PitchBook News - Uncertainty weighs on SPAC market

Read online | Don't want to receive these emails? Manage your subscription.

PitchBook

Log in

The Daily Pitch: VC

September 28, 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:

A SPAC market update from our analysts.

Blackstone's big deal in Las Vegas.

The latest episode of "In Visible Capital," about non-dilutive financing and the future of VC.

Today's Top Stories

SPAC market levels off amid uncertainty

(R A Kearton/Getty Images)

The SPAC IPO sprint from earlier this year has slowed to a more moderate pace, with 106 offerings raising a combined $20.9 billion in the second quarter of 2021. Meanwhile, SPAC acquisitions continue to grow substantially—a record 69 have been added so far in Q3.

The high cost of traditional IPOs is likely to sustain demand for blank-check deals, according to our latest SPAC Market Update, even if a return to Q1's frenzied activity is unlikely. That said, investors' appetite for SPAC deals could be dampened by several existential threats, including poor performance, a litany of lawsuits and regulatory headwinds.

read it now

Share:

Blackstone cashes in on $5.65B sale of Vegas' Cosmopolitan

(RebeccaAng/Getty Images)

Blackstone has agreed to sell The Cosmopolitan of Las Vegas for $5.65 billion as private equity firms continue to cash in on Vegas resorts.

The deal will separate ownership and operations of the property, the latter of which will be sold to MGM Resorts for $1.63 billion. The Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust will acquire the resort's real estate assets.

Blackstone first acquired The Cosmopolitan for around $1.7 billion in 2014 from Deutsche Bank. The firm then poured $500 million into the hotel to renovate roughly 3,000 rooms and build 67 new suites.

Blackstone's exit follows a steady flow of private equity interests in Vegas. In March, Apollo Global Management acquired The Venetian Resort's operating company for $2.25 billion.

Share:

A message from FIS

Join the FIS ESG Data and Reporting Masterclass on Oct. 20

What's next for ESG data and reporting? Find out at the ESG Data and Reporting Masterclass on Wednesday, Oct. 20, when FIS and leading analyst firm Aite-Novarica will look at ESG trends and requirements. Hear some top tips on how you can be prepared and find out how FIS is innovating to address ESG data and reporting needs. Click here to reserve your place.

Share:

On the podcast: How non-dilutive financing could reshape VC

The options for founders to raise capital are more expansive than ever. On this week's episode of "In Visible Capital," we dig into this trend with Capchase co-founder and CEO Miguel Fernandez and Matt Burton, a partner at QED Investors. Topics include:

How new financing options may spur more competition among VCs looking to add value to the capital that they provide to companies.

What characteristics make firms good candidates for seeking capital outside of traditional VC and venture debt.

How unique business needs are driving innovation within fintech.

listen now

Share:

The bull case for Chinese tech startups

Shenzhen, China (LIAO XUN/Getty Images)

Investors in China seem to have little to celebrate these days, from the looming threat of a property bubble to blanket bans on crypto and a sweeping overhaul of the tech sector.

Despite intense uncertainty, venture capitalists in China are showing few signs of throwing in the towel. We recently caught up with Telstra Ventures, an Australian firm with a presence in China, to find out why.

Recommended Reads

NBA star Stephen Curry on why he invested in book subscription service Literati. [Fortune]

How the "milkman model" helped one entrepreneur's business thrive in the pandemic. [Bloomberg]

This lockdown side project is beating many professional traders and funds with a career performance of 19.41%. Say hello to the crypto-trading hamster. [BBC News]

Since yesterday, the PitchBook Platform added:

33

VC valuations

1812

People

453

Companies

15

Funds

See what our data software can do

Quick Takes


	A message from Performance Improvement Partners
	Proven do's and don'ts of tech due diligence
	The Daily Benchmark
	2019 Vintage Global Growth Funds
	People
	SoftBank Vision Fund's Nishar to depart
	VC Deals
	Astera Labs hits $950M valuation
	Singapore's Ninja Van lands $578M
	Dice collects $122M Series C
	Optimove picks up $75M
	Delix Therapeutics closes $70M Series A

A message from Performance Improvement Partners

Proven do's and don'ts of tech due diligence

43% of companies with high digital maturity report net profit margins significantly higher than industry averages.

Yet, many private equity firms still see technology due diligence as primarily a risk-management box to check before acquisition.

