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The Daily Pitch: VC

October 3, 2024

Presented by Fidelity Private Shares^SM

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

Take a first look at data from our upcoming PitchBook-NVCA Venture Monitor

Get a peek at the data from our upcoming US and European PE Breakdown reports

OpenAI's $157 billion valuation eclipses the biggest VC-backed IPOs

Y Combinator's former growth fund chief is raising $250 million for a debut seed vehicle

VC dealmaking in the UK is on track for its lowest annual figures since 2019

Today's Top Stories

VC waits for market to turn

VC exits are still stuck in neutral. With uncertainty remaining in global markets, VC-backed IPOs and M&A generated less than $40 billion in exit value during Q3. The sluggish market has weighed further on fundraising, as LPs take a cautious approach to new commitments.

Global dealmaking slowed for the third consecutive quarter, as the market looks for a balance as more rate cuts loom. Check in on how the VC industry fared with our First Look data packs for the Q3 2024 PitchBook-NVCA Venture Monitor, Q3 2024 European Venture Report and Global Venture Capital dataset.

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PE dealmaking on the rise

Our Q3 2024 Global PE First Look data packs—the forerunner to our quarterly US and European PE Breakdown reports—show that global PE deal count is up 8% from last year and deal value has surged 20%, with Europe holding an edge over North America. Global PE exits have progressed steadily, with a 13% increase in value and a 3% rise in count.

Large take-privates were cut in half in Q3 as dealmakers most likely delayed those announcements until after the US election. This was countered by the realization of lower interest rates in Europe and expectations of the same in the US, which led to a boost in the leveraged buyout market.

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OpenAI valuation surpasses every VC-backed IPO

(Howard Kingsnorth/Getty Images)

OpenAI wrapped up its $6.6 billion financing at a $157 billion valuation—a remarkable achievement that raises the stakes for CEO and founder Sam Altman to build on the lofty price tag for an eventual IPO.

The San Francisco-based business is now worth far more than any VC-backed company at the time of their IPO—including Meta, Uber, Rivian and Coinbase, according to an analysis of PitchBook data.

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Former YC growth fund chief raising $250M seed fund

Ali Rowghani, center, former growth fund chief at
Y Combinator (Kimberly White/Getty Images)

Ali Rowghani, who led Y Combinator's growth fund until it was shuttered last year, is raising a debut $250 million fund, according to a regulatory filing. The former executive of X and Pixar previously led checks for startups such as Stripe and DoorDash.

He joins a flurry of senior partners at established firms who have left to raise their own vehicles in hopes that 2024 will be a strong vintage year.

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Perpetual capital drives AUM forward at Blue Owl, Apollo and peers

(Jason Marz/Getty Images)

Perpetual capital now makes up a massive portion of PE AUM, as GPs push into the private wealth and insurance channels to grow their firms.

The seven largest publicly traded asset managers in the US have collected a total of $1.5 trillion AUM in the form of perpetual capital as of the end of H1 2024.

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UK's VC market falling back to pre-pandemic levels

(Gary Yeowell/Getty Images)

VC dealmaking in the UK is on track for its lowest annual figures since 2019. We take a look at this VC market, highlighting key trends across dealmaking, fundraising and exits.

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People

Jolt Capital, a growth equity firm based in Paris, appointed Akira Okada as its operating partner and its first hire in Japan.

VC Deals

Impulse Space, a startup developing orbital transfer vehicles for moving satellites, raised a $150 million Series B led by Founders Fund.

Canadian fintech startup Koho raised a C$190 million (about $141 million) round of debt and equity led by Propelr Growth.

Triveni Bio a Massachusetts-based biotech startup developing treatments for immune and inflammatory diseases, raised a $115 million Series B led by Goldman Sachs Alternatives.

Crescendo, a San Francisco-based startup developing AI-powered tools for contact centers, raised a $50 million round from General Catalyst and other investors. It values Crescendo at $500 million, Bloomberg reported.

Energy storage startup Polarium, based in Sweden, raised 500 million Swedish kronor (about $49 million) from investors including Vargas Holding, AMF and Alecta.

All.Space, a UK-based developer of satellite communications technology, raised £33 million in a round led by BOKA Capital.

Resolve AI, which provides software automation technology for engineers, raised a $35 million seed round led by Greylock Partners.

Numa raised a $32 million Series B led by Touring Capital and Mitsui to offer automation tools for auto dealerships.

Visual AI software developer Vizit raised a $25 million Series B round led by Industry Ventures.

BMLL, a London-based provider of data and analytics for capital markets, secured $21 million in a round led by Optiver.

PE Deals

KKR is considering a $5 billion takeover bid for Hong Kong-listed chipmaker ASMPT, Bloomberg reported.

Stockholm-based Altor has agreed to buy a majority stake in Canadian hockey brand CCM Hockey.

Warburg Pincus and Temasek have completed their acquisition of London-based insurance intermediary Specialist Risk Group.

Telemos Capital has acquired UK healthcare communications group Helios Global.

Battery energy storage company Powin received $200 million in debt financing via a revolving credit facility from KKR.

TPG has acquired Surescripts, a medical records and health information system specialist.

Exits & IPOs

EQT exited its 25% stake in Reworld , a New Jersey-based waste management specialist, to Singapore's sovereign wealth fund GIC.

Minna Technologies, a Sweden-based fintech startup developing embedded technology for managing subscriptions, has been acquired by Mastercard.

Mooch, the developer of a personal finance app that uses AI, has been acquired by Suma Wealth, a fintech startup focused on financial education, Axios reported.

Fundraising

Monarch Alternative Capital raised $4.7 billion at the close of its latest credit fund, The Wall Street Journal reported.

Peak XV Partners, formerly part of Sequoia, downsized its latest growth fund by $465 million, Bloomberg reported. It also lowered management fees to 2% on three growth funds and four multistage funds.

Investors

VC firm CRV will be returning $275 million to investors from a fund that originally closed on $500 million. The vehicle is targeted at investments in later-stage startups, which CRV says is challenging due to market conditions, The New York Times reported.

Chart of the Day

Source: Q2 2024 US Public PE and GP Deal Roundup

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PitchBook News - VC waits for market to turn

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