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The Daily Pitch: VC

November 29, 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:

We explore how startup valuations have changed amid the frenzied VC dealmaking of the last few quarters.

Our latest Private Fund Strategies Report, packed with new data through the end of Q3.

The potential implications of Petershill Partners' public listing on the London Stock Exchange.

Today's Top Stories

US venture capital valuation trends in seven charts

(Jorg Greuel/Getty Images)

The venture industry has continued to prove its resiliency in 2021—a year marked by outsized funds, numerous mega-deals and the soaring interest of multistage investors looking to back younger startups.

As a result, valuations of VC-backed companies are on the rise across most stages in the third quarter.

Here are seven charts from PitchBook's US VC Valuations report that depict how startup valuations have changed amid the frenzied dealmaking of the last few quarters.

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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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Petershill's public listing is a game-changer for GP stakes—and a gamble

Petershill Partners' listing on the London Stock Exchange represents a game-changing moment for GP stakes.
(Chris J Ratcliffe/Getty Images)

When Petershill Partners announced the public listing of a portfolio of 19 minority interests, it marked a brave new world in the GP stakes space. This monetization technique promises liquidity to Petershill's LPs over time, and it hasn't been tried before.

Our recent analyst note explores the public company and the potential implications of its approach. The Petershill portfolio offers attractive growth and diversification, yet it is also opaque, raising a key question: How can investors assess its value?

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Recommended Reads

While the business of funding disruptive businesses is booming, VC itself is being disrupted. [The Economist]

Management due diligence may be fundamental to establishing productive PE partnerships. [Harvard Business Review]

How the pandemic has bred suspicion in the American workforce. [The Atlantic]

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Quick Takes


	The Daily Benchmark
	2015 Vintage Global Secondaries Funds
	A message from BMO Harris Bank
	Security, supply chain and surging prices: The triple threat
	VC Deals
	India's Dream Sports valued at $8B
	Simpro takes in $350M
	Spinny secures $280M
	Mindspace hauls in $72M
	African fintech Asilimia lands $2M
	Exits & IPOs
	3D printing startup Essentium eyes SPAC merger
	Fundraising
	Blume raises $105M for fourth fund

The Daily Benchmark

2015 Vintage Global Secondaries Funds

Median IRR

14.96%

Top Quartile IRR

27.16%

1.42x

Median TVPI

Select top performers

Cedar Springs SPV 2

Cedar Springs SPV 1

SG/NMERB Secondary Fund I

*IRR: net of fees

15 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from BMO Harris Bank

Security, supply chain and surging prices: The triple threat

Middle-market borrowers are increasingly seeking to fortify their operations to prevent cybersecurity attacks while managing supply chain issues and inflationary pressures. The latest issue of Transaction Trends has insights into how middle-market companies are currently navigating through these operating challenges.

To learn more, download the full issue of Transaction Trends. You can also contact Stephen R. Isaacs, managing director and head of BMO Sponsor Finance, at Stephen.Isaacs@bmo.com.

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VC Deals

India's Dream Sports valued at $8B

Sports tech company Dream Sports has raised $840 million at an $8 billion valuation in a round co-led by Falcon Edge, DST Global, D1 Capital, RedBird Capital and Tiger Global. The Mumbai-based company owns a portfolio of brands that includes digital payments provider DreamPay and cricket streaming platform FanCode. Dream Sports was reportedly valued at $5 billion in a secondary round earlier this year.

Additional Investors:

Footpath Ventures, TPG

View round

View 5 competitors »

Simpro takes in $350M

Simpro has raised $350 million in a round led by K1 Investment Management, with support from existing investor Level Equity. The Australian startup is a developer of management software designed for field service professionals like plumbers and electricians.

View round

View 65 competitors »

Spinny secures $280M

Spinny has raised $280 million at a more than $1.75 billion valuation in a round co-led by Tiger Global and the Abu Dhabi Growth Fund, TechCrunch reported. The Gurugram, India-based company is the developer of a pre-owned car trading platform.

View round

View 16 competitors »

Mindspace hauls in $72M

Mindspace has raised $72 million from investors including Arkin Holdings, Harel Insurance Investments & Financial Services and More Provident Funds. The Tel Aviv-based company is a provider of physical office spaces with flexible membership options across 17 cities, including London and Philadelphia.

Additional Investors:

Globalworth Real Estate Investments, Kobi Rogovin, Yoav Harlap

View round

View 16 competitors »

African fintech Asilimia lands $2M

Asilimia has raised $2 million from investors including Norrsken Impact Accelerator. Based in Kenya, the company is the developer of a digital payments platform for small and medium-sized businesses.

Select Additional Investors:

Bpifrance, GreenTec Capital Partners

View round

View similar company »

PitchBook for Dealmakers

PitchBook for Dealmakers is built for those investing in, acquiring or advising on private market transactions.

Today's markets are in a constant state of flux, and dealmakers need insights spanning the public and private markets to be effective in their work. To that end, it's vital for dealmakers to have access to both best-in-class data on private companies and broad fundamental public data. Dig into our guide to learn more about PitchBook's utility for dealmakers—from our unmatched capital market coverage to our in-depth reports, collaboration tools and more.

Get the PitchBook for Dealmakers guide

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Exits & IPOs

3D printing startup Essentium eyes SPAC merger

Essentium, a maker of 3D printers for industrial applications, is in talks to go public through a merger with blank-check firm Atlantic Coastal Acquisition, Bloomberg reported. The deal could value Essentium at more than $900 million—up from $58 million in 2018, according to PitchBook data. The company's private backers include BASF Venture Capital, Materialise and Genesis Park.

View details

View 9 competitors »

Fundraising

Blume raises $105M for fourth fund

Blume Ventures has raised $105 million in the first close of its fourth fund, according to reports. The Mumbai-based early-stage VC firm closed its third flagship vehicle on $102 million in February 2020. Learning platform Unacademy and Dunzo, a hyperlocal delivery service, are among Blume's portfolio startups.

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View 183 investments »