PitchBook News - Deliveroo eyes $12.2B IPO valuation

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The Daily Pitch: VC

March 23, 2021

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

Today's Top Stories

The past and future of PE: How COVID-19 accelerated trends and fueled dealmaking

Last spring, PitchBook's quantitative analysts provided a playbook for what private equity might face in the then-nascent COVID-19 crisis. A year on, the newest edition of our Quantitative Perspectives report revisits those predictions and considers the impact of a recession unlike any in history.

What felt like a free fall was followed by a recovery lasting just months, rather than the typical yearslong struggle to return to normal. 2020's wild ride is setting up private equity for a fascinating future. Highlights from the report include:

The unprecedented amount of monetary and fiscal stimulus that fueled the speedy recovery will have lasting impacts on financial markets.

Far from completely disrupting PE, the pandemic accelerated long-term trends and raised resilience by driving dealmaking in tech and healthcare.

The record amount of liquidity available to buy private companies—over $2.3 trillion—should provide a tailwind for PE-backed exits in 2021.

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Amazon-backed Deliveroo targets $12.2B IPO valuation

(Courtesy of Deliveroo)

Food delivery unicorn Deliveroo is seeking a valuation of up to £8.8 billion (about $12.2 billion) in its upcoming IPO.

The London-based company has set the price range for its listing at between £3.90 and £4.60 per share. It is planning to sell around 384.6 million shares, which would raise some £1.8 billion at the top of that range. Deliveroo has received prior backing from investors such as Amazon, T. Rowe Price and Greenoaks.

The listing will mostly consist of new shares, with £1 billion earmarked for the company's growth. Sky News reported that founder Will Shu is likely to sell a portion of his 6.2% stake, which could be worth some £550 million after the debut.

Deliveroo's IPO is reportedly on course to be the largest London has seen in the last 10 years. The UK is currently looking to relax listing rules to attract more companies to its stock exchange.

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A message from Bridge Bank

NY sees second-highest annual exit value at nearly $37 billion

Despite a significant drop in volume, 2020 still saw the second-highest aggregate annual exit value for New York on record, thanks to a slew of multibillion-dollar sales and debuts.

In the inaugural installment of Bridge Bank's Private Markets to Watch series, the key top-level trends that defined PE dealmaking in New York last year—as well as the past decade—are examined in depth, including that massive exit tally. Additionally, the report contains analysis of the NY PE fundraising boom of the 2010s as the industry grew even further.

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Recommended Reads

How Italy's ancient winemaking industry is adapting to keep up with booming online wine sales and other pandemic-related changes. [Fortune]

An interview with world-renowned primatologist and humanitarian Jane Goodall on her new podcast, carbon footprints, and why she's hopeful in 2021. [BBC]

Spain is the first country in the world to pilot a four-day workweek. Will the idea go mainstream? [Time]

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Quick Takes


	The Daily Benchmark
	2010 Vintage Global Real Estate Funds
	Partner Perspectives
	Where is your organization in its diversity journey?
	VC Deals
	Epic Games could fetch $28B valuation with new funds
	Health research startup scoops up $153M
	Cloud security startup Wiz triples value with new capital
	ID.me brings in $100M at unicorn valuation
	Automation software developer collects new funding
	Aura Biosciences picks up $80M
	Flex Logix snags $55M Series D
	Spark Capital leads $50M round for Axis Security
	Exits & IPOs
	Design Therapeutics plans to raise up to $240M in IPO
	ACV Auctions ups price range for IPO

The Daily Benchmark

2010 Vintage Global Real Estate Funds

Median IRR

11.95%

Top Quartile IRR Hurdle Rate

18.10%

1.52x

Median TVPI

Select top performers

Lone Star Real Estate Fund II

CPDFCI

Lubert-Adler Fund VI B

*IRR: net of fees

41 Funds in Benchmark »

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Partner Perspectives

Where is your organization in its diversity journey?

As part of its commitment to increasing diversity on leadership teams, top-20 retained executive search firm ON Partners engaged its community of executive influencers in a survey to define and understand what key diversity, equity and inclusion initiatives are taking place in their organizations.

Some executives have launched DEI councils, others have created training and executive mentoring programs, and still many others have yet to take real action or feel their barriers lie in the "frozen middle."

