PitchBook News - SoftBank's Katerra to shut down

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

PitchBook

Log in

The Daily Pitch: VC

June 2, 2021

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

Today's Top Stories

Cloudera take-private deal signals Clayton, Dubilier & Rice's rising tech ambitions

(MR.Cole_Photographer/Getty Images)

The $5.3 billion acquisition of cloud-analytics specialist Cloudera could mark a tech watershed moment for private equity firm Clayton, Dubilier & Rice.

CD&R and KKR announced Tuesday they would pay $16 per share to take the Santa Clara, Calif.-based company private in a 50-50 deal.

Jeff Hawn, the firm's operating partner who is in line to become chairman of Cloudera, previously served as CEO of software companies Quest Software, Vertafore and Attachmate.

CD&R isn't totally new to the tech scene. The firm acquired Epicor Software for $4.7 billion from KKR last October, and more recently bought sales optimization software developer KBMax in May.

Share:

SoftBank-backed Katerra to close up shop

Construction tech specialist Katerra plans to shut down six years after it was founded, The Information reported. The startup, which is majority-owned by SoftBank, believed its technology could be used to construct buildings more quickly and with fewer costs.

In May 2020, the startup raised $200 million from SoftBank and appointed a new CEO as it grappled with a pandemic-induced slowdown in the construction industry. In December, the Japanese conglomerate reportedly invested an additional $200 million in order to help the company avoid bankruptcy.

In a recent interview with Nikkei Asia, SoftBank chief Masayoshi Son lumped Katerra in with WeWork and Greensill Capital, the latter of which went bankrupt this year, as an example of the firm's missteps. At its peak in 2019, Katerra was rumored to be valued at $4 billion.

The Bay Area-based startup will lay off thousands of workers and is likely to abandon current projects, according to The Information. Katerra has reportedly been investigated by the SEC over its accounting practices.

Share:

A message from Lincoln International

How can growing software companies with no earnings raise debt financing?

Software assets continue to be attractive investment targets for private equity sponsors. However, PE sponsors have experienced a challenge: how to position software companies that are non-cashflow generative when looking to raise debt capital.

With the rise of non-bank lenders, software businesses that typically trade on revenue multiples are becoming increasingly financeable on the same basis. From venture debt funds to direct lenders and specialty tech lenders, software companies now have many options when looking to raise growth or acquisition debt.

Now is an opportune moment for borrowers in the technology sector to tap into the depth of the lending market.

See the common characteristics lenders look for when lending to software businesses and how Lincoln can help ensure a smooth process.

Share:

Booming European VC landscape continues to smash records for valuations

Valuations of European VC-backed companies rose across the board in the first three months of the year. Figures climbed higher than last year's records despite lockdown-related uncertainty, rising unemployment and unpredictable economic growth.

PitchBook's Q1 2021 European VC Valuations Report analyzes valuation changes across investment stages, sectors and regions. Key takeaways include:

The increased presence of nontraditional and international investors drove round sizes and valuations to new heights.

Europe's maturing VC ecosystem has seen early-stage startups now carrying valuations and closing rounds similar to late-stage startups five years ago.

The median late-stage valuation reached €24.8 million in Q1 2021, and is on track to nearly double the record set in 2020 if the pace is maintained throughout the year.

read it now

Share:

Europe's insurtech market soars to new heights with latest VC rounds

(Courtesy of Wefox)

Europe is riding an insurtech boom, as two new VC mega-rounds have pushed 2021 to record levels.

Germany's Wefox raised a $650 million Series C led by Target Global, while pet insurer Bought By Many brought in $350 million in its Series D.

These mega-deals bring the total capital raised by European insurtech companies in 2021 to $1.9 billion, already more than 2020's figure just five months into the year.

VC firms are keen to back startups developing new approaches to traditional insurance activities, which are increasingly threatening incumbents who lack a digital edge.

