PitchBook News - Huntress secures revenue milestone

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The Daily Pitch: VC

September 16, 2024

Presented by Deloitte Audit & Assurance

In today's Daily Pitch, you'll find:

Middle-market dealmaking grew faster than the broader PE market in H1

Exclusive: Cybersecurity unicorn Huntress hits a revenue milestone as it eyes an IPO

The Nordic region sees a big comeback in PE fundraising, topping $33 billion so far this year

Today's Top Stories

Middle-market deals spark revival for private equity

Our latest US PE Middle Market Report highlights that buyout dealmaking gained traction in the first half of 2024—with middle-market deal value rising 12%, versus about 5% for the broader PE market.

The report also spotlights a change in key metrics, suggesting better times may lie ahead for PE. After a historic rally, small-cap public equities have closed the gap to large-cap companies and deal multiples for middle-market businesses are rebounding.

read the report

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Cybersecurity unicorn Huntress hits revenue milestone ahead of IPO

(Traitov/Getty Images)

Exclusive: Cybersecurity specialist Huntress now has $100 million in annualized recurring revenue, company officials said, a milestone that moves the fast-growing startup closer to reaching its ambitions for a Wall Street debut.

Huntress is one of the most closely watched VC bets in the current crop of cybersecurity startups. Its Series D, which was co-led in June by Meritech, Sapphire and Kleiner Perkins, more than doubled the company's valuation to $1.5 billion.

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A message from Deloitte Audit & Assurance

Road to Next—More than a report, a gateway to the VC industry future

Deloitte's quarterly report provides a comprehensive analysis of emerging trends, market dynamics, and VC investment opportunities. Get exclusive insights from Deloitte's Private Growth leader, Heather Gates, in every issue. This issue's guest contributors include Kevan Flanigan, Private Risk & Financial Advisory Leader, and Jamie Rapps, Audit & Assurance Senior Manager. Subscribe today for these insiders' points of view.

Want to catch up on what's trending now? Download the current report focusing on expansion-stage exits. Read how the liquidity crunch has impacted the private markets, from startups seeking capital to investors raising new funds—and how inside and down rounds point to stronger dealmaking ahead.

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An H1 checkup for healthcare funds

Our H1 2024 Healthcare Funds Report offers a guide to nearly 500 healthcare and life sciences specialist managers across PE and VC, providing a window into their performance.

PE healthcare specialists are outraising the broader asset class, with bigger fundraises and more frequent above-target closes. But VC healthcare and life sciences fundraising declined as a proportion of overall venture fundraising.

As allocators continue to reevaluate their alternatives mix, PitchBook lead healthcare analyst Rebecca Springer breaks down capital formation in the sector.

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Dealmaking slowdown puts pressure on India's unicorns

(Mint/Getty Images)

After several years of growth, the number of $1 billion-plus startups in India may soon shrink.

VC dealmaking for the country's unicorns has significantly slowed in recent years, and exit activity has been muted. With the slowdown, Indian unicorns have faced more pressure as they try to maintain their valuations.

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Is AI bill part of a 'doomer' agenda?

(Jenna O'Malley/PitchBook News)

California's AI safety bill, first-of-its-kind legislation, would impose safety mandates for large language models that underpin generative AI applications like OpenAI's ChatGPT.

SB 1047 has major sticking points, including a mandate that companies training large language models that cost more than $100 million must develop and implement safety audits and build a shut-off switch for their models. The bill also imposes civil liability on developers for any harm their models cause.

The bill sailed through the state Legislature and now sits on the desk of Gov. Gavin Newsom, who could veto the legislation amid a mounting pressure campaign.

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PE fundraising in Nordics soars past $33B

(AaronP/Bauer-Griffin/Getty Images)

Private equity fundraising in the Nordic region has staged a comeback, reaching more than €30B (over $33 billion) so far this year. The total for all of 2023 was below $5 billion.

But the recovery may not be seen across the board. LPs are expected to prefer managers with more experience as recycled capital remains limited.

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Since yesterday, the PitchBook Platform added:

3

VC valuations

392

People

157

Companies

15

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

Polaris Growth Fund I

*IRR: net of fees

156 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Poolside, a Paris-based generative AI startup, is in talks to raise nearly $500 million at a $3 billion valuation, Bloomberg reported.

World Labs, an AI startup building virtual 3D spaces, raised a $230 million round led by Andreessen Horowitz, NEA and Radical Ventures.

Hydrogen-powered plane engine developer ZeroAvia raised a $150 million Series C led by Scottish National Investment Bank, Airbus, Barclays Sustainable Impact Capital and NEOM Investment Fund, Axios reported.

Michigan-based ONL Therapeutics, a biopharma startup developing treatments for retinal diseases, raised a $65 million Series D led by Johnson & Johnson Innovation.

Reverion, a Munich-based developer of carbon-negative power plants, secured a $62 million Series A led by Energy Impact Partners.

Strider Technologies, a cybersecurity startup that analyzes open-source intelligence, raised a $55 million Series C led by Pelion Venture Partners, The Wall Street Journal reported.

Tune.fm, a music streaming startup that uses Web3 technology, raised $50 million from Global Emerging Markets.

PE Deals

Following the NFL's new rules on private equity ownership, the Miami Dolphins are in talks to sell a stake to Arctos Partners or another PE firm, The New York Times reported.

Texas-based software provider Tricentis, which develops tools for software and application testing, is in talks to be sold by owning firm Insight Partners in a deal that could value the company above $4 billion, Reuters reported.

Paris-based Hivest Capital backed Pêcherie du Sud, a seafood supplier based in France.

London-based Copilot Capital invested in PriceShape, a Danish developer of customized pricing software.

Exits & IPOs

Tokyo-based subway line operator Tokyo Metro plans to file for a 700 billion yen IPO (about $5 billion), Bloomberg reported.

Insight Partners is looking to sell Tricentis, a Texas-based AI software testing program developer, at a $4 billion valuation, Reuters reported.

Bicara Therapeutics, a Massachusetts-based biotech startup, expanded its IPO to now raise $315 million.

Blackstone is considering a sale of its majority stake in VFS Global, a visa outsourcing and technology services company based in Dubai, Bloomberg reported.

DigitalBridge Group is looking at a possible sale of EdgePoint Infrastructure, a Malaysian developer and operator of telecom infrastructure, Bloomberg reported.

Swander Pace Capital exited Reliance Vitamin, a New-Jersey based supplements manufacturer, to Impetus Wellness Group.

Fundraising

Middle-market PE firm Kohlberg & Company raised $4.3 billion for its 10th fund.

RoundShield, a UK-based firm focused on asset-backed private credit investments in Europe, closed its fifth vehicle on more than $1 billion, exceeding its target by $150 million.

Foresite Capital closed its latest VC fund on $900 million. The vehicle targets investments in healthcare and life sciences companies that use AI.

BondBloxx has filed an application for a private credit exchange-traded fund. Earlier, Apollo Global Management and State Street also filed plans for a fund utilizing private credit. The goal of these funds is to expand private credit to a wider array of investors.

Regulatory News

VC-backed company Zymergen has been charged by the SEC with misleading investors during its 2021 IPO. Zymergen paid a $30 million civil penalty without confirming or denying the allegations.

Chart of the Day

Source: 2024 UK Private Capital Breakdown

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PitchBook News - Huntress secures revenue milestone

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