Student entrepreneurs adapt in the age of COVID-19

| Don't want to receive these emails?

PitchBook

The Daily Pitch: VC

June 1, 2020

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

Student-led companies look to adapt after the pandemic rattles plans

(Chinnapong/Getty Images)

Even before graduation, student entrepreneurs were feeling the economic impact of the coronavirus outbreak.

Seed financing has been harder to secure, business plans have been upended and students have been cut off from their networks.

Despite the hurdles, some founders are adapting—and pressing ahead:

Share:

Investors bet on micromobility's post-COVID-19 future

(Sean Gallup/Getty Images)

Even before the coronavirus pandemic, micromobility startups were already facing challenges with market saturation and profitability. VC deal value in the sector has consistently plummeted since it reached record heights in 2018.

But as lockdowns gradually lift around the globe and consumers' transportation preferences evolve amid social distancing precautions, e-bikes and e-scooters are attracting new interest.

And a post-crisis rebound may be on the horizon

Share:

A message from Masterworks

High-end art outperformed the S&P 500

Even during challenging economic conditions, the blue-chip art market has exhibited robust growth, outperforming the S&P by over 180% (with dividend reinvestment) since 2000.

These findings are from the Citibank Global Art Market Report published in December 2019, which measured the correlation factor between the art market and developed equities at just 0.13—the lowest among the 10 major asset classes.

However, access to the $1.74 trillion art market has historically been reserved only for the ultra-wealthy. Masterworks has produced the first investment platform for the highest end of the art market, by securitizing multimillion-dollar works with the Securities and Exchange Commission. Founded in 2017 by serial tech entrepreneurs, and drawing on proprietary datasets on valuations, historical performance, and quantitative insights, Masterworks has made navigating the complex art market a transparent and seamless process.

Learn more about art as an asset class and sign up for a Masterworks account today.

Share:

Analyzing the forefront of innovation in health & wellness tech

When it comes to healthcare, the needs of the public are evolving, and traditional provider-based medicine is not keeping pace. The gap in care is creating abundant opportunities for health & wellness tech startups that seek to fight future epidemics, rein in costs and improve overall wellbeing.

Our latest installment of Emerging Tech Research explores the retail side of this growing industry, breaking it down into five categories and analyzing their potential. Highlights include:

In Q1, VC funding for retail-oriented companies in health & wellness tech totaled $1.9 billion

Key industry drivers include advancements in AI and big data, increasing demand for patient-centered care, and the growing costs of traditional healthcare models

Governments and organizations are likely to prioritize tech that can help mitigate the impacts of future pandemics

If you have any questions or feedback about the research, we'd love to hear from you: analystresearch@pitchbook.com.

read the preview

Share:

SoftBank's Vision Fund 2 leads $500M+ stake in Didi's self-driving unit

The autonomous driving unit of Chinese ridehailing giant Didi Chuxing has raised more than $500 million in a round led by SoftBank's Vision Fund 2.

It's the first time the self-driving car subsidiary has raised external funding since it spun out of Didi last year. The money will be used in part to build out a fleet of autonomous vehicles in cities across China.

The new Vision Fund has struggled to raise funds as its predecessor's big bets on Uber, WeWork and others turned sour. SoftBank CEO Masayoshi Son has said that Vision Fund 2 investments are being made from the firm's own coffers. The inaugural Vision Fund reported a loss of 1.9 trillion yen (about $17.7 billion) for its last fiscal year, and the division is reportedly planning to lay off around 50 employees.

Despite the poor performance, the head of the Vision Fund, Rajeev Misra, saw his pay package more than double to roughly $15 million, according to Reuters. Misra came under scrutiny earlier this year after The Wall Street Journal reported his alleged attempts to sabotage fellow SoftBank executives.

Share:

Ask PitchBook

Wondering how the pandemic is affecting your segment of the private markets? Looking for an explanation of which companies will benefit from government relief programs? Curious about what's driving a recent trend you've noticed?

Email us at ask@pitchbook.com, and the news team will choose a question and track down the answers you're seeking.

Share:

Recommended Reads

Months after a deal with Coty valued her beauty brand at $1.2 billion, it turns out that Kylie Jenner's billionaire status might be an elaborate fabrication. [Forbes]

Despite outward optimism, early-stage VC is facing immense obstacles. [Institutional Investor]

On the outskirts of Atlanta, a utopian community is turning out to be a profitable business. [Outside]

Since yesterday, the PitchBook Platform added:

20

People

5

Companies

See what our data software can do

Quick Takes


	The Daily Benchmark
	2011 Vintage Global Buyout Funds
	People
	Magic Leap CEO to step down
	VC Deals
	Ginkgo Bioworks secures $70M for coronavirus testing
	Belvo banks $10M
	Portfolio Companies
	Brex lays off some of its staff
	Fundraising
	DCVC eyes $275M fund

The Daily Benchmark

2011 Vintage Global Buyout Funds

Median IRR

14.30%

Top Quartile IRR Hurdle Rate

24.28%

1.56x

Median TVPI

Select top performers

Shamrock Capital Growth Fund III

Monomoy Capital Partners II

Thoma Bravo Fund X

*IRR: net of fees

55 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Webinar: Fundraising best practices

Join us on June 3 at 1 p.m. EDT/10 a.m. PDT for an overview of how to create a more effective, data-driven pitch for your fund by using the detailed financial data available on the PitchBook Platform.

Highlighting some of the best practices covered in the PitchBook Fundraising Guide, we'll discuss:

Constructing custom benchmarks

Creating a target list of limited partners

Researching LPs' previous commitments and current allocations

Connecting with your targets

Register here to secure your spot.

Share:

People

Magic Leap CEO to step down

Magic Leap co-founder and CEO Rony Abovitz plans to resign, Business Insider reported. Abovitz reportedly plans to stay on until a successor is named, and will continue to support the augmented reality company as a board member.

View details

VC Deals

Ginkgo Bioworks secures $70M for coronavirus testing

Ginkgo Bioworks has raised $70 million from investors including Illumina Ventures, General Atlantic and Viking Global. The Boston-based bioengineering company plans to use the funding to help develop mass testing for the coronavirus. Ginkgo raised $290 million in September at a $4.79 billion valuation, according to PitchBook data.

View round

View 20 competitors »

Belvo banks $10M

Founders Fund and Kaszek Ventures have co-led a $10 million round for Belvo, which offers banks in Latin America a platform for secure financial transactions. Founded in 2019, the company has offices in Mexico City and Barcelona and operates across Mexico and Colombia.

View round

View similar company »

Portfolio Companies

Brex lays off some of its staff

Fintech startup Brex is shedding 62 employees in response to the coronavirus pandemic. The company recently raised $150 million in a Series C extension from investors including DST Global and Lone Pine Capital. Brex was valued at $2.6 billion in June 2019, according to PitchBook data.

View details

View 39 competitors »

Fundraising

DCVC eyes $275M fund

Data Collective has set a $275 million target for its second bio fund, according to an SEC filing. The Palo Alto-based firm closed its first life sciences-focused fund on more than $208 million in May 2019; its portfolio includes biotech businesses MycoWorks, GenEdit and Novome Biotechnologies.

View fund

View 270 investments »

Chart of the Day

" ... [T]he current market turmoil may pose challenges to winning shareholder approval for take-privates as companies wait and see if state stimulus will be enough to sustain them through the crisis before accepting the more expensive PE financing. With this, GPs may turn their attention to private investment in public equity (PIPE) deals with the expectation of a take-private at a later date as companies seek liquidity."

Source: PitchBook's 2020 UK & Ireland Private Capital Breakdown