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The Daily Pitch: VC

September 1, 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 how Europe's venture-backed companies racked up record valuations in the first half of 2021.

Our latest installment of Emerging Tech Research, which dives deep into the thriving agtech industry's Q2 activity.

Today's Top Stories

Europe's flourishing VC scene drives valuations to record heights

Valuations of European VC-backed companies have yet again broken records in the first six months of the year across all financing stages. The overwhelming amount of capital flowing into Europe's VC ecosystem has created upward pressure on round sizes, leading to the soaring valuations.

PitchBook's Q2 2021 European VC Valuations Report takes a deep dive into the reasons behind this remarkable growth, breaking down the data on valuations across various stages, sectors, regions and investor types. Key takeaways include:

The increased presence of nontraditional investors in the European VC space continues to boost valuations despite the macroeconomic uncertainty and potential stagflation created by the pandemic.

A stable of new unicorns have been minted in 2021, further adding to Europe's aggregate unicorn valuation amount, which has now reached a dizzying €247.3 billion.

Exit valuations in the first half of 2021 paced well above last year's total as tech companies took advantage of favorable market conditions and the tech-centered tailwinds driven by the pandemic.

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Agtech fundraising continues its upward growth in Q2

(phuttaphat tipsana/Getty Images)

The pandemic led investors to ramp up funding for agtech startups addressing vulnerabilities in agricultural supply chains. Now extreme weather events including droughts and wildfires are highlighting new challenges and driving investment in soil sensors, weather prediction services and aerial imagery that help growers mitigate the effects of climate change.

Our latest installment of Emerging Tech Research includes spotlights on private companies including Benson Hill, Semios and CropX. The report also tracks major industry trends, covering developments in areas like insect farming and agriculture drones.

Key takeaways include:

Venture funding for global agtech startups hit $2.1 billion in the second quarter of 2021. As more data is added, this figure will likely surpass Q4 2020's record deal value total.

Agtech exit counts doubled in Q2, with 12 deals accounting for $2.6 billion in exit value globally. Notable exits include Zymergen, Root AI, Flying Spark and Agribody Technologies.

Insect farming is gaining steam as corporate food companies look for innovative ways to reach sustainability goals. The edible insect market is projected to reach $4.6 billion by 2027.

Climate change is expected to become one of the dominant drivers of agtech investment in the near future, providing a favorable tailwind for predictive weather analytics tools that help protect crops and livestock.

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A message from SS&C Intralinks

Investor relations, powered by Zoom: Efficiency born of necessity

Despite many hopeful predictions, pandemic-driven changes to personal work styles may not be going away anytime soon. Some adaptations have provided unexpected efficiencies and benefits that may become permanent standards. Case in point: Zoom.

Intralinks' new report, Zooming forward: How video is helping IR teams get ahead, produced in association with Private Equity Wire, explores how this video platform, much favored by dealmakers for remote due diligence, is now being embraced by investor relations (IR) teams to transform communications and strengthen bonds with investors. Topics include:

Intelligent, technology-driven GP‑led communications
Online annual general meetings
Virtual fundraising
Digital communication strategy best practices
Evolution of the IR role

Download this report now, and zoom in for a closer look at the new face of IR.

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Hackers, remote workers spur record PE investment in cybersecurity

(Olemedia/Getty Images)

Private equity buyouts in cybersecurity are hitting new records as a fast-growing industry responds to a surge in remote working and increasingly sophisticated cyberattacks.

PitchBook's Q2 2021 US PE Breakdown revealed cybersecurity deals have swelled in terms of deal value over the past six quarters, and have spiked in 2021 thanks to a handful of blockbuster pacts.

Announced in April, Thoma Bravo's $12.3 billion acquisition of Proofpoint set a record for the largest cybersecurity buyout ever, and was larger than all cybersecurity buyouts in the third and fourth quarters of 2020 combined.

Factoring in the Proofpoint buyout and the $900 million acquisition of ExtraHop by Bain Capital and Crosspoint Capital Partners in June—both of which have been agreed to but not yet completed—cybersecurity buyouts have already reached $23 billion combined in 2021. More deals are expected.

