VCs confront new reality in Western Europe

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PitchBook

The Daily Pitch: VC

June 25, 2020

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

Investors adapt to a pandemic in France and Benelux countries

During the past decade, the France and Benelux region—which includes Belgium, the Netherlands and Luxembourg—has assumed an increasingly prominent place in the private market landscape. But now, in a few different ways, the pandemic is starting to shake things up.

PitchBook's 2020 France & Benelux Private Capital Report reveals an expected dip in private equity deal value and a shift toward late-stage deals among venture investors. Other key takeaways include:

Exit activity is expected to decline in both VC and PE, in what could be a long-term trend
New opportunities may emerge for venture-backed companies in the biotech and ecommerce sectors
PE fundraising rates are cooling off after a record 2019

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More coronavirus news: Continuing coverage from PitchBook

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PE has failed to outperform stocks, research says, but LPs aren't turning away

(MirageC/Getty Images)

A building body of academic research has indicated that PE returns don't have the same edge they used to over the public markets. The latest example came earlier this month, when an Oxford professor published a new paper concluding that private and public equity returns in the US have been roughly equal since 2006.

But limited partners aren't likely to reallocate their funds anytime soon:

Recommended Reads

During the pandemic, many companies are coming to a startling realization: Their workers are more productive when they're working from home. [The New York Times]

Recent months have given the world a preview of a future healthcare system where telemedicine is king. Is it the future we want? [The New Yorker]

Different private equity firms are taking different approaches to impact and ESG investing. For some, including The Carlyle Group, it can at times be a paradoxical process. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2017 Global Funds-of-Funds
	People
	BVP elevates Mary D'Onofrio
	VC Deals
	Sana Biotechnology unveils $700M in financing
	Sonder hits $1.3B valuation with latest round
	Ojo Labs lands $62.5M, buys Movoto
	Pipe gets $60M in seed extension
	Sapphire Ventures leads $55M Series C for Ujet
	SQream raises $39.4M for data analytics tech
	ClickUp picks up $35M
	Librestream locks down $24M
	Openly brings home $15M Series A
	Portfolio Companies
	Ecommerce software developer BigCommerce eyes IPO
	Exits
	Apple buys device manager Fleetsmith
	Fundraising
	Creative Artists Agency and NEA partner on new fund

The Daily Benchmark

2017 Global Funds-of-Funds

Median IRR

9.08%

Top Quartile IRR Hurdle Rate

12.64%

1.11x

Median TVPI

Select top performers

StepStone Tactical Growth Fund II

HarbourVest 2017 Global Fund

Schroder Adveq Global II

*IRR: net of fees

23 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

BVP elevates Mary D'Onofrio

Bessemer Venture Partners has promoted Mary D'Onofrio to the role of vice president. She will focus on growth investments and work with cloud, developer and data privacy startups. D'Onofrio has been with BVP since 2018; before joining the firm, she worked as an analyst on Morgan Stanley's equity capital markets team. Based in the Bay Area, BVP has backed companies including Pinterest, LinkedIn and DocuSign.

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VC Deals

Sana Biotechnology unveils $700M in financing

Sana Biotechnology announced that it has raised more than $700 million in funding from investors including Arch Venture Partners, Canada Pension Plan Investment Board, Baillie Gifford and Bezos Expeditions. Founded in 2018, the startup is working on creating engineered cells to treat different diseases. Sana is based in Seattle but also operates in Cambridge, Mass., and South San Francisco.

Additional Investors:

Flagship Pioneering, F-Prime Capital, Alaska Permanent Fund, Public Sector Pension Investment Board, GV, Omega Fund, Altitude Life Science Ventures

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Sonder hits $1.3B valuation with latest round

Travel startup Sonder has raised $170 million in Series E funding, with plans to raise additional funds that will bring the round total to $200 million. Fidelity, WestCap and Inovia Capital led the financing. The new capital values the provider of high-end home rentals at $1.3 billion, compared to the $1.1 billion valuation it claimed last summer. Sonder reportedly laid off a third of its staff in March to cut costs as the pandemic set in.

