PitchBook News - Predicting VC's response to a crisis

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The Daily Pitch: VC

April 29, 2020

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

Today's Top Stories

In the trenches: How venture funds act and perform in times of crisis

(Sean Gladwell/Moment/Getty Images)

Every market cycle is different. But past crises can offer valuable lessons about how VC players may approach the current moment.

The latest research note from PitchBook's venture analysts examines historical fund data to provide insight into how GPs tend to respond to times of broader economic duress. Key takeaways include:

Many VC funds are likely to shift capital deployment this year, focusing on supporting existing portfolio companies
PitchBook VC analysts believe older vintages are more at risk now than during the last financial crisis
Net cash flows to LPs could turn negative in 2020 after a multiyear stretch of robust distributions

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More coronavirus news: Continuing coverage from PitchBook

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Elizabeth Warren, Alexandria Ocasio-Cortez want mergers halted due to COVID-19

Sen. Elizabeth Warren speaks in Detroit in March, shortly before ending her presidential campaign. (Scott Olsen/Getty Images News)

Sen. Elizabeth Warren (D-Mass.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) have introduced a plan to halt large mergers and acquisitions through the duration of the coronavirus pandemic, the progressive pair's latest bid to rein in what they see as predatory behavior from private equity firms and corporations.

Dubbed the Pandemic Anti-Monopoly Act, the legislation would place a moratorium on takeovers involving companies with over $100 million in revenue and financial institutions with a market cap exceeding $100 million:

Recommended Reads

Airbnb was born amid the chaos of the last global financial crisis. Will it be able to thrive in this one? [Bloomberg]

Examining the relationship between Goldman Sachs and 1Malaysia Development Berhad, the sovereign wealth fund behind one of the biggest and most brazen financial scandals of all time. [Harper's]

Evidence is beginning to mount that the American retail and restaurant industries may never be the same in the wake of the coronavirus pandemic. [The Atlantic]

Since yesterday, the PitchBook Platform added:

8

VC valuations

1298

People

375

Companies

14

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2005 Vintage Global Real Assets Funds
	People
	Bain Capital Ventures adds venture partner
	VC Deals
	Cheetah bounds off with $36M Series B
	3D printing startup nabs $28M
	AtaCor Medical reels in $25M Series B
	Amply Power secures $13.2M
	Spark Capital leads $25M Series B for Catalyst
	Tecton emerges from stealth with $25M in new funding
	Portfolio Companies
	Deliveroo to lay off 367 employees, furlough 50
	Exits
	Social Capital blank-check IPO brings in $360M
	Rapid7 to buy DivvyCloud for $145M
	Fundraising
	Partech Partners brings in $100M for seed investments
	Investors
	FIS launches $150 million venture arm

The Daily Benchmark

2005 Vintage Global Real Assets Funds

Median IRR

1.26%

Top Quartile IRR Hurdle Rate

5.00%

1.01x

Median TVPI

Select top performers

Och-Ziff Real Estate Fund

Westbrook Real Estate Partners V

SCF-VI

*IRR: net of fees

32 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Webinar: VC in the context of COVID-19

Join PitchBook and NVCA for a panel discussion on developing trends in US venture capital, as highlighted in the Q1 2020 PitchBook-NVCA Venture Monitor. Featuring industry experts from Silicon Valley Bank, Carta, PitchBook and NVCA, the conversation will cover the latest in fundraising, deal flow and exit activity in the context of COVID-19 and market volatility.

The webinar will be held on May 6 at 9 a.m. PT/12 p.m. ET

Register here

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People

Bain Capital Ventures adds venture partner

Clelia Warburg Peters has joined Bain Capital Ventures as a venture partner. In her new role, she will identify investments in property tech companies and work with their founders. Warburg Peters co-founded MetaProp, a seed-stage venture firm focused on real estate tech, in 2015. Bain Capital Ventures makes investments of between $1 million and $100 million in a wide range of industries, including SaaS, fintech and healthcare.

