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The Daily Pitch: VC

March 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

VC firms strive to improve diversity with new industry certification

(RLT_Images/Getty Images)

2020 was a year of promises from several venture capitalists to address diversity at their firms and portfolio companies by making more concerted efforts to support equitable representation across the ecosystem.

A cohort of venture firms in the US, including Bessemer Venture Partners, 500 Startups and Toyota AI Ventures, have received certification through the Diversity VC Standard, a program designed to help companies evaluate diversity and inclusion policies.

"How do you know what is good enough?" said Christine Tsai, CEO and founding partner of 500 Startups. "We need to benchmark not just numbers, but also practices and policies with our peers."

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Since yesterday, the PitchBook Platform added:

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VC valuations

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People

553

Companies

26

Funds

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Quick Takes


	The Daily Benchmark
	2017 Vintage Global Venture Funds with more than $250M
	Partner Perspectives
	Is the SPAC surge sustainable?
	People
	Keith Rabois creating new startup to buy ecommerce businesses
	Robinhood names first chief product officer
	VC Deals
	Squarespace raises $300M at $10B valuation
	Coalition picks up $175M in unicorn round
	OctoML takes in $28M
	Exits & IPOs
	Coinbase investors register 114.9M shares for direct listing
	Olo starts trading after pricing IPO above range
	ThredUp aims to raise $168M in IPO

The Daily Benchmark

2017 Vintage Global Venture Funds with more than $250M

Median IRR

16.96%

Top Quartile IRR Hurdle Rate

27.87%

1.28x

Median TVPI

Select top performers

Flagship Pioneering Fund VI

Frazier Life Sciences IX

Versant Venture Capital VI

*IRR: net of fees

26 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Partner Perspectives

Is the SPAC surge sustainable?

Between 2019 and 2020, there was a 536% increase in the amount of capital raised by special purpose acquisition companies. In 2021 thus far, there has been little to no slowdown in the pace of capital pouring into SPACs, with over $50 billion raised. Inescapably, this surge of interest in SPAC vehicles is profound. But is it sustainable?

Mintz's latest whitepaper investigates the drivers of this surge, as well as its implications for capital markets and private companies on the whole. In addition, it considers the key risks and opportunities inherent within SPACs due to their features, as well as their possible evolution.

Read it now

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PitchBook Webinar: The importance of US and European VC valuations in 2021

Given the uncertainty surrounding the pandemic, investors face a uniquely opaque future in the private markets. Join us on March 24 for an overview of the valuations environment, where our analysts will give expert insight into topics including:

VC valuation growth across financing stages and geographies continued impressively as the strategy flourished despite COVID-19.

Swelling capital availability from both VC funds and nontraditional investors has contributed heavily to robust valuation growth.

The aggregate value and quantity of companies crossing a €1 billion valuation has increased in the last decade and growth did not slow in 2020.

In line with higher valuations tied to funding rounds, companies are exiting the VC ecosystem at loftier valuations.

Register here to secure your spot

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People

Keith Rabois creating new startup to buy ecommerce businesses

Founders Fund general partner Keith Rabois is launching OpenStore, a stealth-mode Miami-based company that will purchase and consolidate small ecommerce businesses, Axios reported. OpenStore is being founded in partnership with Jack Abraham, founder and managing partner of venture studio Atomic, the report said. The effort is an example of a larger trend of ecommerce consolidation by companies like Amazon.

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Robinhood names first chief product officer

Robinhood, the operator of an online stock trading platform, has hired former Google executive Aparna Chennapragada as its first chief product officer. Chennapragada was with the tech giant for over 12 years, where she oversaw product, engineering and design teams. She most recently served as Google's vice president for consumer shopping, and as the lead for augmented reality and visual search products.

View details

View 20 competitors »

VC Deals

Squarespace raises $300M at $10B valuation

Squarespace, the creator of a website building and ecommerce platform, has reached a valuation of $10 billion after raising about $300 million from Dragoneer Investment Group, Tiger Global, D1 Capital Partners and others. The New York-based company filed confidentially to go public in January. It was valued at $1.7 billion in 2017.

Additional Investors:

General Atlantic, Accel, T. Rowe Price, Fidelity Management & Research, Spruce House

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View 55 competitors »

Coalition picks up $175M in unicorn round

Coalition has raised $175 million in a round led by Index Ventures, valuing the startup at $1.75 billion. The San Francisco-based company is the developer of a cybersecurity and cyber insurance platform. In May, Coalition raised a $90 million Series C at a $900 million valuation, according to PitchBook data.

Additional Investor:

General Atlantic

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View 62 competitors »

OctoML takes in $28M

OctoML has raised a $28 million Series B led by Addition, with participation from Madrona Venture Group and Amplify Partners. The Seattle-based company uses machine learning to help software teams at companies such as Qualcomm, Bosch and Microsoft deploy projects on the cloud or other devices. OctoML was valued at $75.7 million last April, according to PitchBook data.

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Exits & IPOs

Coinbase investors register 114.9M shares for direct listing

Cryptocurrency exchange Coinbase plans to offer 114.9 million shares in its upcoming direct listing, according to a regulatory filing. So far this year, the company's shares have traded at a weighted-average price of $343.58. At that price, the company would be worth $67.6 billion based on the number of shares outstanding. Coinbase was valued at $8 billion in 2018, according to PitchBook data.

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Olo starts trading after pricing IPO above range

Olo, a provider of online ordering and delivery software for restaurants, has priced its IPO shares at $25 apiece, significantly above its original target range of $16 to $18 per share and a revised range of $20 to $22 per share. The company raised about $450 million at a valuation of about $3.6 billion in its public debut, closing the day up 39%. Before the IPO, Olo brought in less than $100 million in private funding from investors including Tiger Global, Battery Ventures and RRE Ventures, according to PitchBook data.

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ThredUp aims to raise $168M in IPO

ThredUp, an online retailer of secondhand clothing and accessories, has established terms for its upcoming IPO, with plans to sell 12 million shares at between $12 and $14 apiece. At the top of that range, the Oakland, Calif.-based company would raise $168 million and be valued at nearly $1.3 billion, based on the number of outstanding shares. ThredUp's biggest shareholders include Trinity Ventures (13.6% pre-IPO stake), Redpoint Ventures (13.5%) and Highland Capital Partners (13.5%).

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