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The Daily Pitch: VC

September 8, 2020

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

Today's Top Stories

As live college sports take a time out, esports score big on virtual campuses

(Kelilah King/PitchBook)

Classes aren't the only thing moving online this semester.

College students are socializing from afar through esports, the latest venue for not-so-personal interaction. Schools like MIT and Brown University have seen gaming clubs swell, as hundreds of students seek out social entertainment.

The momentum at universities—and within the wider world of gaming—could provide the foothold that collegiate esports has been waiting for:

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A message from INSIGHT2PROFIT

Take your exit planning to the next level with Quality of Pricing

As businesses evaluate the M&A market and determine if they can garner pre-COVID valuations, potential sellers want to assess their business, identify priority areas that may require attention pre-exit and prepare to go to market.

INSIGHT2PROFIT's Quality of Pricing^® (QoP^®) serves as an invaluable tool in the exit planning process, regardless of whether the company is in the early stages of discussions with investment bankers or further in the process of attracting potential buyers. While buyers are sitting on significant dry powder and are seeking high-quality targets at lower valuations, QoP optimizes transaction value by:

Quantifying historical EBITDA growth due to pricing and commercial improvement
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Yandex, Uber to spin off self-driving car unit

Moscow-based Yandex and Uber have decided to spin off the taxi unit of their shared venture, MLU BV. (Vasil Nanev/Getty Images)

Uber and Russian internet giant Yandex are spinning off the self-driving car subsidiary of their ridehailing and food delivery joint venture, MLU BV. Yandex will invest $150 million in the new entity, Yandex SDG, including $100 million in equity and $50 million as a convertible loan. Yandex SDG will be 73% owned by Yandex, while Uber will have 19% of the business.

In connection with the deal, Yandex will hold 61.7% of MLU and Uber will own 33.5%. Bloomberg reported in June that Yandex had been looking to buy all of Uber's initial 38% stake as an alternative to taking the taxi business public. Uber merged its Russian operations with Moscow-based Yandex in 2017.

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Coming soon: The newest issue of our magazine

The next edition of the quarterly PitchBook Private Market PlayBook will be released in October, featuring articles on private equity's growing interest in pro sports, the rise of SPACs, Q&As with our analysts and much more.

Today is the last day to register for the Q3 edition of the magazine. If you'd like to start receiving it or want your copy mailed to a different address, sign up here:

get the playbook

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Recommended Reads

For now, at least, proposed legislation in California that could curtail private equity acquisitions of healthcare companies has died in the state legislature. [The Wall Street Journal]

The pandemic is reshaping economics around the globe. For two entrepreneurs working in a shipping container in a Malaysian parking lot, it means their vertical farm is booming. [The New York Times]

Frank Fisher is the latest in a 300-year-old line of butchers. As the years go by, he's come to grips with the fact that he will also be the last. [The Guardian]

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Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2017 Vintage Global Venture Funds with $250M+
	VC Deals
	Nreal secures $40M
	Exits & IPOs
	KnowBe4 could double valuation in IPO
	Fundraising
	Cota Capital targets $100M fund

The Daily Benchmark

2017 Vintage Global Venture Funds with $250M+

Median IRR

19.67%

Top Quartile IRR Hurdle Rate

25.80%

1.27x

Median TVPI

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Frazier Life Sciences IX

Versant Venture Capital VI

LAV Biosciences Fund IV

*IRR: net of fees

22 Funds in Benchmark »

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PitchBook Webinar: AI and machine learning

Join us on Sept. 10 for a conversation about AI and machine learning. PitchBook analysts will explore the current state and future of the space, how optimism in the industry is shifting from hype to reality, and other topics, including:

Trends in AI and machine learning VC and deal activity data

Market size, opportunities and recent deals across PitchBook's segmentation of AI and machine learning, including horizontal platforms, vertical applications, AI semiconductors and autonomous machines

The impact of recent technical breakthroughs on the vertical's outlook

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VC Deals

Nreal secures $40M

Nreal, a developer of augmented reality headsets, has raised $40 million in a round led by Chinese video-sharing app developer Kuaishou, according to Bloomberg. Hillhouse Capital, Sequoia China and CICC also participated in the funding.

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Exits & IPOs

KnowBe4 could double valuation in IPO

KnowBe4, a cybersecurity startup backed by investors including KKR and Ten Eleven Ventures, is preparing for an initial public offering in the US that could value it at more than $2 billion, according to Reuters. The startup was valued at $1 billion after a $300 million funding round last year. KnowBe4 develops software to train employees on cybersecurity awareness.

View details

View 25 competitors »

Fundraising

Cota Capital targets $100M fund

San Francisco-based Cota Capital has set a $100 million goal for its second venture fund, according to an SEC filing. The firm invests in enterprise tech and biotech startups, with a portfolio that includes precision medicine startup Mission Bio, government budgeting platform provider OpenGov and cloud computing company Oasis Labs.

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View 101 investments »