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The Daily Pitch: VC

July 27, 2021

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

Today's Top Stories

Private equity's mega-funds are making big moves in 2021

(KTSDesign/Getty Images)

It appears that mega-funds are the hot private equity investing topic of 2021.

This year is looking to be a banner one for private equity's mega-funds, with the likes of Hellman & Friedman closing its 10th namesake vehicle at $24.4 billion and The Carlyle Group reportedly eyeing $27 billion for its next flagship fund—in what would be the largest private equity vehicle of all time.

In all, 12 buyout and growth mega-funds—defined as any fund that has raised over $5 billion—have already closed this year. For context, 18 mega-funds were closed in 2019, and 16 in 2020.

According to PitchBook data, at least seven of those 12 funds have raised over $10 billion each.

Recommended Reads

A look at why America's investing boom goes far beyond Reddit message boards, GameStop and Robinhood traders. [The Atlantic]

Many buyout firms are bidding for publicly traded companies in the UK at a faster rate than they have in years. The reason? Investors think big assets are going for cheap in a post-Brexit world. [The Wall Street Journal]

Cross-contamination in the prescription drug industry is rampant. Just ask Brady Ellison, a three-time US Olympic medalist in archery who was almost disqualified because traces of a banned drug were found in his thyroid medication. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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33

Funds

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Quick Takes


	The Daily Benchmark
	2015 Vintage Global Secondaries Funds
	A message from UMB Fund Services
	Ask these questions before you commit to any investor recordkeeping system
	VC Deals
	NotCo picks up $235M Series D
	ByHeart lands $90M
	SoftBank leads $75M round for pet tech startup
	Teamflow secures $35M
	Investors
	SoftBank's Didi investment $4B in the red

The Daily Benchmark

2015 Vintage Global Secondaries Funds

Median IRR

14.31%

Top Quartile IRR Hurdle Rate

30.57%

1.36x

Median TVPI

Select top performers

Cedar Springs SPV 2

Cedar Springs SPV 1

SG/NMERB Secondary Fund I

*IRR: net of fees

15 Funds in Benchmark »

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A message from UMB Fund Services

Ask these questions before you commit to any investor recordkeeping system

Investors are increasingly demanding about reporting, leaving managers who rely on homegrown approaches or disjointed systems struggling to meet expectations. Ask these 10 questions to frame up your true needs regarding investor recordkeeping and reporting.

For starters, find out whether you're considering one integrated system or many separate ones. Understand whether a system will strengthen your brand or compete with it. Who owns the technology—and how often do upgrades occur? Can you get the development team's attention?

This checklist-style guide is relevant from marketing to compliance, so you'll be confident about getting your money's worth while best serving your investors.

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VC Deals

NotCo picks up $235M Series D

NotCo, a plant-based milk and meat creator, has raised a $235 million Series D led by Tiger Global at a valuation of $1.5 billion. Other investors including DFJ Growth Fund, The Social Impact Foundation, Zoma Lab, and follow-ons L Catterton and SOSV also joined the round. The Santiago, Chile-based startup matches animal proteins to ideal plant-based ingredients with the help of proprietary AI technology named Giuseppe.

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ByHeart lands $90M

ByHeart has raised a $90 million Series B led by D1 Capital Partners, with participation from OCV Partners, Polaris Partners and others. The New York-based company is a developer of infant nutrition products. Founded in 2016, ByHeart was valued at $177 million in April 2020, according to PitchBook data. The startup launched a new platform in June that's designed to provide parents with resources and education on feeding decisions.

Additional Investors:

AF Ventures, Bellco Capital, Gaingels, Red Sea Ventures, Two River

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SoftBank leads $75M round for pet tech startup

Embark Veterinary has raised a $75 million Series B led by SoftBank's Vision Fund 2. The Boston-based company is a developer of DNA testing kits for dogs that provide breed, ancestry, health and other genetic information. Existing investors F-Prime Capital, SV Angel, Slow Ventures, Freestyle Capital and Third Kind Venture Capital also participated in the funding. Embark has a long-term goal of increasing the lifespan of dogs by three years within the next decade.

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Teamflow secures $35M

Teamflow has raised a $35 million Series B led by Coatue. The San Francisco-based company offers a virtual office platform to help remote and hybrid work teams collaborate and manage operations. Teamflow was valued at $70.7 million this past March, according to PitchBook data.

Additional Investors:

Battery Ventures, Menlo Ventures

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Investors

SoftBank's Didi investment $4B in the red

SoftBank's investment in Chinese ridehailing giant Didi Chuxing is reportedly down some $4 billion after alleged data security lapses at the company. In 2019, SoftBank's Vision Fund paid a reported $11.8 billion for a 20.1% interest in the company. That stake is now worth about $7.8 billion on the NYSE. Didi Chuxing went public last month.

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Chart of the Day

"The pipeline of new startups also remains strong, as evidenced by capital pouring freely into first-time rounds. While first-time deal value has remained consistent in recent years, it reached €2.7 billion in H1 2021 and is on course to set a new annual record at the end of 2021."

Source: PitchBook's Q2 2021 European Venture Report