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Plus: The upstarts challenged weight loss giants, private financing on the rebound & more
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The Weekend Pitch
September 15, 2024
Presented by Deloitte
(Julia Midkiff/PitchBook News)
In 2022 when the market turned, large acquirers pulled up their drawbridges. M&A deals slowed to a trickle. Salesforce CEO Marc Benioff even disbanded the company's M&A committee last year.

But judging by Salesforce's $1.9 billion cash purchase of Own earlier this month, even reluctant acquirers are now being tempted by today's discounts.

I'm Rosie Bradbury, and this is The Weekend Pitch. You can reach me at rosie.bradbury@pitchbook.com or on X @_RosieBradbury.

For Own's later investors, Alkeon Capital Management and B Capital Group, it was far from an ideal outcome. The sale came at a 40% discount from their $3.35 billion Series E valuation in August 2021.

Such a discount is par for the course for companies in this market.
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A message from Deloitte  
Are bottlenecked exits finally beginning to flow again?
The recent liquidity crunch has impacted nearly every corner of the private markets, from startups seeking capital to investors raising new funds. The latest edition of Deloitte’s Road to Next series breaks down the more creative exit paths and liquidity options that dealmakers have turned to in the drought. With positive economic signals now emerging, markets are eager to see signs of life return to exit markets. The report examines quarterly transaction trends across the expansion-stage universe, as well as other insights, including:
  • How predownturn valuations are affecting the odds of success for recent IPOs
  • The growing importance of inside rounds and down rounds for startup growth
  • Expert commentary on where the market stands in this time of economic transition
Read it now
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Trivia
Earlier this week, PitchBook reported that Alexis Conneau, a former research lead at one of the world’s biggest AI startups, was launching his own company. Conneau’s departure is the latest in a string from which premiere AI startup?

A) Cohere
B) Perplexity
C) Anthropic
D) OpenAI

Find your answer at the bottom of The Weekend Pitch!
 

These upstarts are challenging
weight-loss goliaths
(Carolina Rudah/Getty Images)

Novo Nordisk and Eli Lilly are likely to maintain their first-mover advantage in the rapidly growing weight-loss drug category. Still, a new report by Morningstar and PitchBook analysts predicts that, by 2031, newcomers will command $70 billion of the GLP-1 market.

Next-generation obesity drugs are coming from Roche, Amgen, Pfizer and others. Drugmakers may press their advantage with acquisitions of privately held companies like Arch Venture Partners-backed Metsera or Bain Capital-backed Hercules.

The report shines a light on what new entrants mean for a lucrative category that will face increased competition and pricing pressure in the years ahead.
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Private fundraising may be
bouncing back
(Getty Images)
When accounting for data our analysts still expect to collect, private capital fundraising has halted its decline. GPs raising secondaries or real assets funds are having a particularly better year, according to our Q2 2024 Private Market Fundraising Report.

Fundraising numbers across private capital should settle at around $1.7 trillion for the 12-month period through Q2, the best result in almost two years.

It's still a grind for some—especially in real estate, venture and funds-of-funds. Closing times for VC vehicles are growing longer, and with LPs being more selective, emerging managers are still having a difficult time.
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Quote/Unquote
(Photo courtesy BVCA)
"UK companies, despite their commercial merits, are finding it hard to raise substantial growth capital in series B and C funding rounds…And it means collectively, we fail to reap the rewards of our entrepreneurs. But I want to change that and this government wants to change that."

—UK government minister Tulip Siddiq, speaking at the British Private Equity & Venture Capital Association’s annual Summit.
 

Stay tuned
Keep an eye out for these insights and research reports coming out this week:
  • Q2 2024 US PE Middle Market Report
  • H1 2024 Greater China VC Report
  • Q2 2024 ETI Report
  • Q2 2024 E-commerce Report
  • Q3 2024 Quant Perspectives: Venture Capital
  • Q2 2024 Pharmatech Report
 

Trivia
Answer: D.

Alexis Conneau is the latest employee to leave OpenAI to launch his own startup. While at the company, Conneau helped develop the controversial voice mode for OpenAI’s GPT-4o. You can read more about this and the other departures from OpenAI here.

This edition of The Weekend Pitch was written by Rosie Bradbury and Jacob Robbins. It was edited by James Thorne and Ron Prichard.

Were you forwarded The Weekend Pitch? Sign up at pitchbook.com/subscribe.
 
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