PitchBook News - Bay Area's AI funding bonanza—or waste?

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The Daily Pitch: VC

March 18, 2025

Presented by Deloitte

🤖 The Bay Area raked in more than half of all VC dollars spent on AI and machine learning deals in 2024, according to PitchBook data, but some investors at the HumanX conference in Vegas last week warned that more money isn't always better. Find out why

⚖️ HR tech provider Rippling is suing Deel, one of its chief rivals, alleging the latter planted a spy at the company who stole information about customers, pricing and personnel. Read more

🔒 Alphabet is back in talks to acquire buzzy and fast-growing cybersecurity specialist Wiz, according to The Wall Street Journal. This time, the price tag is reportedly $30 billion—a significant bump from its prior talks at $23 billion.

Plus...
• Private credit lenders are looking closely at tariffs
• Healthtech VC dealmaking is showing signs of improvement
• PepsiCo nabs prebiotic beverage company Poppi

Sign up for The Credit Pitch for weekly news and analysis of the US leveraged loan and private credit markets.

Healthtech dealmaking inches toward recovery

The healthtech market may finally be recovering from a difficult post-pandemic adjustment period, with 179 deals closed in Q4 2024, according to our latest Emerging Tech Research. Overall, 24 mega-rounds worth $100 million-plus were raised last year in the sector, up from 18 in 2023.

Finland-based smart-ring developer Oura led the way with its $200 million Series D at a $5.2 billion valuation. Exit value at the end of 2024 was up slightly from the previous two years. But startups may have to take valuation haircuts or explore other M&A options moving forward in an exit environment that's still far from its peak in 2021.

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A message from Deloitte

Explore the future of fintech with informed perspectives

This quarter’s Road to Next highlights how the cryptocurrency, blockchain, and digital assets (CB&DA) sector is experiencing significant growth despite persistent challenges. Price volatility and short track records keep some investors cautious. However, expansion-stage dealmaking remained robust in 2024, with nearly $1 billion amassed from 91 transactions. Projected regulatory changes in 2025 could further integrate digital assets into the broader fintech ecosystem. While private markets are actively supporting this evolution, dealmaking still lags behind pandemic-era figures. Despite these challenges, rising interest from retail and individual investors indicates a gradually warming recognition of digital assets, underscoring the sector's transformative potential in fintech.

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Tariffs rise to top of due diligence checklist in private credit

(Michal Krakowiak/Getty Images)

Some private credit lenders are shying away from deals in tariff-sensitive sectors amid rapidly changing policies and heightened market volatility, while others are forging on under pressure to deploy dry powder.

Direct lending dealmaking was suppressed at the start of 2025, as M&A and LBO deal activity were bruised by "a rapidly shifting regulatory environment" and political turmoil, according to PitchBook LCD's US Private Credit Monitor.

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India's private markets in flux: IPO boom, VC slowdown, PE resilience

India's private markets are navigating a mixed landscape—VC dealmaking continued to battle headwinds in 2024, down over 50% from peak levels. Meanwhile, PE has remained more resilient, with non-domestic investors increasing their stakes in the country's high-growth sectors.

Our Q4 2024 India Market Snapshot dives into the macro trends, key deals and what's next as India heads into a shifting economic cycle.

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Since yesterday, the PitchBook Platform added:

18

VC valuations

2358

People

615

Companies

43

Funds

See what our data software can do

The Daily Benchmark:
2018 Vintage Global Real Estate Funds

Median IRR

9.27%

Top Quartile IRR

12.55%

0.44x

Median DPI

Select top performers

Exeter Europe Value Ventures III

Invesco Strategic Opportunities III

Blue Heron Real Estate Opportunity Fund III

*IRR: net of fees

76 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Blue Owl has hired Blake Shorthouse, a former executive at KKR, as global head of family capital.

VC Deals

Latigo Biotherapeutics, which develops non-opioid pain treatments, raised a $150 million Series B led by Blue Owl Capital.

Seattle-based Curevo Vaccine, the developer of a shingles vaccine, raised a $110 million Series B led by Medicxi.

Maxion Therapeutics, a UK-based biotech startup, secured a $72 million Series A led by General Catalyst.

Dalma, a Paris-based pet insurer, raised a €20 million Series B led by Breega.

Gradial, a startup developing AI agents for enterprise marketing, raised a $13 million Series A led by Madrona.

PitchBook webinar: Focus on private credit CLOs

Late 2024 saw the debut of Europe's first CLO backed primarily by private credit debt—setting the stage for a wave of similar deals in 2025. But what's next for the market?

In this webinar, we'll examine the significance of this event and provide a general market update on key private credit developments, as well as an overall leveraged finance update for 2025 so far. Key topics include:

How will CLO issuance shape the private credit market in 2025?

What is next for private credit debt in Europe?

How does M&A activity compare to projections?

Register now to secure your spot.

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PE Deals

Investcorp agreed to acquire a majority stake in Miebach Consulting, a Germany-based supply chain management consultancy.

A group of investors led by RRJ Capital has invested $600 million in Dubai-based VistaJet, a private airline group.

Triton Partners acquired a minority stake in Frankfurt-listed waste management and recycling specialist Befesa.

Thoma Bravo invested in cloud-based administration software provider PCMI.

Portfolio Companies

Fast-fashion retailer Forever 21 has filed for Chapter 11 bankruptcy protection for the second time after a failed turnaround of the business by owners including Authentic Brands Group.

Canadian department store Hudson's Bay could begin liquidating locations this week.

The Carlyle Group is delaying planned IPOs of two of its portfolio companies: Acrotec Group and ADB Safegate, Financial News reported.

Exits

AI video startup Hotshot, which develops text-to-video AI foundation models, has been acquired by xAI.

Belgium-based biotech company EsoBiotec, which focuses on cancer treatments, has been acquired by AstraZeneca for up to $1 billion.

Partners Group agreed to sell Ireland-based electricity interconnector cable project Greenlink Interconnector at an enterprise value of €1 billion.

China-based LCD TV display seller Guangzhou Shiyuan Electronic Technology Co. is considering a second listing in Hong Kong, Bloomberg reported.

Asker Healthcare Group seeks to raise about 8.9 billion Swedish kronor (around $880 million) in a Stockholm IPO.

Fundraising

Morgan Stanley Investment Partners closed its fourth global infrastructure fund on $4.1 billion.

Stafford Capital Partners closed Stafford International Timberland Fund X on $1.04 billion.

Madrid-based deep-tech investor Adara Ventures held a first close for its €100 million fourth flagship fund.

Chart of the Day

Source: 2024 Emerging Spaces in Review

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PitchBook News - Bay Area's AI funding bonanza—or waste?

Older messages

Huge data security deals drive infosec

Female angel investors slower to open pockets

Hopes waver for IPO recovery

Who's buying all these startups?

Big Tech M&A still frozen post-inauguration

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