PitchBook News - Newer VCs lean on niche fund model

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The Daily Pitch: VC

February 24, 2025

Presented by CIBC Innovation Banking

🧬 Biopharma VC activity was mixed in 2024, with deal count falling 12% year-over-year but deal value rising 20% to $32.1 billion, according to our latest report on the sector. Investors have favored higher-value deals for mature companies with late-stage clinical assets.

The report outlines the differences between mature, advanced and emerging biopharma modalities—including cell therapies, gene therapies, drugs, vaccines and AI platforms—and highlights industry drivers and opportunities for each. Preview the report

🙏 With stiff competition for deals amid a dynamic geopolitical environment, it's sure to be an eventful year for the US private credit segment. Where do you believe the market is headed? Take the PitchBook LCD Private Credit Survey

Plus...
• Newer VCs lean on niche fund model
• PE pulls some Gs in defense spending
• PE's power play in battery storage

How SPVs are helping emerging managers in a tough market

(Jenna O'Malley/PitchBook News)

Amid a tough fundraising market, emerging VC managers are increasingly spinning up special purpose vehicles to showcase their deal flow to prospective LPs. Emerging managers are also using these vehicles to supplement their limited capital resources.

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VC valuations' golden handcuffs

VCs and startups are still reluctant to swallow a valuation discount in a liquidity event, according to our 2024 Annual US VC Valuations Report. The golden handcuffs of the VCs behind over-valued companies are holding back IPOs, even after the Fed made three consecutive interest rate cuts.

You'd think that we'd be seeing downward pressure on valuations, but AI startups are keeping VCs satiated: In 2024, nearly 50% of all deals valued over $500 million were for AI companies. But can the pace continue through 2025?

read the report

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Since yesterday, the PitchBook Platform added:

1

VC valuations

100

People

44

Companies

3

Funds

See what our data software can do

The Daily Benchmark:
2022 Vintage Global Funds-of-Funds

Median IRR

11.90%

Top Quartile IRR

17.11%

0.02x

Median DPI

Select top performers

Aether Real Assets Seed Partners I

Fort Washington Private Equity Small Market Investors II

Constellation Generation IV

*IRR: net of fees

39 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

UK-based Fluidstack, which develops AI cloud computing services and is part of French President Emmanuel Macron's AI infrastructure initiative, is in talks to raise a Series A of up to $200 million, Bloomberg reported.

Genspark, a Bay Area-based startup building an AI search engine, raised a $100 million Series A at a $530 million valuation, Reuters reported.

Arize, raised a $70 million Series C led by Adams Street Partners for its AI monitoring platform.

Pulpex, a UK-based sustainable packaging company, secured a £62 million Series D led by the National Wealth Fund and the Scottish National Investment Bank.

Unit Network, a London-based DeFi startup, raised $18 million in a round led by Blockchain Founders Fund and Outlier Ventures.

PE Deals

CK Infrastructure submitted a bid to acquire UK-based Thames Water for £7 billion, rivaling an offer Wednesday from KKR.

Apollo Global Management is in talks to acquire Fotowatio Renewable Ventures from Abdul Latif JAmeel Energy & Environmental Services in a deal valuing the Milan-based clean energy company around €2 billion, Bloomberg reported.

KKR may exit its investment in container and logistics services provider Goodpack, which could be valued around $1.5 billion, drawing interest from Apollo Global Management, I Squared Capital and Stonepeak Partners, Bloomberg reported.

Apollo Global Management and Sycamore Partners are among PE firms interested in bidding for Family Dollar, Reuters reported.

The Carlyle Group and SK Capital Partners took Nasdaq-listed biotech company Bluebird Bio private.

Portfolio Companies

Crypto exchange startup Bybit announced Friday that it was hacked and $1.4 billion worth of ethereum was stolen from one of the company's digital wallets.

Exits

HBM Healthcare Investments may sell Swixx Biopharma, which could be valued at around 1.5 billion Swiss francs (roughly $1.7 billion), Bloomberg reported.

Hillhouse- and HongShan-backed Mixue Group, China's largest bubble tea chain operator, plans to raise HK$3.45 billion (about $444 million) through its Hong Kong IPO.

KNDS, a European military defense company, is considering an IPO, potentially targeting in Frankfurt, Reuters reported.

Pearsanta, currently a subsidiary of Nasdaq-listed Aditxt, is planning an IPO. It develops a platform to detect cancer early.

Corporate M&A

Energy drink maker Alani Nu will be acquired by competitor Celsius in a $1.8 billion deal, The Wall Street Journal reported.

Chart of the Day

Source: Carlyle’s Hexaware launches IPO; will India’s listing streak continue?

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PitchBook News - Newer VCs lean on niche fund model

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