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Venture capital rewrites the record books
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If the second half of 2021 is anything like the first, there will be few notable records left in venture capital that weren't broken by this year's hypersonic pace of investing, fundraising and public listings.
The Q2 2021 PitchBook-NVCA Venture Monitor, sponsored by Silicon Valley Bank, details how a virtuous cycle of investments and returns has turbocharged this rapidly changing asset class.
- Venture-backed companies have attracted $150 billion in 2021, more than 90% of last year's record total. Mega-deals of $100 million or more have already hit a new high-water mark.
- Firm-level fundraising is also taking off, with investors closing vehicles worth a total of $74.1 billion, about 91.5% of 2020's record-breaking amount.
- IPOs and SPACs helped drive the exit value of venture-backed companies to $372.2 billion in the first half of 2021. That was 30% higher than 2020's all-time record.
- Nontraditional investors, in particular private equity firms and hedge funds, are making their presence felt more than ever. With them comes deal competition, capital galore and high expectations for growth.
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SEC charges space-tech SPAC dealmakers with fraud
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| SEC Chairman Gary Gensler has voiced concerns over the structure of SPACs. (Chip Somodevilla/Getty Images) |
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The Securities and Exchange Commission continues to ramp up its scrutiny of SPACs, most recently taking aim at a blank-check deal for space startup Momentus.
- Momentus, its CEO and blank-check sponsors misled public investors about both the company's technologies and the national security risks posed by its Russian founder, the SEC said.
- This is the first time the SEC has charged a SPAC with wrongdoing, although it has probed blank-check deals with other companies including electric car makers Lordstown Motors and Canoo.
- SEC Chairman Gary Gensler expressed concerns that the SPAC compensation structures may encourage sponsors to sidestep due diligence in order to get a deal done.
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A message from Corporate Resolutions, Inc.
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As deal flow breaks records, it only takes one bad actor to cause damage
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A target company's management team expects to be fully vetted as part of the due-diligence process. And investors who follow strict protocols on this important risk-management measure have stellar reputations: They take their deals seriously, believe in the importance of partnering with management and suffer no fools.
A comprehensive background investigation is a qualitative endeavor requiring multiple ingredients to formulate a thorough review on which investors can rely. Corporate Resolutions offers experience, intelligence, access and resourcefulness. Without each of these components, the information can be erroneous, misleading or give a false sense of security.
In a competitive deal environment, it is increasingly important to have a trusted due-diligence partner who can quickly assess opportunities and highlight key risks before writing a check.
Learn more at www.corporateresolutions.com |
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How emerging ESG standards put pressure on PE to adapt
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| (Joey Schaffer/PitchBook News) |
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Over the years, ESG standards have been set by an alphabet soup of industry groups. With the shift toward better reporting on sustainability, fund managers are being expected to prove their credentials with growing frequency.
- As LPs increasingly prioritize responsible investment, many fund managers are finding that simply having an ESG policy is not enough if its impact on a portfolio is not demonstrable.
- Mergers, like that of the Sustainability Accounting Standards Board and the International Integrated Reporting Council, are helping consolidate efforts for consistent measurements.
- However, ethical investing is hard to quantify—meaning those who seek to establish a globally accepted standard likely have a long way to go.
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A look into the dark side of chess, from 12-year-old grandmasters to payoffs. [The New York Times]
Inflation is at its highest since 2008. Here's what that could mean for exchange-traded funds. [Fortune]
Photographer Mike Disfarmer operated a studio in the early 20th century in Arkansas, and died in 1959 without leaving a will. Decades later, his heirs want control of his famous art. [The New Yorker] |
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Since yesterday, the PitchBook Platform added:
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33
VC valuations
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1652
People
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499
Companies
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22
Funds
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2019 Vintage Global Buyout Funds
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A message from Masterworks
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This NYC startup is revolutionizing a $1.7T asset class
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Founded by serial tech entrepreneurs, Masterworks has become the premier platform for art investing. Demand is up, and it's no surprise why: Contemporary art prices outgained S&P 500 returns by 174% from 1995 through 2020, while besting gold and real estate returns by nearly 2x. Over 175,000 people have signed up, and the asset class is projected to grow by $900 billion over the next five years.
Recently, the company sold its first Banksy work for a 32% annualized return (net of fees), more than double S&P 500 returns over the same period.
