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The Daily Pitch: VC

April 11, 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:

The PitchBook-NVCA Venture Monitor dives into the themes and trends of the US VC market

US venture fund returns are still in the negative, but trending upward

A slew of gaming-focused VC fund launches could inject life back into the sector

Today's Top Stories

Where does VC go from here?

For LPs, distributions are what matter, and our data shows how low those realized returns have dropped during the market slowdown. One datapoint that stands out in our Q1 2024 PitchBook-NVCA Venture Monitor is that just $9.8 billion in new fund commitments were closed—or only 5% of 2022's annual high.

With little capital to recycle into the market, LPs have come under further pressure in navigating their exposure to VC, according to the report, sponsored by J.P. Morgan, Dentons and Deloitte. While the IPOs of Reddit and Astera Labs grabbed the spotlight during the quarter, total exit value reached just $18.4 billion—dampening the outlook of an increase in distribution rates just yet.

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VC fund returns uptick signals sunnier skies in 2024

(Ezra Bailey/Getty Images)

Rolling one-year IRR for US VCs are rising again quarter-over-quarter, an indicator that venture returns may be trending upward and a hopeful sign for a struggling GP fundraising market.

One-year rolling IRR bottomed out in Q4 2022 at a rate of -17.9% before rising to -9.1% in Q2 2023, according to the Q1 2024 PitchBook-NVCA Venture Monitor.

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Since yesterday, the PitchBook Platform added:

12

VC valuations

2119

People

606

Companies

33

Funds

See what our data software can do

The Daily Benchmark:
2020 Vintage Global Debt Funds

Median IRR

9.50%

Top Quartile IRR

14.09%

0.16x

Median DPI

Select top performers

ALTUMCK-19

Onex Senior Loan Opportunity Fund I

CK Opportunities Domestic Fund

*IRR: net of fees

85 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

France's HysetCo raised €200 million in a round led by Hy24 for their hydrogen-powered electric vehicle rental service.

TORL BioTherapeutics, a biotech startup based in Los Angeles specializing in immunotherapy, raised a $158 million Series B2 led by Deep Track Capital.

KKR led a $130 million Series F for New York's Guesty, a short-term rental and hospitality management startup.

California-based robotics startup Collaborative Robotics raised a $100 million Series B led by General Catalyst.

FloQast raised a $100 million Series E led by Iconiq Growth. The Los Angeles-based fintech startup is the developer of an accounting operations platform.

Auradine, a blockchain, AI and security infrastructure specialist based in California, raised over $80 million in a Series B from investors including StepStone Group, Top Tier Capital Partners and MVP Ventures.

Madrid-based cloud analytics and security specialist Onum closed a $28 million Series A led by Dawn Capital.

Proxima Fusion, a Munich-based developer of fusion power reactors, raised a €20 million seed investment led by Redalpine.

Reshape, a Copenhagen-based developer of lab automation robots, completed a $20 million Series A led by Astanor Ventures.

Pactio, a London-based provider of PE management software, secured a $14 million Series A led by EQT Ventures.

Don't miss our upcoming webinar

As interest rates begin to level out, the loan market is seeing renewed interest from previously risk-averse investors and issuers, as well as borrowers looking to refinance expensive debt. These conditions have helped the growth of both syndicated lenders and private credit, adding to the mounting competition between them. Key topics include:

Overall activity in the US leveraged loan market hit its highest levels in four years, though leveraged buyouts remain challenging.

As investors warmed to risk, riskier borrowers flocked to the market to refinance expensive debt.

A revitalized high-yield bond market sees a return of unsecured issuance—will this aggressive stance continue?

Register now to secure your spot.

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PE Deals

European fashion retailer Esprit is in talks with an unnamed international PE firm for an investment that would support a restructuring of its business, The Wall Street Journal reported.

Madison Dearborn Partners made a takeover offer for Australian jobs agency APM Human Services. The firm owns 29% and offered A$910.4 million (about $599 million) for the rest.

Entertainment-focused firm HarbourView Equity Partners invested in Mucho Mas Media, which makes content for Latino audiences and produced the film "The Long Game."

Healthcare PE firm Archimed acquired a majority stake in Cellese, a California-based manufacturer of skincare products that operate under the Anteage brand.

Lower-middle-market firm Osceola Capital recapitalized Trauma Services, a Boston-based biohazard cleanup and remediation company.

Exits & IPOs

Orion Resource Partners sold an 8% stake in minerals royalty company Sweetwater Royalties to a Canadian pension fund, Private Equity Wire reported. The deal valued Sweetwater at $1.9 billion.

Cybersecurity company Wiz has bought Gem, which offers cloud detection and response services.

Productivity suite startup Proton has acquired Standard Notes, which provides a note-taking service.

Bonsai, an ecommerce startup, has bought German fashion discovery platform MyBestBrands, Axios reported.

CRM startup Unlimited has been acquired by Accenture for an undisclosed amount.

Fundraising

Toyota Ventures, the venture arm of the carmaker, has raised $300 million for two funds, one focused on climate and the other on emerging technology.

Mumbai-based Cornerstone Venture Partners is targeting $200 million for its second fund to invest in B2B tech startups.

India-based Synapses launched with a $125 million fund focused on investing in climate and health-tech startups.

Floating Point, an early-stage VC investor, raised $70 million for its second flagship fund dedicated to complex sectors, Axios reported.

Chart of the Day

Source: PitchBook's Q1 2024 US PE Breakdown

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PitchBook News - Where does VC go from here?

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