VCs aim to address diversity, inequality

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PitchBook

The Daily Pitch: VC

June 8, 2020

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Today's Top Stories

Funds, recruiting and support: VCs address diversity and inequality

Co-founder Alexis Ohanian resigned from Reddit's board and called on the company to appoint a black candidate in his place.
(Hannah Peters/Getty Images)

Amid broad social upheaval, venture capitalists are beginning to confront the industry's stark inequalities.

Prominent investors have publicly promised to fund more black entrepreneurs and hire more black investors. SoftBank and Andreessen Horowitz have rapidly rolled out funds for underrepresented investors.

To advocates, these early actions are encouraging. But lasting change could require a degree of transparency and accountability rarely seen in private markets:

Recommended Reads

When it comes to corporate activism, Ben & Jerry's has long been ahead of the curve. [The Wall Street Journal]

Three years ago, Ryan Cohen sold Chewy.com for $3.35 billion. He promptly proceeded to plow nearly his entire new fortune into just two stocks. [Bloomberg]

Examining how protests have changed the pandemic. [The New Yorker]

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Quick Takes


	The Daily Benchmark
	2009 Vintage Global Buyout Funds
	People
	WeWork co-founder McKelvey to leave company
	VC Deals
	Fivetran seeks unicorn valuation
	Atom Power raises $17.7M+ for digital circuit breakers
	Exits
	Legend Biotech stock soars 61% on first day
	Fundraising
	Atlas Venture closes $400M fund

The Daily Benchmark

2009 Vintage Global Buyout Funds

Median IRR

16.20%

Top Quartile IRR Hurdle Rate

23.57%

1.73x

Median TVPI

Select top performers

Sentinel Capital Partners IV

Vista Foundation Fund 1

K3

*IRR: net of fees

33 Funds in Benchmark »

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Webinar: How are private debt markets responding to the COVID-19 slowdown?

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They'll dissect data from early 2020 and provide an outlook for each strategy, given current market dynamics.

The webinar will address:

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How will founders, CEOs and lenders react to current conditions?

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People

WeWork co-founder McKelvey to leave company

WeWork co-founder Miguel McKelvey is planning to depart the company, according to CNBC. McKelvey is the last remaining co-founder at the company since SoftBank took control last year. CEO and co-founder Adam Neumann stepped down last September.

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VC Deals

Fivetran seeks unicorn valuation

Data integration company Fivetran is in talks to raise funding from investors including General Catalyst and Andreessen Horowitz at a valuation north of $1 billion, according to Bloomberg. The company raised $44 million at a $254 million valuation in September, according to PitchBook data. Fivetran's customers include DocuSign, Talkdesk and Lime.

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Atom Power raises $17.7M+ for digital circuit breakers

North Carolina-based startup Atom Power has landed $17.75 million in a Series B backed by Valor Equity Partners, Rockwell Automation, ABB Technology Ventures and Atreides Management. The company sells a digital circuit breaker and plans to use its technology to improve electric vehicle charging.

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Exits

Legend Biotech stock soars 61% on first day

Stock in Legend Biotech closed Friday trading at $37 per share, up nearly 61% during its first day on the Nasdaq under the LEGN symbol. The New Jersey-based company, which is developing cell therapies for oncology-related indications, offered 18.4 million American depository shares for $23 each in its IPO, raising $424 million. Stock in Legend, which is spinning out from GenScript, reached an intraday peak of $39.94.

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Fundraising

Atlas Venture closes $400M fund

Boston-based biotech investor Atlas Venture has closed its 12th flagship fund on $400 million. The early-stage firm closed its prior flagship fund on $350 million in 2017 and its first opportunities fund on $250 million in 2019. Atlas has also promoted Michael Gladstone, who first joined the firm in 2012, to partner.

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Chart of the Day

"For the second consecutive year—but also only the second time in the last decade—the bulk of Q1 exit value came from SBOs. In every other year in the decade, corporate acquisitions accounted for the lion's share of Q1 exit value. With global travel restrictions and work-from-home policies in place, we expect exit activity via strategics and sponsors to fall quickly within the next two quarters."

Source: PitchBook's Q1 2020 European PE Breakdown