PitchBook News - Users flock to AR despite stumbles

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PitchBook

The Daily Pitch: VC

April 27, 2020

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

Today's Top Stories

A major AR startup stumbled, but users are flocking to the technology

Demand for VR and AR products has risen as millions shelter in place. (Westend61/Getty Images)

Magic Leap decided last week to abandon its consumer ambitions, laying off half its staff. But for many virtual and augmented reality companies, business is booming.

Popular headsets are sold out, and investors say their portfolio companies are seeing an influx of users. They're coming for games, yes, but also to exercise, spend time with friends and even get healthcare, as life under lockdown continues:

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What are LPs saying about next year's VC funds? [The Information]

Dangerous conspiracy theories are flourishing amid the global upheaval that comes with a pandemic. [The New Yorker]

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Since yesterday, the PitchBook Platform added:

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VC valuations

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People

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Companies

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Quick Takes


	The Daily Benchmark
	2002 Vintage Global PE Funds
	VC Deals
	Chickpea protein startup bags $15M
	Igloo picks up $8.2M
	Portfolio Companies
	Oscar cuts 5% of staff amid cost-saving efforts
	Exits
	Oric Pharmaceuticals' stock pops after debut

The Daily Benchmark

2002 Vintage Global PE Funds

Median IRR

17.01%

Top Quartile IRR Hurdle Rate

26.78%

1.80

Median TVPI

Select top performers

Lime Rock Partners II

OCM Opportunities Fund IVb

Charterhouse Capital Partners VII

*IRR: net of fees

35 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Chickpea protein startup bags $15M

Jerusalem Venture Partners has led a $15 million investment in InnovoPro. The startup produces protein from chickpeas that can be used in dairy, meat and mayonnaise substitutes. The capital will go in part toward boosting the company's production.

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Igloo picks up $8.2M

Singapore-based Igloo (formerly Axinan) has raised $8.2 million in a round led by InVent, with participation from Openspace Ventures and Linear Capital, according to TechCrunch. The company offers personal insurance products to consumers across Southeast Asia and Australia.

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Portfolio Companies

Oscar cuts 5% of staff amid cost-saving efforts

Oscar Health has announced it's laying off about 5% of its employees in an effort to cut costs, according to a LinkedIn post from CEO Mario Schlosser. The health insurance startup has raised over $1 billion from investors, including co-founder Joshua Kushner's Thrive Capital and Alphabet. The company also slashed executive compensation, as well as vendor and perks spending. Despite the cuts, Schlosser said the company will meet its "ambitious goals" set in January.

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Exits

Oric Pharmaceuticals' stock pops after debut

Oric Pharmaceuticals has gone public, raising $80 million by selling 5 million shares for $16 apiece. Stock in Oric (Nasdaq: ORIC) closed up Friday more than 61% at $25.77, giving the company a market cap of about $710 million. Oric is a clinical-stage developer of cancer treatments; it had received prior VC funding from backers including The Column Group (22.39% pre-IPO stake), Topspin Fund (15.56%) and OrbiMed (11.67%).

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Chart of the Day

"Deal value involving CVC participation reached €3.4 billion during Q1 2020. The figure was lower than the quarterly average across 2019 and looks set to fall further heading into the rest of 2020. ... Global economic downturns are felt faster in more liquid public equities, and as focus quickly shifts to protection of core assets and revenue streams, CVC investment is likely to fall consequently."

Source: PitchBook's Q1 2020 European Venture Report