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The Daily Pitch: VC

January 21, 2021

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

Today's Top Stories

Winners and losers emerge from the year in M&A

Few expected the almost instantaneous chilling effect on M&A activity in North America that occurred when COVID-19 first began to spread across the continent. Just as surprising was the speed of the market's rebound, as bold interventions from the Federal Reserve and a surging stock market helped grease the skids for a dealmaking surge in the second half of 2020.

M&A thrived in some sectors: There was a spate of M&A in the semiconductor market that could reshape that industry in the years to come. In others, it collapsed: It was the worst year for energy dealmaking in more than a decade. PitchBook's 2020 Annual North American M&A Report, sponsored by Liberty GTS, has all the facts and figures from a chaotic year, with other key takeaways including:

Annual North American deal value fell below $2 trillion for just the second time since 2015

Significant deal activity cropped up in financial services, healthcare, insurance and other sectors

Carveout M&A activity declined in 2020 for the fifth year running

Recommended Reads

Investment novices have heard about the rapid rise of bitcoin. Now, they explain why they're getting in on the action themselves. [Bloomberg]

For school principals such as Seth Daub, the challenge of when and how to reopen schools despite the ongoing spread of COVID-19 has become a high-stakes experiment that no one wanted. [Wired]

After three months in which Jack Ma disappeared entirely from public life, China's most famous startup tycoon is back in the spotlight. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2019 Vintage Global Funds-of-Funds
	VC Deals
	Globality rounds up $138M+
	Lightspeed leads $20M round for Wintermute
	TraceAir takes in $3.5M
	Exits & IPOs
	Storytelling platform Wattpad sold for $600M+
	Intel chairman Omar Ishrak planning $750M SPAC
	Glovo aims to go public within three years
	Fundraising
	Blue Horizon banks $221M for debut fund

The Daily Benchmark

2019 Vintage Global Funds-of-Funds

Median IRR

4.73%

Top Quartile IRR Hurdle Rate

10.64%

1.00x

Median TVPI

Select top performers

Adams Street 2019 Global Fund

Aether Real Assets V

Private Advisors Small Co Private Equity Fund VIII

*IRR: net of fees

19 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

PitchBook Webinar: 2021 Private Equity Outlook

Join us on Jan. 28 for a webinar covering analyst predictions of what's in store for private equity in 2021 and beyond.

Key takeaways:

PE fundraising will surpass $330 billion, setting an all-time high

Some 20% of buyouts will be priced above 20 times EBITDA

Carveout deal value will hit the highest level on record

First-time fundraising in the US will be the strongest since the global financial crisis

Register today

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VC Deals

Globality rounds up $138M+

Globality has raised a $138.3 million Series E from Sienna Capital and SoftBank's Vision Fund. The Menlo Park, Calif.-based company offers an AI-based platform to connect companies with service providers. In 2019, Globality raised $100 million at an $800 million valuation, according to PitchBook data.

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Lightspeed leads $20M round for Wintermute

Wintermute has raised $20 million in a Series B led by Lightspeed, with support from Pantera Capital and others. Operating across Asia, the US and Europe, the London-based startup serves as a market maker by providing liquidity for cryptocurrency exchanges. Lightspeed partner Jeremy Liew will join Wintermute's board.

Additional Investors:

Avon Ventures, Blockchain.com Ventures, DeFi Alliance, Hack VC, Kenetic Capital, Rockaway Blockchain Fund, Sino Global Capital

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TraceAir takes in $3.5M

TraceAir has secured a $3.5 million Series A led by London's XTX Ventures. Liquid 2 Ventures, GEM Capital and GPS Ventures also participated in the funding, among others. The company is the developer of a cloud-based construction tech platform that helps builders monitor projects. TraceAir has now raised around $7 million in total funding.

Additional Investors:

Metropolis VC, Independent Construction, ENGEO

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Exits & IPOs

Storytelling platform Wattpad sold for $600M+

Wattpad, an online storytelling platform, has been bought by South Korean internet conglomerate Naver. The cash-and-stock deal is valued at more than $600 million. Toronto-based Wattpad had raised $117.8 million from investors including Tencent, OMERS Ventures and Khosla Ventures.

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Intel chairman Omar Ishrak planning $750M SPAC

Omar Ishrak, the chairman of Intel and former CEO of Medtronic, is launching a SPAC that aims to raise $750 million in an IPO, Bloomberg reported. The blank-check company, Compute Health Acquisition, will seek a deal in the healthtech sector. Medtronic is said to be interested in acquiring 2% of the offering, or 1.5 million units consisting of stock and redeemable warrants.

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Glovo aims to go public within three years

Spanish on-demand delivery company Glovo has plans to go public in the next three years, Bloomberg reported. German rival Delivery Hero had previously held talks with Glovo about a potential acquisition, but Glovo is not interested in a deal, the report said. Delivery Hero agreed in September to acquire the Latin American operations of Glovo for up to €230 million (about $278 million). Glovo, which was valued at over $1 billion in 2019, has received backing from Rakuten Capital, Mubadala Capital-Ventures, Luxor Capital Group and others.

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Fundraising

Blue Horizon banks $221M for debut fund

Foodtech-focused investor Blue Horizon Ventures has closed its first flagship fund at €183 million (about $221 million). The new vehicle will make investments ranging from €300,000 to €25 million in areas such as alternative proteins, smart packaging and food waste. Blue Horizon has already made 16 investments in companies including lab-grown meat startup Mosa Meat and plant-based protein developer Alpha Foods.

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Chart of the Day

"Although carveout deal activity fell by close to one quarter year-over-year in 2020 on both the value and volume front, we expect divestiture activity to pick up quickly in 2021 as public and private companies seek to offload non-performing assets to raise liquidity amid the pandemic turmoil. 3,128 carveouts occurred in 2020, putting the year on track for its lowest total since 2013."

Source: PitchBook's 2020 Annual European PE Breakdown