PitchBook News - A hot streak for climate tech funds

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The Daily Pitch: VC

July 21, 2021

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

Today's Top Stories

Why investors are raising climate tech funds at a torrid pace

(Malte Mueller/Getty Images)

Climate tech has significantly evolved since the cleantech investment craze of the early 2000s.

Today, the investment landscape is powered by a vastly broader base of investors using billions of dollars to tackle one overarching global threat: climate change.

So far in 2021, global investors have already closed as many climate-focused funds as were raised during the previous five years combined, according to PitchBook data.

The new wave of climate-related deals has been bolstered by a confluence of recent trends including a staggering rise in extreme weather disasters, an international push for net-zero emission targets and new tech breakthroughs that can potentially fight climate change.

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Assessing our 2021 predictions for US PE

(MicroPixieStock/Getty Images)

At the start of 2021, PitchBook PE analyst predictions hinged on the COVID-19 vaccination rollout and ensuing economic recovery.

As of June 30, with more than 180 million people in the US having received at least one dose of the vaccine, several of these outcomes have blown away even the most bullish predictions. PE deals, exits and fundraising are proceeding at a rapid pace; the remaining six months of 2021 will act as a test to see if the industry can continue at such speed.

A few of the predictions we revisit in our latest analyst note:

PE fundraising will surpass $330 billion, thereby setting an all-time high.

Some 20% of buyouts will be priced above 20 times EBITDA.

At least 20 PE-backed companies will enter US public markets through a reverse merger with a SPAC.

Carveout deal value will hit the highest level on record.

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A message from Stout

Patents as an alternative asset class for financial sponsors

The patent monetization market has grown to almost $10 billion annually, attracting interest from major financial sponsors such as hedge funds, private equity firms and funds-of-funds managers. A confluence of technological, legislative and macroeconomic factors, such as disruption, convergence, low interest rates and increased M&A activity, have significantly increased the availability and attractiveness of patents as an alternative asset class.

For financial sponsors looking to diversify and generate meaningful non-correlated returns, a new article from Stout offers critical insights, including:

Diversification strategies through alternative asset investments
Financial sponsor patent monetization investment examples
Investing in enforcement campaigns for third-party patent assets
Monetizing patent assets of portfolio companies

Learn more about how to unlock substantial value from patent assets.

Read the full article now

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Nasdaq enlists Wall Street firepower for pre-IPO market

Nasdaq is spinning out its marketplace for private company shares as part of a joint venture with leading banks.

Silicon Valley Bank, Citi, Goldman Sachs and Morgan Stanley are backing the trading platform, which will operate as a standalone company.

Nasdaq Private Market launched in 2014 and is similar to marketplaces run by EquityZen and Forge. As companies opt to stay private longer, these exchanges give founders and employees a way to cash out shares early.

The pre-IPO market is also driven by demand from crossover investors, which back both private and public companies. In recent years, these investors have piled into venture capital deals: In 2020, nearly $60 billion worth of VC deals included crossover investor participation, representing more than a third of total VC deal value.

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Colony Capital founder Thomas Barrack charged in lobbying case

Thomas Barrack (John Moore/Getty Images)

Thomas Barrack, founder and former executive chairman of Colony Capital, has been arrested on charges that he acted as a foreign agent for the United Arab Emirates and allegedly lied to federal investigators.

An indictment, filed by the US Attorney's Office for the Eastern District of New York, alleges Barrack and others acted at the direction of senior UAE officials to influence then-presidential candidate Donald Trump's policy positions in 2016 and to impact public opinion in favor of the UAE.

Barrack was also charged with obstruction of justice and allegedly making false claims to federal law enforcement officials during a June 2019 interview.

Barrack founded Colony Capital, now rebranded as DigitalBridge, in 1991. He served as executive chairman of the real estate and private equity investment firm until stepping down earlier this year. Barrack and Colony Capital did not immediately respond to requests for comment.

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Recommended Reads

The pandemic and accusations of racism have nearly destroyed the CrossFit brand. Is it too late to bring it back? [The New Yorker]

Many institutional investors are coming around to digital assets, but some still have concerns about the crypto world. [Institutional Investor]

It's baby animal season in towns north of New York City. But with many animal mothers gone missing, humans are stepping in to help out. [The New York Times]

Since yesterday, the PitchBook Platform added:

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People

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Funds

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Quick Takes


	The Daily Benchmark
	2011 Vintage Global Debt Funds
	People
	Bessemer promotes Mike Giampapa
	VC Deals
	Indian food delivery provider Swiggy raises $1.25B from SoftBank, Prosus
	Jokr lands $170M in Series A
	Untether AI raises $125M from Intel, CPPIB
	Path Robotics hauls in $100M
	Sundae scoops up $80M Series C
	Titan brings home $58M led by a16z
	Healthtech startup scores $32M Series B
	Paro secures $25M
	Exits & IPOs
	ChargePoint inks $295M deal for Austrian EV charging specialist

