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The Daily Pitch: VC

August 13, 2021

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

In today's Daily Pitch, you'll find:

An analysis of why public PE firms are on a hot streak and how they could keep it going.

Reddit is rocketing toward a $10 billion-plus valuation with its latest funding round.

Summit Partners is targeting $7 billion for its new vehicle, the latest in a string of PE mega-funds.

Today's Top Stories

How public PE firms notched a sizzling Q2

(sitox/Getty Images)

It's a good time to be a publicly traded private equity firm.

Blackstone, KKR, Apollo Global Management, The Carlyle Group and Ares Management all reported robust performance across their business segments during the second quarter of 2021, according to our latest analyst note examining the PE giants. Topics in the research include:

How firms have taken advantage of market tailwinds to speed up fundraising, dealmaking and exits.

How some firms have deployed M&A in the insurance space and other strategies to bolster their total assets under management.

Why fund performance has continued to outpace the public equivalents, leading to growth in share prices and a boost in future distributable earnings available to pay shareholders.

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Reddit targets $10B+ valuation

(Sezeryadigar/Getty Images)

Reddit announced Thursday that it plans to raise a $700 million Series F at a valuation of over $10 billion.

News of the round, to be led by Fidelity Management & Research and other existing investors, comes less than six months after the company hit a $6.4 billion valuation in February, according to PitchBook data.

The news sharing and discussion platform also reported $100 million in advertising revenue during Q2 2021, a 192% increase from the same period last year. The revenue will continue to support advertising efforts and further innovations.

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Autonomous technology is a good fit for the trucking industry

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Autonomous trucking technology can potentially solve many of the challenges faced by carriers today. From alleviating labor shortages to improving margins, self-driving technologies such as camera-based perception systems and lidar hold significant potential for use in long stretches of highway driving.

Our recent analyst note explores the major trends that have shaped the autonomous trucking industry in 2021, including why it may be the first area of the driverless vehicle sector to adopt self-driving tech on a large commercial scale. Key insights include:

In the first half of 2021, investors poured a record $5.6 billion into autonomous trucking companies such as TuSimple and Plus, eclipsing the $4.2 billion invested in all of 2020.

PitchBook's unit economics analysis illustrates that autonomous driving technology could reduce the cost of trucking from $1.65 per mile to $1.30 per mile by mid-decade.

The industry is attracting a broad set of investors, including incumbents and trucking logistics providers. As a result, valuations for autonomous trucking startups are climbing more quickly than startup valuations in the robotaxi industry.

Autonomous trucking will face difficulties in commercializing at scale until clear regulatory guidelines are set for testing, deployment, driver licensing and driver hours of service.

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Recommended Reads

Digital freight startups aren't in the mood for risky mergers. Here's why they're sticking to steady, organic growth. [The Wall Street Journal]

One writer's thoughts on the ethical dilemmas raised by the ongoing face-off between the maker of Marlboro cigarettes and The Carlyle Group. [Bloomberg]

Silicon Valley may be gaining a European counterpart, as French entrepreneurs are no longer haunted by public bankruptcy records. [The Economist]

Since yesterday, the PitchBook Platform added:

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VC valuations

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293

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Funds

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Quick Takes


	The Daily Benchmark
	2013 Vintage Global Secondaries Funds
	VC Deals
	Emeritus snags $650M Series E
	Talkdesk lands $230M Series D
	TaxBit banks $130M Series B
	Hagar picks up $11.7M Series B
	Exits & IPOs
	EO Charging inks SPAC deal
	Buffett-backed Nubank plots IPO

The Daily Benchmark

2013 Vintage Global Secondaries Funds

Median IRR

12.04%

Top Quartile IRR Hurdle Rate

16.45%

1.39x

Median TVPI

Select top performers

Industry Ventures Special Opportunities Fund II

Verdane Capital VIII

Industry Ventures Secondary Fund VII

*IRR: net of fees

18 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Emeritus snags $650M Series E

Emeritus has raised $650 million at a $3.2 billion valuation in a round co-led by Accel and SoftBank's Vision Fund 2. Emeritus, part of Eruditus Executive Education, collaborates with over 50 universities to provide more than 250 education courses for professionals globally.

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Talkdesk lands $230M Series D

Talkdesk has raised $230 million at a more than $10 billion valuation from investors including Whale Rock Capital, Alpha Square Group, Amity Ventures and Top Tier Capital Partners. The San Francisco-based company is the provider of a cloud contact center that connects support and sales teams with customers. Talkdesk raised $143 million at a $3.1 billion valuation in 2020, according to PitchBook data. The company also announced the appointment of industry veteran Sydney Carey as CFO.

Select Additional Investors:

Franklin Templeton, TI Platform Management, Viking Global Investors, Willoughby Capital Holdings

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TaxBit banks $130M Series B

TaxBit has raised $130 million at a $1.33 billion valuation in a round co-led by IVP and Insight Partners. The Utah-based company is a developer of cryptocurrency tax and accounting automation software. The funding comes less than six months after TaxBit raised a $100 million Series A at a $435 million valuation in March, according to PitchBook data.

Additional Investors:

9Yards Capital, Anthony Pompliano, Madrona Venture Group, Paradigm, Sapphire Ventures, Tiger Global

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Hagar picks up $11.7M Series B

Tel Aviv-based Hagar has raised $11.7 million in a round led by return investor Columbia Pacific. The company is a developer of non-invasive glucose monitoring technology that uses radio frequency waves to measure blood glucose.

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Exits & IPOs

EO Charging inks SPAC deal

UK-based electric vehicle charging startup EO Charging is merging with US blank-check company First Reserve Sustainable Growth. The deal is expected to deliver $150 million in cash and values the combined company at $675 million. EO Charging provides electric vehicle charging solutions to fleet operators including Amazon and DHL.

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Buffett-backed Nubank plots IPO

Brazilian fintech company Nubank is planning an initial public offering on the Nasdaq that could raise more than $2 billion and value the company at over $40 billion, Bloomberg reported. In June, Nubank raised $1.15 billion in a Series G round, reportedly at a $30 billion valuation, from Warren Buffett's Berkshire Hathaway, Sands Capital and others.

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