Learn more today.*
*See important disclaimer |
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Arctic Wolf valued at $4.3 billion
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| Cybersecurity startup Arctic Wolf has raised $150 million in a Series F from investors including Viking Global and Owl Rock, with the round valuing the company at $4.3 billion. Minnesota-based Arctic Wolf was valued at around $1.3 billion last year with a $200 million Series E. The company runs a cloud-native platform that helps users monitor and manage cyberattacks. Arctic Wolf has grown its team by about 400 people in the past year. |
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Prime Medicine launches with $315M
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| Prime Medicine, a nine-month-old gene editing company, has announced its launch with $315 million in funding. The financing comprised a $115 million Series A and a $200 million Series B backed by investors including Arch Venture Partners, F-Prime Capital, GV and Newpath Partners. The Cambridge, Mass.-based biotech startup is developing technology to correct mutated genes that cause diseases. |
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Sourcegraph secures $125M in a16z-led round
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Pantheon picks up $100M Series E
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| Pantheon has raised $100 million from SoftBank's Vision Fund 2. The funding values the San Francisco-based company at more than $1 billion. Pantheon provides a web operations platform that helps developers and marketers create and manage websites via governance, security and collaboration tools. Pantheon's customers include DocuSign, Patagonia, MGM and Clorox. |
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Amperity hits unicorn valuation
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Marco Financial raises $82M debt and equity round
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| Marco Financial, the Miami-based operator of a tech-enabled financing platform for small and medium-sized exporters in the US and Latin America, has raised $82 million in new funding. The round consists of $7 million in seed financing led by Kayyak Ventures and a $75 million credit facility provided by Arcadia Funds, TechCrunch reported. Other backers including 342 Capital, Struck Capital and Fox Ventures also participated in the round. |
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Mobilion brings in $60M Series C
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| Mobilion has raised $60 million in a round led by D1 Capital Partners. The company is a developer of high-resolution instruments and related "ion mobility" products that aid in biotherapeutic drug development. The business was valued at $75 million in August, according to PitchBook data. |
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| AttackIQ has raised a $44 million Series C led by Atlantic Bridge. The company is a developer of cybersecurity software designed to help organizations measure the effectiveness of their security programs. Kevin Dillon, co-founder and managing partner at Atlantic Bridge, has joined the company's board. |
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| Database software maker Couchbase plans to raise up to $161 million in its upcoming IPO by selling 7 million shares at between $20 and $23 apiece. At the midpoint price, the company would be valued at more than $861 million based on the number of shares outstanding. The Bay Area-based business was valued at $580 million last year, according to PitchBook data. Accel owns a 20.9% pre-IPO stake of 6.9 million shares; other significant investors include North Bridge (13.7% stake) and GPI Capital (13%). |
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Updater snaps up VC-backed Dolly
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ZoomInfo to purchase VC-backed Chorus.ai for $575M
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| ZoomInfo has agreed to acquire Chorus.ai, the developer of a platform that analyzes and provides intelligence on sales conversations, for $575 million in cash. Chorus has raised around $100 million in private funding from Redpoint Ventures, Emergence Capital, Georgian and Sozo Ventures, and was last valued at $153 million, according to PitchBook data. ZoomInfo is a publicly traded provider of market intelligence solutions. |
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Mammoth Scientific raises $100M life sciences fund
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| Mammoth Scientific has closed a $100 million fund to invest in health science and technology startups. The VC firm aims to help its portfolio companies navigate regulatory hurdles such as FDA approval. The firm also runs a service to help clients of wealth managers access venture capital investments. |
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Female Founders Fund closes $57M fund
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| New York-based Female Founders Fund has raised $57 million for its third flagship vehicle. The firm makes seed-stage investments in companies created by women, targeting deals in sectors including ecommerce, media and advertising. Its portfolio includes wedding planning startup Zola and Rent The Runway, a designer clothing and accessory rental service. Institutional investors including Goldman Sachs, Cambridge Associates and Pivotal Ventures contributed to the fund. |
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"Valuation growth across Europe has been strong, too. The median pre-money valuations across all stages in the France & Benelux region are pacing higher than 2020 figures, with the late-stage median reaching €11.2 million in Q1."
Source: PitchBook's Q1 2021 European VC Valuations Report |
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