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The Daily Pitch: VC

December 5, 2024

Presented by Fidelity Private Shares^SM

Today's Top Stories

Slow and steady

Do VC funds that put capital to work faster generate better returns? The short answer is often, no, according to PitchBook's latest analyst note.

An LP that historically invested in VC funds that deployed more slowly than their vintage peers would've seen a net IRR 1.6 percentage points above that of an LP invested in fast-deployment funds. In short, LPs will need to keep a close eye on the pace of capital calls, especially as the market ramps up again in 2025. Get the note.

Also...

📚 General Atlantic made a $1 billion offer to take Learning Technologies Group private from the Alternative Investment Market at the London Stock Exchange, making it the second delisting from the city's bourse in a week. Full story.

🦄 November was another slow month for unicorn creation. Only 11 startups have crossed the billion-dollar valuation threshold in Q4—the lowest pace since Q1 2017. However, with 110 new unicorns minted this year, 2024 has surpassed last year's total of 103. Explore our unicorn tracker.

👉 President-elect Donald Trump picked Paul Atkins, a crypto-friendly former regulator, to head the SEC. He also named Gail Slater, a former tech policy adviser, to lead the Justice Department's antitrust division.

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Foreign capital looks toward Japan's private markets

The private markets in Japan have remained robust in the past couple of quarters, thanks to a regulatory push, the weakened yen and the reallocation of capital away from China. VC dealmaking in Japan continues to grow, while a near-record number of PE deals have closed or been announced through Q3, according to our Japan Private Capital Breakdown.

Foreign investors are playing an increasingly important role in the Japanese market. Almost 45% of VC deal value involved non-domestic investors, reaching the highest level since 2015. Foreign PE buyers were also capitalizing on the weaker yen and relatively cheaper pricing for deals, making 2024 likely to become the fourth consecutive year with increasing foreign capital participation in the country's PE market.

read the report

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Aircraft parts market becomes a hotbed for PE

(Narvikk/Getty Images)

PE dealmaking is flourishing in the sector of making aircraft parts and components. GPs are attracted by the industry's promising growth, tied to the soaring need for airplane maintenance, and the opportunity to consolidate a highly fragmented market.

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Since yesterday, the PitchBook Platform added:

1744

People

675

Companies

33

Funds

See what our data software can do

The Daily Benchmark:
2021 Vintage Global VC Funds

Median IRR

0.50%

Top Quartile IRR

12.30%

0.0x

Median DPI

Select top performers

Energy Transition Fund I

XVC RMB Fund II

BlueYard Crypto 1

*IRR: net of fees

138 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Heirloom, a San Francisco-based direct carbon-capture technology startup, has raised a $150 million Series B co-led by Future Positive and Lowercarbon Capital.

Biotech startup Maze Therapeutics, which is based in San Francisco and works within genetics, has raised a $115 million Series D co-led by Frazier Life Sciences and Deep Track Capital.

Copenhagen-based Antag Therapeutics has raised an $84 million Series A led by Versant Ventures to develop weight-loss treatments.

Arkansas-based Soda Health has raised a $50 million Series B led by General Catalyst for its health benefits analysis platform.

Fusion energy startup Acceleron has raised a $24 million Series A co-led by Lowercarbon Capital and Collaborative Fund.

Refoxy Pharmaceuticals, a German biotech startup, raised a €9.1 million seed round led by Boehringer Ingelheim Venture Fund.

PE Deals

Livingbridge invested in Kindred Education, a UK-based provider of early education, through its Enterprise 3 Fund.

Champlain Financial Corporation teamed with Fondaction in acquiring construction rental company Equipment St-Germain along with Excavations V. St-Germain.

Florida-based Rodina Capital has made a strategic refinancing and a $20 million equity raise for Rubicon Technologies, a technology developer focused on sustainable waste solutions for generators and material processors.

Dunes Point Capital has acquired Kravet, a company that sells furniture and other home decor to interior designers and other industry professionals.

Onity Group has completed the sale of its 15% interest in MSR Asset Vehicle to OakTree Capital Management for $49.5 million. The MSR Asset Vehicle is a fund focusing on investments in mortgage servicing rights.

MKB Company, an environmental control specialist that assists with erosion control, pollution prevention and stormwater management, has been acquired by Align Capital Partners.

Consumer-packages goods investor Sojourner Consumer Partners has invested in Hawaii Coffee Company and, as a result, created SoJo Coffee Platform, focusing on ready-to-drink coffee companies in North America.

Combined Caterers, an event and catering service company, has scored an investment from CCMP Growth Advisors, while Falfurrias Capital Partners exits the company.

Exits

A Carlyle-led consortium is exploring a sale of seaplane company Trans Maldivian Airways, Bloomberg reported.

Warburg Pincus-backed logistics and industrial property developer BW Industrial is pursuing a listing in Vietnam, Bloomberg reported.

TPG is considering a sale of Crunch Fitness for $1.5 billion, Reuters reported.

Bridge Growth Partners has secured an exit of Syniti, a company that provides data management software and services, to Capgemini.

Replan, a supply chain management and planning platform provider, has been acquired by Demand Chain AI for an undisclosed amount.

Fundraising

Luxembourg-based Triton Partners raised over €1 billion for Triton Debt Opportunities Fund III.

Next Tier Ventures and GVC Gaesco launched a €50 million fund targeting B2B AI startups across Europe, the US and Latin America.

Chart of the Day

Source: Q3 2024 US Public PE and GP Deal Roundup

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PitchBook News - Should VCs spend slowly?

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