PitchBook News - VC in 2020: Predictions vs. reality

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The Daily Pitch: VC

July 6, 2020

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Predictions vs. reality in the 2020 venture landscape

After forgoing a direct listing in favor of raising more private capital, Brian Chesky and Airbnb have reversed course and left the door open for a public debut this fall. (Mike Windle/Getty Images)

After a decade of record-setting growth, expectations were high for the venture industry in 2020. Instead, this has become a year the likes of which the world has never seen.

As VC faces a fundamentally altered reality amid the effects of the coronavirus pandemic, PitchBook analysts revisit the predictions they made at the end of last year. Among those results:

Prediction: Corporate VC activity will reach record highs in 2020. Update: Corporate venture activity has stayed strong, with CVCs involved in a record 26% of US venture rounds.

Prediction: The median US VC fund size will top $110 million. Update: Although short of our lofty forecast, US VC fundraising has remained robust, with the median fund size coming in just over $100 million.

Prediction: 2020 will see a record in US mega-deal activity. Update: As investors favor established companies, rounds over $100 million are proceeding as usual, with H1's activity in line with 2019's trajectory.

Prediction: At least three direct listings of companies valued above $1 billion will close this year. Update: With a shaky IPO market and zero direct listings through H1, this isn't looking likely—but a few highly valued startups considering a public debut may mean at least one direct listing in the latter half of the year.

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Real Assets Funds
	People
	Away co-CEO Steph Korey to depart role
	VC Deals
	Carbon Clean Solutions secures $22M
	Portfolio Companies
	Thrive Causemetics eyes sale or public listing
	Exits
	Accolade soars 35% in trading debut
	Uber agrees $2.65B Postmates deal

The Daily Benchmark

2012 Vintage Global Real Assets Funds

Median IRR

11.54%

Top Quartile IRR Hurdle Rate

16.52%

1.40x

Median TVPI

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Aberdeen UK Infrastructure Partners

EnCap Flatrock Midstream II

ERS Texas Private Real Estate Emerging Manager Exeter

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People

Away co-CEO Steph Korey to depart role

Away co-CEO Steph Korey will resign from her role this year, with Stuart Haselden becoming sole CEO of the luggage company, according to The Verge. The news comes after Korey reportedly wrote several Instagram posts about the media that caused some Away employees to voice concern. Korey had stepped down as CEO last December, but reportedly came back as co-CEO alongside Haselden about a month later.

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VC Deals

Carbon Clean Solutions secures $22M

British startup Carbon Clean Solutions has raised a $22 million Series B from Equinor Ventures and Icos Capital. Wave Equity Partners, Chevron Technology Ventures and Marubeni Corporation, which invested $16 million in the startup in February, also joined the round. The money will be used to expand Carbon Clean's headcount and deploy its technology to capture, store and use carbon dioxide in an array of industries.

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Portfolio Companies

Thrive Causemetics eyes sale or public listing

Thrive Causemetics, an organic cosmetics startup, is exploring a sale or public listing, according to Bloomberg. The Los Angeles-based company could reportedly be valued at hundreds of millions of dollars in a potential deal. The startup is backed by Trinity Ventures.

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Exits

Accolade soars 35% in trading debut

Stock in Accolade closed 35% higher in its Thursday trading debut after the company raised $220 million in an IPO. Accolade, which is developing tools to help employees use their workplace benefits and other health services, sold 10 million shares for $22 each; shares closed Thursday at $29.70. Based in Seattle, the company counts Accretive, Andreessen Horowitz and Carrick Capital as investors.

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Uber agrees $2.65B Postmates deal

Uber has agreed to buy delivery business Postmates in an all-stock deal worth $2.65 billion, according to Bloomberg. The deal comes a week after the two businesses were reported to be in talks. Postmates is expected to operate as an independent service under the leadership of current CEO Bastian Lehmann.

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