PitchBook News - Supply chain's future is self-driving

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The Daily Pitch: VC

September 27, 2024

Presented by SVB

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

Our analysts see opportunities for struggling real estate funds

How self-driving vehicles are changing the supply chain

Telehealth startups are maturing with larger funding rounds

PE funding for the European biotech industry is tracking to a five-year low

Today's Top Stories

How self-driving vehicles are transforming the supply chain

(Anucha Sirivisansuwan/Getty Images)

Funding for self-driving vehicles is rolling again—with deal value for the autonomous driving sector hitting its highest level in the second quarter since its 2021 peak. And there's more to this surging investment area than passenger cars.

One example: Companies like Outrider, which is developing autonomous trucks that move shipping containers, are at the forefront of the integration of self-driving vehicles into global supply chains.

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Real estate is still trying to find its footing

In a precarious market landscape, private, closed-end real estate funds are underperforming and fundraising is well below historical norms. Our latest Real Estate Report, sponsored by CLA, highlights opportunities for fund managers to capitalize on trends like digitalization and de-globalization, and the importance of legislative advocacy for those working in the industry.

A key metric so far this year is the decline in activity of first-time funds in a family. Over 75% of real estate capital raised in H1 2024 went to funds that were the fourth vehicle or later in their fund family, emphasizing the reliance on tried-and-true strategies in challenging market conditions.

read the report

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A message from SVB

SVB's State of the Markets H2 2024 report breaks down the latest VC trends

SVB's outlook and analysis of the trends shaping the innovation economy is back with the H2 2024 State of the Markets report.

Explore the factors driving more capital flow to US startups this year than in 26 of the last 30 years—despite US VC investment falling below previous peaks. While many companies are finding it harder to raise, the best are making it happen—led by those capitalizing on the boom in AI.

Discover the dynamics at play as SVB breaks down the uneven recovery and the process of recalibration across venture-backed company operations, fundraising, investments and exits.

Get the report

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Telehealth startups are maturing with larger funding rounds

Since the end of 2022, funding for digital health startups has been strikingly consistent, falling between $1.3 billion and $1.7 billion per quarter across the sector. The $1.5 billion invested across 112 deals in Q2 2024 sits within this margin, according to our latest Emerging Tech Research, and renewed consistency could be an indicator that the space has hit its low point and is starting to rebound.

As telehealth becomes integrated into society post-pandemic, telehealth has been the top-funded segment over the past year. Specifically, investors are choosing to fund companies operating platforms that have already achieved scale, which explains an overall trend of higher deal values, but lower deal counts.

read the preview

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Q&A: Headline joins Europe's wave of VC growth funds

Partner Nancy Xiao, center, with Headline's growth team
(Courtesy of Nina Menconi)

European VC growth vehicles have been on the march this year, with a series of fund closes announced in recent months from firms including Atomico, Balderton Capital and Index Ventures.

Headline is the latest firm with a prominent European presence to close such a fund, raising $865 million for its fourth global growth vehicle. We sat down with Nancy Xiao, a partner in Headline's growth team, to discuss the abundance of growth funds in the market and investment opportunities.

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Since yesterday, the PitchBook Platform added:

2401

People

900

Companies

44

Funds

See what our data software can do

The Daily Benchmark:
2019 Vintage Global Real Estate Funds

Median IRR

9.39%

Top Quartile IRR

15.94%

0.22x

Median DPI

Select top performers

Lubert-Adler Workforce Housing Fund

Longpoint Realty Fund I

Cabot U.K. Core-Plus Industrial Fund

*IRR: net of fees

66 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Cloud-based hospitality platform developer Mews raised $100 million from Vista Credit Partners.

Distribusion, a Berlin-based ground transportation technology provider, raised $80 million in series C led by TQ Ventures.

Mendaera, a Bay Area-based startup building robots for medical use, raised a $73 million Series B led by Threshold Ventures.

Houston-based Utility Global, which specializes in clean energy production, raised $53 million as a part of its Series C led by the Ontario Power Generation Pension Plan.

Mirai Bio, a startup focused on accelerating the development of gene therapies, raised $50 million from Flagship Pioneering.

Biotech startup 858 Therapeutics, which is working on treatments for cancerous tumors, raised a $50 million Series B led by Avidity Partners.

Gladly, the San Francisco-based developer of an AI-powered customer service platform, raised a $40 million round led by AXA Venture Partners.

Prepared, a startup developing technology to increase the efficiency of 911 calls, raised a $27 million Series B led by Andreessen Horowitz.

SurgAR, a French startup offering augmented-reality surgery solutions, raised €11 million in a round led by Mutuelles Impact.

DeepOpinion, a generative AI startup based in Austria, raised a €11 million Series A from investors including Red River West, Alpha Intelligence Capital and Stride.VC.

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PE Deals

A KKR-led investor group agreed to acquire a 74.25% stake in Queensland Airports.

Solidcore, a company operating pilates studios across 25 states, has been acquired by L Catterton in a deal valuing the company between $600 million and $700 million, Reuters reported.

Forbes is in talks to be acquired by Koch Equity Development in a deal that would value the company below $630 million, Axios reported.

Enterprise SaaS company K1x, which specializes in tax data distribution, raised a $20 million growth investment from Edison Partners.

Citigroup and Apollo Global Management have agreed to invest $25 billion into deals in the private credit market over the next five years.

Portfolio Companies

Clayton, Dubilier & Rice-owned UK supermarket Morrisons reduced its debt by £331 million by selling ground leases to real estate investor Song Capital.

Exits & IPOs

Swiggy, an India-based food delivery company, filed for an IPO to sell 37.5 billion rupees ($448 million) worth of new shares. Swiggy is currently backed by SoftBank.

San Francisco-based fintech company Chime is working with Morgan Stanley for an IPO in 2025, Bloomberg reported.

Kägwerks, a company developing tactical communications tools for military use, has been acquired by Codan.

Fundraising

Arch Venture Partners, a VC firm investing in life science and biotech startups, raised over $3 billion at the close of its 13th fund.

New York-based W Capital Partners is aiming to raise $1 billion for its W-Prime VI fund, Secondaries Investor reported.

Spanish VC firm Asabys Partners held a €180 million final close on its second healthcare innovation fund, beating its initial target of €150 million.

Investors

Nuveen is expanding into the Middle East with the opening of a new office in Abu Dhabi.

Chart of the Day

Source: Q2 2024 US PE Middle Market Report

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PitchBook News - Supply chain's future is self-driving

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