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Surveying sustainable investing practices
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PitchBook is taking the pulse of investors and other private market participants on their incorporation of impact strategies and ESG risk factors. Please share your firm's approach to sustainable investing and what drives it. The survey will take about 10 minutes.
All who complete the survey will be entered in a prize drawing, and for each respondent, PitchBook will make a donation to World Central Kitchen.
Take the survey now |
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Shifting VC landscape marked by layoffs, dip in deals
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Since March 11, nearly 45,000 employees have been laid off across more than 370 venture-backed companies. That's just one of many startling statistics from the past several months. But it may be the starkest indication of the widespread changes the pandemic has wrought across the startup scene.
In the new edition of PitchBook's Quantitative Perspectives, our analysts turn their attention to the past, present and future of how US venture capital fares during times of economic turmoil, with data on everything from current macroeconomic trends to the exit environment during the global financial crisis. A few key takeaways:
- A pull-back from nontraditional VC investors could help drive down deal flow
- The IPO market has so far proven resilient, but that may change as the pandemic unfolds
- More startups may turn to debt financing as a way to avoid down-rounds and dilution
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Who really accepted PPP loans?
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Confusion reigned after the US government's list of Payment Protection Program loan recipients named various high-profile startups and venture capital firms, including some who denied even applying for the $669 billion pandemic relief program.
- In the spring, a fierce debate erupted across the business world over whether companies with wealthy investors should accept emergency relief funds.
- Among the VC firms that said they had been listed in error were Andreessen Horowitz, Index Ventures and Foundation Capital. Bird, the venture-backed scooter rental startup, also cried foul for being named in the list published Monday by the Small Business Administration.
- The SBA didn't immediately comment on the claims of erroneous data.
- In a statement earlier in the day, the agency said the list reflects 4.9 million approved loans totaling more than $521 million through June 30. The average loan size was about $107,000, with the vast majority under $50,000 and more than 4,800 loans ranging from $5 million to $10 million.
More coronavirus news: Continuing coverage from PitchBook |
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Talking about tech's response to COVID-19 on 'In Visible Capital'
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In the latest episode of "In Visible Capital," emerging tech analyst Ryan Vaswani dives deeper into his analyst note "Accelerating History: Pandemic-Driven Tech Opportunities."
Topics discussed in the episode include:
- How the healthcare industry and others have accelerated their tech capabilities in response to COVID-19 and how companies have focused resources to improve the accuracy of tests.
- Where investors have directed their capital to help the pandemic response, what's next for edtech companies and why the move toward digitization is inevitable.
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Sequoia secures $1.35B for new India, Southeast Asia funds
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| (ronniechua/Getty Images) |
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Sequoia India has raised $1.35 billion for two new funds as the venture capital firm looks to continue focusing on investments in India and Southeast Asia.
The two vehicles—a $525 million venture fund and a $825 million growth fund—are the firm's latest since it closed a seed fund in late 2019, according to PitchBook data. So far this year, the firm has made 31 investments, PitchBook data shows.
Startups in India have struggled to grow rapidly with "good unit economics", Shailendra Singh, managing director at Sequoia India, said in a LinkedIn post. This has prevented many large, profitable technology businesses from emerging onto the global stage, he said.
But Sequoia hopes the two new funds will help change that tide.
"In short, our ecosystem needs exemplary, enduring, lighthouse companies of the future, that can prosper for decades and be resilient across market cycles," Singh said. |
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Uber confirms $2.65B deal for Postmates
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| Uber is doubling down on food delivery with its Postmates purchase. (Justin Sullivan/Getty Images) |
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After around a week of speculation, Uber announced Monday it has acquired food delivery company Postmates for $2.65 billion in an all-stock deal.
Postmates will continue to operate as its own app following the deal, though operations will merge. Uber estimates it will issue about 84 million shares of stock for 100% of the fully diluted equity of Postmates.
The union arrives on the heels of Uber's failed pursuit of Grubhub, another rival in the delivery app space. Instead, Grubhub ended up springing for a $7.3 billion takeover offer from Europe's Just Eat Takeaway.com last month.