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Ojo Labs lands $62.5M, buys Movoto

Austin-based Ojo Labs has raised a $62.5 million round from lead investor Wafra, with participation from Breyer Capital, LiveOak Venture Partners, Royal Bank of Canada and Northwestern Mutual Future Ventures. The company, which operates an AI-based platform for those looking to buy or sell a home, has also purchased real estate search engine Movoto. Ojo Labs was valued at $135.5 million in 2018, according to PitchBook data.

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Pipe gets $60M in seed extension

Pipe Technologies has raised $60 million in a seed extension round. The deal, which consists of equity and asset financing, was led by Fin Venture Capital, with participation from new investors including Tribe Capital and Uncorrelated Ventures. Pipe is the developer of a platform that allows investors to fund SaaS companies without debt or dilution. Based out of Los Angeles and San Francisco, the company has also hired Michal Cieplinski as chief operating officer and chief legal officer.

Additional Investors:

Craft Ventures, Fika Ventures, MaC Venture Capital Management, Lachy Groom, Anthemis

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Sapphire Ventures leads $55M Series C for Ujet

Ujet, the developer of a cloud-based customer support platform, has raised $55 million in round led by Sapphire Ventures. Existing investors including GV, Citi Ventures, Kleiner Perkins, DCM and Resolute Ventures also took part in the funding. The San Francisco-based company was valued at $65 million in 2018, according to PitchBook data.

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SQream raises $39.4M for data analytics tech

Data analytics startup SQream has raised $39.4 million in a Series B+ led by Mangrove Capital Partners and Schusterman Family Investments. Based in New York, SQream helps users analyze data to gain business intelligence, improve performance and reduce costs. The startup raised a $26.4 million Series B in 2018.

Additional Investors:

Hanaco Venture Capital, Alibaba Group, Silvertech Ventures, Sistema, Blumberg Capital, World Trade Ventures

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ClickUp picks up $35M

Craft Ventures has led a $35 million Series A for ClickUp, the developer of a workplace collaboration platform that integrates project management applications such as Slack, Zoom and Salesforce. Georgian Partners also participated in the funding. Founded in 2017 and based San Diego, ClickUp's customers include Airbnb, Netflix and Nike.

Librestream locks down $24M

Librestream has raised a $24 million Series D led by Canadian Business Growth Fund, with participation from existing investors including Emerald Technology Ventures and BDC Capital. Based in Winnipeg, Canada, Librestream is a creator of augmented reality-based collaboration software for workers in telehealth, industrial, retail and other sectors.

Additional Investors:

Export Development Canada, PenderFund Capital Management

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Openly brings home $15M Series A

Openly, the developer of a home insurance platform, has raised $15 million in a round led by Obvious Ventures. Existing investors including Gradient Ventures and Point Judith Capital Ventures also participated in the funding. The Boston-based company plans to use the new funding in part to expand operations in markets such as Indiana and Ohio.

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Portfolio Companies

Ecommerce software developer BigCommerce eyes IPO

BigCommerce, a developer of retail ecommerce software, has confidentially filed with the SEC for an IPO, according to Bloomberg. The listing could reportedly be valued at $1 billion. The Austin-based company was valued at $514 million after raising $64 million in 2018, according to PitchBook data.

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Exits

Apple buys device manager Fleetsmith

Apple has purchased Fleetsmith, a company that develops tools for businesses to manage their Apple devices remotely. The San Francisco-based startup raised $30 million in April 2019 at a $92.6 million valuation.

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Fundraising

Creative Artists Agency and NEA partner on new fund

Entertainment and sports talent firm Creative Artists Agency has teamed up with NEA to create a new fund, Connect Ventures. The $100 million vehicle will invest in media and technology companies, launching with an investment in Spire Animation Studios, which was co-founded by Brad Lewis, producer of "Ratatouille," and entrepreneur PJ Gunsagar.

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Chart of the Day

"Emerging managers, including first-time funds, were particularly susceptible to travel shutdowns, given their lack of existing relationships with allocators, making it more difficult to go through a full manager-diligence process. In the quarter, there was only one first-time fund raised, compared to seven in Q1 of 2019."

Source: PitchBook's Q1 2020 US PE Middle Market Report