PitchBook News - European VC could break records in 2020

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The Daily Pitch: VC

October 29, 2020

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

Today's Top Stories

European VC is on a record-breaking pace in 2020

The European venture capital industry has set a new annual record for deal value in each of the past three years. And despite the presence of an economy-shaking pandemic, the region is on pace to make it four in a row.

Venture capitalists have already completed €29.5 billion worth of deals so far this year, according to PitchBook's Q3 2020 European Venture Report, sponsored by Fladgate LLP. That stunning sum is a sign of how the European market has boomed in recent years, developing into a mature ecosystem that can support steady deal flow even amid an ongoing global health crisis.

Other key takeaways from the report include:

European VCs are also on pace to set a new annual record for fundraising

Exit activity began to recover in the third quarter, after a dismal first half of the year

Dealmaking in the France and Benelux region has remained buoyant, as has dealmaking involving CVCs

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Scopely picks up $340M as gaming funding soars in 2020

(Koktaro/Shutterstock)

Scopely, a creator and publisher of mobile games, has raised a $340 million Series E from a group of backers that includes Wellington Management, BlackRock and Battery Ventures. With the new funding, the company has reportedly almost doubled its valuation to $3.3 billion in a year that has seen an uptick in financing for gaming companies.

Based near Los Angeles, Scopely is behind mobile games like "Star Trek Fleet Command" and "Scrabble Go." Last October, the company picked up a $200 million Series D that reportedly valued it at $1.7 billion. Five months later, it raised another $200 million for that round.

Global funding for gaming companies so far this year has already blown past 2019's totals. VC and PE investors have injected $5.9 billion across 332 deals, according to PitchBook data. In 2019, the total funding figure was $3.2 billion over 531 deals. This year's deal value still trails behind the $6.9 billion logged in 2018, however.

Scopely plans to use the fresh capital to continue its acquisition strategy and expand into new product categories. In January, it agreed to purchase FoxNext Games, the company behind "Marvel Strike Force," from Disney. In April it announced the acquisition of PierPlay, and this week it closed a deal for Spanish mobile entertainment company Genera Games.

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A message from Mallard Acquisition Corp. (NASDAQ: MACUU)

A middle-market SPAC

Mallard Acquisition Corp. is a new Special Purpose Acquisition Company (SPAC) on the NASDAQ that recently raised $110 million. Unlike other SPACs, MAC seeks to merge with a PE-owned portfolio company in value-added distribution, industrial specialty services or differentiated manufacturing.

More specifically, MAC is looking for a PE-owned company executing a proven add-on strategy with operating synergies. It should have current EBITDA of $25 million to $75 million, and a clear path to $100 million. MAC offers a PE group liquidity, deleveraging and a public vehicle for rapid growth of its portfolio company.

Learn more about Mallard at www.MallardSPAC.com

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Quick Takes


	The Daily Benchmark
	2015 Vintage Global Secondaries Funds
	People
	Andreessen Horowitz hires former NYSE regulator
	VC Deals
	Honor locks in $140M
	Pro athlete-backed Whoop raises $100M at $1.2B valuation
	Outrider brings in $65M to automate logistics
	Portfolio Companies
	Fraud detection startup NS8 files for bankruptcy
	Exits & IPOs
	Root falls flat in market debut

The Daily Benchmark

2015 Vintage Global Secondaries Funds

Median IRR

17.10%

Top Quartile IRR Hurdle Rate

19.30%

1.42x

Median TVPI

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Siguler Guff Secondary Opportunities Fund

SG/NMERB Secondary Fund I

Hollyport Secondary Opportunities Fund V

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People

Andreessen Horowitz hires former NYSE regulator

Anthony Albanese, the former chief regulatory officer of the New York Stock Exchange, has joined Andreessen Horowitz as an operating partner. Albanese will be a member of a16z's crypto team and will engage with regulators in addition to working with its portfolio of companies. The firm's cryptocurrency and blockchain investments include payment network Ripple Labs, digital currency exchange Coinbase and blockchain computing startup Oasis Labs.

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VC Deals

Honor locks in $140M

Honor, a provider of non-medical home care services for older adults, has raised $140 million in a Series D led by Baillie Gifford and T. Rowe Price. The San Francisco-based company partners with existing care providers and works with more than 1,000 communities in the US. Honor has raised over $250 million in total private funding since its 2014 founding.

Additional Investors:

8VC, Andreessen Horowitz, Prosus Ventures, Rock Springs Capital, Thrive Capital

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Pro athlete-backed Whoop raises $100M at $1.2B valuation

Fitness company Whoop has landed $100 million in a Series E led by IVP. The round values Whoop at $1.2 billion and drew support from athletes including Kevin Durant, Patrick Mahomes and Eli Manning. The Boston-based startup offers a wearable fitness strap and monthly subscription to provide users with feedback on activity and recovery.

Select Additional Investors:

Accomplice VC, D20 Capital, LionTree Partners, NextView Ventures, SoftBank, Thursday Ventures, Two Sigma Ventures

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Outrider brings in $65M to automate logistics

Colorado-based Outrider has raised $65 million in a Series B led by Koch Disruptive Technologies. The new round brings the startup's total private funding to more than $115 million; it was last valued at $143 million following a 2019 round, according to PitchBook data. Outrider is a provider of management software, autonomous vehicle tech and site infrastructure to distribution yards.

Additional Investors:

8VC, Evolv Ventures, Henry Crown and Company, NEA, Prologis Ventures

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Portfolio Companies

Fraud detection startup NS8 files for bankruptcy

NS8 has reportedly filed for Chapter 11 bankruptcy protection and is set to launch a lawsuit against its former CEO, Adam Rogas. Last month, Rogas was arrested on fraud charges that he created tens of millions of dollars in fake revenue and used that information to raise money from investors. The company also reportedly let go of most of its 200 employees. NS8 raised $123 million in June in a round led by AXA Venture Partners and Lightspeed, valuing it at $436.4 million, according to PitchBook data.

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Exits & IPOs

Root falls flat in market debut

Root's stock market debut received a muted reception in its first trading day, with its stock price closing at $27 per share, unchanged from its IPO price. The Columbus, Ohio-based auto insurance company raised $724.4 million after it sold 26.8 million shares at $27 in the offering, above its estimated $22 to $25 range. Dragoneer Investment Group and Silver Lake also agreed to purchase up to $500 million worth of shares in a private placement.

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Chart of the Day

"Massive capital investment totals at the late stage have been relatively normal within VC for the last couple of years, but in 2020 the upward trend at the late stage has met declining deal counts at the early stage, resulting in a convergence. Much of this is simply due to the demographics of the companies now operating under VC backing."

Source: Q3 2020 PitchBook-NVCA Venture Monitor