PitchBook News - VC stuck in IPO limbo

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The Daily Pitch: VC

March 17, 2025

Presented by Deloitte

🥂 Startups are buying other startups at an increasing clip—these deals made up a third of US startup acquisitions last year. Unicorns have been looking to expand their core businesses, while public tech giants have pulled back on acquiring venture-backed companies. Read more

🌍 Saudi Arabia notched a personal record for VC dealmaking in 2024—ousting Turkey as the second-largest VC hub by deal count in the Middle East and North Africa region. It's a sign that government support to boost investment in strategic areas like AI is paying off. Full story

Plus...
• Klarna files to go public on the NYSE
• VC gives air mobility tech a lift

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Unicorn valuations climb as VC-backed IPOs sink

With an increasingly unsteady economy dampening already uncertain IPO prospects, venture capital in the US is becoming increasingly polarized, according to our latest Quantitative Perspectives report. LPs continue to favor mega-funds, while GPs pile into standout sectors such as AI, SaaS and biotech.

Capital flowing into these spaces has spurred record unicorn valuations: The total value of US unicorns is nearing $3 trillion for the first time. Unicorns may have good reason to stay private—through the end of January, the median 180-day IPO return for VC-backed companies trailed the Morningstar Growth Index by nearly 30%.

The report examines the historical features of IPO-ready companies, offering insights into potential future exits.

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A message from Deloitte

CB&DA: Transforming fintech despite market challenges

Deloitte’s new Road to Next report points to cryptocurrency, blockchain, and digital assets (CB&DA) profoundly reshaping the fintech landscape, driving significant momentum. While price volatility keeps some investors cautious, the sector is earning greater acceptance. Expansion-stage dealmaking remained robust in 2024, amassing nearly $1 billion from 91 transactions. Anticipated favorable regulatory changes in 2025 could lead to enhanced integration of digital assets across the broader fintech universe. Private markets actively support this shift, although dealmaking still faces challenges overshadowed by pandemic-era figures. Nonetheless, retail and individual investor interest is rising, indicating a gradually warming reception for digital assets. This momentum highlights the transformative impact of CB&DA on the future of financial technology.

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Klarna files to go public on NYSE

(NurPhoto/Getty Images)

Sweden's buy now, pay later giant is finally taking the plunge into public markets.

Klarna, after two decades in business, filed to go public on the NYSE—a listing that will be closely watched by VC-backed companies hoping to sneak through the IPO window this year. The company has also stabilized following an 85% valuation haircut in 2022 during a rocky period for buy now, pay later specialists.

Klarna booked over $2.8 billion in revenue in 2024, up 24% from nearly $2.3 billion year-over-year. It posted a net profit of $21 million over that same period, a dramatic improvement from its $244 million net loss in 2023.

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VC gives air mobility tech a lift

Waymo's $5.6 billion round was the blockbuster deal for the mobility tech industry in Q4 2024. Without it, the sector would have been on par with Q3 for total deal value, according to our latest Emerging Tech Research.

Aside from Waymo, the advanced air mobility segment was a standout, recording its highest deal value since 2021. It also had the third highest deal value of any mobility tech space in Q4 2024—behind only autonomous driving and electric vehicles—and the second highest deal count.

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When one door closes, a window opens

Private market fundraising saw another year of decline in 2024, although the current estimated total is not far off from what the market reached in 2023.

While institutional investors contend with constraints on distributions and approach their allocation ceilings in some of their private market strategy buckets, managers have leaned into evergreen funds and diversified their income streams—particularly within infrastructure, debt and real estate.

Despite sub-optimal market conditions for fundraising, PitchBook analysts cite 2025 as a potential turnaround year—provided existing funds can offload the current backlog of held companies—as PE has recently demonstrated an uptick in exits.

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22

Funds

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VC Deals

Israeli fintech Rapyd raised $500 million at a $4.5 billion valuation to fund its acquisition of Dutch payments startup PayU. The funding from undisclosed investors consists of equity and a small portion of debt.

Plata, a Mexico-based fintech startup offering consumer credit services, raised a $160 million Series A led by Kora at a $1.5 billion valuation.

Curve, a London-based digital wallet startup, secured a £37 million investment led by Hanaco Ventures.

Anyware Robotics, which develops robots for logistics settings, raised a $12 million seed round led by GFT Ventures.

PE Deals

DigitalBridge-backed Zayo Group and EQT will acquire parts of Crown Castle's fiber business for a combined value of $8.5 billion.

American Industrial Partners and FountainVest Partners are pursuing ZF Friedrichshafen's Lifetec unit in a deal that could value the business at several billion euros, Bloomberg reported.

TDR Capital is exploring a continuation fund for David Lloyd Leisure, a UK-based fitness club chain, Financial Times reported.

Ubisoft is considering selling a minority stake in a new gaming entity, targeting investors including Tencent, Bloomberg reported.

Exits

Abu Dhabi's national oil company Adnoc is in talks to acquire energy assets belonging to Mubadala Investment Co., in a deal that could value the assets at around $10 billion, Bloomberg reported.

Soda company Poppi is in talks to be acquired by Pepsi in a deal valued at over $1.5 billion, Bloomberg reported.

MTT Shipping, a Malaysia-based container-vessel company, restarted a plan for an IPO, with hopes of raising up to $200 million, Bloomberg reported.

Geothermal energy specialist Fervo Energy is planning an IPO in the next two years.

Fundraising

London-based investor BD-Capital closed its second fund on €430 million, reaching 20% over its original target after less than a year in the market.

Chicago-based Benford Capital Partners raised $365 million at the close of its third investment fund.

Chart of the Day

Source: Pandemic-era VC dry powder is still piling up

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PitchBook News - VC stuck in IPO limbo

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