PitchBook News - VC funds struggle for a foothold

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The Daily Pitch: VC

August 14, 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:

Quantitative Perspectives: While buyout funds are poised for a bounce-back, VC vehicles are still struggling to stop the fall

AI and machine learning are sopping up more than 40% of all US VC deal value

A Canadian pension plan capitalizes on soaring demand for data center capacity

Vista Equity Partners breaks its take-private streak with the acquisition of Jaggaer

Our analysts explore how startups can continue to innovate in the gaming space

Today's Top Stories

All eyes on the Fed in September

As investors lick their wounds from August's stock market volatility and a weak jobs report for July, many are now turning their attention to whether the Federal Reserve will finally cut interest rates for the first time since 2020. Meanwhile, buyout fund returns are on track for a bounce-back year, while private debt and infrastructure continue to attract LP dollars.

With 80 pages of charts, our latest Quantitative Perspectives report peers into PE, VC, real estate, real assets and debt through a macroeconomic lens.

read the report

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AI eats up over 40% of US VC deal value as Big Tech bucks roll in

(Say-Cheese/Getty Images)

The AI and machine learning sector accounts for more than 40% of all US VC deal value, according to the latest PitchBook-NVCA Venture Monitor. But this masks a more challenging VC environment overall, PitchBook analyst Kyle Stanford says.

"There's caution in the market," he said. "These deals aren't coming from VC firms."

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How VC could switch up the gaming space

The gaming sector is stabilizing, with $1.8 billion invested across 136 deals in Q2 2024, according to our latest Emerging Tech Research. Several gaming-specific funds have emerged over the first half, and early-stage startups continue to receive healthy investments.

The report covers ways startups can continue to innovate—highlighting Stash, a company helping to make integrated storefronts more accessible for game developers.

read the preview

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EliseAI becomes proptech unicorn with Sapphire-led $75M

(Thomas Winz/Getty Images)

EliseAI, a startup bringing generative AI to rental property management, has hit unicorn status today with a $75 million Series D led by Sapphire Ventures. The round is the latest example of a domain-specific AI company gaining traction. Investors have advised AI startups to pick their spots carefully to survive in an arena dominated by large players.

While many chatbots boast breadth at the expense of depth, CEO Minna Song touts the company's laser focus on real estate: "We can run a building," she said.

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A Canadian pension bets on digital infrastructure's momentum

(Nathan Howard/Getty Images)

A Canadian pension plan's latest investment capitalizes digital infrastructure's momentum.

The University Pension Plan Ontario, which manages $11.7 billion on behalf of four Ontario-based universities, completed a co-investment alongside Quinbrook Infrastructure Partners in data center developer Rowan Digital Infrastructure.

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Vista breaks its take-private streak with enterprise software acquisition

(Andriy Onufriyenko/Getty Images)

Vista Equity Partners broke its flagship fund's take-private streak with the acquisition of Jaggaer, a developer of enterprise procurement and supplier collaboration software, in an example of private equity's deepening foothold in enterprise software.

The deal capitalizes on an exception to the widespread lethargy in private market dealmaking: enterprise SaaS.

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Since yesterday, the PitchBook Platform added:

12

VC valuations

2051

People

550

Companies

29

Funds

See what our data software can do

The Daily Benchmark:
2018 Vintage Global PE Funds

Median IRR

17.52%

Top Quartile IRR

25.30%

0.37x

Median DPI

Select top performers

SSC Partners I

Greenbriar Equity Fund IV

Bain Capital Asia Fund IV

*IRR: net of fees

156 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Moximed, a Bay Area-based medtech startup developing devices for knee arthritis, raised a $61 million Series D led by Elevage Medical Technologies.

Plan-S, a Turkey-based space technology company, is aiming to raise $40 million from the investment arm of Ziraat Bank in a round that would value the company at $400 million, Bloomberg reported.

PayZen, a fintech startup providing a way to pay medical expenses in installments over time, raised a $32 million Series B led by NEA that values the company around $200 million, TechCrunch reported.

Setpoint, a company developing credit and asset management software, raised a $31 million Series B led by 645 Ventures.

Encord, a startup developing a platform to prepare data for use in AI models, raised a $30 million Series B led by Next47, TechCrunch reported.

MD Ally, a company that specializes in the diversion of non-emergency care away from emergency rooms, raised a $14 million Series A led by Frist Cressey Ventures, Axios reported.

Frvr, a Lisbon-based online game company, raised €11.6 million in a round led by Iberis Capital.

Collo, a Finnish developer of liquid analyzer technology, secured €5 million in a round led by SEB Greentech Venture Capital and Forward.one.

PE Deals

Vantive, the kidney care segment owned by NYSE-listed Baxter International, has been acquired by The Carlyle Group for $3.8 billion.

CVC Capital Partners picked up a stake in Epicor, an enterprise software provider backed by Clayton, Dubilier & Rice. CVC will have equal board seats to CD&R.

Advent International agreed to acquire South African enterprise resource planning software provider Syspro.

Australian packaging manufacturer Orora turned down a $2.25 billion take-private offer from Lone Star Funds, saying offer undervalued the company.

Innova Capital acquired a majority stake in Tutore, a Polish private education platform. The deal includes the acquisitions of the International Language Institute and ESL Brains.

Premier Logitech, a logistics company servicing the electronics supply chain, has been acquired by Tide Rock.

Healthcare Global Enterprises, an India-based hospital chain, is in talks to be acquired by Bain Capital in a deal that would see CVC Capital Partners sell its controlling stake, Bloomberg reported.

AMCS, an Ireland-based company developing integrated software for the waste management industry, will be acquired by EQT, Bloomberg reported.

Stewardship Health, the managed-care business of Steward Health Care, is being sold to Kinderhook Industries for $245 million.

Exits & IPOs

The Carlyle Group is preparing to exit from Dutch salt and chemicals producer Nobian, the Financial Times reported. The sales process is expected to begin in 2025 as the PE firm holds discussions with investment banks.

QGenda, which specializes in workplace management software for healthcare, has been sold to Hearst by Francisco Partners for over $2 billion, The Wall Street Journal reported.

Clarion, a London-based event organizing company, is in talks to be sold by owning firm Blackstone in a deal that could value the company as much as $2.6 billion, Reuters reported.

Fundraising

Antler, a Singapore-based VC firm, raised $72 million at the close of its latest fund targeted at early-stage companies across Southeast Asia.

Chart of the Day

Source: AI-powered legal-tech startups cut the hype, gain more traction

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PitchBook News - VC funds struggle for a foothold

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