Recommended Reads

Acquiring NBA and MLB stakes is just the beginning of private equity's takeover of major league sports. Here's what comes next. [Institutional Investor]

With China's recent tech crackdown, investors throughout the globe are looking to a new unicorn investment hub. [Forbes]

Direct listings still make up a small portion of the public-offering market. But so far they're paying off for investors. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

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VC valuations

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People

381

Companies

27

Funds

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Quick Takes


	The Daily Benchmark
	2017 Vintage European PE Funds
	A message from Introhive
	Growth opportunities amid consolidation and disruption in finance
	VC Deals
	Gatik hauls in $85M Series B
	Versanis Bio lands $70M
	Alma banks $50M
	Ellipsis Health collects $26M for mental health tech
	Syndicate raises $20M round led by a16z
	Portfolio Companies
	Vice stops SPAC discussions, raises $85M+
	Exits & IPOs
	Allbirds files for IPO

The Daily Benchmark

2017 Vintage European PE Funds

Median IRR

20.39%

Top Quartile IRR Hurdle Rate

29.41%

1.26x

Median TVPI

Select top performers

HgCapital Mercury 2

Constellation Fund V

Summit Partners Europe Growth Equity Fund II

*IRR: net of fees

29 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Introhive

Growth opportunities amid consolidation and disruption in finance

Incumbent financial giants have invested heavily in consolidation as well as improving and expanding their products and services over the past decade, as disruption by heavily funded fintechs surged.

Amid this competitive environment, significant growth opportunities remain for financial players that can adopt a much more client-centric strategy. Introhive's first in-depth report spanning the financial services spectrum provides a review of key market trends and the tactics both fintechs and financial services companies are utilizing to stay competitive. Additional highlights include:

A summary of key industry trends, including product development and back-office automation
Datasets on M&A and venture financing activity
Insights from Introhive industry experts

Read it now

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VC Deals

Gatik hauls in $85M Series B

Autonomous trucking specialist Gatik has raised $85 million to fund the expansion of its "middle mile" delivery network. Koch Disruptive Technologies led the round, with participation from Innovation Endeavors, Wittington Ventures, FM Capital, Dynamo Ventures, Trucks VC and Intact Ventures. Bay Area-based Gatik was valued at $58 million last year, according to PitchBook data.

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Versanis Bio lands $70M

Versanis Bio has raised a $70 million Series A co-led by Atlas Venture and Medicxi. The Oakland, Calif.-based company develops therapeutics for the treatment of conditions common in older adults, including metabolic disease and obesity.

Additional Investor:

Aditum Bio

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Alma banks $50M

Alma has raised a $50 million Series C led by Insight Partners. Founded in 2017, the company provides a membership-based platform intended to help mental health professionals grow their practices with insurance support, automated billing, scheduling tools and more.

Additional Investors:

BoxGroup, Optum Ventures, Primary Venture Partners, Rainfall Ventures, Sound Ventures, Tusk Venture Partners

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Ellipsis Health collects $26M for mental health tech

Ellipsis Health has raised a $26 million Series A led by SJF Ventures, with participation from Luminous Ventures, What If Ventures and several other investors. The San Francisco-based company is a developer of AI-based voice biomarker tech that assesses speech for behavioral health conditions such as stress, depression and anxiety in less than 60 seconds.

Additional Investors:

Able Partners, Alumni Ventures Group, Gaingels, Generator Ventures, Greycroft, Khosla Ventures, Springtide Ventures, Time Ventures

View round

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Syndicate raises $20M round led by a16z

Andreessen Horowitz has led a $20 million Series A round for Syndicate, a startup providing infrastructure for decentralized autonomous organizations. DAOs are digital and economic entities that enable groups of people to invest together. Other investors in the round included Bill Ackman's Table Management, Coinbase Ventures and Sound Ventures.

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Portfolio Companies

Vice stops SPAC discussions, raises $85M+

Vice Media is no longer pursuing a SPAC merger and has raised more than $85 million from existing backers like Lupa Systems, TPG, TCV and Sixth Street Partners, The Information reported. Co-founder Shane Smith is reportedly opting to give up voting control and will continue to serve as chairman of the board. Vice was said to be in merger talks with blank-check company 7GC & Co. Holdings earlier this year. The digital media and broadcasting company was valued at $5.7 billion in 2017, according to a PitchBook estimate.

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Exits & IPOs

Allbirds files for IPO

Direct-to-consumer shoe brand Allbirds has filed to go public on the Nasdaq. The company reported $219.3 million in revenue for 2020, up 13% year-over-year, and losses of $25.9 million. San Francisco-based Allbirds is a certified B Corporation and was last valued at $1.7 billion in 2020, according to PitchBook data. Its backers include Fidelity Management & Research, Tiger Global and T. Rowe Price.

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View 27 competitors »