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The Daily Pitch: VC

October 27, 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:

Our latest reports breaking down emerging opportunities in the climate tech ecosystem.

Sequoia has fundamentally overhauled its fund structure as part of a larger effort by the VC industry to keep pace with new investing strategies.

German VC World Fund is aiming to raise Europe's largest climate tech fund yet.

Today's Top Stories

Breaking down the climate tech ecosystem with our newest research

Decarbonizing the planet is a process that will leave no part of the economy untouched. This transformation poses innumerable challenges—but also unprecedented opportunities in climate tech. This sector is a critical area of innovation, and it's attracting an increasing amount of VC, with $30.8 billion invested in climate-focused startups in the first nine months of 2021.

PitchBook is excited to release our new climate tech coverage as part of our expanding Emerging Tech Research. The reports include:

Introduction to Climate Tech: Preview

Our breakdown of the climate tech industry organizes this complex landscape into a clear taxonomy; the preview offers a sneak peek at market maps covering 46 industry groups.

It features analyses of highly specific subgroups, separating electric transportation from the rest of sustainable transportation, and distinguishing clean energy generation and grid tech.

Climate Tech Quarterly Update: Preview

Our inaugural installment of Emerging Tech Research on the sector recaps a record-setting Q3 in climate tech.

The report includes a timeline, spotlights on emerging opportunities, and the latest data on dealmaking and exits.

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Why Sequoia is blowing up a 50-year-old financing model

Sequoia partner Roelof Botha (Brian Ach/Getty Images)

Leading venture capitalists are breaking from their venerated model as challenges mount at their doorsteps.

Sequoia has announced a new fund structure that frees the firm and its LPs from the typical time constraints of VC funds.

Sequoia partner Roelof Botha compared the standard 10-year fund to a floppy disk, arguing that the structure doesn't meet the needs of LPs and portfolio companies.

The firm wants to capture more of the upside from top-performing investments. From Zoom to Square, Sequoia portfolio companies have added tens of billions of dollars to their market capitalizations following their IPOs.

Under the new structure, Sequoia will more closely resemble the crossover investors that have become a leading force in late-stage VC.

Recommended Reads

Two massive real estate investors in London are banking on opposing strategies. A detailed look into the city's great retail reset. [Institutional Investor]

Why the bond market says inflation will likely last. [The New York Times]

The number of vacant homes in the Bay Area is declining, but is that a good thing? [San Francisco Chronicle]

Since yesterday, the PitchBook Platform added:

15

VC valuations

1843

People

532

Companies

28

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2011 Vintage European PE Funds
	A message from RBC Capital Markets
	How are changes in consumer behavior influencing M&A dealmaking?
	VC Deals
	Medable hits $2.1B valuation
	TCV leads $250M round for Devo
	Fabric raises $200M Series C
	Pipefy scoops up $75M Series C for workflow management tech
	Coterie Insurance banks $50M

The Daily Benchmark

2011 Vintage European PE Funds

Median IRR

16.30%

Top Quartile IRR

20.64%

1.72x

Median TVPI

Select top performers

H2 Equity Partners IV

Key Capital Partners V

Waterland Private Equity Fund V CV

*IRR: net of fees

21 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from RBC Capital Markets

How are changes in consumer behavior influencing M&A dealmaking?

Recent M&A deal volumes in the consumer and retail sectors have been exceptionally high, with companies deploying new strategies to stay aligned with evolving consumer behaviors. According to RBC's global head of Consumer and Retail, Carrie Cook, "A global cross-sector, cross-product perspective is going to be key." Pandemic-driven changes in consumer preferences are behind recent trends in M&A, including cross-sector convergence and increased investment in data and analytics.

How are consumer brands and companies preparing for the future? What's fueling larger, more complex transactions with global dimensions?

See what's ahead for the sector and why large deals may be a theme going forward, with insights from RBC Capital Markets' industry experts.

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VC Deals

Medable hits $2.1B valuation

Medable has raised a $304 million Series D co-led by Blackstone, Tiger Global and GSR Ventures. The funding values the Palo Alto-based company at $2.1 billion. Medable is a developer of a cloud-based platform designed to conduct decentralized clinical trials and help patients access new therapies.

Additional Investors:

Sapphire Ventures, Western Technology Investment

View round

View 26 competitors »

TCV leads $250M round for Devo

Devo has raised a $250 million Series E led by TCV. The funding has propelled the company's valuation to $1.5 billion. Based in the Boston area, Devo is a developer of a cloud-based data and security analytics platform. Gopi Vaddi, general partner at TCV, will join the company's board.

Additional Investors:

Bessemer Venture Partners, Eurazeo, General Atlantic, Georgian, Insight Partners, Kibo Ventures

View round

View 74 competitors »

Fabric raises $200M Series C

Fabric has raised $200 million at a more than $1 billion valuation in a round led by Temasek. The New York-based company provides robotics-based fulfillment operations for ecommerce customers.

Select Additional Investors:

Koch Disruptive Technologies, Pontifax Global Food and Agriculture Technology Fund, Princeville Capital, Union Tech Ventures, Wharton Equity Partners

View round

View 83 competitors »

Pipefy scoops up $75M Series C for workflow management tech

Pipefy has raised $75 million in a round led by SoftBank's Latin America Fund, with support from investors including Steadfast Capital, Insight Partners and Redpoint Eventures. Founded in 2015, the company provides low-code workflow management tools that help companies such as Rivian and Nubank automate and customize their processes. Pipefy was valued at $194 million in 2019, according to PitchBook data.

View round

View 51 competitors »

Coterie Insurance banks $50M

Coterie Insurance has raised a $50 million Series B led by new investor Weatherford Capital. The Cincinnati-based company provides insurance for small businesses and allows agents and brokers to simplify and digitize their operations. Coterie raised an $11.5 million Series A1 in February.

Additional Investors:

Alpha Edison, Group 1001, Intact Ventures, RPM Ventures

View round

View 3 competitors »

Chart of the Day

"Both median early- and late-stage pre-money valuations set a strong pace in H1 2021, irrespective of investor type involved, and are pacing above 2020 figures. We expect the pace set to remain above 2020 figures, given the record-breaking H1 and optimism heading into H2."

Source: PitchBook's Q2 2021 European VC Valuations Report