital in 2024.

Bogged down with market uncertainty, buyers and sellers of GP stakes retreated from the market in 2023. Minority ownership positions encompassed only 17.2% of the total value of deals involving GPs as targets—a steep decline from historical norms.

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A message from SRS Acquiom

Fresh insights to help drive M&A working capital efficiencies

From the experts at
SRS Acquiom who have resolved over 2,400 PPAs, the new 2024 M&A Working Capital Purchase Price Adjustment Study reveals the latest in PPA insights and trends. The study also provides exclusive data and drafting considerations. Learn about key shifts, including:

Increasingly customized PPA provisions: Tailored to deal specifics and the target's financial statements
Bigger special escrows for PPAs: Median sizes reaching 1% of the transaction value
More "two-way" PPAs: Resulting in a seller-favorable surplus on approximately 2 in 5 deals, up from 1 in 4 a decade ago

Download the Study

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February wrap-up: One month in global markets

Our latest Global Markets Snapshot breaks down a month of trends in the equity, debt, and commodities markets, tracking returns across a range of indexes and sectors. It also features private market activity, including major deals, fundraising, IPO performance, lending volume and unicorn creation.

In this monthly digest, we provide the datasets that the PitchBook Institutional Research Group is keeping an eye on as we start off the new year.

read it now

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A guide to investing in specialized healthcare funds

Specialized healthcare funds are having their moment in the sun as allocators demand greater sector focus of their managers. Propped up by the industry's complex regulatory frameworks and scientific rigor, healthcare specialist PE fundraising activity hit an all-time high in 2023.

Our H2 2023 Healthcare Funds Report is a resource to help LPs, GPs and other market players capitalize on this moment. The report offers a comprehensive view of healthcare specialists—identifying trends across PE, VC and corporate venture funds focusing on diversified healthcare, healthcare services and life sciences.

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VCs focus on the grid, hydrogen storage

VC funding for the clean energy sector dipped by about $5 billion in 2023 compared to the previous year. But the industry has been ignited by pressure from the COP28 conference and the Biden administration's hydrogen hubs, according to our recent Emerging Tech Research.

VCs are paying more attention to the systems underpinning the clean energy revolution, with grid infrastructure and hydrogen storage joining the dealmaking spotlight.

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Since yesterday, the PitchBook Platform added:

1

VC valuations

47

People

14

Companies

See what our data software can do

The Daily Benchmark:
2019 Vintage Global Debt Funds

Median IRR

10.30%

Top Quartile IRR

13.42%

0.39x

Median DPI

Select top performers

Inveready Venture Finance III

OrbiMed Royalty & Credit Opportunities III

Ares Special Opportunities Fund

*IRR: net of fees

81 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Massachusetts-based biotech startup FogPharma raised a $145 million Series E led by Nextech Invest.

Switzerland's Aktiia raised $30 million in a round led by Redalpine for its blood pressure monitoring device.

Vibe.co, an advertising startup focused on streaming markets, raised $22.2 million in a round led by Singular.

San Jose-based battery startup Anthro Energy raised $20 million in a Series A led by Collaborative Fund.

Austrian aviation technology company CycloTech raised €20 million from Breeze Invest and Konos Holdings.

London-based heat pump startup Heat Geek secured a £3.7 million seed investment led by Transition.

PE Deals

Ares Management has made a strategic investment in Bluepeak, a fiber broadband provider.

LDC has invested in 15below, a travel tech specialist.

Gryphon Investors, a middle-market firm, has sold skincare brand RoC Skincare to Bridgepoint Europe VII.

Adenia Partners has acquired The Courier Guy, a last-mile delivery company.

Bow River Capital has acquired Accelo, a SaaS specialist.

The Riverside Company has sold Hiway Group to New Zealand PE firm Direct Capital Partners.

Fundraising

Belgian VC investor Entourage has launched with a €30 million early-stage fund.

Chart of the Day

Source: 2023 Annual European PE Breakdown

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PitchBook News - AI drives infrastructure SaaS forward

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