PitchBook News - The foundational role of angels in VC

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The Daily Pitch: VC

September 2, 2020

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Today's Top Stories

How angels lay the groundwork for the rest of VC

(David Rosskamp/Getty Images)

The amount of capital investors commit to angel deals pales in comparison to later stages of the venture ecosystem. But that fact belies the impact angel investors can have on a young company. Between 2006 and 2014, roughly 74% of startups that raised their first capital from angel investors went on to close follow-on fundings, compared with 59% of startups without angel backing.

Who are these angel investors helping the next generation of companies get off the ground? How do angel groups compare to individual angels? And how have they fared in 2020? PitchBook's latest analyst note offers a full examination of the foundational role angel investors play for the whole of the VC industry:

read it now

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Thoma Bravo eyes $21B addition to arsenal

From its headquarters in Chicago, Thoma Bravo is preparing to close a trio of notable new tech funds. (marchello74/Getty Images)

The tech fundraising boom isn't finished yet.

Thoma Bravo, a Chicago-based firm that buys software companies and other tech-focused businesses, plans to wrap up fundraising this fall for three vehicles that could combine to bring in over $21 billion, according to The Wall Street Journal.

The bulk of that total will go toward the firm's 14th flagship fund, which has a $16.5 billion target. Another $3.5 billion will reportedly be for a middle-market vehicle focusing on enterprise software and tech deals, and another $1.3 billion will go toward a small-cap tech fund.

Fundraising for tech-focused private equity vehicles has surged over the past decade: After sitting at $25.2 billion in 2010, industrywide dry powder for tech funds topped $100 billion in 2019, according to PitchBook data. And the past 12 months have brought even more mega-funds.

Last September, Vista Equity Partners closed its latest flagship effort on some $16 billion, blowing past a predecessor that raised $11 billion in 2017. In June, meanwhile, Francisco Partners closed three new tech funds with a total of $10 billion in LP commitments.

Related read: An overview of tech-focused PE funds

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global Buyout Funds
	VC Deals
	Patreon hits $1.2B valuation
	Sarcos Robotics picks up $40M
	PicnicHealth reveals $35M in funding
	Pediatric telehealth startup books $33.5M
	Professional networking startup secures funding
	Exits & IPOs
	Bumble could go public in 2021
	Laird Superfood files for IPO
	Fundraising
	Owl Ventures secures $585M

The Daily Benchmark

2016 Vintage Global Buyout Funds

Median IRR

14.38%

Top Quartile IRR Hurdle Rate

21.51%

1.22x

Median TVPI

Select top performers

Gemspring Capital Fund I

Francisco Agility Fund

Renovus Capital Partners II

*IRR: net of fees

101 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Patreon hits $1.2B valuation

Patreon has raised $100 million at a pre-money valuation of $1.2 billion from investors including NEA, according to The Information. Patreon was valued at $660 million last year with a $60 million round led by Glade Brook Capital, according to PitchBook data. The company's platform helps content creators such as podcast hosts raise financial contributions from their patrons.

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Sarcos Robotics picks up $40M

Sarcos Robotics, a developer of industrial robotic systems, has raised a $40 million Series C led by Rotor Capital. Based out of Salt Lake City, the company plans to use the funding to commercially produce its battery-powered robot, which is designed to lift up to 200 pounds. Sarcos Robotics has received prior funding from investors including Microsoft and GE Ventures.

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PicnicHealth reveals $35M in funding

San Francisco-based PicnicHealth has announced that it raised a $25 million Series B led by Felicis Ventures, as well as a $10 million Series A in 2018 that was led by Amplify Partners. Founded in 2014, the startup is the creator of a platform that allows patients to access their medical records and voluntarily contribute the data to scientific research. The funds will help PicnicHealth support new disease areas and build new datasets.

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Pediatric telehealth startup books $33.5M

Hazel Health has raised a Series C, with reports pegging the round amount at $33.5 million. Owl Ventures and Bain Capital Ventures co-led the funding, with participation from Uprising, UCSF Foundation Investment Company and Centene. The San Francisco-based startup is the provider of a telehealth platform that allows students to book on-demand virtual doctor visits at school or at home.

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Professional networking startup secures funding

Lunchclub has raised $24.2 million at a valuation of more than $100 million in a round co-led by Lightspeed and Coatue Management, according to CNBC. Founded in 2017, Lunchclub is the developer of an AI-based networking platform designed to connect investors, founders and others via virtual meetings and remote conferences.

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Exits & IPOs

Bumble could go public in 2021

Bumble has begun preparing for an IPO that could occur early next year, with its eye on a valuation of between $6 billion and $8 billion, according to Bloomberg. Last year, Blackstone acquired MagicLab, Bumble's parent company, at a $3 billion valuation. Accel also owns a stake in Bumble. Founded in 2014 by former Tinder executive Whitney Wolfe Herd, the company operates a dating app where women must begin conversations with their matches.

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Laird Superfood files for IPO

Laird Superfood, a plant-based food startup co-founded by big wave surfer Laird Hamilton, has filed to raise $40 million by going public on the NYSE American exchange. The Sisters, Ore.-based company, which provides coffee creamers, coconut water and other products, posted a net loss of $8.5 million and net sales of $13.1 million last year. Laird has received prior backing from WeWork and Danone Manifesto Ventures (13.4% pre-IPO stake); the company reached a valuation of $112 million in January 2019, according to PitchBook data.

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Fundraising

Owl Ventures secures $585M

Owl Ventures has closed two funds, bringing in $415 million for its fourth flagship vehicle and another $170 million for its inaugural opportunities fund. Founded in 2014 and based in San Francisco, Owl Ventures invests exclusively in the edtech sector.

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