Measuring the VC dealmaking environment

Investors fund mega-rounds for microbes; Robinhood sets IPO terms; Duolingo seeks $3.2 billion IPO valuation; Moxxie Ventures closes $85M fund
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The Daily Pitch: VC
July 20, 2021
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Today's Top Stories
Pivot Bio, Nature's Fynd raise mega-rounds for microbes
Nature's Fynd develops vegan products using a microbe from the geothermal springs of Yellowstone National Park. (Daniel Osterkamp/Getty Images)
Venture capitalists are doubling down on bets that humanity's largest challenges can be addressed by the world's smallest organisms.
  • Pivot Bio has raised $430 million to fund its mission to reduce the use of environmentally damaging fertilizer by replacing it with microbes that produce nitrogen. Return investors DCVC and Temasek led the round, which values Pivot Bio at nearly $2 billion.

  • Nature's Fynd, a maker of animal-free meat and dairy products, has landed a $350 million Series C led by SoftBank's Vision Fund 2. Unlike other startups that have engineered microorganisms in a lab to manufacture protein, Chicago-based Nature's Fynd found its flagship microbe in the geothermal springs of Yellowstone National Park.

  • Recent big exits have helped embolden biotech investors. Ginkgo Bioworks and Zymergen, which operate cellular engineering platforms, were given multibillion-dollar valuations by public investors earlier this year.
Related read: PitchBook's recent analyst note on reinventing meat
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Measuring startup and investor deal term friendliness
(EHStock/Getty Images)
The VC environment ebbs and flows between startup and investor friendliness. PitchBook's new Venture Capital Dealmaking Indicator offers a method for measuring who has more negotiating power at a given point: startups or investors. Key takeaways include:
  • The VC Dealmaking Indicator uses our deal term data to measure inputs such as supply and demand of capital, board voting rights and valuation step-ups.

  • As of last quarter, early- and late-stage deal terms have become about three times more startup-friendly since the first quarter of 2010.

  • Over the past decade, late-stage deals have been consistently more favorable for investors than their early-stage counterparts.

  • Demand for capital from new and existing startups has outpaced the supply of traditional VC, but nontraditional investors have come into the market to meet the increased demand.
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A message from SS&C Intralinks
Making it work: Banking-fintech partnerships in the post-pandemic age
Over the past year, the pandemic and other market forces accelerated the digitization of lending and banking processes. Many banks forged fintech partnerships to guide them through this digital transition and to implement the right productivity-driving innovations for their businesses. But a number of these partnerships struggled when trying to match scale, align goals and merge cultures.

Our new report, From Competition to Cooperation: Keys to Successful Bank/Fintech Partnerships in a Digital World, produced in partnership with digital banking innovator Lendit Fintech, provides insights from interviews with leading fintech executives on how to optimize the banking-technology firm partnerships, including:
  • Key foundations of successful bank-fintech partnerships
  • Building communications
  • Aligning goals and outcomes
  • Dealing with competitive overlap
  • Governance and compliance considerations
Download this timely new report now
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Recommended Reads
It's taken decades for motherhood to be considered a normal part of a female athlete's journey. Now, for some Olympians, motherhood and medal dreams can work together. [The Washington Post]

A look at what the "creator economy" spurred by social media platforms and tools promises, and what it actually does. [The New Yorker]

Work meetings have gotten shorter during the pandemic, but they have also multiplied. And post-pandemic hybrid schedules could make things even messier. [The Wall Street Journal]
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Quick Takes
  The Daily Benchmark  
  2014 Vintage Non-US PE Funds  
  A message from Yieldstreet  
  Private debt and equity offerings with target returns of 8% to 16%  
  VC Deals  
  Rappi valued at $5.2B+ in latest funding  
  Corporate learning startup books $200M Series D  
  Quit Genius secures $64M to tackle substance addiction  
  Home renovation startup nails down $40M  
  Exits & IPOs  
  Robinhood sets IPO terms  
  Duolingo seeks $3.2B IPO valuation  
  Fundraising  
  Moxxie Ventures closes $85M fund  
 
 
The Daily Benchmark
2014 Vintage Non-US PE Funds
Median IRR
13.16%
Top Quartile IRR Hurdle Rate
26.41%
1.39x
Median TVPI
Select top performers
Ufenau IV German Asset Light
CapVest Equity Partners III
Carlyle Europe Technology Partners III
*IRR: net of fees
35 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
A message from Yieldstreet
Private debt and equity offerings with target returns of 8% to 16%
Access to private debt and equity investments has historically required investment minimums of approximately $250,000. Often, exposure to these asset classes has been via a long-duration fund or, in some instances, an opportunistic one-off investment. The fintech revolution is providing investors with greater opportunities to add alternative investments to their portfolios at lower investment minimums and with shorter durations than traditional alternatives funds.

