Why the DevOps ecosystem keeps expanding

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The Daily Pitch: VC

September 15, 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 enterprises are investing more aggressively in DevOps, and details on emerging opportunities in the space.

Primarily a late-stage investor, SoftBank has been a leader when it comes to seizing opportunities in Latin America—and is launching its second fund focused on the region.

Today's Top Stories

Why the DevOps ecosystem keeps expanding

The rapid pace of digital transformation has increased pressure on companies to improve front-end customer software and automate internal processes. And to harness the potential of the cloud, a growing cohort of DevOps startups are creating digital products to help enterprises build software and IT infrastructure.

Our latest installment of Emerging Tech Research includes analysis of why enterprises are investing more aggressively in DevOps, and details on emerging opportunities in the space. Key takeaways include:

Venture funding for global DevOps startups hit $4 billion in the second quarter of 2021—including a $1 billion Series C for MessageBird, which offers a cloud communication platform.

Exit activity was relatively stable in terms of deal count, but deal value was dominated by the IPOs of robotic process automation specialist UiPath and Confluent, which provides a data and application integration platform.

Our analysts believe the market for container management software is maturing, but faces rapid disruptions as new technologies emerge.

read the preview

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SoftBank doubles down on LatAm after first fund tops its expectations

COO Marcelo Claure leads SoftBank's Latin America funds.
(Andreas Rentz/Getty Images)

SoftBank isn't known for identifying opportunities ahead of other venture capitalists. But its strategy in Latin America is a notable exception.

The Japanese conglomerate started investing in the region before other top-tier VCs recognized the massive opportunity it holds.

After realizing a net IRR of 85% on its first LatAm fund, SoftBank has launched a second vehicle dedicated to the region.

Valuation step-ups on notable SoftBank investments in Latin America range from 1.5x on Colombia's Rappi to 8.4x on Brazil-based VTEX, according to PitchBook data.

Recommended Reads

A look at how startup founders are using record-high valuations to cash out of their companies earlier. [The Information]

Why even giant vessels can't solve the shipping crisis. [BBC]

Amazon has become ubiquitous in markets across the board. Its next target? Healthcare. [Financial Times]

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Quick Takes


	The Daily Benchmark
	2018 Vintage European Real Assets Funds
	A message from Masterworks
	Where to invest $100,000 right now according to experts
	VC Deals
	Melio makes off with $250M Series D, triples valuation
	Misfits Market scoops up $225M for grocery platform
	Tiger Global leads $150M round for Xendit
	Stord hits $1B+ valuation
	Construction tech startup lands $80M
	Ribbon secures new funding
	Sproutt raises $26M
	Fundraising
	QED Investors nails down $1B+ for Fund VII

The Daily Benchmark

2018 Vintage European Real Assets Funds

Median IRR

4.73%

Top Quartile IRR Hurdle Rate

6.44%

1.03x

Median TVPI

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Mirova Core Infrastructure Fund II

DIF Infrastructure V

EQT Infrastructure Fund IV

*IRR: net of fees

18 Funds in Benchmark »

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A message from Masterworks

Where to invest $100,000 right now according to experts

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VC Deals

Melio makes off with $250M Series D, triples valuation

Melio, the creator of a B2B platform that lets small businesses transfer and receive payments, has collected $250 million in new funding, bringing its valuation to $4 billion. Thrive Capital and General Catalyst co-led the round, with participation from Tiger Global, Accel, Bessemer Venture Partners and others. The New York-based startup raised $110 million in January.

Additional Investors:

Coatue, Corner Ventures, Latitude Ventures

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Misfits Market scoops up $225M for grocery platform

Online grocery startup Misfits Market has closed a $225 million Series C1 round led by SoftBank's Vision Fund 2, with support from Accel. The new financing values the New Jersey-based company at $2 billion and will be used to help it expand throughout the US and increase its selection of items. Misfits Market delivers proteins, pantry staples, organic produce and other items in 43 states, with a focus on sustainability and eliminating food waste.

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Tiger Global leads $150M round for Xendit

Xendit, the developer of payments infrastructure designed to help businesses across Southeast Asia accept payments and manage operations, has raised a $150 million Series C led by Tiger Global. The Jakarta-based company is now valued at more than $1 billion. Accel, Amasia and Goat Capital also participated in the funding.

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Stord hits $1B+ valuation

Stord, an Atlanta-based supply chain and logistics company, has raised a $90 million Series D at a $1.1 billion valuation. Kleiner Perkins led the round, with participation from Lux Capital, D1 Capital and Palm Tree Crew. Also joining the round were existing investors, including Bond, Dynamo Ventures and Founders Fund.

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Construction tech startup lands $80M

Versatile has raised an $80 million Series B led by Insight Partners. Founded in 2016, the California-based company is a developer of construction tech software that helps users analyze data in real time and provides them with visibility into production rates. Versatile was valued at $72 million in December, according to PitchBook data.

Additional Investors:

Tiger Global, Root Ventures, Entrée Capital, Robert Bosch Venture Capital, Conductive Ventures

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Ribbon secures new funding

Ribbon has raised a $75 million Series C led by Greenspring Associates. The New York-based company provides a real estate platform that helps customers obtain a mortgage. Founded in 2017, Ribbon was valued at $160 million in 2019, according to PitchBook data. The company has also raised $75 million in additional working capital.

Select Additional Investors:

TriplePoint Capital, 75 & Sunny, Bain Capital, Greylock Partners, Waterfall Asset Management

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Sproutt raises $26M

Sproutt has raised a $26 million Series B led by MoreTech Ventures, with participation from Harel Group, The Raptor Group and Falcon Edge Capital. The company provides life insurance policies that offer incentives for diet and other healthy behaviors.

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Fundraising

QED Investors nails down $1B+ for Fund VII

Virginia-based QED Investors has closed its seventh flagship vehicle with $1.05 billion in capital commitments, raising $550 million for early-stage deals and $500 million for growth-stage investments. Founded in 2007, QED typically backs financial services startups in the US, UK, Latin America and Southeast Asia. It has invested in companies including Klarna, Credit Karma, Creditas and Remitly.

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View 161 investments »