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Fund performance begins to bounce back after a Q1 plunge
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The dramatic economic shift that accompanied the onset of the pandemic was a serious drag on private fund performance in Q1 2020. But figures were already beginning to rebound by Q2, according to PitchBook's latest Global Fund Performance Report, sponsored by Melody Investment Advisors.
New preliminary data, included in this report for the first time, indicates a 5.5% quarterly IRR across all private capital funds in Q2, improving upon a meager 2% one-year horizon IRR for the year ended March 31. Other key takeaways include:
- Overall, private funds were able to eke out a positive net cash flow in Q1
- For VC funds, quarterly IRR turned negative in Q1 for the first time in four years
- Growth-focused PE firms may have weathered the storm better than other outfits
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DoorDash IPO raises $3.4B as valuation rockets to $41B
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DoorDash has sold 33 million shares at $102 per share to raise $3.37 billion in its IPO, valuing the food delivery giant at around $41 billion on a fully diluted basis.
DoorDash had previously targeted a range of $90 to $95 per share for the offering. It was privately valued at nearly $16 billion in June.
The exit gives DoorDash the third-highest valuation of any VC-backed company to debut on US exchanges in the past decade, according to PitchBook data. Only Facebook and Uber were worth more at the time of their IPOs.
Investors continue to pay top dollar for leading tech IPOs, even for companies like DoorDash that are not yet profitable. Airbnb is expected to price its IPO later today. It would have a fully diluted valuation of $41.5 billion at the top end of its anticipated price range. |
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Carbice Corporation utilizes carbon nanotube technology to lower electronic device temperatures. Its products are used in satellites and automotive applications. The Atlanta-based company recently raised $15 million.
Carbice Corporation (NSF-1660259) is one of hundreds of deep tech startups funded annually by the National Science Foundation (NSF), a government agency that plays a central role in accelerating discoveries into the marketplace.
Each startup can receive up to $1.75 million to support R&D. NSF helps teams navigate the earliest stages of technology translation, investing roughly $200 million annually in startups. In the last five years, these companies have gone on to raise billions in follow-on capital, and the portfolio has had 100+ exits.
Learn more about NSF funding for startups at seedfund.nsf.gov. |
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Among VCs, interest in retail health startups is thriving
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Venture firms pumped $2.3 billion into retail-oriented companies in the health and wellness industry in Q3 2020, as interest in the space continued to surge. Amid the pandemic, investors have been eager to back startups offering telehealth tools and other services to help keep patients well.
Increased use of mobile wellness applications and at-home fitness devices driven by gym closures has been one factor, according to a new piece of Emerging Tech Research focused on retail health and wellness tech. Other shifts in the industry are also driving deals, such as a focus on preventative care and traditional healthcare costs. Highlights include:
- The repeal of many regulations hindering growth has aided telehealth startups as consumers have avoided visiting hospitals
- Consumer wellness startups are forging new corporate partnerships in a bid to boost employee health
- Technology enhancements have enabled the creation of biometric wearables and remote patient-monitoring devices
If you have any questions or feedback about the research, we'd love to hear from you: analystresearch@pitchbook.com |
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Meditation app maker Calm doubles valuation to $2B
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Calm co-founders Alex Tew and Michael Acton Smith
(Courtesy of Calm) |
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Calm, the creator of a sleep, meditation and relaxation app, has nearly doubled its valuation to $2 billion with a new $75 million round. The Series C was led by Lightspeed, with TPG Growth, Insight Partners and Goldman Sachs also among the round's backers. A previous Bloomberg report indicated that Calm had been seeking $150 million at a valuation of $2.2 billion. In July 2019, the San Francisco-based startup was valued at almost $1.09 billion after raising $88 million, according to PitchBook data.
The company, which has been profitable since 2016, has experienced growth during the pandemic, as more people grapple with mental health issues. The app has been downloaded by more than 100 million users and has around 4 million paying subscribers. One of the drivers of that outsized demand is the startup's enterprise arm, Calm for Business, which provides employers with access to the startup's services.
