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The Daily Pitch: VC

November 3, 2020

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Today's Top Stories

Private equity's campaign funding spree points to 2020's high stakes

A win by Joe Biden, combined with Democratic control of Congress, could lead to higher taxes for the private equity industry.
(Drew Angerer/Getty Images)

The private equity industry has contributed more than $170 million to the 2020 election cycle, according to the Center for Responsive Politics. That total eclipses PE's previous record of $117.5 million spent in the 2016 election cycle.

It's the latest sign that private equity is bracing for an election that could have game-changing consequences for the industry:

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SEC expands fundraising exemptions for private companies

The SEC has adopted a new set of rules to make it easier for small and medium-sized private companies to raise capital.

Federal securities laws require that companies file with the SEC and publish financial statements and other information before they accept investors' money. But there are several exemptions that the SEC revised on Monday.

The agency doubled companies' exemption amount to $10 million from $5 million under Regulation D. It also increased the amount companies can raise from individual investors and firms to $75 million from $50 million under the Regulation A exemption. The limit on crowdfunding deals was raised from $1.07 million to $5 million.

Companies will also be able to make these so-called exempt offerings within 30 days of each other rather than the current six-month waiting period.

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Sizing up the field in a maturing GP staking landscape

(Ekspansio/Getty Images)

In the past decade, it's become increasingly common for one PE firm to acquire a passive minority stake in another. Early adopters such as Dyal Capital Partners and Petershill have paved the way for these deals to proliferate across the size spectrum, including a burgeoning middle-market space.

The latest trends and developments from the GP staking landscape are explored in our recently revamped analyst note, including detailed breakdowns of the major GP staking segments, how the players in each space stack up and why smaller and middle-market managers are drawing more interest from GP stakes investors than ever before:

read the new note

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SoftBank Vision Fund executives depart

Ruwan Weerasekera, the COO of SoftBank's Vision Fund, has retired from the firm, according to Bloomberg.

Weerasekera's departure follows other executive exits at the fund, which reportedly include investor relations lead Penny Bodle, operating partner Avi Golan, and Maria Khan, chief risk officer in the UK. Investing partners Ted Fike and Justin Wilson also recently left the fund, according to Axios.

In the wake of WeWork's failed IPO and amid ongoing struggles at other large bets such as Uber and Indian hotel chain Oyo, SoftBank reportedly has yet to raise major outside financing for its second Vision Fund. The new vehicle is planning to back a blank-check company, fund CEO Rajeev Misra said during a conference last month.

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The Oetker Group signs $1.1B+ deal for drink delivery startup Flaschenpost

(Courtesy of Flaschenpost)

The Oetker Group has agreed to buy German drink delivery startup Flaschenpost in a deal reportedly worth €1 billion (around $1.16 billion). The transaction will provide an exit for investors including Tiger Global, Cherry Ventures and Vorwerk Ventures, who have poured a total of €70 million into Oetker since its launch in 2016, according to PitchBook data.

The acquisition will bring another beverage delivery service into Oetker's beer and nonalcoholic beverages unit, Radeberger Group, which also operates Durstexpress. Flaschenpost is active in 23 German cities, recording over 2 million orders a year via its app, and reportedly generating sales of €27 million in October.

The pandemic and subsequent stay-at-home orders have driven strong demand for delivery services, prompting more consolidation in the sector. One recent example is Nestlé's acquisition of meal delivery startup Freshly last week in a deal valuing it at $950 million.

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Recommended Reads

Apollo Global Management has a reputation problem. In an effort to revamp the firm's culture, co-founder Josh Harris is trying to change that. [The Wall Street Journal]

It's been awhile since VC funds have been forced to innovate. Has the pandemic brought the industry to a crossroads? [Forbes]

Silicon Valley is undergoing a transformation as tech titans and VC firms alike are considering life outside the epicenter of innovation. [CNBC]

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Quick Takes


	The Daily Benchmark
	2014 Vintage Global Buyout Funds
	VC Deals
	Carsgen Therapeutics lands $186M
	Product management startup secures new funding
	Shoulder Innovations gets $21.6M
	TVision takes in $16M
	Portfolio Companies
	Bossa Nova lays off staff after Walmart ends contract
	Exits & IPOs
	NerdWallet buys VC-backed Fundera
	Lidar-maker Aeva to go public via merger with SPAC

The Daily Benchmark

2014 Vintage Global Buyout Funds

Median IRR

17.32%

Top Quartile IRR Hurdle Rate

23.69%

1.51x

Median TVPI

Select top performers

Consonance Private Equity

BVIP Fund VIII

Shore Capital Partners Fund I

*IRR: net of fees

85 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Carsgen Therapeutics lands $186M

Biotech startup Carsgen Therapeutics has raised a $186 million Series C led by private equity firm Loyal Valley Capital, with Lilly Asia Ventures, Shiyu Capital, Summer Capital and South China Venture Capital also participating. The Shanghai-based company makes T-cell therapies to treat cancer; it has four drug candidates in Phase I trials.

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Product management startup secures new funding

InRiver, the developer of a product information management platform for businesses, has raised $32 million in round led by Lugard Road Capital. Founded in 2007, the startup is based in Sweden, but also operates out of Chicago and Amsterdam. InRiver caters to more than 1,500 brands including Bacardi and New Balance.

Additional Investors:

Industrifonden, RoosGruppen, Verdane, Zobito

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View 96 competitors »

Shoulder Innovations gets $21.6M

Shoulder Innovations, a developer of shoulder replacement systems and products, has raised $21.6 million in a round co-led by US Venture Partners and Lightstone Ventures. Founded in 2009, the medical device company was valued at $18.2 million in February, according to PitchBook data.

Additional Investors:

Alumni Ventures Group, Wakestream Ventures, Biosciences Research and Commercialization Center of Western Michigan University, Invest Michigan, Michigan Angel Fund

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TVision takes in $16M

TVision has raised $16 million in a round led by SIG Asia Investments. The New York-based company offers TV viewership data and analytics for advertisers, media sellers, content creators and others in the entertainment industry.

Additional Investors:

Accomplice VC, Jump Capital, Golden Ventures

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Portfolio Companies

Bossa Nova lays off staff after Walmart ends contract

Walmart has ended its contract with Bossa Nova Robotics, the startup it partnered with to add six-foot inventory scanners to its stores, according to The Wall Street Journal. The retail giant reportedly axed its plans for the robots after it found that workers and other automated tech could help it monitor inventory. Bossa Nova, which is backed by investors including Black Diamond Ventures and Cota Capital, laid off 50% of its staff after the contract was terminated, the report said.

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Exits & IPOs

NerdWallet buys VC-backed Fundera

Personal finance company NerdWallet has purchased Fundera, the operator of an online marketplace for small business loans. The New York-based company was co-founded in 2013 by Jared Hecht, a co-founder of mobile messaging startup GroupMe, which was acquired by Microsoft. Fundera had received VC backing from investors including Khosla Ventures, First Round Capital and QED Investors.

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Lidar-maker Aeva to go public via merger with SPAC

Aeva, a startup that makes light detection and ranging chips and systems for self-driving cars, has agreed to merge with InterPrivate Acquisition, a blank-check company. Bay Area-based Aeva stands to take in $363 million through the deal, which includes a $120 million PIPE investment. The company is backed by Porsche Automobil Holding, Lux Capital and Canaan Partners. Rival lidar makers Luminar and Velodyne also decided to go public through SPAC mergers this year.

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