PitchBook News - Poshmark continues VC's IPO hot streak

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The Daily Pitch: VC

January 15, 2021

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

Today's Top Stories

First-day stock pops continue with Petco, Poshmark debuts

After its debut Thursday, Petco had a market value of $6.4 billion.
(Bruce Bennett/Getty Images)

Poshmark and Petco have benefitted from investor fervor for new public listings, soaring 142% and 63%, respectively, in their stock market debuts.

Shares of Poshmark, an online marketplace for high-end, secondhand goods, closed the trading day at $101.50, above the company's initial public offering price of $42 per share. That figure was above the expected $35 to $39 range for its 6.6 million-share IPO. At Thursday's closing price, Poshmark was valued at $8.5 billion on a fully diluted basis. Its top shareholders include Mayfield (26.5% stake), Menlo Ventures (15.8%), Inventus Capital (10.4%) and GGV Capital (7.9%).

Pet supplies retailer Petco also surged in its return to the market, with shares ending the trading day priced at $29.40, giving it a market value of $6.4 billion. The company raised $864 million after it sold 48 million shares priced at $18 apiece in its IPO. It had expected to sell shares for between $14 and $17 each.

Petco's private equity investors, CVC Capital Partners and Canada Pension Plan Investment Board, will still control the company. The duo bought the pet retailer for $4.6 billion from TPG Capital and Leonard Green in 2016, 10 years after they had taken Petco private.

The debuts come on the heels of this week's successful first-day market appearances by installment lender Affirm and NASCAR video game-maker Motorsport Games.

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Brexit, SPACs and more 2021 predictions for Europe's private markets

(Sean Gladwell/Getty Images)

Private equity firms will invest a record-breaking amount of capital in Europe during 2021. The fallout from Brexit will fail to make much of a dent in the UK's market for venture capital. And the SPAC spree that was largely a US phenomenon during 2020 is now set to make the leap across the Atlantic Ocean.

At least that's what PitchBook's analysts expect to happen. Our latest analyst note offers up six predictions for what's to come across European VC and PE in 2021, including details on the future of SPACs, why PE deal value may soar and much more.

read it now

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A message from Silicon Valley Bank

New records for healthcare fundraising, investments and exits

At a time when innovation is more important than ever, Silicon Valley Bank's proprietary life sciences and healthcare research reveals that 2020 was a record-setting year for healthcare venture fundraising and investment. With venture fundraising increasing by 57% to $17 billion and record IPO valuations, the outlook for 2021 looks bright for healthcare companies and investors.

Read Silicon Valley Bank's Healthcare Investments & Exits 2021 Annual Report to learn about SVB's perspective and 2021 outlook.

Sources: PitchBook and SVB proprietary data.

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Silver Lake soars to $20B close for latest tech fund

Silver Lake is starting 2021 in record-breaking fashion.

The tech investor has raised $20 billion for its sixth flagship fund, the largest-ever tech-focused vehicle from a PE firm, according to PitchBook data, surpassing a $17.8 billion effort from Thoma Bravo that closed last year. Silver Lake's previous namesake fund closed on $15 billion in 2017, while Vista Equity Partners, another of the industry's most prominent tech investors, raised a $16 billion vehicle in 2019.

During the early days of the pandemic, Silver Lake made a series of minority investments in teetering tech companies that are already beginning to pay off. Last March, the Menlo Park, Calif.-based firm invested $1 billion in Twitter, and in April it teamed up with Sixth Street Partners to make a $1 billion investment in Airbnb at an $18 billion valuation. The firm also joined Apollo Global Management to make a $1.2 billion investment in Expedia in April.

Today, Airbnb has a market cap of more than $100 billion. Twitter stock is up more than 40% from the time of Silver Lake's investment, and Expedia shares have more than doubled.

Silver Lake also made notable minority investments last year in Reliance Retail, Jio Platforms, Klarna, Waymo and others. In September, meanwhile, the firm received $2 billion from Mubadala for a new long-term investment strategy that will have a 25-year deployment lifecycle.

