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The Daily Pitch: VC

November 17, 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 Private Fund Strategies Report, packed with new data through the end of Q3.

Our Emerging Tech Indicator report examines how newer segments like decentralized finance and gaming are hauling in VC funding.

Our annual ranking of the undergraduate and MBA programs producing the largest number of entrepreneurs and female founders.

Today's Top Stories

Web3 & DeFi deals highlight shift in VC funding trends

The Emerging Tech Indicator provides a quarterly overview of startups receiving seed- and early-stage investments from a limited subset of VC funds. In the third quarter of 2021, our analysts tracked 189 early-stage and seed deals that involved the top 15 VC firms—totaling $6 billion in capital investment.

The Q3 2021 Emerging Tech Indicator takes a look at five emerging market segments, including Web3 & DeFi, enterprise SaaS and gaming, and offers unique perspectives on the products and technologies driving innovation and growth opportunities.

read the report

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2021 PitchBook university rankings: Top 50 colleges for founders

(Mara Potter/PitchBook News)

In the race to produce startup founders, which colleges have the biggest bragging rights? Each year, PitchBook ranks undergraduate and MBA programs by the number of venture capital-backed founders that count among their alumni.

The 2021 rankings are here, with the top undergrad programs dominated by the usual suspects like Stanford and UC Berkeley. But foreign universities are rising quickly, with the University of Toronto and Tsinghua University in Beijing rocketing up the list.

see the rankings

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A message from New York Life Investments Alternatives

Valuations, volatility, variants: What it all means for private equity

Interviews with 100 middle-market sponsors have illuminated how the COVID-19 crisis has changed the private equity industry—in some ways, permanently. The pandemic has forced many sponsors to sharpen their investment processes for valuation, adopt new technologies and put a greater focus on building relationships. The findings of these interviews, detailed in this research report, outline pivotal changes to core functions such as investing, deal sourcing, fundraising, exit strategies and more. See the ways many sponsors, despite volatile market conditions, have found ways to emerge stronger than ever. For a deeper look at how the pandemic has altered the middle market, download this research report.

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LPs put their money where the mega-funds are

Through Q3, private capital fundraising totaled nearly $883 billion, putting the year on pace to eclipse 2020's total—and potentially 2019's record. Yet the number of successful fund closings continues to drop dramatically.

The ups and downs of fundraising this year are detailed in our Q3 Private Fund Strategies Report, which also includes a spotlight on fundraising by region and a breakdown of funds by size. Highlights include:

Pandemic-related declines in fundraising are ebbing, as private capital commitments are down only 1% for the year through Q3, versus 24% for the 12 months through Q2.

VC's 2021 fundraising total reached nearly $149 billion globally, driven predominantly by the rise of ever-larger vehicles.

Private debt fundraising is on pace to exceed the annual total of each of the past three years but with far fewer vehicles—a whopping 82.8% of private debt funds last quarter were larger than their predecessors.

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As ecommerce evolves, Faire raises $400M at $12.4B valuation

(Feodora Chiosea/Getty Images)

Faire, an online wholesale marketplace, has raised a $400 million Series G at a valuation of $12.4 billion.

Investor interest in the company is the latest example of a shift in focus from direct-to-consumer brands to startups that enable various merchants to reach buyers online.

According to Forerunner Ventures, a firm that's previously made a name for itself as a preeminent DTC investor, the future of online retail will be driven by sellers that are people or small businesses.

Recommended Reads

An investigation into how the largest Catholic hospital system in the US is playing the private equity game. [Stat]

Investors know that they have too much exposure to the tech sector. Why it may be even worse than they think. [Institutional Investor]

After China's tech crackdown, investors are pivoting to India. But some fear that the country's startup sector is already overheated, resulting in valuation inflations and leaving companies and retail investors vulnerable to corrections. [Financial Times]

Since yesterday, the PitchBook Platform added:

20

VC valuations

1538

People

380

Companies

33

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2017 Vintage Global Private Debt Funds
	A message from Corporate Resolutions Inc.
	Protecting board integrity: Reputation is often a predictor of performance
	VC Deals
	Mensa Brands secures $135M Series B
	Healthtech startup H1 raises $100M
	Justt emerges from stealth with $70M
	Alluxio adds $50M in new funding, opens new office in China
	Kleiner Perkins leads $50M round for PlanetScale
	Ribbon Health reels in $43.5M Series B
	Fundraising
	Paradigm locks down $2.5B fund for crypto investing
	Offline Ventures launches with $100M

The Daily Benchmark

2017 Vintage Global Private Debt Funds

Median IRR

9.00%

Top Quartile IRR

13.85%

1.15x

Median TVPI

Select top performers

400 Capital Asset Based Term Fund I

Hamilton Lane Strategic Opportunities Fund 2017

Glendon Opportunities Fund II

*IRR: net of fees

83 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Corporate Resolutions Inc.

