Feast, famine for public healthcare services

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The Daily Pitch: VC

July 15, 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 Q2 valuations data for public companies in the fintech and payments and healthcare services sectors

PE managers are beginning to redirect capital toward deals in pharma services

Our analysts find VC defense-tech dealmaking is holding its ground, and may mount a surge

Today's Top Stories

Thomas Tull's firm leads $80M round for Halo in AI picks-and-shovels bet

(SweetBunFactory/Getty Images)

Billionaire Thomas Tull's latest AI play is Halo Industries, a startup developing novel ways to make silicon wafers for semiconductors.

Tull's US Innovative Technology Fund led an $80 million Series B for Halo that valued the company at $300 million post-money, founder Andrei Iancu told PitchBook exclusively.

Venture capitalists—especially corporate VCs with strategic partnerships in mind—have flooded into next-generation semiconductor startups, driving up valuations in a segment where many companies have little to no revenue.

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Secondary valuations rise for Klarna, Stripe, Chime as fintech stocks waver

Fintech's notable IPO hopefuls, Klarna, Stripe and Chime, appear to be passing on 2024 debuts. IPO enthusiasm from investors has nonetheless boosted their valuations in secondary markets: Stripe's has swung from $50 billion in its last raise up to $103.6 billion.

That's despite public fintech companies' weakened performance overall in Q2. Medium-growth and legacy fintech stocks kept above water, while high-growth payments companies sank the most out of the sector, with sustained high interest rates putting a heavier pressure on their performance.

Our Q2 2024 Fintech & Payments Public Comp Sheet and Valuation Guide tracks stock performance, valuations, and market caps for key publicly traded companies.

see the data

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Surveying ESG and impact investing practices

We've launched our revamped 2024 Sustainable Investment Survey to take a closer look at what investors are doing and why—including the current events influencing sustainable investing practices.

We would also like to hear what the term "ESG" means to private market participants and whether concessionary returns are implicit in impact investing. We invite you to share your firm's approach.

All who complete the roughly 10-minute survey will have the opportunity to enter a prize drawing, and for each completion, PitchBook will make a donation to World Central Kitchen.

take the survey

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Defense tech holds down the fort

Despite a slowdown in VC dealmaking in the past year, defense tech remains a resilient market—with over $9 billion invested across 228 deals so far in 2024, according to our recent Emerging Tech Research. With 35 exits completed, the sector is on track for an upswing compared with other languishing industries.

Defense-tech startups receive support from programs such as the Defense Innovation Unit, which offers startups a chance to engage directly with national security initiatives. Our analysts highlight the opportunity for VC-backed innovation to expand the US defense industrial base, and provide an overview of industry dynamics, key players and deal activity.

read the preview

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Since yesterday, the PitchBook Platform added:

5

VC valuations

465

People

125

Companies

14

Funds

See what our data software can do

The Daily Benchmark:
2020 Vintage Global Funds-of-Funds

Median IRR

9.40%

Top Quartile IRR

14.71%

0.05x

Median DPI

Select top performers

Banner Ridge DSCO Fund I

RCP SBO Opportunities Fund

PA Small Co Private Equity Fund IX

*IRR: net of fees

34 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Headway, a startup helping to connect people to mental health care, is raising a $100 million round led by Spark Capital that would value the company at $2.3 billion, Bloomberg reported.

Standard Bots, a New York-based startup developing AI-powered robots, has raised a total of $63 million across multiple rounds, including a $39 million Series B led by General Catalyst, Bloomberg reported.

Partior, a Singapore-based blockchain cross-border payments startup, raised a $60 million Series B led by Peak XV Partners.

HerculesAI, a startup developing AI tools for law firms and other businesses, raised a $26 million Series B led by Streamlined Ventures.

Mantle, a startup manufacturing 3D printers, raised a $20 million Series C led by Schooner Capital.

Miridih, the South Korean developer of design platform MiriCanvas, has raised 20 billion Korean won (around $15 million) in a Series B.

Spotlight Medical, a Paris-based startup developing AI-driven prognosis tests for cancer patients, has raised a €6.2 million seed round led by Kurma Partners and Heal Capital.

PE Deals

KKR is negotiating the possible break up of media group Axel Springer with its CEO Mathias Döpfner, the Financial Times reported. Under the term of the proposed deal, the largest shareholders, KKR and the Canada Pension Plan Investment Board, would take control of the group's portfolio of classifieds websites.

TA Associates picked up a stake in Indian diversified lending specialist Vastu Housing Finance.

Global Infrastructure Partners and Stonepeak are among the investors looking to buy a 40% stake in Australian energy group Jemena from Singapore Power at a $10 billion valuation, Reuters reported.

Sensio, a Norway-based healthtech company specializing in care for older adults, agreed to be acquired by Nordic Capital.

Martin Midstream, a Nasdaq-listed energy transportation company, received an offer to be acquired by Nut Tree Capital and Caspian Capital in a take-private deal valuing the company at around $156 million, Reuters reported.

Bluegrass Fitness, an affiliate of Manna Capital Partners, has acquired 18 fitness studios in Florida from Orangetheory Fitness.

Ares Management and Griffin Capital Partners made a follow-on investment in LifeSpot, a long-term rental housing provider in Poland.

IK Partners invested in Boma, a B2B distributor of hygiene products and machines serving the Benelux region and France.

Exits & IPOs

Graphcore, a UK-based AI chip manufacturer, has been acquired by SoftBank Group after struggling to compete with rival Nvidia. Graphcore's previous backers include Sequoia, DCVC and Atomico.

China Merchants Capital and KKR are both considering a sale of Loscam Asia Pacific, which makes pallets for the transportation of goods. Loscam could be sold for around $2 billion to $2.5 billion, Bloomberg reported.

Porto Sudeste, a Rio de Janeiro-based iron ore port terminal, could be sold by Trafigura Group and Mubadala, Bloomberg reported.

Fundraising

PAG, a Hong Kong-based PE firm, has raised about 3 billion yuan (roughly $414 million) for a China-based PE fund, and is looking to raise up to $1 billion more for a new fund targeted at firms seeking PE exposure in China, Bloomberg reported.

Shield Capital, a VC firm investing in startups tackling national security challenges, is targeting $700 million for its second fund, according to SEC filings, after closing its first fund on $186 million last year.

Alpine Space Ventures, a Munich-based VC firm targeting investments in space technology across Europe, raised €170 million for its first fund.

Chart of the Day

Source: Why some European startups are picking debt over equity

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Feast, famine for public healthcare services

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