PitchBook News - AI cooks up changes for foodtech

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The Daily Pitch: VC

April 7, 2021

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

Today's Top Stories

How AI is cooking up changes for foodtech

(MirageC/Getty Images)

The food industry is amassing an ocean of data as more consumers shop online, businesses go fully digital and entrepreneurs lean on technology to dream up new products.

The information shift is opening opportunities for AI to help businesses cut costs and keep pace with consumer tastes, according to our latest analyst note. Key takeaways include:

AI is changing the R&D landscape for novel foods like plant-based meat by speeding up recipe development.

Data from ecommerce, product labels and other sources is being used to build personal shopping and checkout experiences.

In grocery stores and production facilities, AI platforms have been deployed to drastically cut food waste, a potential source of huge savings for the industry.

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For companies courted by SPACs, the deal doesn't always go to the highest bidder

(Spencer Platt/Getty Images)

As the blank-check boom rages on, growth-stage companies are increasingly being bombarded by SPAC sponsors vying to take them public.

Companies considering the SPAC route are discovering that what matters most in a SPAC sponsor isn't the valuation offered or even operational expertise, but sponsors' ability to corral institutional investors into a PIPE deal.

The PIPE capital allows a SPAC to buy a larger company, and guarantees that there is enough funding to support the reverse merger in case a large chunk of SPAC investors decide to dump the stock after a target is announced.

"If the PIPE doesn't come together," said Norwest Venture Partners managing partner Jeff Crowe, "it means that not enough investors agreed with the valuation, in which case the valuation needs to be adjusted, and there is even a possibility that the whole transaction falls apart."

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A decade after millennials fell in love with the shoe brand, Toms is plotting a comeback. [Bloomberg]

The pandemic shifted much of the working world online. Yet only about half of hedge fund managers are investing in new technologies. [Institutional Investor]

A group of Wall Street firms bet big on the power sector in recent years. Now they're making millions off of Texas' February winter storm. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global Debt Funds
	A message from Woodruff Sawyer
	The biggest names in SPACs talk market changes, de-SPACs and litigation
	VC Deals
	India's Cred hits $2.2B valuation
	Sendbird collects $100M Series C
	Prosimo emerges from stealth with $25M
	Bartesian gobbles up $20M
	Empathy lands $13M to help grieving families

The Daily Benchmark

2016 Vintage Global Debt Funds

Median IRR

7.80%

Top Quartile IRR Hurdle Rate

10.29%

1.13x

Median TVPI

Select top performers

Centerbridge Special Credit Partners III- Flex

PAG Enhanced Credit Fund

Silver Point Distressed Opportunities Offshore Master Fund

*IRR: net of fees

51 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Woodruff Sawyer

The biggest names in SPACs talk market changes, de-SPACs and litigation

Join us on April 13 to learn what's driving the serial SPACer phenomenon, review the current state of the market, discuss how the litigation environment and cost of insurance have changed, and get advice for setting up a successful de-SPAC transaction.

Hear directly from the attorney with the undisputed record for longest tenure in the SPAC market, Doug Ellenoff, along with experts from JP Morgan Chase, Social Capital, PropTech, Skadden, Wachtell and Woodruff Sawyer about where the SPAC industry has been and where it's going.

Don't miss this one-time virtual event for SPAC sponsors and operating companies—click here to register.

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VC Deals

India's Cred hits $2.2B valuation

Cred has reportedly raised a $215 million Series D led by Falcon Edge Capital and Coatue Management, with support from Insight Partners and previous investors DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group and Sofina. The Bengaluru-based company rewards members with products, cash and experiences for using its platform to pay credit card bills on time. The round is believed to value Cred at $2.2 billion.

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Sendbird collects $100M Series C

Sendbird has raised $100 million in a round led by Steadfast Venture Capital, with participation from investors such as Emergence Capital, the SoftBank Vision Fund and World Innovation Lab. Based in the Bay Area, the company is the creator of a messaging platform for business communication. Sendbird was valued at $550 million in 2019, according to PitchBook data.

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Prosimo emerges from stealth with $25M

Prosimo has raised $25 million in seed and Series A funding co-led by General Catalyst and WRVI Capital, with participation from Nepenthe Capital. The Santa Clara, Calif.-based company is the developer of an infrastructure stack intended to help enterprise customers securely improve app experience and deliver multi-cloud apps. General Catalyst managing director Steve Herrod and WRVI managing partner Lip-Bu Tan have joined Prosimo's board.

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Bartesian gobbles up $20M

Bartesian has raised a $20 million Series A led by Cleveland Avenue, with participation from investors including Stanley Ventures. The Chicago-based company is the developer of a touchscreen cocktail maker that mixes customized drinks. Bartesian, which in 2020 recorded revenue growth of 975% year-over-year, has also added actress Mila Kunis to its board.

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Empathy lands $13M to help grieving families

Empathy has raised a $13 million seed financing co-led by General Catalyst and Aleph. The company is the developer of a mobile app designed to help bereaved families manage logistical tasks including account cancellations, estate administration and benefit claims. Empathy operates out of New York and Tel Aviv.

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Chart of the Day

"The regional split in capital raised across Europe was consistent with recent years, even though devastation from COVID-19 has varied country to country. Despite Brexit, the UK & Ireland raised the most capital for venture funds with €5.1 billion, narrowly topping the DACH region, which raised €5.0 billion in 2020, marking a new record for the region."

Source: PitchBook's 2020 Annual European Venture Report