Corporate VCs seek pandemic-proof startups

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The Daily Pitch: VC

February 18, 2021

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

Today's Top Stories

Europe's most active corporate VCs target pandemic-proof startups

On-demand delivery startup Glovo's Series E featured CVC participation. (Courtesy of Glovo)

Corporate venture investors took part in a record-setting year for betting on European startups in 2020, underlining corporations' need for technologies that make coping with the pandemic easier.

Some 34% of investment with CVC support went to IT and software providers on the continent last year, according to PitchBook data, with healthcare also proving an attractive sector for corporate VCs.

PitchBook data shows the top five CVCs in Europe and Israel in 2020 based on deal count, including Zürcher Kantonalbank and M12.

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Digital pharma upstarts face down threats, legacy rivals

(the_burtons/Getty Images)

A growing crop of venture-backed online-only pharmacy startups like NowRx, Ro and Medly are trying to crack the $300 billion-plus prescription drug industry. In a recent research note, PitchBook analysts outlined the risks and potential rewards awaiting these challengers, including:

Online fraud is a looming threat that digital companies must tackle.

Central distribution hubs, walk-in patient services and aid for the uninsured are among the experiments in the fragmented e-pharmacy industry.

Consolidation outlook: Pharmacy incumbents are likely to acquire startups in this market.

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For his next act, the executive who helped turn around Pabst Blue Ribbon and Hostess Twinkies is teaming up with private equity for a major bet on bottled water. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2014 Vintage Global Buyout Funds
	VC Deals
	Public.com raises $220M
	OutSystems hits $9.5B valuation with latest round
	Locus Robotics becomes unicorn with $150M round
	SoftBank leads $150M round in Standard Cognition
	Blockchain.com banks $120M as bitcoin surges
	Copado closes $96M Series B
	Portfolio Companies
	Epic Games takes dispute with Apple to EU
	Exits & IPOs
	Origin Materials to merge with SPAC
	Lidar maker AEye to combine with Cantor Fitzgerald SPAC

The Daily Benchmark

2014 Vintage Global Buyout Funds

Median IRR

14.36%

Top Quartile IRR Hurdle Rate

22.70%

1.46x

Median TVPI

Select top performers

Consonance Private Equity

CapVest Equity Partners III

Nautic Partners VII

*IRR: net of fees

87 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

PitchBook Webinar: Top trends for emerging technologies in 2021

Join PitchBook analysts on Feb. 24 as they outline the primary trends they believe will shape the emerging technology VC ecosystem in 2021.

Leveraging market data and industry expertise, the webinar will cover investment trends in areas such as:

AI and machine learning

Mobility tech

Agtech

Register here to secure your spot

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VC Deals

Public.com raises $220M

Public.com, the provider of a retail stock-trading platform, has raised $220 million from Accel, Greycroft, Lakestar and others, with a previous Business Insider report indicating that the round values the company at around $1.2 billion. The New York-based startup now has a million members on its platform and plans to introduce new features such as cryptocurrency and extended-hours trading. Public recently said it would stop selling its order flow, a controversial practice for which Robinhood has received criticism.

Additional Investors:

Vine Capital Partners, Aglaé Ventures, Dreamers VC, Inspired Capital, Intuition Capital, Mantis VC, Tiger Global

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OutSystems hits $9.5B valuation with latest round

OutSystems, the creator of a platform that allows organizations to build, deploy and manage applications, has raised $150 million at a $9.5 billion valuation. The funding was co-led by Abdiel Capital and Tiger Global. Founded in 2001 and based out of Boston, the company is also backed by investors including Goldman Sachs, Sonae IM and General Atlantic.

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Locus Robotics becomes unicorn with $150M round

Locus Robotics has raised $150 million in a Series E led by Tiger Global and Bond. The round values the Wilmington, Mass.-based logistics startup at $1 billion, representing a 177% increase over the $361 million valuation it received last year, according to PitchBook data. Locus, a provider of autonomous robotic pickers that help with warehouse fulfillment, currently serves more than 40 customers across 80 warehouses.

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SoftBank leads $150M round in Standard Cognition

Standard Cognition, a provider of AI-based autonomous checkout tech for brick-and-mortar retailers, has raised a $150 million Series C led by SoftBank's Vision Fund 2. The San Francisco-based company raised $35 million at a $535 million valuation in 2019, according to PitchBook data.

Additional Investors:

CRV, EQT Ventures, SK Networks, TI Platform Management

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Blockchain.com banks $120M as bitcoin surges

Blockchain.com has raised $120 million from investors including GV, Lightspeed and Moore Strategic Ventures. The London-based startup is the provider of a cryptocurrency wallet that lets users buy, store and trade digital currencies. The company also offers an explorer service that provides details on crypto trades, among other products. Blockchain.com has raised some $190 million in private backing; it was valued at $234.1 million in 2017, according to PitchBook data.

Additional Investors:

Access Industries, Rovida Advisors, Lakestar, Eldridge

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Copado closes $96M Series B

Copado has raised $96 million in a round co-led by Insight Partners and Salesforce Ventures. The company offers a cloud-based platform for DevOps teams; it plans to use the funding in part to expand internationally.

Additional Investors:

ISAI, Lead Edge Capital, Perpetual Ventures

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Portfolio Companies

Epic Games takes dispute with Apple to EU

Epic Games has filed an antitrust complaint against Apple in the EU, claiming anticompetitive behavior. The "Fortnite" maker has filed similar lawsuits in the US, Australia and the UK. Epic has argued that Apple's 30% commission fees on App Store purchases stifle competition. After Epic debuted its own in-app payment system last summer to sidestep the fees, Apple pulled the company's app from its App Store.

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Exits & IPOs

Origin Materials to merge with SPAC

Cleantech specialist Origin Materials plans to go public by merging with a blank-check company, Artius Acquisition. The combined company is valued at around $1.8 billion in the deal. The pact includes $925 million of expected new investment, including a $200 PIPE backed by investors Danone, Nestlé, PepsiCo and others. Origin Materials is developing carbon-negative materials; it previously received backing from Buff Investment Group and Evergreen Capital Partners.

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Lidar maker AEye to combine with Cantor Fitzgerald SPAC

Light detection and ranging developer AEye has agreed to merge with a SPAC sponsored by Cantor Fitzgerald. The deal with the blank-check company, CF Finance Acquisition Corp. III, gives the startup an enterprise value of $2 billion. It also includes a $225 million PIPE from backers like GM Ventures, Subaru-SBI and Intel Capital. AEye has raised capital from other investors including Airbus Ventures and Continental; it was valued at $220.1 million in 2019, according to PitchBook data.

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Chart of the Day

"In addition to spurring a public listing comeback, roaring public equity markets made 2020 the year of the SPAC. These blank-check companies raised more capital than in the previous decade combined. Well over 250 SPACs were launched on US markets in 2020."

Source: PitchBook's 2020 Annual US PE Breakdown