Postmates is "highly complementary" to Uber Eats and will bolster the ridehailing giant's "growing efforts in the delivery of groceries, essentials, and other goods," Uber wrote in its announcement. |
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Video streaming startup Quibi raised $1.75 billion before its launch in April. But so far, it hasn't garnered the attention that investors had hoped for. [Vulture]
Suddenly, the roller skate industry is seeing demand increase like never before. [Vogue]
California's coronavirus cases have surged in recent weeks, reversing the state's early success in containing the outbreak. What happened? [Vox] |
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Since yesterday, the PitchBook Platform added:
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13
VC valuations
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1194
People
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338
Companies
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23
Funds
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2006 Vintage Global Secondaries Funds
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Palantir files confidentially for stock market listing
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| Data analysis startup Palantir Technologies has confidentially filed paperwork with the SEC to go public. The business did not disclose the size of the offering and stated that the public listing is expected to take place after the SEC completes its review process. Palantir was valued at about $20.3 billion in its most recent round in 2016 and last week filed to raise $961 million in funding. |
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Investors pump $113M into Caffeine
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Instacart raises an additional $100M
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| Instacart has raised $100 million from T. Rowe Price, resulting in a valuation of about $13.8 billion for the business, according to Axios. The news comes after the grocery delivery company announced a $225 million fundraise led by DST Global and General Catalyst last month, as demand for its services continues to boom during the pandemic. |
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Indonesian fintech startup secures $53M
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| Payfazz, the Jakarta-based developer of a financial services platform, has raised a $53 million Series B co-led by B Capital Group and Insignia Venture Partners, with support from Tiger Global, Y Combinator and others, according to reports. Payfazz, which raised a $21.4 million round in November 2019, is said to have earmarked the capital for expansion across Southeast Asia. |
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Intel Capital buys stake in Jio
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| Jio Platforms has attracted more than $15 billion in recent months from big names like Silver Lake and Facebook. Now, Intel Capital has purchased a 0.39% stake in the Indian telecom giant for the price of 18.9 billion rupees (around $253.2 million). |
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Oyo plans to downsize in Japan
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| SoftBank-backed Oyo plans to scale back its operations and reduce headcount in Japan, according to Bloomberg. With fewer bookings as a result of travel restrictions, the Indian hotel startup is said to have closed several provincial offices and is looking to scale back its Tokyo headquarters. Oyo is also reportedly urging employees to quit and offering up to four months of severance. The downsizing follows reports earlier this year that Oyo had laid off thousands of employees across China and India. |
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Poseida sets terms for public debut
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| Poseida Therapeutics has filed with the SEC to sell 10 million shares at between $14 and $16 apiece on the Nasdaq. A midpoint pricing would raise $150 million and establish an initial market cap of about $867 million for the San Diego-based biotech startup. Backed by Malin Life Sciences (19.2% pre-IPO stake), Fidelity Investments (12.6%) and Novartis (12.4%), the company is a developer of gene engineering technologies intended to cure cancer and other diseases. |
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Fintech startup NCino eyes $183M IPO
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| NCino, which operates a cloud-based banking platform, has filed with the SEC to offer around 7.6 million shares on the Nasdaq at $22 to $24 each. At the top end of this range, the Wilmington, N.C.-based company would have an initial market cap of $2.14 billion and raise some $183 million. NCino has brought in private funding from investors including Insight Partners (46.6% pre-IPO stake), Salesforce Ventures (13.2%) and Wellington Management (9.5%). |
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"Given the attractiveness of the strategy for LPs, a wave of growth equity-focused funds emerged to invest in this space. In 2019 alone, growth equity fundraising totaled $41.0 billion across 68 funds. What's more, between 2005 and 2019, PE growth equity fundraising grew at an 8.5% CAGR, compared to a 6.2% CAGR for all PE strategies, indicative of positive LP sentiment toward growth equity."
Source: PitchBook's Q2 2020 Growth Equity Overview analyst note |
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