PitchBook News - VC's gut check

• Positive research could dramatically increase the size of the market, but there is no clear timeline for when or if such findings may occur. In the meantime, the industry may struggle to gain mainstream traction.


• At-home gut-health test providers inform consumers which bacteria inhabit their gut. But gut microbiomes can vary 100% person-to-person, creating research barriers for companies looking to delve into the space.


• Probiotic supplement providers stand to benefit from increased awareness and research related to the microbiome's impact. But if research shows they aren't helpful, the market could dissipate.

Clearco, a Toronto-based startup that offers non-dilutive capital and data insights to e-commerce startups, mobile apps and SaaS businesses, has raised $215 million in funding led by SoftBank's Vision Fund 2.

• This financing comes less than three months after Clearco's $100 million Series C, which valued the company at $2 billion.


• Clearco, which rebranded from Clearbanc in April, is a provider of revenue-based financing, which offers subscription companies an advance on their monthly revenue and an alternative to traditional venture capital. The company's offerings also include insights and valuation tools that identify sales and marketing performance metrics and recommendations.


• While this financing method may be disruptive to the venture capital model, some VCs see an opportunity in backing startups that provide cash upfront at a discount to future contractual revenue.


• Capchase, a provider of non-dilutive capital that was founded last year, closed a $125 million Series A last month led by QED Investors. Meanwhile, Pipe, the creator of a trading platform for recurring revenue, raised $250 million at a $2 billion valuation in May.


• Clearco, which has invested over $2.4 billion in more than 5,500 businesses, will use the latest capital infusion to accelerate its international expansion and further develop its product suite.

• According to the J.Thelander-PitchBook survey, there was little to no change in the median bonus figures paid to associates and analysts at venture capital and private equity firms last year.


• Jody Thelander, founder and CEO of the namesake consulting firm, said that venture firm positions continue to be in high demand and recruiting is as competitive as ever.

• Short durations (three months to five years)
• Low minimums (<$10,000 per investment)
• Target annual returns from 8% to 16%