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The Daily Pitch: VC

February 11, 2021

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

Today's Top Stories

Electric air-taxi startups get a lift from SPAC deals

(Courtesy of Archer Aviation)

Air-taxi startup Archer Aviation is set to go public through a SPAC merger, following a similar deal by rival Wheels Up and reports that Joby Aviation is also in talks with blank-check companies.

United Airlines agreed to help Archer build its short-haul air taxis and plans to spend up to $1.5 billion to buy as many as 200 of the finished aircraft.

The deal values the combined company at $3.8 billion, higher than the $2.1 billion valuation that Wheels Up claimed earlier this month.

Archer was valued at just $100 million last July, according to PitchBook data, and is backed by investors such as Greycroft, Prime Movers Lab and Gaingels.

Archer could receive $1.1 billion from the deal, including $600 million from a PIPE investment backed by United, Stellantis and others.

Part of a trend: 26 mobility tech companies announced or completed SPAC mergers last year, according to a recent PitchBook report.

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US won't force sale of TikTok assets to Oracle, Walmart

(Mario Tama/Getty Images)

The US government will not require TikTok to sell its American assets to an investor group that includes Oracle and Walmart, The Wall Street Journal reported. The reversal is a sign that US trade policy may be different under President Joe Biden, with the WSJ reporting the change of course on TikTok is part of a larger review of potential security risks related to Chinese tech companies.

Former President Donald Trump first said he would ban TikTok in the US last July.

In September, the Trump administration approved a deal in which Oracle and Walmart agreed to partner with TikTok in the US, but the deal had been delayed by legal challenges.

Reuters reported in December that ByteDance, the Chinese parent company of TikTok, was on the brink of closing a $2 billion funding round led by Sequoia and KKR at a $180 billion valuation.

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A message from Datasite

How PE sellers adapted to COVID-19

The pandemic's ripple effects led to significant implications for multiple financial markets players, including private equity funds looking to sell portfolio companies. Despite the degree of uncertainty spanning much of the global economy, however, PE firms were still able to close nearly 1,800 exits for an aggregate value of $743.5 billion. But how did that compare to longer-term trends?

Datasite's latest industry publication breaks down the exit environment in 2020, analyzing multiple PitchBook datasets to uncover how PE firms adapted to market tumult. Topics include how sell-side due diligence preparation had to accommodate potential COVID-related impacts, innovations in exit types and more.

Read it now

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How startups are cultivating opportunities in indoor farming

(Jacobs Stock Photography Ltd./Getty Images)

The pandemic has exposed the shortcomings of the food supply chain, exacerbating existing problems of food waste and food insecurity. But indoor-farming startups are responding to the challenge, according to recent research from PitchBook analysts:

Also known as controlled environment agriculture, the method shortens supply chains and accelerates production cycles.

Investors have flocked to the field, more than doubling their annual investment total in 2020 to $929 million.

Farms can reshape food systems and boost their resilience, with cutting-edge technology helping fuel growth.

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Recommended Reads

When dry powder is running low, private equity firms are more likely to manipulate performance numbers at their portfolio companies, according to new research. [Institutional Investor]

Many Black creators believe TikTok is still falling short of its promises to better promote diversity on its platform. [NBC News]

In the pandemic, nearly everyone is spending more time at home. Many have been struck by the urge to declutter. And that means the market for free stuff on the internet has never been weirder. [The Wall Street Journal]

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Debt Funds
	VC Deals
	Automated trucking startup completes $200M fundraise
	Day One Biopharmaceuticals picks up $130M
	Stir valued at $100M in Series A round
	Fintech startup banks $53M
	Construction tech startup nails down $40M
	Insightin Health grabs $12M Series A
	Portfolio Companies
	Facebook takes aim at Clubhouse
	Exits & IPOs
	Rivian could seek $50B valuation in upcoming IPO
	Rocket Internet-backed SPAC files for $250M IPO to focus on tech acquisition
	Colin Kaepernick launches ESG-focused SPAC

The Daily Benchmark

2012 Vintage Global Debt Funds

Median IRR

8.00%

Top Quartile IRR Hurdle Rate

10.72%

1.27x

Median TVPI

Select top performers

TPG Opportunities Partners II

Catalyst Fund Limited Partnership IV

Abry Senior Equity IV

*IRR: net of fees

38 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Automated trucking startup completes $200M fundraise

Plus, a developer of self-driving technology for long-haul trucks, has raised $200 million in a round co-led by Guotai Junan International, CPE and Wanxiang International Investment. Existing backers including Full Truck Alliance also supported the financing. Founded in 2016 and based in California, Plus will use the funds in part to begin mass production of its trucking system and expand internationally within Europe and Asia.

