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The Daily Pitch: VC

May 10, 2021

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Today's Top Stories

Why mobility tech startups continue to attract investor attention

From tackling congestion to reducing carbon emissions, the mobility tech industry is increasingly being seen as a key to solving a host of societal problems.

Venture investors are pouring billions of dollars into mobility tech startups that have been benefiting from the ongoing SPAC boom and rising demand for low-cost, environmentally friendly transportation solutions.

Our latest installment of Emerging Tech Research explores the major trends that shaped this space in the first quarter of 2021, including mounting optimism around air taxis and autonomous driving technology. Among the takeaways:

Mobility tech venture funding set a record in Q1 2021, with $23.4 billion invested in the vertical.

The SPAC phenomenon added upward pressure on valuations for early- and late-stage mobility startups and has accelerated funding timelines.

Electric vehicle specialists need to rethink design processes in a way that prioritizes manufacturing cost and total cost of ownership.

Micromobility providers appear to be gaining traction in emerging markets such as India and Brazil.

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Beyond VC: The fundraising alternatives for Europe's startups

(LvNL/Getty Images)

European VC activity is on track for a record year, with Q1 already setting a quarterly high. But not all of the region's startups are eager to bring in venture capital. For many, raising equity funding comes at a cost they are unwilling to pay: control.

"There's so much pressure as a founder to take funding even if you don't need it," said Lemlist co-founder Guillaume Moubeche. "I wanted to send a message that fundraising should not be the definition of a startup's success and that you can succeed on your own terms."

Venture funding typically includes a board seat for investors, and with it, some say in how the company is run. That influence can be more hindrance than help, Moubeche said, as startups are often pushed to prioritize short-term growth over long-term profits.

Building a successful company usually requires at least some outside capital, but for founders who don't want to go the VC route, alternative funding options are cropping up throughout Europe to help startups scale.

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After being furloughed or laid off during the pandemic, pilots are getting ready to fly again. But they'll need to brush up on their skills first. [The New York Times]

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global PE Funds
	VC Deals
	Ada picks up $130M
	TwinStrand Biosciences lands $50M
	Portfolio Companies
	Gopuff enters UK delivery market with Fancy acquisition
	Exits & IPOs
	Clinical trials operator Science 37 going public via SPAC
	Navitas inks SPAC deal

The Daily Benchmark

2016 Vintage Global PE Funds

Median IRR

13.64%

Top Quartile IRR Hurdle Rate

23.16%

1.25x

Median TVPI

Select top performers

Renovus Capital Partners II

Francisco Agility Fund

Bridgepoint Development Capital III

*IRR: net of fees

143 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Ada picks up $130M

Ada has raised $130 million at a $1.2 billion valuation in a round led by Spark Capital, Bloomberg reported. The Toronto-based company offers a chatbot platform to help customer support teams manage responses. Tiger Global, Bessemer Venture Partners, Accel and FirstMark Capital also participated in the funding.

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TwinStrand Biosciences lands $50M

TwinStrand Biosciences, a genomics startup developing technology to identify ultra-low frequency DNA mutations, has raised a $50 million Series B led by Section 32. New investors Soleus Capital and Janus Henderson Investors, as well as existing backers Madrona Venture Group, Ridgeback Capital and Alexandria Venture Investments also participated in the round. The Seattle-based company has raised more than $70 million in venture funding to date.

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Portfolio Companies

Gopuff enters UK delivery market with Fancy acquisition

Gopuff has purchased UK startup Fancy, as the Philadelphia-based rapid delivery company looks to expand into Europe. Fancy, which is backed by Y Combinator, operates a network of dark stores in several UK cities and delivers items in under 30 minutes. Gopuff was valued at $8.9 billion in March, according to PitchBook data. Its investors include D1 Capital Partners and SoftBank.

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Exits & IPOs

Clinical trials operator Science 37 going public via SPAC

Science 37, a developer of technology for facilitating virtual clinical trials, has agreed to go public through a reverse merger with LifeSci Acquisition II Corp., a blank-check company. The deal values the company at $1.05 billion and includes a $200 million PIPE from investors including BlackRock, Lux Capital and the SPAC sponsor's affiliate, LifeSci Venture Partners. Science 37 has raised more than $140 million in venture capital to date, according to PitchBook data.

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Navitas inks SPAC deal

Navitas Semiconductor, a Dublin-based creator of power chips, has agreed to go public through a merger with blank-check company Live Oak Acquisition Corp. II. The transaction values the combined company at around $1 billion. It will raise $400 million of capital, including a $145 million PIPE investment. Capricorn Investment Group, Atlantic Bridge, Malibu IQ and all of the company's current investors will roll all of their equity into the deal.

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