PitchBook News - Assessing SoftBank's Vision Funds

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The Daily Pitch: VC

September 7, 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:

In our latest analyst note, we use a proprietary index to assess the post-IPO record of SoftBank's portfolio companies.

How VCs are furthering their ESG strategies by backing a unique type of fintech startup.

Hamilton Lane managing partner Miguel Luiña joins the latest episode of "In Visible Capital" to share his perspective on the changing world of venture capital.

Today's Top Stories

SoftBank's portfolio companies perform well on Wall Street

(Carl Court/Getty Images)

SoftBank's first Vision Fund is approaching its fifth birthday and growing up fast. A robust IPO market has enabled a steady stream of exits from the Japanese firm's portfolio—from DoorDash to DiDi Global.

Our latest analyst note delves into the Vision Funds' recent performance, and includes a proprietary index that assesses the post-IPO record of the firm's portfolio companies. Key takeaways include:

The Vision Funds' US-listed public holdings have performed well on a market cap-weighted basis. However, a small number of companies are responsible for the bulk of that growth.

The first Vision Fund has a fund life of 12 to 14 years, so the gains will likely continue to accrue for many years. But that also means the firm will need to shift its focus from venture investing to managing public companies.

Vision Fund 2 has again increased in size, now totaling $40 billion. Fully funded by the company and CEO Masayoshi Son, SoftBank now has a larger interest in Vision Fund 2 than it did in the original $98.6 billion Vision Fund.

read the note

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'Earned wage' startups winning over VCs with an ESG agenda

(Filo/Getty Images)

VCs are increasingly trying to position themselves as socially responsible investors by funding businesses that benefit society—while steering clear of companies that are considered harmful.

Likely part of this trend, fintechs have started catering to workers with low credit scores by offering earned wage access products, an alternative to traditional payday lending. EWA allows workers to receive all or some of their earnings before scheduled paydays.

Startups in the EWA space have raised $1.13 billion in debt and equity so far this year, surpassing total funding collected by the companies in the sector from 2015 to 2020, according to PitchBook data.

Last month, LendUp, a payday lending platform backed by QED Investor, GV and PayPal Ventures, reportedly stopped originating payday loans out of ethical considerations.

Although QED declined to comment on LendUp, the firm's managing partner and co-founder Nigel Morris said in a separate interview, "We are very excited about earned wage access." QED invested in five EWA companies around the world.

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New research on the 47 largest clothing companies shows that there's no such thing as sustainable fashion. [Fast Company]

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People

A16z Crypto hires Miles Jennings as general counsel

Miles Jennings has joined Andreessen Horowitz's crypto team as a general counsel. Jennings previously worked with startups and investors in crypto and life sciences at law firm Latham & Watkins.

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VC Deals

Real estate tech startup snags $363M

HomeLight, the creator of a real estate tech platform for those looking to buy or sell a home, has raised $363 million in a round led by Zeev Ventures, with support from Group 11, STCAP and Menlo Ventures. The financing, which values HomeLight at $1.6 billion, comprises $100 million in Series D equity and $263 million in debt funding. Founded in 2012, the startup has offices in San Francisco, New York, Seattle and Scottsdale, Ariz.

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View 31 competitors »

Disc Medicine gathers $90M to help treat hematologic diseases

Clinical-stage biotech startup Disc Medicine has raised a $90 million Series B led by OrbiMed, with support from new backers Arix Bioscience, Janus Henderson Investors, 5AM Ventures and others. Based near Boston, the startup is developing therapies to address ineffective red blood cell production in patients with serious and debilitating hematologic diseases. Disc Medicine was valued at $78 million after a $50 million round in 2019, according to PitchBook data.

Additional Investors:

Rock Springs Capital, Nantahala Capital Management, Willett Advisors, Alexandria Venture Investments, Atlas Venture, Novo Holdings, Access Biotechnology

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Corelight lands $75M for cybersecurity platform

Cybersecurity startup Corelight has raised $75 million in a Series D round led by Energy Impact Partners, with support from Accel, General Catalyst and other investors. San Francisco-based Corelight runs a network detection and response platform that's used by government agencies and customers in sectors including finance and healthcare. It was valued at $375 million in 2019, according to PitchBook data.

Additional Investors:

Capital One Ventures, CrowdStrike, Gaingels, HIG Growth Partners, Insight Partners, Osage University Partners

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Valar Ventures leads $46.5M round for Point

Point, the provider of a debit card that offers cash back and other rewards, has raised $46.5 million, TechCrunch reported. Peter Thiel's Valar Ventures reportedly led the Series B, with participation from Breyer Capital, YC Continuity and Human Capital. San Francisco-based Point raised a $10.5 million Series A last year.

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