PitchBook News - Quizlet becomes an edtech unicorn

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The Daily Pitch: VC

May 14, 2020

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

Today's Top Stories

Edtech startup Quizlet achieves unicorn status

Quizlet has raised $30 million in a Series C led by General Atlantic, propelling the online learning startup to a $1 billion valuation.

The San Francisco-based startup said the funds would be used to invest in its data science and machine learning capabilities. Specifically, the company is looking to grow Quizlet Learn, an AI-powered tutor that can adapt to students' individual needs and provide feedback.

Quizlet, which is known for digital flashcards, recently added features for remote learning and made its education service free for teachers in response to the coronavirus pandemic. The company's platform has more than 50 million active users a month.

As the pandemic has forced a shift to online learning, educational technology has gained renewed attention. The category attracted more than $2 billion in venture funding in the first quarter of 2020, the largest quarterly capital infusion in more than a year, according to PitchBook data. China's Yuanfudao led the funding drive with a $1 billion round, followed by Indian startup Byju's, with $400 million in financing.

More coronavirus news: Continuing coverage from PitchBook

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Carlyle's fight with AmEx Global shows perils of COVID-19 for dealmakers

A recent lawsuit filed in Delaware Chancery Court argues that the pandemic doesn't free The Carlyle Group from a planned $1 billion investment. (William Thomas Cain/Getty Images)

As the coronavirus has swept across the US, a growing list of PE firms have canceled deals struck before the pandemic hit. Overall, at least a half-dozen private equity deals in the US have been called off so far in 2020, according to PitchBook data.

And sellers are beginning to push back—in at least one case, by heading to court in hopes of forcing a buyout giant to complete a 10-figure investment:

Recommended Reads

Bookstores in the US are taking different stances on how and when to open back up, a microcosm of the decisions small businesses across the nation are now forced to make. [The New York Times]

As an all-enveloping crisis spreads across the globe, the doomsday bunker business is booming. [The Verge]

A first-person account from a Silicon Valley startup worker on being fired via Zoom in the midst of a pandemic. [The Atlantic]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2007 Vintage Global Secondaries Funds
	VC Deals
	SirionLabs pulls in $44M Series C
	Semperis secures $40M
	Luminary raises $30M+, sees valuation drop
	M12, Tiger Global lead $30M round for FortressIQ
	Portfolio Companies
	Telegram pulls plug on crypto project
	Exits
	VMware to buy VC-backed security startup

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

SirionLabs pulls in $44M Series C

SirionLabs has raised $44 million in a round co-led by Tiger Global and Avatar Growth Capital. The New York-based company is the developer of a contract lifecycle management platform that helps companies including Vodafone, Unilever and Credit Suisse process digital contracts and validate invoices.

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Semperis secures $40M

Insight Partners has led a $40 million Series B for Semperis, the New York-based developer of a cybersecurity platform designed to identify risks and manage data breaches for government agencies and other organizations. SilverTech Ventures partner Charlie Federman and Teddie Wardi, a managing director at Insight Partners, will join the company's board.

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Luminary raises $30M+, sees valuation drop

Podcasting startup Luminary Media has brought in more than $30 million at a valuation that falls below the $200 million it claimed last year, according to Bloomberg. The New York-based company is reportedly cutting costs and trying to secure additional funds as it struggles to attract paid subscribers. Backed by investors including NEA and Sinai Ventures, Luminary is believed to have raised some $130 million in prior funding.

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M12, Tiger Global lead $30M round for FortressIQ

FortressIQ has raised a $30 million Series B co-led by M12 and Tiger Global. Founded in 2017, the San Francisco-based company is the developer of a cognitive automation platform that analyzes business processes. Existing investors Boldstart Ventures, Comcast Ventures, Eniac Ventures and Lightspeed also participated in the round.

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Portfolio Companies

Telegram pulls plug on crypto project

Telegram has shut the door on its blockchain platform and cryptocurrency project following a court battle with the SEC. Telegram had raised about $1.7 billion for the effort, but those plans were put on hold after the SEC sued the Dubai-based company last October, alleging it had not registered the digital token offering with the regulator.

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Exits

VMware to buy VC-backed security startup

Enterprise software developer VMware has agreed to buy security platform provider Octarine. VMware will combine the business with Carbon Black, an endpoint security specialist it acquired in October for $2.1 billion. Based in California, Octarine has received prior backing from investors including Accel, Battery Ventures and Liberty Technology Venture Capital.

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Chart of the Day

"AUM for each of these managers is expected to rise in the coming quarters despite the lower valuations. First, with realizations slowing to a trickle, the GPs will be holding on to their assets longer, and the assets that would typically be flowing back to LPs will remain under these managers' stewardship for a while longer. Secondly, fundraising news has been relatively positive, and these managers are attracting significant capital."

Source: PitchBook analyst note on public PE firm earnings in Q1 2020