Protecting board integrity: Reputation is often a predictor of performance

The board of directors sets a company's ethical tone. Whether it is shareholder value, diversity or growth, boards are constantly striving to enhance the company's conduct. Due diligence on potential board candidates is the only way to ensure the board is comprised of directors who mirror the values of the company.

In this unique environment, wherein M&A is at an all-time high, Corporate Resolutions has witnessed clients pay as much attention to their boards as they do the returns on their next investments. Telling your investors you safeguard the board's composition and performance is not nearly as convincing as showing them. An independent background investigation on board candidates provides this transparency and guarantees the preservation of the board's integrity.

Connect with Corporate Resolutions at www.corporateresolutions.com

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VC Deals

Mensa Brands secures $135M Series B

Mensa Brands has raised $135 million at a more than $1 billion valuation in a round led by Falcon Edge Capital's Alpha Wave Ventures. The Bengaluru-based company helps digital brands scale operations.

Additional Investors:

Accel, Norwest Venture Partners, Prosus Ventures, Tiger Global

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Healthtech startup H1 raises $100M

H1 has raised a $100 million Series C led by Altimeter Capital Management. The New York-based company's platform is designed to provide information on and connect others to healthcare providers worldwide. H1 was valued at $258 million in December, according to PitchBook data.

Select Additional Investors:

Flex Capital, Goldman Sachs, IVP, Lead Edge Capital, Lux Capital, Menlo Ventures, Transformation Capital

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Justt emerges from stealth with $70M

Justt has raised a total of $70 million across three funding rounds, including a Series B round led by Oak HC/FT and two rounds led by Zeev Ventures and F2 Venture Capital, respectively. Founded in 2020, the Tel Aviv-based company is the developer of a chargeback mitigation platform for financial institutions.

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Alluxio adds $50M in new funding, opens new office in China

Alluxio has raised a $50 million Series C from investors including Andreessen Horowitz, Seven Seas Partners and Volcanics Venture. Based in San Mateo, Calif., the startup is a creator of open-source data orchestration software that's used for large-scale analytics and AI and machine learning workloads in the cloud. Alluxio has also opened a new office in Beijing.

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Kleiner Perkins leads $50M round for PlanetScale

PlanetScale has collected $50 million in a Series C led by Kleiner Perkins, with support from existing backers Andreessen Horowitz, SignalFire and Insight Partners, as well as several angel investors. The Bay Area-based startup, which offers a serverless database platform for developer workflows, has now raised $105 million in total private funding.

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Ribbon Health reels in $43.5M Series B

General Catalyst has led a $43.5 million round for Ribbon Health, the provider of an API data platform for the healthcare industry. Andreessen Horowitz, BoxGroup and Rock Health also participated in the funding. The startup's tech integrates with existing healthcare workflows to maintain accurate provider directories, simplify referral management, provide data on care costs and more.

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Fundraising

Paradigm locks down $2.5B fund for crypto investing

Paradigm has raised $2.5 billion for a new venture vehicle that will invest alongside the firm's existing flagship fund across all stages and geographies, with a focus on companies and protocols related to cryptocurrency. Founded in 2018 and based in San Francisco, the firm's portfolio includes financial simulation platform Gauntlet, blockchain domain registration specialist Namebase and open-source protocol startup Compound.

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Offline Ventures launches with $100M

Offline Ventures has launched with a maiden fund of $100 million. Founded by venture and tech veterans Dave Morin, Brit Morin, Nate Bosshard and James Higa, the California-based firm plans to invest in companies at the intersection of tech and culture, and has already backed startups such as audio-chat platform Clubhouse and fertility clinic Kindbody.

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View 17 investments »