PitchBook News - Carbon capture's climate moonshot

Read online | Don't want to receive these emails? Manage your subscription.

PitchBook

Log in

The Daily Pitch: VC

March 29, 2021

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

Today's Top Stories

Carbon capture is all the rage. Can these startups make it profitable?

Shipping giants are turning to renewable methanol as a way to limit their emissions. (Courtesy of Liquid Wind)

With the help of billionaires like Elon Musk and Bill Gates, carbon capture technologies have been thrust into the public consciousness as a climate-saving moonshot.

The economics of catching and storing carbon dioxide are extremely tough to crack. But a growing number of startups think they're closing in on ways to repurpose captured CO2 that won't depend on never-ending government subsidies.

One company is making rocks out of thin air. Another is turning biogases into liquid fuel to power gigantic ships.

The challenge for startups, once they have a scientifically proven method, is to find industrial partners who are eager to reduce their emissions and can help to develop pilot facilities next to their factories.

Share:

WeWork finds new path to go public after 2019 IPO collapse

WeWork has inked a blank-check deal to go public, less than two years after its now-infamous failed bid for a traditional IPO led to a downward spiral at the SoftBank-backed company.

The SPAC deal with BowX Acquisition values WeWork at $9 billion, a precipitous drop from the $47 billion valuation it received in 2019 prior to its attempted IPO. SoftBank, the company's largest shareholder, disclosed last May that WeWork was worth $2.9 billion.

WeWork expects to get $1.3 billion in cash from the deal. That includes an $800 million PIPE round from investors including Insight Partners, Starwood Capital Group, Fidelity Management & Research, Centaurus Capital and BlackRock.

The co-working company's overhaul in 2020 included cutting 67% of its staff and reducing selling, general and administrative expenses by $1.1 billion. WeWork's 2020 revenue remained roughly the same year-over-year at $3.2 billion, excluding the company's Chinese operations, which WeWork sold control of last September. The company lost $3.2 billion in 2020.

WeWork thinks its flexible space model will flourish as offices look to reopen, despite a humbling year for co-working companies. Since the pandemic began, rival startup Knotel filed for bankruptcy before selling to Newmark, female-focused shared office provider The Wing sold to IWG, and many other co-working operators retreated or shut down.

Related read: SoftBank's Vision Fund squeezes through the IPO window

Share:

A message from KEY Investment Partners

A brief window of opportunity for cannabis investors

There are several unique characteristics of cannabis companies and the US cannabis market that could make investing in the space particularly attractive in 2021. These characteristics have created a window of opportunity that may exist only for a short period, possibly just a few years.

The unique market dynamics in the cannabis industry today have in large part been created by conflicting legislation at US state and federal levels. In 2021, one in three Americans now lives in a state with access to recreational cannabis; however, under federal law, cannabis is still classified as a Schedule I controlled substance.

This white paper aims to make sense of the current state of the cannabis market, offering insight into where there may be opportunity.

Read it now

Share:

How a value-based care payment model could reshape emerging healthtech

(ipopba/Getty Images)

US healthcare providers are traditionally paid for the services they render, creating a system that values the quantity of services above all else. Soaring costs and recent Medicare changes could accelerate the adoption of value-based care, fundamentally shifting the model.

VBC directly links earnings to care quality and patient outcomes, emphasizing preventive care and creating an incentive to keep costs low. Our new analyst note explores the potential impact of VBC on emerging tech and healthcare as a whole. Highlights include:

Providers will need to adopt cutting-edge technology like analytics, AI and machine learning, and next-generation diagnostics.

Medicare will be the primary driver of value-based care models, boosting investment in tech to treat conditions common among Medicare patients.

