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The Daily Pitch: VC

October 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:

GitLab's new IPO price range could value the DevOps platform at up to nearly $10 billion.

VCs' interest in HR tech is spiking as the world adjusts to long-term remote work.

The latest edition of PitchBook Benchmarks, with complete data through Q1 2021.

Today's Top Stories

GitLab aims for $10B valuation amid growing sales and costs

(Chalirmpoj Pimpisarn/Getty Images)

GitLab's new IPO price range could value the company at up to nearly $10 billion. Since the DevOps platform is nowhere near a breakeven point, the increased range could imply that IPO investors are excited about the company's rapid revenue growth despite large operating costs.

See our visualizations for more IPO takeaways.

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TPG, Abu Dhabi's ADQ back Tata Motors EV unit at $9B+ valuation

(Sergii Iaremenko/Getty Images)

TPG's Rise Climate Fund and Abu Dhabi's sovereign wealth fund ADQ have agreed to make a $1 billion investment into an electric vehicle division of India's Tata Motors, at a valuation of $9.1 billion.

TPG and ADQ will hold an 11% to 15% stake in the EV unit, which will be newly incorporated. The new company will focus on dedicated battery electric vehicle platforms, the development of charging infrastructure, and more.

After the new funding was announced, Tata Motors said it plans to invest $2 billion in the division and release 10 EV models over the next five years—in an effort to reach the Indian government's goal of having electric vehicles represent 30% of the country's car sales by 2030.

The investment is one of the first for TPG's Rise Climate Fund, which held its initial close at $5.4 billion in July.

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A message from the National Science Foundation

Invention to impact

Inpria makes metal oxide photoresists, key materials that allow semiconductor manufacturers to make smaller processing chips. The Oregon-based company was recently acquired for $514 million. Inpria Corporation (NSF-1152266) is one of hundreds of deep-tech startups funded annually by the National Science Foundation, a government agency that plays a central role in accelerating discoveries into the marketplace.

Each startup can receive up to $2 million to support translational research and development. NSF helps teams navigate the earliest stages of technology translation, investing roughly $200 million annually in startups. In the last five years, these companies have gone on to raise billions in follow-on capital, and the portfolio has had 100-plus exits.

Learn more about NSF funding at seedfund.nsf.gov.

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PitchBook Benchmarks for PE, VC and more

(Sean Gladwell/Getty Images)

The US private markets have surged over the past decade as investors pour increasing amounts of capital into alternative assets. Fund strategies have expanded in kind, yet the private markets remain largely opaque, and without uniform reporting standards, it is challenging for pensions and endowments to find true transparency.

PitchBook Benchmarks provide a one-stop destination that tracks aggregate investor performance across a range of strategies by measuring cash multiples, IRR and other metrics. The latest edition, featuring data through Q1 2021, is now available. It features preliminary data for the past several quarters, visualizations, and PDFs that slice the data by fund type and geography.

take a look

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VCs bet on European HR tech startups as the world adjusts to remote work

Personio CEO Hanno Renner (Courtesy of Personio)

Investors' interest in European HR tech startups has reached a fever pitch this year, as companies adjust to the long-term reality of employees working remotely.

VCs have poured $2.2 billion into HR tech startups on the continent in 2021, up 144% over last year's total. Adding to the already record-breaking amount is a $270 million round for Germany's Personio.

Recommended Reads

Probably the only "cool" enterprise software in history, Slack made inroads in workplaces fast, but now it's giving workers a voice that is making some employers uncomfortable. [The Atlantic]

With firms trying to flip their portfolio companies at a profit, workers at some private equity-backed businesses are bearing the cost. [NBC]

How one company is building an empire of decaying oil and gas wells, with no clear plans for closing up the destructive sites. [Bloomberg]

Since yesterday, the PitchBook Platform added:

32

VC valuations

1848

People

396

Companies

9

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2015 Vintage Global Growth Funds
	Partner Perspectives
	PE activity in software is surging
	VC Deals
	Plume valued at $2.6B with SoftBank backing
	Magic Leap banks $500M as valuation falls
	Israel's Hailo rounds up $136M
	Hubilo hauls in $125M Series B
	Temasek leads $100M round in neobank Open
	Embedded finance startup Alviere raises $70M
	Toronto's ResQ secures $39M
	Fundraising
	Munich Re raises $500M for Fund II

