PitchBook News - Inside a VC valuation shift in agtech

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The Daily Pitch: VC

December 16, 2020

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Today's Top Stories

Agtech sector grows to decade high with $1.6B in Q3

VCs throughout the world invested $1.6 billion in agtech companies last quarter, bringing the year's total to $4.2 billion. Although the capital raised in Q3 marks a 14% drop from Q2, the sector has already hit a decade high for annual deal value, with the total through Sept. 30 surpassing the full-year amount for 2019.

Agtech valuations had been rising steadily for the past several years, according to our Q3 Emerging Tech Research report on the sector, but that has shifted. Through Q3, median pre-money valuations fell 9.5% from 2019—a sign investors may be pricing in risk from the COVID-19 pandemic. Other takeaways include:

Only four agtech exits closed in Q3, continuing a trend of historically low exit activity, but the year is still on pace to exceed 2019

Growers are increasingly relying on digitization and ag marketplaces to boost profits and broaden customer bases

The pandemic has exacerbated labor shortages, emphasizing a need for automation

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Shamrock stakes sports agency that represents Tiger Woods, other stars

Tiger Woods has been a client of Excel Sports Management since 2011. (Jamie Squire/Getty Images)

Los Angeles-based private equity firm Shamrock Capital has made a minority investment in Excel Sports Management, a major agency whose partners represent some of the biggest stars in the world of sports, according to a Forbes report. The deal comes about a month after Shamrock made another notable investment in the entertainment space, acquiring the rights to Taylor Swift's first six albums for a reported $300 million.

Excel is led by agents Mark Steinberg, Jeff Schwartz and Casey Close, each of whom has their own area of expertise. Steinberg is the longtime agent of Tiger Woods and a representative of several other prominent golfers. Schwartz represents dozens of NBA players, including stars such as Blake Griffin and Nikola Jokic. And Close is a prominent baseball agent who previously represented Derek Jeter and now works with Zach Greinke, Freddie Freeman and other notable names.

News of Shamrock's investment in Excel came the same day as another significant deal in the sports management space, as major Hollywood agency Endeavor reportedly bought a stake in BDA Sports Management. BDA is a prominent basketball agency led by Bill Duffy, whose clientele includes Luka Doncic and Sabrina Ionescu.

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A message from InCloudCounsel

Insourcing high-volume contracts costs 10x more than expected

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Recommended Reads

A newly discovered cache of documents is giving outsiders their clearest glimpse yet of the roles forced labor and coercion play in China's massive cotton industry. [BBC]

Blackstone is mulling the launch of a unique new business line that would allow the firm to profit off the data it gathers from its wide array of portfolio companies. [Bloomberg]

Inside the implosion of the $35 million startup meant to fix the Democratic Party. [Recode]

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Quick Takes


	The Daily Benchmark
	2005 Vintage Global Venture Funds
	VC Deals
	Zenoti reaches unicorn status following $160M Series D
	Workplace productivity specialist banks $100M
	Social investment startup raises $65M
	Sequoia leads round in fintech startup
	Uhnder secures $45M Series C
	Meghan Markle backs oat milk startup
	Exits & IPOs
	Flying taxi service Blade to go public in SPAC merger
	Fundraising
	Westlake Village BioPartners rakes in $500M for new funds
	XYZ Venture Capital picks up $80M for sophomore fund
	Slack launches second VC fund with $50M

The Daily Benchmark

2005 Vintage Global Venture Funds

Median IRR

3.72%

Top Quartile IRR Hurdle Rate

8.67%

1.25x

Median TVPI

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Origin Ventures II

FirstMark Capital I

Vickers Private Equity Meta Fund I

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47 Funds in Benchmark »

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VC Deals

Zenoti reaches unicorn status following $160M Series D

Zenoti, a provider of cloud-based software for salons and spas in more than 50 countries, has raised $160 million at a valuation of over $1 billion. Advent International led the funding, with Tiger Global and Steadview Partners also participating. Zenoti has seen 100% year-over-year growth in 2020, spurred in part by the adoption of software that minimizes in-person interaction during the pandemic. The startup raised a $20 million round in August 2019.

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Workplace productivity specialist banks $100M

ClickUp has raised a $100 million Series B led by Canadian investor Georgian, with participation from Craft Ventures. Founded in 2017, the San Diego-based company is a developer of workplace productivity software for users including Netflix, Uber and Airbnb. ClickUp was valued at $183 million in June, according to PitchBook data.

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Social investment startup raises $65M

Accel has led a $65 million Series C for Public, the creator of an investment platform that allows members to own fractional shares of stocks and ETFs, interact with other investors and share ideas within a social networking community. Lakestar, Greycroft and Advancit Capital also participated in the funding.

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Sequoia leads round in fintech startup

Sequoia has led a $45 million Series B in Vise, an AI-powered investment management startup. Other investors in the round included Allen & Company, Founders Fund and Greenoaks Capital. The round brings Vise's total funding thus far to over $60 million. Since its Series A in May, the New York-based company has quadrupled its customer base.

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Uhnder secures $45M Series C

Uhnder has raised $45 million in a round led by Sensata Technologies. The Austin-based company is a developer of digital radar software intended to replace traditional analog frequency modulation. Founded in 2015, Uhnder was valued at $150 million in 2018, according to PitchBook data.

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Meghan Markle backs oat milk startup

The Duchess of Sussex Meghan Markle has made her first foray into venture capital and backed Clevr Blends, Fortune reported. Founded in 2019, Clevr makes and sells a range of instant probiotic lattes made with oat and coconut milk. The female-led startup is based in Southern California, where Markle and her husband Prince Harry live.

Exits & IPOs

Flying taxi service Blade to go public in SPAC merger

Helicopter taxi service Blade has agreed to merge with a SPAC sponsored by KSL Capital Partners, valuing the New York-based company at about $825 million. The deal includes $400 million from the SPAC, Experience Investment Corp., and a $125 million PIPE investment from backers that include IAC's Barry Diller, iHeartMedia CEO Robert Pittman and Discovery CEO David Zaslav. Blade was valued at $140 million in 2018, according to PitchBook data.

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Fundraising

Westlake Village BioPartners rakes in $500M for new funds

Early-stage investor Westlake Village BioPartners has raised $500 million across two new funds. The firm raised $70 million for its first opportunity vehicle, which will be used to make follow-on investments at the Series B stage or later. It also collected $430 million for its second flagship fund, which will go toward incubating and investing in startups at the Series A, B and later stages. Westlake was founded in 2018 and is based in the Los Angeles area.

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XYZ Venture Capital picks up $80M for sophomore fund

XYZ Venture Capital has rolled out its second fund, an $80 million vehicle focused on early-stage companies in sectors including fintech, enterprise collaboration and insurance. To date, the firm has made over 40 investments in startups like fintech provider Mosaic and software maker Anduril. The firm was founded by Ross Fubini, who spent time at Canaan Partners, Kapor Capital and Village Global.

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Slack launches second VC fund with $50M

Slack has dedicated $50 million to its second venture capital fund. The company created the investment platform five years ago in partnership with VC firms like Accel, Index Ventures, Kleiner Perkins, Social Capital, Andreessen Horowitz and Spark Capital. In that time, the fund has made 85-plus investments in companies across North America and Europe.

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