AI fuels VC's information security surge

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The Daily Pitch: VC

July 29, 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:

How generative AI is fueling a surge in VC funding for information security

The most active investors in foodtech

These 10 VC-backed hydrogen storage companies have raised the most capital

Apollo's $6.3 billion take-private deal will combine Everi and an IGT division into a new gambling company

Today's Top Stories

VC funding for information security surges amid AI demand

Information security startups brought in $3.6 billion in VC funding in the second quarter—a more than 20% increase over Q1, according to our latest Emerging Tech Research.

Propelling the surge is a demand for more advanced security measures as generative AI continues to evolve, with more startups experimenting with applications for threat detection and security testing. Our analysts cover the trends, deals and emerging opportunities in the sector.

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The most active investors in foodtech

(Oscar Wong/Getty Images)

Chinese VCs lead our latest ranking of the most active investors in the foodtech category.

While the sector has stagnated over the past two years, it's been buoyed by some recent large funding rounds.

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The 10 hydrogen storage startups with the most VC cash

(Paul Glaser/Getty Images)

Playground Global-backed Universal Hydrogen raised nearly $100 million from VCs on the promise to build and scale carbon-free, hydrogen-powered flights.

That dream took a nosedive this summer: After failing to secure capital or close a fire sale, the cleantech company went into a liquidation process.

Is this an anomaly or a sign of what's to come? These are the 10 VC-backed hydrogen storage companies that have raised the most capital since their founding, according to PitchBook data.

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Apollo bets on Everi, IGT unit in $6B+ gambling take-private

(Jonathan Knowles/Getty Images)

Apollo Global Management has struck a deal to acquire IGT's Gaming & Digital business as well as Everi for $6.3 billion, forming a new Las Vegas-based gambling company.

The deal comes as companies in the sector are making public-market gains, which means increased competition.

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AI helps boost European VC in Q2

European VC dealmaking ticked upward in the second quarter amid a recovery in valuations. AI deals saw notable growth, doubling in total value from Q1 to €4.2 billion, according to our Q2 2024 European Venture Report, sponsored by J.P. Morgan. In all, AI companies pulled in €6.3 billion in H1, making it the most-active sector after SaaS.

While there were some bright spots in the IPO market—including the listing of Dutch robotics company RanMarine Technology and Swedish fintech specialist GreenMerc—the exit market remains mixed. So far this year, acquisitions have accounted for 85.6% of VC-backed exit value.

Fundraising in H1 totaled €9.4 billion, with the France and Benelux region accounting for the largest share of capital raised, displacing the UK and Ireland for the first time since 2018.

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Benchmark PE performance with our new dashboard

Our new buyout replication portfolio dashboard captures the fundamental characteristics of PE investing within a portfolio of public stocks—including sector selection, leverage and security selection.

LPs can use the dashboard to benchmark buyout funds—in a way that better captures their risk-and-return profile than when using standard indexes, such as the S&P 500 or Russell 2000. An analysis using public market equivalents reveals that buyout funds launched in 2014 through 2017 performed mainly in line with the buyout replication portfolio.

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Since yesterday, the PitchBook Platform added:

5

VC valuations

185

People

91

Companies

1

Funds

See what our data software can do

The Daily Benchmark:
2018 Vintage European Debt Funds

Median IRR

10.96%

Top Quartile IRR

14.57%

0.82x

Median DPI

Select top performers

ICG Europe VII

VGO Special Situations Fund II

Alchemy Special Opportunities Fund IV

*IRR: net of fees

23 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Applied Intuition, a vehicle software specialist, raised more than $300 million in a secondary round from investors including Fidelity Management & Research.

Cowbell, a Zurich-based cyber insurance startup, raised a $60 million Series C led by Zurich Insurance Group.

Confo Therapeutics, a Belgium-based clinical-stage drug discovery company, raised a €60 million Series B. Ackermans & van Haaren led the round.

TRiCares, a medical device specialist based in France and Germany, raised a $50 million Series D from a single undisclosed investor.

ZeroTier, a cybersecurity startup, raised a $13.5 million Series A led by Battery Ventures.

Fractile, a UK-based machine learning and AI computing hardware developer, raised $15 million in a round co-led by Kindred Capital, NATO Innovation Fund and Oxford Science Enterprises.

Greenely, a Swedish energy company, raised an €8 million Series A to expand its energy management platform into neighboring Nordic countries.

PE Deals

Kestra Medical Technologies, a developer of wearable medical devices, raised $196 million in financing from investors including Andera Partners, Ally Bridge Group and Longitude Capital.

National Gas, a UK-based company operating the national gas transmission system, will sell a 20% stake to Macquarie Asset Management, giving the firm full ownership of the company.

Main Capital Partners has invested in MPS Public Solutions, a German software provider for the public administration and social care sector.

MillenniTek, a materials supplier for nuclear energy companies, has been acquired by PE firm Pelican Energy Partners.

Exits & IPOs

Quantinuum, a startup majority owned by Honeywell developing quantum computing applications, may be seeking an IPO, Bloomberg reported.

Clutch, a startup connecting brands to digital marketing creators, has been acquired by online marketing specialist Plaiced, TechCrunch reported.

Security Innovation, a cybersecurity company designing risk management software, has been acquired by Paris-based publicly listed testing and inspection company Bureau Veritas.

Fiberklaar, a company providing fiber services to the Flemish region in Belgium, has been sold to Proximus. The telecom operator acquired EQT's majority stake.

Investors

Sony Music has received a $700 million capital solution to continue to invest in the music industry led by Apollo Global Management.

Chart of the Day

Source: Blackstone hooks Japan’s wealthy in $1.2B PE raise

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AI fuels VC's information security surge

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