Calm's latest funding adds to a landmark year for investments in US mental health startups. Through the third quarter, these companies have received $1.37 billion in VC funding, surpassing 2019's $1.06 billion total, according to PitchBook data.
Related read: Driven by pandemic demand, mental health startups surpass 2019 funding |
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DoorDash is on the brink of an enormous IPO. At the center of the company's story is its increasingly fraught relationship with restaurateurs. [Bloomberg]
More than a decade ago, Bloom Energy convinced big-name investors it was on the brink of transforming the power grid. Here's the story of what happened instead. [The Wall Street Journal]
For the past decade, adventurous dreamers were chasing down a hidden treasure chest buried somewhere deep in the Rocky Mountains. Now, for the first time, the man who found it speaks. [Outside] |
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Since yesterday, the PitchBook Platform added:
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15
VC valuations
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1529
People
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450
Companies
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29
Funds
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2012 Vintage Global Venture Funds with less than $250M
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Unusual Ventures hires Sandhya Hegde as partner
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| Sandhya Hegde has joined seed-stage firm Unusual Ventures as a partner focused on early-stage enterprise SaaS startups. Most recently, Hegde was executive vice president of product at Amplitude, a software data-analytics company. She was previously a general partner and leader of the Khosla Ventures impact program, and has served as an investor at Sequoia. |
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Fintech provider wraps up $135M round
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| Fintech startup Pico has closed a $135 million Series C with support from Intel Capital, the investment arm of Intel. EDBI and CreditEase Fintech Investment Fund also participated in the financing. The New York-based company's platform provides infrastructure hosting, network connectivity, market data, analytics and other tech solutions to the financial markets. Pico's other investors and customers include banks such as Goldman Sachs, UBS and Nomura. |
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Dragos collects $110M Series C
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| Dragos has raised $110 million in a round co-led by National Grid Partners and Koch Disruptive Technologies. The company is the developer of a cybersecurity platform intended to protect infrastructure operations across the power, oil and gas sectors. Dragos was valued at $383 million in March, according to PitchBook data. |
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Remix Therapeutics launches with $81M Series A
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Insight leads $80M round for SingleStore
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| SingleStore has raised an $80 million Series E led by Insight Partners, with participation from Dell Technologies Capital and Hercules Capital. The San Francisco-based company is the developer of a data analytics platform that helps businesses centralize operations in real time. SingleStore was valued at $270 million in 2018, according to PitchBook data. |
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| Select Additional Investors: |
| Accel, GV |
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NEA backs $75M round for Beyond Identity
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| Beyond Identity has raised a $75 million Series B from investors including NEA and Koch Disruptive Technologies. Launched in April, the New York-based company is the developer of a cloud-based identity management platform that operates without the use of passwords. Beyond Identity raised a $30 million Series A at a $130 million valuation in April, according to PitchBook data. |
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FTC aims to block P&G's deal to buy women's razor startup
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| The FTC has sued to block Procter & Gamble's proposed deal to buy Billie, a VC-backed seller of razors and other women's beauty products. The agency alleges that the purchase could stifle competition in the women's razor market. In January, P&G announced plans to acquire the New York-based startup for an undisclosed sum. Billie was valued at $105 million in January 2019, according to PitchBook data, with backers including Serena Ventures and Female Founders Fund. |
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Squarespace contemplates 2021 IPO
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| Squarespace, a provider of cloud-based website hosting services, has discussed plans for a potential 2021 IPO, Bloomberg reported. The New York-based company has reportedly worked with advisers and may select banks this month for a listing in the first half of 2021. The company was valued at $1.7 billion in 2017 after receiving a $200 million investment from General Atlantic, the report said. |
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Wellington lands $1.8B for late-stage deals
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| Boston-based Wellington Management has closed a new private equity fund called Wellington Hadley Harbor III with $1.8 billion in commitments and the potential for $400 million more from co-investors. The fund will target growth investments in late-stage private companies nearing an IPO or sale. Wellington's previous Hadley Harbor fund is a $1.4 billion vehicle that began making investments in 2017. |
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