PitchBook News - VC draws growing interest from SWFs

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The Daily Pitch: VC

April 20, 2020

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

Today's Top Stories

Trump, the private market and America 2.0

What do Dallas Mavericks owner Mark Cuban, famed restaurateur Thomas Keller and Blackstone chief Stephen Schwarzman have in common?

Besides being hugely successful captains in their respective industries, all three are among the US business leaders who will advise the White House's efforts to "chart the path forward toward a future of unparalleled American prosperity."

President Trump announced the names of scores of CEOs, economists and other leaders who will have a voice in his Great American Economic Revival advisory effort, spanning 17 specialty groups. The idea is to get the nation back in business and get past what is widely expected to be one of the worst recessions in modern history. And to do it without resulting in a new spike of coronavirus infections.

Trump's list of leading advisers is long on bosses from household name-brand companies that are publicly traded: Tyson Foods, Bank of America and Microsoft, to name a few.

By contrast, for the monumental task at hand, there are barely any participants currently representing startups or the nation's massive and growing private market—not an insignificant oversight at a time when there is so much on the line for restarting a crippled economy. Apart from Schwarzman and Cuban, the others are Robert Smith of Vista Equity Partners and Doug Leone of Sequoia. Requests for comment from Blackstone and Vista went unreturned; Sequoia declined to comment.

Because of widespread fear and uncertainty, the coming months will challenge even the strongest and most nimble businesses attempting to return to some semblance of normal. It's going to take untold ingenuity and innovation to usher in what Cuban—who says he's toying with running for president—called "America 2.0" in a television interview the other day. "The way we did business before," he added, "is probably going to change."

—Alexander Davis

More coronavirus news: Continuing coverage from PitchBook

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How sovereign wealth funds are moving into private markets

The skyline of Doha, the capital of Qatar, a nation whose Qatar Investment Authority led a $500 million investment in SoFi last year. (Warren Little/Getty Images Sport)

Sovereign wealth funds are becoming more involved in private markets, whether it's allocating to private capital funds or building in-house teams for direct deals of their own.

In the second installment of a series of research notes on the subject, our analysts examine these funds' expanding playbooks, including a close look at the types of investments they are making across sectors and geographies in private equity and venture capital:

read it now

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A message from SS&C Intralinks

Why deal marketing shouldn't be managed on spreadsheets

Are you still relying on slow, inefficient error-prone spreadsheets to manage deal marketing?

Deal marketing can be the most crucial phase of the selling process, where speed, accurate targeting and real-time tracking can make the difference between finding your best buyer or finding yourself with a bad deal.

Read this new whitepaper "Why Deal Marketing Shouldn't Be Managed On Spreadsheets." The authors unpack the Excel baggage you've been lugging to every sale, and provide insights on how you can bring speed, agility and data-driven insights to your next deal.

To download the whitepaper, visit us here

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Ask PitchBook

Wondering how the pandemic is affecting your segment of the private markets? Looking for an explanation of which companies will benefit from government relief programs? Curious about what's driving a recent trend you've noticed?

Send us an email at press@pitchbook.com and the news team will track down the answers you're seeking. Each week, we'll run a story that answers a reader question.

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Recommended Reads

A small town in North Carolina has just one grocery store, and a storm recently wiped out power. How is it dealing with the pandemic? [The Wall Street Journal]

Some tech startups are asking workers to forgo salary for stock. [Bloomberg]

Under lockdown, street artist Banksy targets the inside of his home. [CNN]

Flowers can brighten up moods in dark times, but many florists are disappearing. [New York Magazine]

A firsthand account of the SARS epidemic hints at how the coronavirus outbreak may end. [The New Yorker]

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Today's Headlines


	The Daily Benchmark
	2007 Vintage Global Secondaries Funds
	VC Deals
	Didi Chuxing's bike business banks $1B
	UK greenlights Amazon's investment in Deliveroo
	Trade Republic banks $67M Series B
	Movandi picks up $27M
	Portfolio Companies
	Airbnb lays off contractors, postpones internships
	Vox Media to furlough part of its staff

The Daily Benchmark

2007 Vintage Global Secondaries Funds

Median IRR

7.80%

Top Quartile IRR Hurdle Rate

8.00%

1.38x

Median TVPI

Select top performers

Vintage Ventures III

W Capital Partners Fund II

Pomona Capital VII

*IRR: net of fees

9 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Didi Chuxing's bike business banks $1B

Chinese ridehailing giant Didi Chuxing has raised $1 billion for its bikesharing business, according to Reuters. Dockless bikes saw an explosion in China in recent years; that led to oversupply and the near-collapse of leading providers Ofo and Bluegogo, which Didi acquired in 2018.

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UK greenlights Amazon's investment in Deliveroo

Amazon's investment in food delivery startup Deliveroo has been provisionally cleared by the UK's Competition and Markets Authority. The planned investment, part of a $575 million round announced last May, had spurred antitrust scrutiny. But regulators were swayed by Deliveroo's warnings that it could fail without outside investment. The London-based startup's revenue has fallen off amid lockdown measures that closed large numbers of restaurants, a decline that was not offset by Deliveroo's recent expansion into grocery delivery.

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Trade Republic banks $67M Series B

Trade Republic has raised €62 million (around $67 million) in a round co-led by Accel and Founders Fund. The Berlin-based company is the developer of a commission-free trading platform for stocks, derivatives and exchange-traded fund securities.

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Movandi picks up $27M

Movandi has raised a $27 million Series C led by WRVI Capital, with participation from Cota Capital and DNX Ventures. The Irvine, Calif.-based company is a developer of wireless network technology, including 5G systems and devices.

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Portfolio Companies

Airbnb lays off contractors, postpones internships

Airbnb has decided to postpone its summer internship program, freeze student hiring and significantly reduce the size of its temporary workforce, according to tech news website Protocol. CEO Brian Chesky reportedly made the announcements late last week during a company Q&A video call. Many businesses have canceled summer internships amid the coronavirus outbreak, and a few large tech companies are moving theirs online.

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Vox Media to furlough part of its staff

Vox Media is planning to furlough around 9% of its employees for three months starting May 1, according to reports. Founded in 2005, the digital media company has raised financing from investors including Comcast Ventures, Accel, Khosla Ventures and General Atlantic. It raised $200 million in 2015 at a $1.07 billion valuation, according to PitchBook data.

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Chart of the Day

"The Vision Fund's most unique element is a structured layer of 'preferred equity shares,' which is a major departure from other PE and VC investment funds. The preferred equity shares offer a 7% coupon with semi-annual payments that occur regardless of overall performance of the fund, as well the eventual return of the principal amount—with no potential for equity upside."

Source: PitchBook analyst note on the SoftBank Vision Fund