PitchBook News - Rivian, Cruise raise new mega-rounds

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The Daily Pitch: VC

January 20, 2021

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

Today's Top Stories

VC deals and Trumpism: How much changed in four years?

Inauguration Day, 2016 (Rob Carr/Getty Images)

Donald Trump moved into the White House four years ago as Americans debated a growing divide between the so-called coastal elites and basically everybody else. Trump's populist rise to power came as a rude awakening to the venture capital industry, which has concentrated its investments on coastal tech hubs, and to Silicon Valley, a progressive-leaning place where his rival had more support.

The dearth of VC activity in America's heartland symbolized discontent—and a disconnect—with the heavily funded, rapidly growing technology industry. "The reason they feel left behind is because they have been left behind," said Steve Case, whose Revolution Ventures seed fund focuses on deals outside the big tech hubs.

Some investors sought to address that gap on several fronts. They earmarked capital for underserved parts of the country, promoted new tech hubs and ventured outside their bubbles to extend their networks. But did the overall investment picture change?

Not very much, according to PitchBook data. For all the talk of boosting VC investment in the heartland, the yearly share of total capital deployed in the US has remained about 18%, excluding deals done in states with the biggest tech hubs. That's about the same as it was before Trump was elected.

Seen through an electoral lens, some major battleground states that Trump won twice did see significant investment gains in absolute terms. In 2020, Texas startups pulled in $3.74 billion through Nov. 10, up from $2.12 billion in 2016.

Several key states that Joe Biden flipped to his column—like Pennsylvania, Georgia and Michigan—all steadily attracted more venture capital since Trump was elected.

Despite Trump's populist backing, his administration was long on "photo ops" but didn't make a big commitment to reordering the investment landscape, says Case, adding: "Given the bloc that put him in the White House that was so frustrated around jobs, I was surprised there wasn't more of a response." —Alexander Davis

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European PE hits new heights after a prompt pandemic recovery

Aided by trillions of euros in monetary stimulus and billions in stockpiled dry powder, private equity investors in Europe were able to swiftly bounce back from the initial seizure of market uncertainty that accompanied the onset of the pandemic in the first half of last year. In fact, by the end of 2020, Europe's PE industry was in the process of wrapping up its busiest quarter on record.

Our 2020 Annual European Breakdown examines the many factors that contributed to this rapid recuperation. The report also scopes out other significant shifts in the industry during the past 12 months, including a proliferation of IT deals, the rise of SPACs and these other key takeaways:

The average size of European PE funds continued to climb, topping €1 billion for the first time

Exit count in Europe reached an eight-year low, but there are signs activity could recover in 2021

Bolt-ons accounted for 61.4% of European buyout activity in 2020, a record rate

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A message from KEY Investment Partners

Breaking down how US election results may hold implications for cannabis investors

The 2020 US election resulted in a "blue wave," with Democrats taking control of the presidency and both chambers of Congress. That blue wave has accelerated the timeline by which industry experts expect cannabis to be legalized federally. But why was cannabis made illegal in the first place? Where does the legislative framework stand today, and exactly how and when should you expect prohibition to be repealed federally?

In this white paper, KEY discusses the nuanced regulatory framework that developed over the last 25 years as prohibition has unwound. Next, they dive into the implications of the 2020 election and the path to federal legalization. Finally, KEY addresses the election results' implications for investors and why now is the time to deploy capital into cannabis.

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Cruise, Rivian raise billions to ready technology for the road

Cruise brought home a $30 billion valuation with its latest round. (Courtesy of Cruise)

Against a grim outlook for gas-powered cars, electric truck maker Rivian and self-driving vehicle company Cruise have landed more than $2 billion apiece from investors.

For Rivian, the huge haul will power an imminent rollout of three new models. Cruise's cash is also inspired by a push toward commercialization, a longer-term goal that appears increasingly within reach.

Recommended Reads

It hasn't exactly been a climate revolution. But 2020 may have marked a turning point for the better in our battle to save the planet. [Intelligencer]

Mastering the software, rather than the hardware, has proved to be the biggest challenge in Volkswagen's $50 billion bid to unseat Tesla. [The Wall Street Journal]

The tale of how one intrepid war crimes detective helped end a decades-long hunt for Felicien Kabuga, an architect of the nightmarish genocide in Rwanda. [GQ]

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Venture Funds
	VC Deals
	Payments company raises unicorn round
	Telemedicine startup collects $132M
	Volta recharges with $125M
	Aledade picks up $100M for healthcare platform
	DevOps automation startup Quali lands $54M
	Lightspeed leads $35M round in Brigit

The Daily Benchmark

2012 Vintage Global Venture Funds

Median IRR

16.47%

Top Quartile IRR Hurdle Rate

25.95%

1.72x

Median TVPI

Select top performers

BioGeneration Ventures II

IA Venture Strategies Fund II

Rally Ventures Fund I

*IRR: net of fees

17 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Payments company raises unicorn round

PPRO has reached a valuation of more than $1 billion after raising $180 million from investors including Eurazeo Growth, Sprints Capital and Wellington Management. Based in London, PPRO is a provider of cross-border payments technology and services. The capital comes six months after the fintech company raised $50 million from Sprints Capital, Citi Ventures and HPE Growth.

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Telemedicine startup collects $132M

K Health has raised $132 million in a Series E co-led by GGV Capital and Valor Equity Partners. LTS Investments and the pension fund of Kaiser Permanente also participated in the round, which values the New York-based company at $1.5 billion, TechCrunch reported. K Health is the developer of a telemedicine platform that helps primary care patients connect with physicians and manage treatment plans. The startup was valued at $807 million in November, according to PitchBook data.

Additional Investors:

14W, Max Ventures, Pico Partners, Marcy Venture Partners, Primary Venture Partners, BoxGroup

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Volta recharges with $125M

Electric vehicle charging startup Volta has raised $125 million from investors including Energize Ventures. The San Francisco-based company partners with retailers like Albertsons, Regency Centers and Topgolf, and will use the funds in part to expand internationally. Volta has raised over $200 million to date.

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Aledade picks up $100M for healthcare platform

Aledade has raised a $100 million Series D led by Meritech Capital, with participation from Tiger Global, IVP and OMERS Growth Equity. Founded in 2014, the company provides independent primary care practices, health centers and clinics with a platform to manage their data and workflows. Aledade was valued at $714 million in April with a $64 million round, according to PitchBook data.

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DevOps automation startup Quali lands $54M

Quali, a developer of cloud automation software for DevOps teams, has secured $54 million in a new round co-led by Greenfield Partners and JVP. During the pandemic, the Austin-based startup has experienced significant growth; it plans to nearly double its employee count. Quali's customers include Cisco, Microsoft, Dell and Verizon.

Additional Investors:

Kreos Capital, Hamilton Lane

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Lightspeed leads $35M round in Brigit

Brigit has raised a $35 million Series A led by Lightspeed. Other investors that took part in the funding round include DCM, Ashton Kutcher's Sound Ventures and Canaan. Brigit provides a consumer finance app that offers budgeting tools, automated alerts and interest-free cash advances.

Select Additional Investors:

Nyca Partners, Flourish Ventures, Core Innovation Capital

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