PitchBook News - Our updated outlook on gen AI

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The Daily Pitch: VC

October 1, 2024

Presented by Fidelity Private Shares^SM

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

Our analysts update their takes on gen AI's whirlwind effect across VC sectors

TPG snaps up AT&T's stake in DirectTV, giving it control of a pay-TV giant

Our VC Dealmaking Indicator shows a more even playing field for VCs and startups

Private wealth advisers and family offices see lower implementation of ESG practices

Today's Top Stories

Our updated outlook on generative AI

Despite the whirlwind of excitement, generative AI adoption has hit several roadblocks. Our Emerging Tech analysts discuss these and provide their updated perspectives on how the technology is—or is not—having an impact across a host of sectors.

From healthcare to fintech to crypto, our latest analyst note, the Emerging Tech Future Report, covers AI's ever-evolving role in the VC ecosystem.

read it now

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3 charts show improving forecast for startups

(Chole Ladwig/PitchBook News)

After a rough run for startups, the VC market is edging back up—slowly but surely.

AI, falling interest rates and the return of deep-pocketed investors have helped push dealmaking dynamics back toward more balanced territory. Our three charts show how that improves the outlook for startups.

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A message from Fidelity Private Shares^SM

Capturing Climate Tech Opportunity in 2024: US Startup Landscape

Presented by Fidelity Private Shares^SM, this comprehensive report dives into the emerging trends and innovations driving climate technology forward as well as key market forces and opportunities impacting the future of this fast-evolving sector.

Whether you're a founder, investor, employee, or industry stakeholder, this report is your guide to seizing new opportunities and gaining unique insights into this dynamic industry.

Download your copy today

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How do US, European VC returns compare?

(Glasshouse Images/Getty Images)

VC funds in the US have historically outperformed European vehicles, but the downturn has cast doubts over future returns.

Over a one-year horizon, European VC funds' IRR has raced ahead. There are signs, however, that the lead could be short-lived.

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Private wealth and family offices see lower ESG uptake

(Daisuke Kondo/Getty Images)

The more does not necessarily mean the merrier in the case of impact investing among private wealth advisers and family offices. The highly diverse, individual clients they work with make it hard to have a one-and-for-all implementation of ESG practices.

Only 54% of respondents from the segment have incorporated ESG factors in their investment process, compared to 64% in the general population, according to PitchBook's latest Sustainable Investment Survey.

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TPG takes control of DirecTV in $7.6B deal

(Rapeepong Puttakumwong/Getty Images)

TPG has struck a $7.6 billion deal to acquire the remaining stake in satellite television provider DirecTV from AT&T, as the PE firm seeks to grow DirecTV's streaming service in a crowded field.

In a related deal, DirecTV plans to snatch up rivals Dish and Sling TV from EchoStar with financial backing from TPG. The acquisitions would put TPG in control of a pay-TV giant with an estimated 20 million subscribers.

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San Francisco reigns among startup cities

Our Global VC Ecosystem Rankings are back and better than ever. San Francisco remains in a league of its own, but there are changes afoot elsewhere.

Hefei, a hub for China's electric vehicle industry, has displaced Dubai as the fastest-growing VC city amid an upheaval in the global auto industry. The UK is the most developed country in Europe, but no nation is growing its startup ecosystem faster than Switzerland.

The report includes a refined methodology and updated data to help investors and founders navigate a shifting landscape. You can also explore our interactive dashboard of the world's top startup cities.

read the analyst note

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Since yesterday, the PitchBook Platform added:

2387

People

836

Companies

46

Funds

See what our data software can do

The Daily Benchmark:
2013 Vintage Global Funds-of-Funds

Median IRR

15.21%

Top Quartile IRR

19.18%

1.11x

Median DPI

Select top performers

Glouston Ohio Midwest Fund II

SwanCap Opportunities Fund I

Bay Hills Emerging Partners III

*IRR: net of fees

42 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Aktis Oncology, which specializes in treatment for cancerous tumors, raised a $175 million Series B led by RA Capital Management.

Newcleo, a Paris-based developer of clean nuclear technology, raised €135 million as part of its Series A from investors including Inarcassa, Walter Tosto and Ingerop.

Atlas Metrics, a Berlin-based ESG compliance specialist, secured a €12.2 million Series A led by MMC Ventures.

Wispr, a startup creating speech-to-text software, raised $12 million led by Matt Kraning.

Artisan, which seeks to replace sales software with AI technology, raised an $11.5 million seed round led by Oliver Jung.

PE Deals

DigitalBridge Group-backed Vertical Bridge has acquired over 6,000 wireless towers from Verizon in a deal valued at $3.3 billion.

Baker Hughes will sell three industrial product groups worth about $50 million, with PE firms investing in energy and industrial companies as likely buyers, PE Hub reported.

Amber Energy, a portfolio company of Elliott Investment Management, will acquire Venezuela-based Citgo Petroleum after winning a takeover bid for the company.

TPG will likely acquire a minority stake worth $2 billion in asset manager Creative Planning, Reuters reported.

Data center asset management provider Salute Holdings has been acquired by New Mountain Capital.

Equipment finance specialist XS Financial has been acquired by Mavik Capital Management and Axar Capital Management in a take-private deal.

Peak Achievement Athletics, which owns several athletic brands like Bauer Hockey, has been acquired by Fairfax Financial Holdings.

Carlyle became the latest on a list of possible rescue backers for Britain's biggest water and wastewater company, Thames Water, Sky News reported.

Exits & IPOs

Childhood education center KinderCare, backed by Partners Group, seeks to raise $648 million in an IPO.

Ingram Micro, a technology hardware and services provider backed by Platinum Equity, has targeted a valuation upward of $10 million in an IPO, Bloomberg reported.

Abu Dhabi National Hotels, the owner of Ritz-Carlton and Park Hyatt hotels in Abu Dhabi, is selling a 40% stake in its catering arm through an IPO.

Hillhouse Investment and Shunwei Capital are among the investors for the Hong Kong IPO of kitchenware-maker Carote, Bloomberg reported.

CVC Capital Partners exited its 20% stake in Germany-based DKV Mobility, a supplier of toll boxes and fuel cards.

Nutrition supplements specialist Applied Nutrition is considering filing for an IPO in London.

Linqto, a company building an investment platform, has ended its plans to go public via a $700 million SPAC deal with Blockchain Coinvestors Acquisition Corp, Reuters reported.

Fundraising

Morgan Stanley's private investment arm raised $750 million for 1GT Fund, a growth vehicle specializing in cleantech.

Chart of the Day

Source: CVC Capital preps $8B IPO for Polish convenience store chain Zabka

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PitchBook News - Our updated outlook on gen AI

Older messages

Rising interest, few deals in fertility space

Rewriting the rules at OpenAI

ESG perception vs. reality

Supply chain's future is self-driving

Are ESG and DEI dead?

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