Related read: Mubadala's Silver Lake deal is a bet on tech—and on GP stakes

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Recommended Reads

On the strange stunts and legal travails of David Lesh, a professional skier and entrepreneur who has become a pariah in his adopted home. [The New Yorker]

In the midst of a serious sellers' market, some prospective homebuyers are turning to encoded dollar amounts and self-promotional videos to make their offers stand out. [The Wall Street Journal]

Tales from the Bay Area's tech exodus, where the rise of remote work is leading to declining rent, increasing office vacancy, and the emergence of new tech hubs and mini-hubs across the US—and beyond. [The New York Times]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global Venture Funds with less than $250M
	VC Deals
	Grab's financial arm pulls in $300M
	Harness becomes unicorn with latest funding
	Premise Data secures $85M Series E
	Emergency communications startup raises $25M
	Portfolio Companies
	Winklevoss twins could take cryptocurrency company public
	Exits & IPOs
	Qualcomm to buy chipmaker for $1.4B
	Fundraising
	March Capital closes $450M fund

The Daily Benchmark

2016 Vintage Global Venture Funds with less than $250M

Median IRR

21.30%

Top Quartile IRR Hurdle Rate

32.84%

1.37x

Median TVPI

Select top performers

Joy Capital I

Social Leverage Capital Fund II

Mayfield Select

*IRR: net of fees

30 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Grab's financial arm pulls in $300M

The financial services unit of Grab, the Southeast Asian ridehailing and food delivery company, has secured over $300 million in a Series A. The funding was led by South Korean asset manager Hanwha, with support from investors including K3 Ventures, GGV Capital, Arbor Ventures and Flourish Ventures. In 2020, the unit logged revenue growth of more than 40% compared to 2019.

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Harness becomes unicorn with latest funding

Harness, the developer of a software delivery platform for engineering and DevOps teams, has announced it raised $115 million at a valuation of $1.7 billion. In 2019, the startup was worth $500 million after raising a $60 million Series B. The latest investment consists of an $85 million Series C led by Alkeon Capital and a $30 million Series B1 led by Menlo Ventures, IVP and Unusual Ventures.

Additional Investors:

Battery Ventures, Citi Ventures, Norwest Venture Partners, Sorenson Capital, Thomvest Ventures

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Premise Data secures $85M Series E

Premise Data has raised $85 million in a Series E led by Westcap. NightDragon, Winslow Capital, DRW and Vista Credit Partners also took part in the round. Based in San Francisco, Premise is the provider of a market intelligence platform. The startup was valued at $80 million in 2019, according to PitchBook data; its other backers include Andreessen Horowitz and Social Capital.

Additional Investors:

Valor Equity Partners, 8VC, Tao Capital, Hanover, Atreides Management

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Emergency communications startup raises $25M

Carbyne, which offers a cloud-based public safety communications platform, has raised $25 million, TechCrunch reported. The funding was reportedly co-led by Hanaco Ventures and Elsted Capital, with former CIA Director David Petraeus among other backers in the round. The investment puts the company's valuation at over $100 million, the report said.

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Portfolio Companies

Winklevoss twins could take cryptocurrency company public

Gemini, the cryptocurrency exchange operator headed by Cameron Winklevoss and Tyler Winklevoss, has mulled going public, Bloomberg reported. The price of digital currency Bitcoin has more than tripled since the fall, and rival exchange Coinbase filed confidentially for an IPO in December. The Winklevoss brothers' firm, Winklevoss Capital Management, has backed Gemini since 2015.

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Exits & IPOs

Qualcomm to buy chipmaker for $1.4B

Chipmaker Qualcomm has agreed to buy semiconductor startup Nuvia for $1.4 billion. The developer of CPU tech, which was founded in 2019 by former Apple employees, raised nearly $240 million last September at a $540 million valuation, according to PitchBook data. Nuvia has received backing from investors such as Dell Technologies Capital, BlackRock, Mayfield Fund and Fidelity Management & Research.

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Fundraising

March Capital closes $450M fund

March Capital has closed its latest fund on $450 million. The vehicle will focus on enterprise software companies. The firm has over $1 billion in assets under management; its portfolio companies include Bridg, Forter and Bellhop.

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View 56 investments »

Chart of the Day

"A record 321 mega-deals closed in 2020, with late-stage companies contributing 265 to that sum. For perspective, just 242 mega-deals closed in 2019. In 2011, less than a decade ago, just 46 mega-deals closed. The closed mega-deals in 2020 accrued a total of $70.9 billion, surpassing the previous highwater mark of $64.6 billion set in 2018, and constituted 45.4% of total US VC deal value."

Source: Q4 2020 PitchBook-NVCA Venture Monitor