In the digital era, identifying technology risk is only part of the value-creation equation.

Learn the latest "do's and don'ts" of technology due diligence, based on hundreds of PE partnerships, with findings from proven technology experts on the front lines of today's deal environment.

Get the guide now

Share:

The Daily Benchmark

2019 Vintage Global Growth Funds

Median IRR

35.80%

Top Quartile IRR Hurdle Rate

57.50%

1.10x

Median TVPI

Select top performers

Bain Capital Life Sciences Fund II

Insight Venture Partners XI

Dyal Capital Partners IV

*IRR: net of fees

32 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

SoftBank Vision Fund's Nishar to depart

Deep Nishar, a senior managing partner at SoftBank, has announced that he is leaving the firm at the end of the year. During his six years with SoftBank, Nishar participated in 36 deals including leading investments into 10X Genomics, Guardant Health and Qualtrics, among others. Nishar was previously an executive at LinkedIn.

View details

VC Deals

Astera Labs hits $950M valuation

Astera Labs has raised a $50 million Series C led by Fidelity Management & Research. The funding values the Bay Area-based company at $950 million. Astera Labs is the developer of fabless semiconductor products designed to manage data-centric systems.

Additional Investors:

Atreides Management, Avigdor Willenz, GlobalLink1 Capital, Intel Capital, Sutter Hill Ventures, Valor Equity Partners, VentureTech Alliance

View round

View 1 competitors »

Singapore's Ninja Van lands $578M

Ninja Van, a logistics startup serving Southeast Asia, has raised a $578 million Series E from Alibaba Group and existing backers including GeoPost, B Capital Group and Monk's Hill Ventures. The round reportedly valued the company at more than $1 billion. Ninja Van delivers packages in Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines.

View round

View 24 competitors »

Dice collects $122M Series C

London-based Dice has raised $122 million in a round led by SoftBank's Vision Fund 2. The startup's platform aims to help users discover and buy tickets to events and concerts. The funds will be used for hiring and expanding its livestream offering as well as to launch an artist development program.

Additional Investors:

Blisce, Cassius, Evolution Equity Partners, Future Shape, Mirabaud Private Equity, Xavier Niel

View round

View 14 competitors »

Optimove picks up $75M

Optimove has raised $75 million in a round led by Summit Partners. The Tel Aviv-based business offers a customer relationship management platform to help companies run their marketing campaigns.

View round

View 62 competitors »

Delix Therapeutics closes $70M Series A

Delix Therapeutics has raised $70 million in a round co-led by Artis Ventures, RA Capital Management and OMX Ventures. Delix is developing neuroplasticity-promoting therapeutics for patients suffering from mental health disorders.

Select Additional Investors:

Bail Capital, Casa Verde Capital, Presight Capital, PsyMed Ventures, R2 Risk & Return

View round

View similar company »

PitchBook Webinar: Private equity strategies in healthcare services

Our webinar on Oct. 7 will dive into a key issue across healthcare specialties: employee engagement and staffing, from providers to direct care staff. Industry experts will be on the panel to discuss their perspectives on the following:

How the structure of healthcare transactions can thoughtfully preserve a positive, physician-led clinical culture and incentivize practitioners.

How the operational value-adds that PE firms bring to the table can attract and retain high-caliber talent and allow them to be more productive—driving returns.

What innovative methods for recruiting and developing direct care staff can produce superior patient outcomes while minimizing churn costs.

Register here to secure your spot

Share:

Chart of the Day

Source: PitchBook's 2021 France & Benelux Private Capital Breakdown

About PitchBook | Terms of use | Advertise with us | Contact

This email was sent to you via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

A SPAC market update SoftBank Vision Fund Ninja Van hauls PitchBook Newsletters Podcast The Daily Pitch

PitchBook News - Uncertainty weighs on SPAC market

Key phrases

Older messages

A comeback for France and Benelux

Why private funds might have to give up profits

How investors really view sustainability

Healthtech for the LGBTQ community

VC, PE and the Great Resignation

You Might Also Like

The proven formula of the next unicorn

The grounds read grim for coffee

Podcast app setup

It's time for the final training, are you in there?

Jons Growth Journal #4 - How To Gain Discipline

There's just a few hours left for this training...

Marketing Weekly #177

12 Things You’ll Look Back On in SaaS And Regret

🤖 Weekend Update: Defining AI ROI

Will CVC Capital's IPO inspire others?