With bond yields at historically low levels and equity markets seeing stretched valuations relative to their historical averages, adding alternatives such as real estate, supply chain financing, and art and legal finance has become even more important. Some of these benefits include:
  • Short durations (three months to five years)
  • Low minimums (<$10,000 per investment)
  • Target annual returns from 8% to 16%
Learn more about alternative investing at Yieldstreet.com
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VC Deals
Rappi valued at $5.2B+ in latest funding
Colombian delivery app provider Rappi has reportedly brought in more than $500 million at a $5.25 billion valuation. The round was led by T. Rowe Price, and Baillie Gifford, Third Point, Octahedron, SoftBank and GIC were also said to have participated in the funding. Founded in 2015, the company reportedly operates in over 250 Latin American cities throughout nine countries.
Existing Investors:
Andreessen Horowitz, DST Global, Sequoia, Y Combinator
View round
 
View 22 competitors »
 
Corporate learning startup books $200M Series D
Go1 has raised $200 million at a more than $1 billion valuation in a round led by SoftBank's Vision Fund 2. The San Francisco-based company offers an onboarding, compliance and professional development platform to educate and train employees.
Select Additional Investors:
AirTree Ventures, Blue Cloud Ventures, Larsen Ventures, M12, Madrona Venture Group
View round
 
View 67 competitors »
 
Quit Genius secures $64M to tackle substance addiction
Quit Genius has raised a $64 million Series B co-led by Kinnevik and Atomico, with participation from Octopus Ventures, TriplePoint Venture and StartUp Health. Headquartered in New York and London, the company is the developer of a virtual behavioral therapy platform intended to help patients overcome nicotine, alcohol and opioid addictions.
View round
 
View similar company »
 
Home renovation startup nails down $40M
Block Renovation has raised $40 million in a round led by Giant Ventures, with participation from NEA, Morningside, Lerer Hippeau and Obvious Ventures. The New York-based company is the developer of a renovation platform that helps users design, plan and build residential projects. The funding values the company at $151.6 million, according to PitchBook data.
View round
 
View similar company »
 
Exits & IPOs
Robinhood sets IPO terms
Robinhood has set its IPO price range at $38 to $42 per share. The stock-trading company is offering 55 million shares, with a midpoint pricing set to raise $2.2 billion. The midpoint price would also imply a market value of $36.8 billion on a fully diluted basis, Renaissance Capital reported. Robinhood, which has raised prior funding from investors including DST Global, Index Ventures and NEA, filed for its public debut at the beginning of July.
View details
 
View 43 competitors »
 
Duolingo seeks $3.2B IPO valuation
Duolingo, the creator of a language learning app, plans to offer 5.1 million shares at between $85 and $95 apiece on the Nasdaq. At the midpoint price, Pittsburgh-based Duolingo would raise around $459 million and be valued at $3.2 billion based on the number of shares outstanding. The company is backed by NewView Capital, Union Square Ventures and CapitalG. It was valued at $2.4 billion last year, according to PitchBook data.
View details
 
View 40 competitors »
 
Fundraising
Moxxie Ventures closes $85M fund
Moxxie Ventures, a seed-stage venture firm started by #Angels founding partner Katie Stanton two years ago, has raised $85 million for its second namesake fund, a significant increase from its inaugural $25 million vehicle. In conjunction with the fund announcement, the firm also revealed that Alex Roetter has joined Stanton as an equal general partner. Moxxie Ventures has backed startups in sectors such as remote work and women's healthcare; the new vehicle will be used in part to support diverse founders and focus on climate tech.
View fund
 
View 22 investments »
 
Chart of the Day
Source: Q2 2021 PitchBook-NVCA Venture Monitor
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