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VC Deals

Cheetah bounds off with $36M Series B

Cheetah, the operator of a contactless platform for pickup and delivery of groceries and other supplies, has raised $36 million in a round led by Eclipse Ventures. Iconiq Capital, Hanaco Ventures and Floodgate Fund also participated. The San Francisco-based startup was valued at $180 million in January 2019, according to PitchBook data. In response to the pandemic, Cheetah is offering drive-through locations where customers in the Bay Area can pick up items.

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3D printing startup nabs $28M

Velo3D has raised a $28 million Series D from investors including Piva, Playground and Khosla Ventures. The company offers 3D printing machines and related software designed for manufacturing; it was valued at $225 million in 2018, according to PitchBook data.

Additional Investors:

TNSC, Bessemer Investment Partners

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AtaCor Medical reels in $25M Series B

Medical device startup AtaCor Medical has raised $25 million from investors including Hatteras Venture Partners, Catalyst Health Ventures and Longview Ventures. The funds will help the company bring to market an extracardiac pacing system that's designed to be less intrusive than standard pacemakers. AtaCor was valued at $17.8 million with an $8.8 million round in 2018, according to PitchBook data.

Additional Investors:

Broadview Ventures, aMoon Fund

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Amply Power secures $13.2M

Amply Power has collected $13.2 million in Series A funding from backers including Soros Fund Management and Siemens. Founded in 2018 and based in Mountain View, Calif., the startup provides charging services for fleets of electric buses, trucks and passenger vehicles.

Additional Investors:

Obvious Ventures, Congruent Ventures, PeopleFund

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Spark Capital leads $25M Series B for Catalyst

Catalyst, a provider of customer management software, has raised $25 million in a Series B led by Spark Capital. Based in New York, the startup has also announced the launch of a new website and a logo rebrand. Catalyst was valued at $50 million with a $15 million round last July, according to PitchBook data.

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Tecton emerges from stealth with $25M in new funding

Andreessen Horowitz and Sequoia have co-led a $25 million seed and Series A financing for Tecton, the developer of a machine learning platform that helps companies manage business operations. Tecton was co-founded by CEO Michael Del Balso, a former product manager at Uber. A16z general partner Martin Casado and Matt Miller, a partner at Sequoia, have joined Tecton's board.

Portfolio Companies

Deliveroo to lay off 367 employees, furlough 50

Food delivery startup Deliveroo plans to shed 367 staff members and furlough 50 employees, according to The Telegraph. The decision comes just over a week after the UK's Competition and Markets Authority provisionally cleared an investment by Amazon, which led a $575 million round in the London-based company last May. Also backed by investors including T. Rowe Price and Fidelity, Deliveroo is valued at about $4 billion, according to a PitchBook estimate.

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Exits

Social Capital blank-check IPO brings in $360M

Special purpose acquisition company Social Capital Hedosophia Holdings Corp. II has raised $360 million in a blank-check IPO. The corporation, which plans to invest in US tech businesses, is a partnership between Social Capital founder Chamath Palihapitiya and Hedosophia CEO and co-founder Ian Osborne. Virgin Galactic was taken public in October through a related investment vehicle called Social Capital Hedosophia.

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Rapid7 to buy DivvyCloud for $145M

Security analytics company Rapid7 plans to acquire DivvyCloud, a cloud security posture management startup, in a cash-and-stock deal worth around $145 million. Arlington, Va.-based DivvyCloud was valued at $80 million last May, according to PitchBook data, and has received backing from investors including RTP Ventures, Providence Equity Partners and MissionOG.

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Fundraising

Partech Partners brings in $100M for seed investments

Partech Partners has closed its third seed fund on $100 million. The vehicle will target startups that focus on health, work, commerce, finance, mobility and computing. The French firm will invest at the pre-seed to pre-Series A stages, with the possibility of follow-on transactions. Partech's seed funds have raised more than $300 million to date.

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View 316 investments »

Investors

FIS launches $150 million venture arm

Payment services provider FIS has launched a new corporate venture division called FIS Ventures, with $150 million to invest in fintech startups over three years. The new effort invested in African startup Flutterwave in January, and in conjunction with that financing, Flutterwave partnered with FIS-owned Worldpay.

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View 38 investments »

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