Delivery tech reshapes the grocery space

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PitchBook

The Daily Pitch: VC

June 17, 2020

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Today's Top Stories

How delivery tech is reshaping the grocery industry

(Anton Petrus/Getty Images)

In the wake of widespread stay-at-home orders, grocery delivery has surged, reversing a recent trend toward restaurant delivery and eating out. It may seem that this shift is temporary and primarily driven by the pandemic, but our research analysts contend that grocery delivery is likely to continue thriving. Their latest research note details why, with key findings including:

Grocers are now heavily investing in the infrastructure required to meet current demand and defend market share even as restaurants gradually reopen

New technologies have emerged to help fuel a shift toward grocery delivery, such as "dark stores" and autonomous delivery

Consolidation will likely be necessary for the online food delivery industry to achieve sustainable margins

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More coronavirus news: Continuing coverage from PitchBook

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Royalty Pharma surges in trading debut, marking biggest US IPO of the year

Royalty Pharma's stock jumped nearly 60% in its Nasdaq trading debut Tuesday as biotech initial public offerings continue to dominate this year.

Shares in the company closed at $44.50, valuing the company at $26.5 billion. Royalty Pharma's IPO was the largest on a US exchange so far this year, according to PitchBook data.

The New York-based buyer of pharmaceutical royalties sold 77.7 million shares at $28 each, raising $2.2 billion. The company had initially marketed 70 million shares at a price range of $25 to $28 apiece.

From its founding in 1996 to the end of last year, Royalty Pharma has deployed $18 billion to buy biopharmaceutical royalties. Its current portfolio includes royalties on over 45 therapies to address areas including rare diseases, oncology and cardiology.

Related read: Keros cuts through market headwinds with biotech's latest IPO

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A message from Will Reed

Tales and trends of startup resilience: What their "COVID-pivots" tell us about the future

The "COVID-pivots" covered in Will Reed's latest report are more than just seasonal survival tactics; they are a look into the future. Drawing on interviews with 60-plus seed-stage founders and venture capital partners across the country, the report shows how three to five years' worth of changes in consumer/enterprise behavior were compressed into the past 90 days.

Very few seed-stage companies have changed their mission, according to the report, but virtually all implemented COVID-pivots. As an example, Adam Pittenger, founder of Moved.com, a New York-based residential moving concierge platform, developed the "Contactless Move" overnight to keep customers safe. The full report explores a number of stories like Adam's that showcase founder resilience and future-defining trends for this decade.

Read more founder stories here.

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Recommended Reads

The financial Twittersphere was up in arms last weekend over Robinhood selling its order flow to high-frequency traders. But the strategy isn't exactly new—or unique. [Institutional Investor]

In Beijing, a city crowded by skyscraping apartments, an unusual warning must be heeded: beware of falling garbage. [The Wall Street Journal]

By now, the word COVID comes with a deadly and depressing connotation. Not long ago, though, it struck some intrepid entrepreneurs as a potential goldmine. [The Washington Post]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2008 Vintage US PE Funds
	VC Deals
	VC-backed TripActions raises $125M debt round
	GreenLight Biosciences brings in $102M
	Starburst secures $42M
	Abacus Insights picks up $35M
	Streamlit scoops up $21M Series A
	Ecommerce tech startup emerges from stealth with $19M
	Open Raven soars away with $15M Series A
	Portfolio Companies
	One-time unicorn Proteus Digital Health files for Chapter 11
	Fundraising
	FirstMark raises $650M through two new funds
	Investors
	NVCA launches nonprofit Venture Forward

The Daily Benchmark

2008 Vintage US PE Funds

Median IRR

11.90%

Top Quartile IRR Hurdle Rate

18.55%

1.60x

Median TVPI

Select top performers

Thoma Bravo Fund IX

Water Street Capital Partners II

Altaris Health Partners II

*IRR: net of fees

71 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

VC-backed TripActions raises $125M debt round

TripActions, the provider of an AI-based business travel platform, has collected $125 million in a debt financing round co-led by Greenoaks Capital and Vista Credit Partners, according to Forbes. The funds will reportedly be convertible at IPO. Founded in 2015 and based in Palo Alto, TripActions reached a valuation of $4 billion in June 2019 when it raised a $250 million Series D led by Andreessen Horowitz.