The Daily Benchmark

2011 Vintage Global Debt Funds

Median IRR

7.70%

Top Quartile IRR Hurdle Rate

9.61%

1.33x

Median TVPI

Select top performers

Davidson Kempner Long-Term Distressed Opportunities Fund

Abry Advanced Securities Fund II

Providence TMT Debt Opportunity Fund II

*IRR: net of fees

23 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Bessemer promotes Mike Giampapa

Mike Giampapa has been promoted to vice president at Bessemer Venture Partners. Giampapa works with the firm's portfolio of fintech companies including Alloy, Betterment and Brightwheel.

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VC Deals

Indian food delivery provider Swiggy raises $1.25B from SoftBank, Prosus

Swiggy, the Indian operator of an online food delivery platform, has raised a $1.25 billion round at a reported valuation of $5.5 billion. The financing was led by SoftBank's Vision Fund 2 and Prosus, with support from Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs and Accel Partners. SoftBank reportedly contributed $450 million to the round, which will be used to help Swiggy expand its core food delivery business and bolster its non-food delivery strategy.

Additional Investors:

Wellington Management, Think Investments, Carmignac Risk Managers

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Jokr lands $170M in Series A

Grocery and retail delivery startup Jokr has raised $170 million in a Series A led by GGV, Balderton Capital and Tiger Global. The Luxembourg-based company operates 100 delivery hubs in nine cities across the US, Latin America and Europe. GGV managing partner Hans Tung will join Jokr's board.

Additional Investors:

Activant Capital, Greycroft, FJ Labs, Kaszek, Monashees, HV Capital

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Untether AI raises $125M from Intel, CPPIB

Untether AI, a chip developer for companies running AI workloads, has raised $125 million in a funding round led by Tracker Capital and Intel Capital. The investment included participation from Canada Pension Plan Investment Board and Radical Ventures. The Toronto-based startup will use the funding to enhance its offering and build the next generation of products.

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Path Robotics hauls in $100M

Path Robotics, the creator of a robotic manufacturing system, has raised $100 million in what it called a "pre-emptive" Series C round. The startup closed a Series B in May that valued it at $235 million, according to PitchBook data. Tiger Global led the new financing, with participation from Addition and Silicon Valley Bank. Currently focused on welding robotics, the Columbus, Ohio-based company aims to address a skilled worker shortage with autonomous machines that can perform routine manufacturing tasks.

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Sundae scoops up $80M Series C

Sundae, a marketplace where residential real estate investors can bid on distressed homes, has raised an $80 million Series C co-led by Fifth Wall and General Global Capital. Other investors including QED Investors, Wellington Management, Susa Ventures and Founders Fund also participated in the round. The San Francisco-based company has raised $135 million since its founding in 2018.

Select Additional Investors:

Prudence Holdings, Crossover VC, Intersect Capital, Gaingels

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Titan brings home $58M led by a16z

Titan has raised a $58 million Series B led by Andreessen Horowitz. The New York-based company is the developer of a mobile-first asset management platform. Anish Acharya, general partner at a16z, will join the company's board. Titan was valued at $57.5 million in February, according to PitchBook data.

Select Additional Investors:

BoxGroup, General Catalyst, Sound Ventures

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Healthtech startup scores $32M Series B

B.Well Connected Health, the Baltimore-based provider of an integrated healthcare management platform for consumers, health systems, payers and employers, has raised a $32 million Series B led by HLM Venture Partners. Existing investors ThedaCare, UnityPoint Health and Well Ventures also participated in the round.

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Paro secures $25M

Paro has raised a $25 million Series B led by Madrona Venture, with participation from existing investors Revolution Ventures, Sierra Ventures and KGC Capital. The Chicago-based company uses AI to help connect companies with freelance finance professionals.

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Exits & IPOs

ChargePoint inks $295M deal for Austrian EV charging specialist

US-listed ChargePoint has agreed to buy Has·To·Be, a provider of electric vehicle charging services, for around €250 million (about $295 million) in cash and stock. ChargePoint, an operator of EV charging stations in North America and Europe, will gain access to the startup's base of over 1,000 customers and its 125 employees. Austria-based Has·To·Be has received backing from investors such as Volkswagen and The Blue Minds Group.

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Chart of the Day

"Take-private activity has had an impressive opening half of the year. In H1 2021, €11.3 billion worth of take-privates closed, putting the year on pace for its highest deal value in over a decade. Contributing factors include fundamentally strong but undervalued and underperforming European public equities and European entities struggling under heavy debt burdens."

Source: PitchBook's Q1 2021 European PE Breakdown