HIPAA-compliant care management platforms are likely to grow, as they help providers collaborate efficiently on treatments while reducing costs.

read it now

Share:

Recommended Reads

As pandemic lockdowns lift across the US, Americans are noticing that their neighborhoods are looking a lot dirtier. [Time]

In 1996, more than 70 bald eagles were found dead in Arkansas. Now, scientists have discovered the stealth killer behind the massacre of America's national bird. [The Atlantic]

AI algorithms and developments in behavioral science have led to supercharged prices. Here's how companies can use these capabilities to set prices more ethically. [Harvard Business Review]

Since yesterday, the PitchBook Platform added:

87

People

23

Companies

See what our data software can do

Quick Takes


	The Daily Benchmark
	2006 Vintage Global Venture Funds
	VC Deals
	ServiceTitan valuation leaps to $8.3B
	Chainalysis doubles valuation in less than six months
	Idelic drives off with $20M
	Pilot pulls in extra capital for Series C
	Exits & IPOs
	UiPath files for NYSE debut
	ThredUp shares jump 43% on first day of trading
	The Athletic holds talks with Axios about digital media merger

The Daily Benchmark

2006 Vintage Global Venture Funds

Median IRR

4.66%

Top Quartile IRR Hurdle Rate

10.17%

1.27x

Median TVPI

Select top performers

Scottish Equity Partnership III

henQ I

Alta Partners VIII

*IRR: net of fees

58 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

ServiceTitan valuation leaps to $8.3B

ServiceTitan, a creator of software for trades workers in the home and commercial service sectors, has raised a $500 million round at a valuation of $8.3 billion. The funding was led by Tiger Global and Sequoia, with participation from HIG Growth Partners. Returning investors joining the deal included Arena Holdings, Battery Ventures and Bessemer Venture Partners. Glendale, Calif.-based ServiceTitan was valued at $2.2 billion last May, according to PitchBook data.

Additional Investors:

Dragoneer Investment Group, Durable Capital Partners, Index Ventures

View round

View 49 competitors »

Chainalysis doubles valuation in less than six months

Blockchain analysis specialist Chainalysis has raised $100 million in a Series D round at a valuation of more than $2 billion. Crypto-focused investor Paradigm led the funding, with participation from Addition, Ribbit Capital and Marc Benioff's Time Ventures. New York-based Chainalysis was valued at $1 billion in November, according to PitchBook data.

View round

View 32 competitors »

Idelic drives off with $20M

Idelic has raised a $20 million Series B led by Highland Capital Partners. The Pittsburgh-based company is the developer of a predictive analytics and data platform designed to manage commercial trucking fleets.

Select Additional Investors:

AXA Venture Partners, Origin Ventures, TDF Ventures

View round

View 19 competitors »

Pilot pulls in extra capital for Series C

Pilot has secured additional funding from lead investors Bezos Expeditions and Whale Rock Capital, bringing the round total to $100 million and valuing the company at $1.2 billion. Founded in 2017, the San Francisco-based company is the developer of a bookkeeping and tax preparation platform. Pilot was valued at $630 million in January, according to PitchBook data.

Additional Investors:

Index Ventures, Sequoia

View round

View 33 competitors »

Exits & IPOs

UiPath files for NYSE debut

Enterprise automation software company UiPath has filed IPO documents for its upcoming NYSE debut. The company's revenue grew 81% year-over-year to $607.6 million for the fiscal year ended January 31, 2021; it recorded a net loss of $92.4 million for that same period. Accel Partners is the company's leading investor with 28.8% of Class A shares, followed by Earlybird Management (11.4%) and CapitalG (8.3%). UiPath hit a valuation of $35 billion with a $750 million round last month, according to PitchBook data.

View details

View 94 competitors »

ThredUp shares jump 43% on first day of trading

Shares of ThredUp, an online resale marketplace for used clothing and accessories, closed at $20 apiece on Friday, nearly 43% above their IPO price of $14. The company sold 12 million shares in the offering, raising $168 million. Bay Area-based ThredUp recorded $186 million in revenue last year, a 14% increase from the previous year.

View details

View 27 competitors »

The Athletic holds talks with Axios about digital media merger

The Athletic, a subscription-based digital sports website, has held talks with Axios, an online news startup, about a potential merger or SPAC deal that could eventually be used to pursue additional digital news acquisitions, The Wall Street Journal reported. Founded in 2016, The Athletic has raised more than $130 million from investors including Bedrock Capital, CourtsideVC and Founders Fund, with a January 2020 round valuing the company at $530 million. Axios raised roughly $27 million at a $207 million valuation that same month, according to PitchBook data.

View details

View 9 competitors »