The Founder Institute targets first VC fund

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The Daily Pitch: VC

March 11, 2025

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

💰 The Founder Institute is launching a VC fund open to outside LPs, according to a regulatory filing. It appears to be the first such vehicle for the startup incubator and accelerator—and it follows competitors including Y Combinator that have raised a series of VC funds in addition to core capital to support their portfolio programs. Go deeper

⚕️ Hinge Health, a physical therapy app provider backed by investors including Insight Partners, has filed to go public on the NYSE. The IPO is a test case for other digital health specialists eyeing a listing. Read more

🏛️ Stablecoin volume is surging with US regulation of the sector in play. Stablecoin networks booked more than $5.6 trillion in volume last year, and total circulating supply eclipsed $220 billion. Get the analyst note

Plus...
• PitchBook Indexes: PE and VC-backed IPOs give up post-election gains
• The Middle East and North Africa's private markets show resilience

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Startups enter the M&A big leagues

Startups are making acquisition offers that five years ago were only considered the domain of corporates. In 2024, over one-third of the startup acquisitions closed were by a fellow VC-backed buyer, according to our latest analyst note.

As startup buyers make bigger swings, Big Tech has shied away. Regulatory changes and market dynamics have curtailed many larger corporates' M&A bidding.

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PE, VC-backed IPOs give up post-election gains

An ongoing selloff in the stock market has erased several months of progress made by newly public companies formerly backed by VC and PE firms, the PitchBook IPO indexes show. Markets have been rattled in recent weeks by the early innings of a trade war and renewed fears of a recession.

The VC-backed IPO index has fallen nearly 11% this year, and the PE-backed IPO index is down almost 7%.

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MENA region's private markets show resilience

The Middle East and North Africa region's private capital landscape mirrored global trends in 2024, with PE and VC dealmaking declining year-over-year but rebounding in Q4.

Saudi Arabia's rise as a VC hub and Turkey's new tech visa signaled a region adapting to innovation-driven growth. Tech investment remained strong, reinforcing MENA's competitiveness in fintech and digital sectors, according to our latest report on the region.

Despite exit activity declining, a late-year recovery suggested improving conditions for 2025, with public listings continuing despite valuation challenges.

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Venture debt lending hit a record in 2024

(Julia Midkiff/PitchBook News)

Venture debt lending hit $53.3 billion last year, up 94.5% from $27.4 billion in 2023, driven by fewer—but much larger—deals, according to the PitchBook-NVCA Venture Monitor.

Later-stage startups are increasingly turning to such debt to keep up with growth expectations from VCs, and as a way to avoid raising equity financing at lower valuations.

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Since yesterday, the PitchBook Platform added:

17

VC valuations

2618

People

589

Companies

47

Funds

See what our data software can do

The Daily Benchmark:
2016 Vintage European PE funds

Median IRR

17.07%

Top Quartile IRR

19.59%

1.05x

Median DPI

Select top performers

Bridgepoint Development Capital III

Inflexion Enterprise Fund IV

Compass Partners Investments Master Fund

*IRR: net of fees

26 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Medical device company 4C Medical, which focuses on technologies for treating heart disease, has raised a $175 million Series D led by Boston Scientific.

Nirvana, operator of an AI-powered insurance platform for truck drivers, has raised an $80 million Series C at a $830 million valuation, led by General Catalyst.

Dubai-based Klaim, a healthcare payments company, has raised a $10 million Series A led by Mad'a Investment as well as $16 million in financing.

Michigan-based Shoulder Innovations, a medtech company developing shoulder replacement technology, has secured a $40 million Series E led by U.S. Venture Partners.

Valo Therapeutics, a Helsinki-based developer of immunotherapies for cancer, raised €19 million from investors including Indaco Venture Partners, CDP Venture Capital and Freeman Road.

PE Deals

KKR and Stonepeak Partners raised their offer for Assura, a UK-based real estate investment trust, by 3% to value it at £1.61 billion.

Pelican Energy Partners has acquired United Services Group, a contractor that caters to domestic utilities and power generation customers.

TPG made a $1 billion strategic investment in BVI Medical, an ophthalmic device company.

Ascend Capital Partners-backed Seoul Medical Group has merged with Korean American Medical Group. Ascend will also provide capital to the newly formed entity.

Mainsail-backed Innergy has acquired Microvellum, a company specializing in manufacturing solutions for custom wood products.

Exits

NYSE-listed ServiceNow is acquiring Moveworks, an AI assistant for employees, for $2.85 billion, a markup from its last funding round, a Series C led by Tiger Global Management and Alkeon Capital Management at $2.1 billion.

Ardian exited its 35% stake in LBC Tank Terminals, a Netherlands-based chemical storage facilities operator.

Fundraising

Charter Capital closed Charter Growth Capital Fund II on $111 million.

Houston-based early-stage VC firm Soul Street Ventures closed a $22.5 million inaugural fund.

Pamlico Capital raised $1.75 billion for Pamlico Capital VI, surpassing the fund's original $1.5 billion target.

Ambrose, a real estate investment manager, raised $400.6 million for Ambrose Fund IV.

Investors

International Airlines Group says it will invest up to €200 million in aviation startups over five years through a new corporate venture arm, IAGi Ventures.

Corporate M&A

Rocket Companies plans to acquire Redfin in a deal valuing the digital real estate brokerage at $1.75 billion.

Chart of the Day

Source: Q4 2024 US Public PE and GP Deal Roundup

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