Recommended Reads

Ransomware attacks rose 62% globally last year. Enter the ransomware negotiators you hope you'll never need. [Fortune]

Why rebellious workers spark great ideas in the workplace. [BBC]

How LeBron James' agent, Rich Paul, is transforming the business of basketball. [The New Yorker]

Since yesterday, the PitchBook Platform added:

14

VC valuations

1545

People

495

Companies

16

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2019 Vintage Global Debt Funds
	Partner Perspectives
	The key to successful dealmaking
	VC Deals
	Logistics platform creator picks up $202M Series E
	Exabeam hits $2.4B valuation with Series F
	Flash lands $150M, becoming Thailand's first unicorn
	AI specialist Anthropic grabs $124M
	Scientia Vascular raises $50M
	Hypori secures $20M

The Daily Benchmark

2019 Vintage Global Debt Funds

Median IRR

9.19%

Top Quartile IRR Hurdle Rate

15.85%

1.06x

Median TVPI

Select top performers

Ares Special Opportunities Fund

Cerberus Global NPL Fund

Apollo Hybrid Value Fund 1

*IRR: net of fees

48 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Partner Perspectives

The key to successful dealmaking

The foundation of value creation is people. As recent Mercer research reveals, nearly half of deals that fail do so primarily due to inability to strategically identify and address people issues. How can these be avoided?

Mercer has conducted an in-depth survey of deal professionals worldwide, spanning Fortune 1000 companies to PE funds. Drawing from the survey's findings and PitchBook datasets, Mercer has created a comprehensive report that examines multiple aspects of the importance of people to value creation in transactions. Key findings include:

What the top priorities are for dealmakers as they embark on transactions, given the current market environment
Which aspects of people issues drive the most success in deals
How dealmakers' priorities across the transactional lifecycle have evolved over the past year

Read it now

Share:

VC Deals

Logistics platform creator picks up $202M Series E

Goldman Sachs and Emergence Capital have co-led a $202 million round for Project44, the developer of a logistics and supply chain platform for shippers. The funding values the Chicago-based company at $1.2 billion. With customers including Amazon, Starbucks, Unilever and Lenovo, Project44 plans to use the funding in part to expand into Asian markets. The company was valued at $600 million in December, according to PitchBook data.

View round

View 13 competitors »

Exabeam hits $2.4B valuation with Series F

Cybersecurity startup Exabeam has raised a $200 million round led by Blue Owl Capital. The funding, which saw participation from existing backers Acrew Capital, Lightspeed and Norwest Venture Partners, values the company at $2.4 billion. Exabeam has also appointed former McAfee president Michael DeCesare as its CEO and president, replacing co-founder and former CEO Nir Polak, who will remain on the executive team. Foster City, Calif.-based Exabeam makes cloud-based automation and analytics software for security teams. It was valued at $820 million in 2019, according to PitchBook data.

View details

View 89 competitors »

Flash lands $150M, becoming Thailand's first unicorn

Flash Group, a Thailand-based delivery and logistics startup, has reportedly raised $150 million in Series D+ and Series E funding at a valuation exceeding $1 billion, making it the country's first unicorn. The lead investor for the Series D+ round was SCB 10X, while Founders Fund and Buer Capital led the Series E, according to reports.

Additional Investors:

Chanwanich Group, Durbell, Krungsri Finnovate, PTT Oil and Retail Business, eWTP Capital

View round

View similar company »

AI specialist Anthropic grabs $124M

Anthropic has raised a $124 million Series A led by Stripe co-founder Jaan Tallinn, with participation from James McClave, Dustin Moskovitz, the Center for Emerging Risk Research and Eric Schmidt. The company is a developer of AI systems.

View round

View similar company »

Scientia Vascular raises $50M

Scientia Vascular, a medical device company, has raised $50 million in growth equity from Vivo Capital. The funding will be used for sales and marketing efforts, as well as product development for stroke and cancer treatment.

View round

View similar company »