ON wants to know about your diversity journey. See initial survey results and add your organization's DEI actions and insights here.

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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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VC Deals

Epic Games could fetch $28B valuation with new funds

Epic Games, the creator of "Fortnite" and "Houseparty," has been finalizing a $1 billion round that would value it at $28 billion, Sky News reported. Last year, the company raised $1.78 billion at a $17.3 billion valuation. Epic Games is backed by investors such as BlackRock, KKR and Kleiner Perkins.

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Health research startup scoops up $153M

Evidation Health, the creator of an analytics platform that allows users to share their health data and participate in research and health programs, has raised a $153 million Series E co-led by OMERS Growth Equity and Kaiser Permanente Group Trust. The San Mateo, Calif.-based startup brought in $45 million at a $315 million valuation in July, according to PitchBook data. Teresa Lee, managing director at OMERS Growth Equity, has joined the company's board.

Additional Investors:

B Capital Group, McKesson Ventures

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Cloud security startup Wiz triples value with new capital

Wiz, the developer of a cloud infrastructure security platform, has raised $130 million, increasing its valuation to $1.7 billion. Advent Venture Partners led the funding, CNBC reported. The Tel Aviv-based company raised a $100 million round last December that valued it at $500 million. Wiz is also backed by Sequoia, Insight Partners, Index Ventures and CyberStarts.

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ID.me brings in $100M at unicorn valuation

ID.me has raised $100 million at a $1.5 billion valuation in a round led by Viking Global Investors. Counterpoint Global, CapitalG and others also participated in the financing. The Virginia-based company is the developer of a security platform that provides identity proofing, authentication and group affiliation verification. ID.me, which currently has more than 39 million users on its platform, was valued at $483.3 million in June, according to PitchBook data.

Additional Investors:

BoxGroup, Lead Edge Capital, PSP Partners, WndrCo, Willoughby Capital, Moonshots Capital

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Automation software developer collects new funding

Camunda, a developer of open-source process automation software, has secured €82 million (around $98 million) in a round led by Insight Partners, with participation from existing investor Highland Europe. The Berlin-based startup raised €25 million in 2018.

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Aura Biosciences picks up $80M

Aura Biosciences has raised $80 million in a round co-led by Matrix Capital Management and Surveyor Capital. The Boston-area company is developing ocular cancer treatments and plans to use the funding in part to accelerate clinical development of its lead drug candidate in Phase III trials. Aura was valued at $150 million in July, according to PitchBook data.

Select Additional Investors:

Adage Capital Management, Chiesi Ventures, Rock Springs Capital, Velosity Capital, Ysios Capital

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Flex Logix snags $55M Series D

Flex Logix has raised $55 million in a round led by Mithril Capital Management. The Mountain View, Calif.-based company is a developer of embedded chips and software designed to adapt to changing algorithms, protocols, standards and customer requirements. Flex Logix was valued at $68 million in 2019, according to PitchBook data.

Additional Investors:

Eclipse Ventures, Lux Capital, Tate Family Trust

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Spark Capital leads $50M round for Axis Security

Axis Security, a San Mateo, Calif.-based developer of a cloud security platform, has raised a $50 million Series C led by Spark Capital. Existing investors Canaan Partners, Ten Eleven Ventures, and CyberStarts participated in the round, which brings the company's total financing to $100 million.

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Exits & IPOs

Design Therapeutics plans to raise up to $240M in IPO

Biotech company Design Therapeutics has set terms to raise as much as $240 million in its IPO. The company plans to sell 12 million shares for between $18 and $20 each in the offering. Design's top shareholders include SR One (10% post-IPO stake), Quan Funds (8.8%) and Cormorant (8.1%).

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ACV Auctions ups price range for IPO

SoftBank-backed ACV Auctions, a used-car marketplace for dealerships, has raised its IPO price range from $18 to $20 per share to $20 to $22 apiece. The company said it is looking to raise as much as $364 million in an IPO at a valuation of up to $3.4 billion. ACV Auctions has raised $350 million in private funding, according to PitchBook data.

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Chart of the Day

"In 2020, the US middle market posted both its worst quarter since 2013 with 462 deals for $67.3 billion in Q2, and its best quarter on record with 1,428 deals for $202.1 billion in Q4."

Source: PitchBook's 2020 Annual US PE Middle Market Report