Portfolio companies land billions from PPP

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The Daily Pitch: VC

July 9, 2020

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

Today's Top Stories

Over 8,000 privately backed companies got billions in PPP loans, SBA data shows

SBA administrator Jovita Carranza characterized the PPP as a lifeline for small businesses seeking to avoid layoffs or closures.
(Kevin Dietsch/Getty Images)

PE and VC portfolio companies were approved for as much as $13.4 billion worth of loans meant to curb job losses from the pandemic, according to a PitchBook analysis of government data.

More than 2,500 PE-backed companies and 5,600 VC-backed companies received loans, the majority of which were for less than $1 million, the data shows.

The federal disclosures offer the first glimpse into the massive stimulus program for small businesses and are vital to understanding its impact, industry experts say.

Yet several companies on the list have denied taking out loans, casting doubt on the accuracy of the data.

Recommended Reads

Retirement was nice, while it lasted. But in recent months, the man who invented the N95 mask has been called back into action. [The Washington Post]

For decades, a TV show's worth was defined by Nielsen ratings. A startup called Parrot Analytics believes it has a new solution for the streaming age. [The New York Times]

Employees at PetSmart are petitioning BC Partners, which acquired the company for more than $8 billion in 2014, to provide better worker protection during the pandemic. [The Wall Street Journal]

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Quick Takes


	The Daily Benchmark
	2005 Vintage Global Venture Funds with less than $250M
	VC Deals
	Perfect Day pushes Series C to $300M
	VelosBio collects $137M
	Electric vehicle maker drives off with $50M
	K4Connect adds $7M+ to Series B
	Exits
	Alibaba's Ant eyes $200B IPO
	DocuSign to launch notary product with acquisition of VC-backed Liveoak
	Slack takes over directory startup
	Fundraising
	DCM closes $880M worth of funds

The Daily Benchmark

2005 Vintage Global Venture Funds with less than $250M

Median IRR

1.99%

Top Quartile IRR Hurdle Rate

4.20%

1.12x

Median TVPI

Select top performers

FirstMark Capital I

Vickers Private Equity Meta Fund I

DFJ Mercury Venture Partners

*IRR: net of fees

15 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Perfect Day pushes Series C to $300M

Perfect Day has extended its Series C to $300 million through a new tranche led by Canada Pension Plan Investment Board. The Bay Area-based company is a producer of animal-free dairy products, including ice cream, milk and cheese. Perfect Day raised $140 million for the first portion of the round in October, reaching a valuation of $440 million, according to PitchBook data.

Additional Investors:

Temasek, Horizons Ventures

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VelosBio collects $137M

VelosBio, a clinical-stage biopharma company, has raised $137 million in a Series B led by Matrix Capital Management and Surveyor Capital. Adage Capital Management, Cormorant Asset Management, Farallon, Foresite Capital and others also participated. Founded in 2017 and based in San Diego, the company is a developer of therapies designed to treat hematologic and solid tumors.

Select Additional Investors:

Janus Henderson Investors, Logos Capital, OrbiMed, T. Rowe Price, Venrock, Viking Global Investors, Wellington Management

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View 33 competitors »

Electric vehicle maker drives off with $50M

Fisker, a Los Angeles-based designer and manufacturer of electric vehicles, has raised a $50 million Series C from Moore Strategic Ventures. The funds will be used in part to help develop the company's electric SUV, which it expects to launch in 2022. Fisker was valued at around $200 million in 2018, according to a PitchBook estimate.

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K4Connect adds $7M+ to Series B

K4Connect has raised $7.7 million in Series B funding led by Forte Ventures, bringing the round's total to $21 million. Based in Raleigh, N.C., the company is a developer of smart products and technology designed to help older adults and those with disabilities. The startup was valued at $53.7 million in April.

Existing Investors:

Sierra Ventures, Intel Capital, AXA Venture Partners, Ziegler Link-Age Fund, Revolution, Topmark Partners, Traverse Venture Partners

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View 1 competitors »

Exits

Alibaba's Ant eyes $200B IPO

Chinese fintech giant Ant Group is planning a public offering in Hong Kong that could value the Alibaba subsidiary at more than $200 billion, according to Reuters. The listing may reportedly happen as soon as this year and could involve the sale of between 5% and 10% of Ant's shares. Ant raised $14 billion in a Series C round in 2018 that included participation from General Atlantic, Silver Lake, Warburg Pincus and others.

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DocuSign to launch notary product with acquisition of VC-backed Liveoak

DocuSign has acquired Liveoak Technologies, a provider of video conferencing, screen-sharing, identity verification and other related tech, for $38 million. The all-stock deal will support the launch of DocuSign Notary, a remote notarization product, as the pandemic continues to drive demand for digital options as a replacement for in-person services. Liveoak has received prior VC backing from S3 Ventures and Seven Peaks Ventures; the Texas-based startup was valued at about $30 million last November, according to PitchBook data.

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Slack takes over directory startup

Slack has acquired Rimeto, a corporate directory startup that was valued at nearly $42 million in a round of venture funding last year, according to PitchBook data. The messaging company will incorporate Rimeto's offerings into its own services while also offering its profile and directory services as a standalone product. Rimeto's prior backers include Bow Capital, Floodgate Fund and USVP.

View details

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Fundraising

DCM closes $880M worth of funds

Early-stage venture firm DCM has raised $780 million for its ninth flagship fund and another $100 million for its third seed-stage vehicle. Based in Menlo Park, DCM targets companies in sectors including fintech, cloud solutions and consumer internet. The firm closed its most recent flagship fund on $500 million in 2016.

View details

View 351 investments »

Chart of the Day

"Secondaries have not seen the boom in distributions that many of the other strategies have experienced in recent years. Fewer distressed LP stakes have been for sale, and more portfolios now go to auction, causing discounts to be squeezed and making outsized returns more difficult to achieve."

Source: PitchBook's Global Fund Performance Report as of Q3 2019