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Day One Biopharmaceuticals picks up $130M

Day One Biopharmaceuticals has raised a $130 million Series B led by RA Capital Management. The company is developing therapies designed to treat cancer; it plans to use the funding in part to accelerate drug development for pediatric patients.

Select Additional Investors:

Access Biotechnology, Atlas Venture, Boxer Capital, Canaan Partners, Perceptive Advisors

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Stir valued at $100M in Series A round

Stir, the developer of a financial management platform for writers and producers, is being valued at some $100 million in a Series A financing round led by Andreessen Horowitz, The Information reported. The funding amount wasn't immediately known.

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Fintech startup banks $53M

Nymbus, a developer of fintech software intended to help traditional banks and credit unions digitize operations and manage customers, has raised $53 million in a round led by Insight Partners. In June, the Miami-based company raised $12 million at an $82 million valuation, according to PitchBook data.

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Construction tech startup nails down $40M

Mighty Buildings, the developer of a construction tech platform, has raised a $40 million Series B co-led by Khosla Ventures and Zeno Ventures. The Oakland, Calif.-based company, which launched out of stealth last August, plans to use 3D-printed structures to help automate building construction. It was valued at $80 million in 2019, according to PitchBook data.

Select Additional Investors:

Bold Capital Partners, Core Innovation Capital, MicroVentures, Modern Venture Partners, One Way Ventures

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Insightin Health grabs $12M Series A

Baltimore-based Insightin Health has raised a $12 million round co-led by the Blue Venture Fund and Blue Heron Capital. Health Catalyst Capital, Revolution's Rise of the Rest fund and SaaS Ventures also participated. Insightin is the creator of a platform that combines medical, clinical, cognitive and social determinants to recommend health plans and acquire, retain and engage healthcare members.

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Portfolio Companies

Facebook takes aim at Clubhouse

Clubhouse, the maker of an exclusive app popular with Silicon Valley's tech elite, could soon have competition from Facebook. Executives at the tech giant have plans to build an audio chat app similar to Clubhouse, The New York Times reported. Clubhouse is backed by Andreessen Horowitz, and Marc Andreessen sits on Facebook's board of directors.

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Exits & IPOs

Rivian could seek $50B valuation in upcoming IPO

Electric truck maker Rivian could go public as soon as September with a target valuation of around $50 billion, Bloomberg reported. Backed by investors including Amazon, T. Rowe Price and Ford, the company was last valued at $27.6 billion in January, according to a PitchBook estimate. Rivian has reportedly raised more than $8 billion since it was founded in 2009.

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Rocket Internet-backed SPAC files for $250M IPO to focus on tech acquisition

Rocket Internet Growth Opportunities Corp., a blank-check company backed by Berlin-based tech incubator and investor Rocket Internet, has filed papers with the SEC to raise $250 million in an IPO. The SPAC will target tech companies outside the US, with Renaissance Capital reporting that the vehicle would have a market value of about $313 million. Rocket Internet portfolio companies include Bluenest, Flash Coffee and Katoo.

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Colin Kaepernick launches ESG-focused SPAC

Former NFL quarterback and social activist Colin Kaepernick has agreed to co-sponsor and co-chair a SPAC that's looking to raise $250 million in an IPO. Mission Advancement Corp. will target a consumer-focused company that aligns with ESG criteria and has an enterprise value of more than $1 billion. The blank-check company is also backed by The Najafi Companies, an investor in race car maker McLaren Racing and fitness company Bodybuilding.com. Mission Advancement's board has a female majority, and each member is a person of color.

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Chart of the Day

"Distressed debt funds also experienced increased interest due to the anticipated economic downturn from the pandemic, but deployment opportunities have been few and far between. The rationale for raising a distressed fund made sense in March and April. Most countries seemed headed for a recession, and markets were pricing in significant economic disruption."

Source: PitchBook's 2020 Annual Global Private Debt Report