PitchBook News - Going with the cash flow

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The Daily Pitch: VC

March 12, 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 analysts look beyond distributions to cash flows in weighing fund outlooks

Customer relationship management startups lead the way in enterprise SaaS

Lance Armstrong's Next Ventures plans to raise $100 million for the firm's second fund

Investors tap into geothermal energy as the technology evolves

PE sponsors are driving a huge jump in leveraged loan deals backing dividend recaps

Today's Top Stories

A look into funds' cash flow turbulence

Tracking the ebb and flow of fund cash flows is pivotal for determining the outlook of an institutional portfolio's liquidity. For LPs, capital call activity and net cash flows of funds are just as important to allocation planning and portfolio maintenance as the well-documented distribution dearth.

Our latest analyst note looks across thousands of funds and analyzes distributions relative to net asset values and capital calls compared to uncalled commitments across asset classes, offering a fuller picture of the LP perspective on the changing exit and dealmaking environment.

read it now

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CRMs lead an enterprise SaaS rebound

In Q4, enterprise SaaS startups raised $14 billion across 597 deals, an 11.9% quarter-over-quarter increase in deal value but an 8.6% decrease in deal count. Customer relationship management startups led the way, with VC investment up 72.5% from Q3.

Now, several companies are experimenting with conversational AI, hoping to streamline processes and lower costs. Our Q4 2023 Enterprise SaaS Report provides an overview of the space, touching on the key trends, data, and startups investors need to know.

read the preview

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Lance Armstrong's Next Ventures targets $100M 2nd fund

Lance Armstrong (Francois Nel/Getty Images)

Famed cyclist-turned-GP Lance Armstrong is targeting $100 million for Next Ventures' second fund.

The new vehicle is a step up from Next Ventures' first fund, which closed on $50 million. The health and wellness investor's portfolio includes exercise recovery startup Amp Human and medical device diagnostics company Vital Bio.

Armstrong's return to fundraising coincides with a surge of interest in private investment from current and former athletes.

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Since yesterday, the PitchBook Platform added:

10

VC valuations

2056

People

513

Companies

24

Funds

See what our data software can do

The Daily Benchmark:
2013 Vintage North American Real Estate Funds

Median IRR

11.20%

Top Quartile IRR

15.36%

1.30x

Median DPI

Select top performers

KTR Industrial Fund III

Cabot Industrial Value Fund IV

DivcoWest Fund IV

*IRR: net of fees

47 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Grace Ge has joined Amplify Partners as a partner, leaving her role as principal at Menlo Ventures.

Isaac Kim is joining Lightspeed to lead the firm's foray into leveraged buyouts for tech companies, Bloomberg reported. Kim was previously a senior managing director at Elliott Investment Management.

VC Deals

Cybersecurity startup Wiz is in talks to raise roughly $800 million from backers including Lightspeed, Thrive and G Squared, the Financial Times reported.

Austin-based baby food startup Serenity Kids raised a $52 million Series B led by Stride Consumer Partners.

Chicago's Ocient raised a $49.9 million Series B extension led by Greycroft and OCA Ventures for its data analytics platform.

San Francisco-based insurtech startup Vouch raised a $25 million Series C1 led by Ribbit Capital.

Griffin, a London-based banking specialist, raised $24 million in a round led by MassMutual Ventures, NordicNinja and Breega.

London-based Kaedim raised a $15 million Series A led by Andreessen Horowitz for its 3D modeling software for game design.

Sublime Energie, a Paris-based developer of biogas liquefaction technologies, secured €11.5 million in a round led by Crédit Mutuel Impact.

HawkCell, a French provider of MRI technology augmented for veterinary use, received a €5 million Series A led by MIG Capital.

PE Deals

The Carlyle Group has purchased a controlling stake in the Baltimore Orioles in a deal that values the Major League Baseball team at $1.73 billion, Bloomberg reported.

Monroe Capital has acquired a strategic minority ownership stake in single-family rental SaaS company Second Avenue and has invested $250 million in debt and equity capital through a follow-on investment.

UK-based Flagstone, which provides a cash deposit platform, has received an equity investment of £108 million from Estancia Capital Partners.

TPG is in talks to acquire Techem, a Germany metering company, Bloomberg reported.

Healthcare-focused Patient Square Capital has acquired NanoString Technologies, a provider of life science research and discovery tools.

MiddleGround Capital has merged with NYSE-listed Starrett, a high-end precision tools manufacturer.

KKR has acquired MDF Commerce, an ecommerce SaaS company based in Canada.

Exits & IPOs

VC-backed eToro, which offers a retail trading platform, is considering listing in the US, the Financial Times reported. The London-based company would be seeking a valuation of over $3.5 billion, according to the report.

Social media company Reddit is looking to raise as much as $748 million in its upcoming IPO, Bloomberg reported. The company plans to sell 22 million shares for between $31 and $34 each.

Fundraising

Indian VC firm A91 Partners is targeting between $700 million and $750 million for its third fund, The Economic Times reported.

YFM Equity Partners raised £90 million for its British Smaller Companies Venture Capital Trusts. The fund will invest in early-stage companies in the UK.

London-based early-stage investor Ada Ventures closed its second fund on £63 million.

Pool equipment and wellness industry specialist Fluidra is launching a €20 million corporate venture capital fund focused on startups in the swimming pool and wellness industry.

Chart of the Day

"For firms with AUM of at least $50 million, the proportion of female decision-makers experienced slight growth in 2023, reaching 17.4% compared to 16.1% reported in Q3 2022. Among smaller firms with AUM under $50 million, the share of female decision-makers is a bit higher, at 18.8%."

Source: 2023 US All In: Female Founders in the VC Ecosystem

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PitchBook News - Going with the cash flow

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