The Daily Benchmark

2015 Vintage Global Growth Funds

Median IRR

17.18%

Top Quartile IRR Hurdle Rate

21.62%

1.50x

Median TVPI

Select top performers

Centana Growth Partners

LVC RMB Fund I

Catalyst Investors IV

*IRR: net of fees

22 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Partner Perspectives

PE activity in software is surging

PE dealmaking records in software are being shattered. The ongoing effects of the COVID-19 pandemic continue to accelerate digitization across all industries, prompting investment and consolidation across multiple software platforms. Datasite's latest market review explores how dealmaking trends are unspooling in this intense environment, producing key findings and including datasets such as:

How investors are accelerating tech transactions in order to beat competition.
VC-backed exits to buyout funds.
Key risks that dealmaking teams are navigating and with which tools.
Financing metrics such as deal sizes.

Read it now

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VC Deals

Plume valued at $2.6B with SoftBank backing

SaaS startup Plume has raised $300 million in a minority equity fundraise from SoftBank's Vision Fund 2. The new funding, which nearly doubles Plume's total raised, values the wifi optimization and personalization provider at $2.6 billion.

View round

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Magic Leap banks $500M as valuation falls

Augmented reality company Magic Leap has raised $500 million at a roughly $2 billion valuation from unnamed existing investors, down from the $6.69 valuation it had in 2019, according to PitchBook data. Last year, the company replaced longtime CEO Rony Abovitz with Peggy Johnson and reportedly laid off about half of its staff. In 2022, Magic Leap plans to debut its second-generation AR device, which is targeted toward enterprise customers. The Florida-based company's prior investors include eBay, Alibaba, Google and Temasek.

View round

View 20 competitors »

Israel's Hailo rounds up $136M

AI chipmaker Hailo has raised $136 million in a Series C led by Poalim Equity and Gil Agmon. New investors including Carasso Motors, Comasco, Shlomo Group, Talcar Corporation and Automotive Equipment also joined the round for the Tel Aviv-based startup, as did existing backers.

View round

View 8 competitors »

Hubilo hauls in $125M Series B

Alkeon Capital has led a $125 million investment in virtual events startup Hubilo, with participation from Lightspeed and Balderton Capital. The San Francisco-based startup was valued at $100 million with its $23.5 million Series A in February, according to PitchBook data.

View round

View 23 competitors »

Temasek leads $100M round in neobank Open

India-based fintech startup Open has raised a $100 million Series C led by Temasek. Google, SBI Investment, Tiger Global and 3one4 Capital also took part in the round, which values the neobank at $500 million. Open is also in talks to raise additional funding from investors likely to include Visa, TechCrunch reported.

View round

View 37 competitors »

Embedded finance startup Alviere raises $70M

Alviere has announced $70 million in new funding, including a $20 million Series A in April, led by Viola Ventures and Viola Fintech, and a $50 million follow-on Series B. Alviere's fintech platform allows brands to deliver financial products and services to customers and employees.

View round

View 5 competitors »

Toronto's ResQ secures $39M

Restaurant tech startup ResQ has raised $39 million in Series A funding co-led by Tiger Global and Canvas Ventures. The company's platform helps restaurants manage repair and maintenance operations.

View round

View 4 competitors »

PitchBook has partnered with Wall Street Prep, the trusted training provider for the world's top I-banks, PE firms, Fortune 1000 companies and business schools, to help you get into the data when you enroll in their Premium Financial Modeling package.

As you work your way through the course modules, access the PitchBook Platform to see comprehensive private and public market data in action. With detailed data at your fingertips, explore PitchBook's tools for understanding valuations, such as M&A comps, venture valuation comps, public comps and fund data.

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Fundraising

Munich Re raises $500M for Fund II

Munich Re Ventures has closed its second flagship fund on $500 million. The vehicle will be used to target early- and growth-stage companies across five sectors, including climate tech, insurtech and cybersecurity. The firm, which is the VC arm of insurance provider Munich Re Group, now has over $1 billion in assets under management.

View fund

View 34 investments »