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GreenLight Biosciences brings in $102M

GreenLight Biosciences has collected $102 million in a round led by Morningside Ventures, with participation from new and existing backers including S2G Ventures, Cormorant Asset Management, Fall Line Capital and Tao Capital Partners. Based in Boston, GreenLight creates RNA products for use in vaccine development, crop management and other applications in the plant and life sciences industries.

Additional Investors:

Baird Capital, Continental Grain Company, Lewis & Clark AgriFood, Lupa Systems, MLS Capital Fund II

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Starburst secures $42M

Starburst, which offers open-source SQL query software, has raised a $42 million Series B from investors including Coatue Management and Index Ventures. Founded in 2017 and based in Boston, the company raised $22 million in October at a $122 million valuation, according to PitchBook data.

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Abacus Insights picks up $35M

Abacus Insights has raised a $35 million Series B led by Blue Venture Fund, with participation from CRV, .406 Ventures, Horizon Healthcare and Echo Health Ventures. The company offers a cloud-based platform to help healthcare providers and patients record data and manage health plans. Founded in 2017 and based in Boston, the business was valued at $55 million in May 2019, according to PitchBook data.

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Streamlit scoops up $21M Series A

Streamlit, the developer of an app framework for machine learning and data science engineers, has raised $21 million in new funding co-led by GGV Capital and Gradient Ventures. Bloomberg Beta also participated in the financing. Founded in 2018 and based in San Francisco, the startup reportedly raised a $6 million seed round in October.

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Ecommerce tech startup emerges from stealth with $19M

Zycada has emerged from stealth with $19 million in VC backing from investors including Khosla Ventures, Cervin Ventures and Nordic Eye Venture Capital. Based near San Jose, Zycada uses bot technology to anticipate user interactions and help ecommerce retailers increase online revenue. Cervin Ventures managing partner Preetish Nijhawan has joined the startup's board.

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Open Raven soars away with $15M Series A

Kleiner Perkins has led a $15 million round for Open Raven, the developer of a cloud-based security platform intended to prevent data breaches through real-time monitoring and 3D mapping. Upfront Ventures also participated in the financing for the Los Angeles-based company, which emerged from stealth in February. Kleiner Perkins partner Bucky Moore has joined Open Raven's board.

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Portfolio Companies

One-time unicorn Proteus Digital Health files for Chapter 11

Proteus Digital Health, the maker of a "smart pill" system to monitor health from inside the body, has filed for Chapter 11 bankruptcy protection. The Bay Area-based company was last valued at $1.53 billion after a Series H in 2016. Proteus has raised nearly $400 million in venture funding from investors including Novartis, Otsuka and Oracle, according to PitchBook data.

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Fundraising

FirstMark raises $650M through two new funds

FirstMark Capital has raised $650 million across two new investment vehicles. The firm brought in $380 million for FirstMark V, an early-stage fund, and $270 million for its FirstMark Opportunity III fund, which will target follow-on and growth-stage investments, according to TechCrunch. Based in New York, FirstMark typically targets tech companies; it has invested in Pinterest, Airbnb and Riot Games.

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Investors

NVCA launches nonprofit Venture Forward

The National Venture Capital Association has rolled out a nonprofit organization to go beyond the typical bounds of a trade group. Venture Forward will focus on four areas across the VC community: diversity and inclusion, research and data, education and history. The organization has raised $5.5 million from Silicon Valley Bank and 60-plus other donors, Forbes reported.

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View 2 investments »

Chart of the Day

"The median angel & seed pre-money valuation reached €4.4 million in Q1 2020 to begin the new decade, continuing the impressive momentum from the last five years. The top- and bottom-quartile valuations also recorded increases in Q1, as the effects of the pandemic have not yet cropped up in valuations. However, we believe impacts of the current crisis will emerge over the next two quarters as economic prospects worsen and valuations are recalculated."

Source: PitchBook's Q1 2020 European VC Valuations Report