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The Daily Pitch: VC

July 26, 2021

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

Today's Top Stories

Schumer's pot legislation could spark up cannabis IPOs on Wall Street

Sens. Chuck Schumer and Cory Booker have vowed to end marijuana prohibition. (Kevin Dietsch/Getty Images)

Wall Street has been home to opioid makers, Canadian cannabis companies and psychedelic stocks. It may also soon welcome America's homegrown weed industry.

Concerns around anti-money laundering laws have long kept US exchanges and other financial services out of reach for marijuana businesses.

New legislation, such as a bill proposed by Senate Majority Leader Chuck Schumer earlier this month, could open up the US IPO market. That would give companies a vital exit option and the capital to fund national expansions.

Canadian cannabis companies, private equity groups and other institutional investors are sizing up potential targets in anticipation of possible legalization.

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Big deals dominate as European VC continues at an unrelenting pace

The European venture capital industry has set a new annual record for deal value in just six months despite, continued uncertainty surrounding COVID-19 and macroeconomic volatility.

VCs completed €47.1 billion worth of transactions in H1 2021, according to PitchBook's Q2 2021 European Venture Report, signaling that the VC dealmaking environment has never been stronger. Other report highlights include:

Outsized deals are no longer outliers in Europe. They are buoyed by an increase in late-stage rounds, which now account for over 70% of all capital invested.

A frenzied exit environment produced a surge in public listings, as highly valued startups accelerated toward exits to take advantage of soaring valuations.

Founders and investors are looking toward less saturated European regions—like the Baltics—to increase growth prospects and possible returns.

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Former McAfee CEO ups the cybersecurity ante with $750M venture fund

(Colin Anderson Productions pty ltd/Getty Images)

The nature of cyber threats continues to change rapidly, and there are signs that investors are adapting accordingly.

Newly minted venture firm NightDragon has raised $750 million for its first fund, which will target growth-stage startups in cybersecurity and related fields.

It's the largest cybersecurity VC fund on record, according to PitchBook data, and a sign of how the once-niche sector now commands the spotlight.

NightDragon is led by Dave DeWalt, the former CEO of FireEye and McAfee. He believes some incumbents have been caught "flat-footed," creating an opportunity for disruptive startups.

Recommended Reads

The post-pandemic return to the road is creating new business opportunities. And parking startups are cashing in. [Bloomberg]

The real estate market is rapidly evolving, and it's prompting the rise of a still-fledgling secondary market for private real estate funds. [Institutional Investor]

Over the past year, telemedicine has become a hit. Now, patients are feeling the growing pains. [Fortune]

Since yesterday, the PitchBook Platform added:

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VC valuations

488

People

128

Companies

3

Funds

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Funds-of-Funds
	A message from NetSuite and ContinuServe
	NetSuite and ContinuServe team up to deliver a new carveout solution
	VC Deals
	Paystand brings in $50M
	Continuous Composites lands $17M
	Tovuti books $8M Series A
	Exits & IPOs
	Matterport debuts on Nasdaq via SPAC

The Daily Benchmark

2012 Vintage Global Funds-of-Funds

Median IRR

13.74%

Top Quartile IRR Hurdle Rate

17.78%

1.57x

Median TVPI

Select top performers

Schroder Adveq Technology VII

Cendana Capital

SVB Strategic Investors Fund V-A Opportunity

*IRR: net of fees

49 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from NetSuite and ContinuServe

NetSuite and ContinuServe team up to deliver a new carveout solution

ContinuServe uses NetSuite technology to deliver carveouts in a new solution that brings the leading cloud-based enterprise resource planning solution together with a premier business process outsourcing provider.

ContinuServe acquires NetSuite on behalf of the client and drives the technology carveout using proprietary tools to stand up a functional enterprise class NetSuite solution faster than comparable solutions.

Once the business is operational, ContinuServe seamlessly transitions ownership of the system without a need for reimplementation or data migration, reducing risk and financial strain on both the private equity firm and the carveout.

NetSuite's preconfigured industry-specific ERP solution is the leading cloud-native solution and the No. 1 solution for carveouts.

To learn more about this new solution and how it drives value, download this compelling white paper.

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VC Deals

Paystand brings in $50M

Paystand has raised a $50 million Series C led by NewView Capital, with participation from SoftBank's Opportunity Fund, King River Capital, Industrious Ventures and Transform Capital. Founded in 2013, the company is the creator of a blockchain-based payment network that authenticates and automates transactions for B2B customers. Paystand raised a $20 million Series B in February 2020.

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Continuous Composites lands $17M

Continuous Composites has raised a $17 million Series A led by B. Riley Venture Capital. Founded in 2012, the Idaho-based company is a provider of hardware, software and composite materials used to automate 3D-printing processes.

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Tovuti books $8M Series A

Blueprint Equity and ScOp Venture Capital have co-led an $8 million round for Tovuti. The Idaho-based company is the developer of a learning management platform designed to help organizations including HCL and Summit Mortgage implement learning programs and training for employees.

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Exits & IPOs

Matterport debuts on Nasdaq via SPAC

Matterport, a developer of subscription software that creates 3D digital versions of physical spaces, has made its debut on the Nasdaq following its merger with Gores Holdings VI, a SPAC backed by billionaire Alec Gores. As part of the deal, the VC-backed company has received $605 million in cash, including a $295 million PIPE led by a group of institutional investors such as Tiger Global, Dragoneer Investment Group and Gores Holdings VI. The SPAC merger valued Matterport at $2.9 billion.

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