PitchBook News - Low fundraising may springboard 2024

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The Daily Pitch: VC

March 6, 2024

Presented by SRS Acquiom

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

With fundraising starting from a low point, power may transfer to the LPs this year

What's driving VC investment in climate tech?

Our Germany Market Snapshot unpacks VC and PE trends across Europe's largest economy

Today's Top Stories

Weak fundraising figures could lend power to LPs

Last year was far from a record moment for fundraising. Fund counts decreased by 48.4%, driven by LP concerns about a lack of portfolio exits and VC valuation fluctuations.

In the 2023 Annual Global Private Market Fundraising Report, sponsored by RSM and Adams Street Partners, we show that the difficult fundraising environment may begin to dissipate in 2024 as the on-paper denominator effect breathes its last few breaths. In 2024, LPs will hold the keys to the fundraising kingdom.

read the report

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A topsy-turvy year for climate tech

For climate-tech startups, 2023 was a year of highs and lows. VC investment fell 14.5% year-over-year, reaching a quarterly low of $7.1 billion in Q4. But there are plenty of tailwinds paving the way for a stellar 2024: favorable regulation and policy, high energy prices and consumer demand, to name a few.

Low-carbon mobility, industry and grid infrastructure are attracting particular attention from investors. PitchBook's John MacDonagh dives into the nooks and crannies of the wide-ranging world of climate startups in our latest analyst note.

read it now

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A message from SRS Acquiom

Are you still using generic PPA provisions on M&A deals?

The new 2024
SRS Acquiom M&A Working Capital Purchase Price Adjustment Study reveals that M&A professionals increasingly use customized PPA provisions tailored to deal specifics and the target's financial statements.

Download the data-rich study for exclusive insights into the most important trends impacting PPA outcomes, including customized PPA provisions, bigger PPA special escrows, and more "two-way" PPAs that level the results between buyers and sellers. The study also features drafting considerations from the M&A specialists at
SRS Acquiom who have resolved 2,400+ PPAs.

Download the Study Now

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Monzo's $5B valuation defies Europe's fintech slump

(Courtesy of Monzo)

After raising a $430 million round at an improved $5 billion valuation, UK digital bank Monzo looks set to take another crack at expanding across the pond, writes senior reporter Leah Hodgson.

Monzo is hoping to reenter the US after it had to withdraw its stalled application for a US banking license in 2021.

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Since yesterday, the PitchBook Platform added:

19

VC valuations

2324

People

458

Companies

28

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global VC Funds

Median IRR

20.93%

Top Quartile IRR

27.93%

0.47x

Median DPI

Select top performers

Index Ventures Growth III

Outlander 1 Archimedes

Anthos Capital III

*IRR: net of fees

59 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

FPE Capital has promoted Chris Kay to partner. Kay joined the UK-based PE firm in 2017 from PwC.

Benchmark general partner Miles Grimshaw is leaving the VC firm to rejoin Thrive Capital, The Information reported.

VC Deals

Chinese ecommerce giant Alibaba is leading a $600 million round for AI startup MiniMax, Bloomberg reported.

German electrolyzer manufacturer Sunfire raised a €215 million Series E from investors including GIC and Ahren Innovation Capital.

RapidSOS secured a $75 million investment led by BlackRock for its emergency intelligence platform.

Dental AI startup Overjet, which is based in Boston, raised a $53.2 million Series C led by March Capital.

Toronto-based AI chip startup Taalas raised $50 million across two rounds led by Pierre Lamond and Quiet Capital.

Israeli cybersecurity startup Sweet Security raised a $33 million Series A led by Evolution Equity Partners.

Spanish quantum computing startup Multiverse Computing raised €25 million in a round led by Columbus Venture Partners.

Accel, Prosus Ventures and Section 32 led a $25 million round for enterprise AI startup Ema.

Denmark's Formalize secured a €15 million Series A led by BlackFin Capital Partners for its compliance operations platform.

HData, a startup bringing AI to the energy industry, raised a $10 million Series A led by Buoyant Ventures.

Boston's RemotePass secured a $5.5 million Series A led by 212 VC for its onboarding and payroll platform.

PitchBook webinar: Net asset value loans

Net asset value loans have emerged in recent years as a solution to support portfolio companies in maintaining liquidity through turbulent conditions. In this on-demand webinar, our panel of experts debates the benefits and drawbacks of NAV loans from both a GP and LP perspective—covering potential tensions around alignment, interest rates and more. Key topics include:

What GPs, LPs and lenders think about use cases for NAV loan proceeds.

What GPs should know when deliberating using a NAV facility.

Questions LPs should prepare when GPs are contemplating these loans.

Improving transparency around NAV loans.

Watch the webinar.

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PE Deals

Heating and cooling equipment business Carrier is selling its industrial fire division to Sentinel Capital Partners for $1.43 billion.

Advent International and Multiples plan to invest $230 million in microfinance lender Svatantra Microfin.

L Catterton has acquired a significant stake in luxury cruise line AmaWaterways.

IK Partners has agreed to acquire Checkmate Fire, a UK specialist in passive fire protection, from YFM Equity Partners.

Charlesbank Capital Partners has acquired EverDriven Technologies, which provides a platform for student transportation.

Middle-market firm TruArc Partners has acquired Meyer Laboratory, a manufacturer of chemicals and cleaning equipment systems.

Portfolio Companies

Lithuania's Vinted, the VC-backed operator of a secondhand fashion marketplace, has acquired Danish peer Trendsales.

VC-backed Deel, the developer of a payroll platform, has bought South Africa-based peer PaySpace.

Fundraising

Global Infrastructure Partners has closed Emerging Markets Fund I on more than $2.1 billion.

Washington, DC-based Capitol Meridian Partners has raised $1.2 billion to back US government contractors and aerospace and defense companies, Bloomberg reported.

Hamilton Lane has closed its latest flagship credit vehicle, Strategic Opportunities VIII, on $700 million.

Silas Capital, a consumer-focused VC and growth equity investor, has closed its second consumer growth fund at its $150 million hard cap.

Amsterdam-based impact investor Carbon Equity has raised €100 million for Climate Tech Portfolio Fund II, exceeding its initial target of €75 million.

Team8 has raised $500 million across three funds. All are seeking AI, fintech and digital health VC investments.

Chart of the Day

Source: Estimating US VC First-Time Manager Dropouts

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PitchBook News - Low fundraising may springboard 2024

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