PitchBook News - AI ripens farm management tech

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The Daily Pitch: VC

August 20, 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:

VC exits are on the rise as our analysts check up on the medtech sector

AI integration ripens farm management technology for VC investment

AI is inflating VC valuations, capturing nearly half of total deal value in Q2

Does steady investment in European healthcare services spell recovery for the sector?

Today's Top Stories

Latest AI helps manage crops, livestock

The market for farm management software is ripe with opportunities, including the wider adoption of AI. VCs are investing in tech specialists across a variety of segments in the space—with $4.3 billion spread across 505 deals since the period starting in Q1 2021, according to our latest analyst note.

New AI technologies have the farming software sector poised for growth—increasing the accuracy of predictions for crop yields, livestock health, planting schedules, soil quality and more. This enables farmers to make clearer decisions, enhance risk management and reduce waste.

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Medtech exits test a new future

VC dealmaking in the medtech industry dipped in Q2, but activity is still on track to surpass last year and VC exits are on the rise, according to our latest Emerging Tech Research.

Startups generated $3.3 billion across 206 deals—declines of 7% and 3.3%, respectively, from the first quarter. Notable fundraises in Q2 included molecular testing provider BillionToOne raising a $130 million Series D and ultrasound device specialist Insightec securing $150 million.

PitchBook senior analyst Aaron DeGagne also highlights emerging opportunities in the heart arrhythmia and sepsis testing sectors.

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Extended slowdown forces startups back to market

AI is artificially inflating valuation numbers across VC, with the sector capturing nearly 50% of total deal value in Q2. But flat and down rounds are at a decade high and valuation step-ups between rounds have softened, according to our Q2 2024 US VC Valuations Report, sponsored by Morgan Stanley at Work and Forge Global.

On the public markets side, price/sales ratios are stagnating, and recently listed SaaS and consumer tech stocks haven't performed as well as expected. So as more startups that last raised during the pandemic highs come back to market, investors shouldn't bet on seeing a windfall anytime soon.

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Femtech startups appear on track for record VC funding

(Courtesy of Flo Health)

At their current pace, femtech startups could raise a record amount of venture funding this year thanks to several mega-rounds.

Investor interest in the sector has steadily grown in recent years as recognition expands for women's healthcare needs.

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Since yesterday, the PitchBook Platform added:

7

VC valuations

1473

People

464

Companies

23

Funds

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The Daily Benchmark:
2020 Vintage Global Real Estate Funds

Median IRR

8.30%

Top Quartile IRR

14.88%

0.17x

Median DPI

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Turnberry Portfolio

Mavik Real Estate Special Opportunities Fund

PGIM Real Estate US Impact Value Partners

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People

Arielle Gross Samuels, the current global head of marketing at Blackstone, will leave to join General Catalyst as chief marketing and communications officer, The Wall Street Journal reported. Samuels previously worked at Meta for nine years.

VC Deals

Fabric Cryptography, a startup developing hardware including computing chips, raised a $33 million Series A led by Blockchain Capital and 1kx.

New York-based Levels, which designs medical devices to track metabolic data, raised a $10 million Series A extension from Long Journey and Andreessen Horowitz.

ModelOp, a company developing software for enterprise AI governance, raised a $10 million Series B led by Baird Capital.

Root, a Berlin-based provider of a climate operating system for the food industry, received an €8 million seed investment led by Point Nine Capital.

Waza, an African cross-border payments startup, has raised $8 million in seed funding and emerged from stealth. The company's backers include Y Combinator, Byld Ventures and Norrsken Africa.

PE Deals

CVC Capital Partners is among the potential suitors looking to acquire UK audit firm Grant Thornton, Sky News reported. A deal could value the business between £1 billion and £2 billion.

Warburg Pincus acquired Mumbai-based furniture hardware maker Ebco for 30 billion Indian rupees (around $358 million).

Certain assets belonging to Caerus Oil and Gas were acquired by Quantum Capital Group for about $1.8 billion.

Continuum Green Energy, a renewable energy company based in India, received a $150 million investment from Just Climate.

Edglrd, a media studio developing video games, films and other content, received an investment from Reuben Brothers, Bloomberg reported.

Iconectiv, a network and data management service provider, was acquired by Koch Equity Development from Nasdaq-listed Ericsson for about $1 billion.

Snak King, a packaged snack manufacturer, received an investment from Falfurrias Capital Partners.

Exits & IPOs

ZT Systems, a New Jersey-based company making computers for use in data centers, agreed to be acquired by AMD for $4.9 billion.

Europa Sports Partners, a distributor of sports nutrition products, was acquired by Nasdaq-listed Prenetics.

Shipsta, a company developing software for freight logistics procurement, was acquired by Nasdaq-listed Freightos.

InfraRed Capital Partners has agreed to sell a minority stake in the Twin Peaks onshore wind farm in Sweden to local infrastructure investor Infranode.

Corporate M&A

Seven & I, the Tokyo-based holding company that owns 7-Eleven, has been approached about a takeover by convenience store operator Alimentation Couche-Tard. Seven & I was last valued at $31 billion.

Chart of the Day

Source: 2024 Emerging Space Brief: Satellite Servicing

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PitchBook News - AI ripens farm management tech

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