Mapping Asia-Pacific's fintech ecosystems

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The Daily Pitch: VC

October 31, 2024

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(Gary He/Money 20/20)

Fintech's biggest event of the year was supposed to be about more than AI.

But at Money 20/20 in Las Vegas this week—from a keynote by Anthropic president Daniela Amodei to the "Sentient Stage"—AI’s grip was everywhere.

Rosie Bradbury reports that the last two years have been about survival for fintech founders and investors. But the rise of AI has brought a renewed sense of hope. Founders are capitalizing on the AI wave to dig themselves out of a hole—but how much of that energy will turn into real value is still an open question. Full story.

Also...

🏗 KKR forged a $50 billion partnership with Energy Capital Partners to address the energy and data center demands spurred by advancements in AI and cloud computing. The firms will develop scalable data center and power solutions, tapping existing funds as well as KKR's insurance accounts. KKR's infrastructure portfolio outperformed its other asset classes in Q3. Go deeper.

🧾 Capital gains taxes will rise in the UK as part of the Labour government's first budget. The charge applied to profits from selling investments will jump from 10% to 18% for the lower rate and 20% to 24% for the higher band. Investors warn some founders may rethink the UK as a location to build a business—or decide to sell ahead of the hike. Read more.

A spotlight on Asia-Pacific's fintech ecosystems

Rapidly expanding economies, growing middle classes and large underbanked populations seeking financial access across the Asia-Pacific region have led to the birth of several notable fintech startups.

But companies face challenges due to geopolitical tensions, regulatory shifts and market differences. Deal count and value are both down since 2018, with just $2.3 billion invested in 186 deals across the region in H1 2024.

Our latest analyst note, separated into five parts to cover each geographical sector in detail, highlights VC dealmaking and emerging opportunities across fintech companies in Japan, Southeast Asia, India, Greater China and Australia & New Zealand.

read it now

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With the strength of First Citizens Bank’s 125+ year legacy behind SVB, SVB is pushing innovation forward like never before. This means you can gain access to cutting-edge financial solutions tailored to your unique needs, helping you stay ahead of the curve in an ever-changing market. From strategic financing to customized banking services, SVB is equipped to support your growth every step of the way. From seed stage through IPO and beyond.

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Q&A: Flywheel Capital on solving inefficiencies in VC secondaries market

(Featured image by Vm/Getty Images)

Venture secondaries have become increasingly popular as GPs and LPs struggle for liquidity. Firms including StepStone and G Squared have raised billions to target the strategy, but significant hurdles remain.

We spoke to the managing partner of Flywheel Capital, which is a newcomer to VC secondaries, about the future of the market and its current challenges.

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Since yesterday, the PitchBook Platform added:

2099

People

840

Companies

41

Funds

See what our data software can do

The Daily Benchmark:
2019 Vintage Global Debt Funds

Median IRR

10.60%

Top Quartile IRR

13.10%

0.51x

Median DPI

Select top performers

Global Partnerships Impact-First Development Fund

Apollo Hybrid Value Fund 1

OrbiMed Royalty & Credit Opportunities III

*IRR: net of fees

84 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Fintech startup Airwallex, which is backed by Tencent, is in talks to raise a $200 million round that would value the company around $6 billion, Bloomberg reported.

SynOx Therapeutics, a Dublin-based biopharmaceutical startup, closed a $92 million Series B from investors including Gilde Healthcare, Forbion and HealthCap.

UK-based biotech startup Blue Earth Therapeutics, which develops cancer treatments, raised a $76.5 million Series A led by Soleus Capital and Sands Capital Management.

Sana, a Stockholm-based AI assistant, raised $55 million in a round led by NEA.

San Diego-based Redoxblox, which develops energy storage systems, raised an additional $30 million in Series A funding led by Prelude Ventures.

Regal, a New York-based startup developing AI phone agents for customer contact centers, raised a $40 million round.

Revenue automation platform developer Tabs raised a $25 million Series A led by General Catalyst.

Seatle-based biotech startup Archon Biosciences, which focuses on new technology for drug development, raised a $20 million seed round led by Madrona Ventures.

Infraspeak, a Portuguese intelligent maintenance management platform, completed an €18 million Series B led by Endeit Capital.

API infrastructure startup Speakeasy raised a $15 million Series A led by FPV Ventures, Axios reported.

Don't miss our upcoming webinar

2024 is showing signs of recovery for the venture market, with macroeconomics providing more support for valuations in both late and early stages. However, some areas of the market are still pacing below trough 2023 levels, and it is unclear if a full rationalisation has taken place.

While various areas of the venture ecosystem emerge as clear winners, our experts are analyzing which parts of deals, exits and fundraising are showing resilience and how they could impact the coming months. In this webinar, industry experts and PitchBook analysts will share findings from our Q3 2024 European Venture Report, sponsored by J.P. Morgan, and provide insights on market trends, IPO windows, and unicorn valuations.

Register now to secure your spot.

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PE Deals

Sports-focused PE firm Arctos Partners is in talks to buy a minority stake in the Buffalo Bills, Bloomberg reported.

HPS Investment Partners is in talks to be bought by BlackRock in a deal that could value HPS upwards of $11 billion, Bloomberg reported.

Brookfield Asset Management bought a stake in four offshore wind energy farms from Orsted for £1.75 billion.

Abu Dhabi-backed investment firm CYVN Holdings will take a stake in McLaren, a UK-based sports car and automotive company.

Leon Capital and Nuveen invested in climate and sustainability consultancy Longevity Partners.

ECI Partners invested in Independent Governance Group, the UK provider of professional pensions trusteeship and governance services.

Medical office software provider AdvancedMD has been acquired by Francisco Partners from NYSE-listed Global Payments.

Portfolio Companies

Exactech, a developer of joint replacement implants backed by TPG, has filed for Chapter 11 bankruptcy protection.

Exits & IPOs

UK-based home and auto insurance provider Esure Group is in talks to be sold by owning firm Bain Capital in a deal that could value the business at about £1.5 billion, Bloomberg reported.

AltExchange, a company focused on data management for the alternative investment and asset management industries, has been acquired by iCapital.

Mutares exited its investment in Steyr Motors after the company successfully debuted on the Frankfurt Stock Exchange with an initial share price of €15.90, resulting in a market capitalization of €82.7 million.

Fundraising

Boston-based PE firm Berkshire Partners raised $7.8 billion at the close of its latest fund, which is also the firm's largest to date.

Brookfield Asset Management's Middle East fund, which is targeting $2 billion, will be backed by Saudi Arabia's Public Investment Fund.

Inverness Graham, a PE firm based in Philadelphia, raised $238 million at the close of its latest fund, which backs companies focused on environmental sustainability.

Crosscut Ventures closed on $100 million for its sixth VC fund. It will invest in areas such as space exploration, advanced manufacturing and defense tech.

Janngo Capital closed its second fund on €73 million. The Ivory Coast-based VC firm invests in startups across Africa, including female-founded businesses and tech companies.

Deep-tech VC firm Tamarack Global raised $72 million at the close of its second fund.

Chart of the Day

Source: Q3 2024 European PE Breakdown

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