PitchBook News - VCs continue betting big on insurtech

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The Daily Pitch: VC

November 30, 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:

The Pittsburgh Penguins are the latest addition to PE-backed Fenway Sports Group's pack of teams.

VCs are continuing to bet big on insurance tech, with billions in funding worldwide deployed during a strong Q3.

Today's Top Stories

Insurtech VC backing tops $4B—again

The insurance tech industry has many large incumbents, but the sector continues to remain fragmented due primarily to local regulations in several countries.

This fragmentation represents a key opportunity for insurtech startups to compete directly with traditional insurance carriers by using emerging technologies such as predictive analytics, telematics and application programming interfaces.

Our Q3 2021 Emerging Tech Research report on insurtech breaks down a strong quarter for the sector—the second time on record that VC funding for the space has surpassed $4 billion globally. Our analysts also explore opportunities in digital life insurance products, and how insurance-linked securities are expected to grow through online marketplaces.

read the preview

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PE-backed Fenway Sports Group to buy NHL's Pittsburgh Penguins

Penguins team captain Sidney Crosby (Bruce Bennett/Getty Images)

Private equity-backed Fenway Sports Group has agreed to acquire the National Hockey League's Pittsburgh Penguins, continuing PE's growing relationship with sport franchises and leagues. The deal is valued at around $900 million, according to reports.

Fenway, backed by investors including RedBird Capital Partners and LeBron James, owns the Boston Red Sox and Liverpool Football Club. The Penguins franchise was last purchased by Ron Burkle and Mario Lemieux for a reported $107 million in 1999.

The Penguins' acquisition continues a busy sports investment year for PE firms. In June, Sixth Street Partners agreed to acquire a 30% stake in the San Antonio Spurs alongside Michael Dell, at a roughly $1.8 billion value.

Also this year, Dyal Capital Partners purchased 5% stakes in both the Sacramento Kings and Phoenix Suns, while Arctos Sports Partners acquired a stake in the Golden State Warriors for $275 million, valuing the franchise at $5.5 billion.

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A message from Ansarada

UK and European dealmakers predict record M&A activity in 2022

Ansarada has launched a new data report to uncover the key deal themes that will affect European dealmakers in 2022.

Based on a survey of 100 leading dealmakers across the UK and Germany, the report reveals staggering levels of optimism that M&A in both countries will surge in the next year. An uptick in distressed deals and an anticipated flurry of activity in the TMT sector will propel activity.

Common themes include the emergence of European SPACs, a roaring PE buyout market and the increasing importance of ESG in guiding deal decisions.

Dealmakers agree that due diligence is taking longer in this environment. Those who harness technology to adjust to remote transactions, deal screening and due diligence will ultimately come out on top.

Get the predictions

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Banking software startup Thought Machine joins Europe's unicorn stable

(Lucy von Held/Getty Images)

Thought Machine's valuation has topped $1 billion following a $200 million Series C, as the banking software provider raises the latest mega-round in a busy year for the fintech sector.

The fundraise brings the total number of unicorns minted this year in Europe to 65—the highest annual count ever—with a full month to go in 2021.

Recommended Reads

Local regulations, higher costs and other operational issues are some of the challenges facing the fledgling ghost kitchen industry. [The Wall Street Journal]

An increasing number of companies are promoting buy now, pay later features on their websites. But US regulators could soon force companies to rein in practices that have turbocharged that growth. [Protocol]

Several years ago, a tightknit team of men was quietly gathering intelligence for Uber. Then, in 2017, the secrecy ended when one member turned on the others, accusing them of illegal behavior. The allegations follow them to this day. [The New York Times]

Since yesterday, the PitchBook Platform added:

23

VC valuations

1724

People

395

Companies

12

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2011 Vintage North American Debt Funds
	VC Deals
	Indian fintech startup valued at $1B+ with latest round
	Used car auction platform Motorway hits unicorn status with Series C
	London's Quell Therapeutics lands $156M
	HotSpot Therapeutics locks in $100M
	Chinese robotics startup grows with $70M
	Mr Yum cooks up $65M Series A
	Upbound soars with $60M in new funding
	Accel leads $45M round for ThreeFlow
	Algeria's Yassir collects $30M for Series A
	Portfolio Companies
	VC-backed Bolt acquires Sweden's Tipser
	Exits & IPOs
	Chegg to pay $436M for language learning specialist
	Tigris, Mesa Verde to exit skincare brand Alastin

The Daily Benchmark

2011 Vintage North American Debt Funds

Median IRR

8.48%

Top Quartile IRR

9.90%

1.32x

Median TVPI

Select top performers

Davidson Kempner Long-Term Distressed Opportunities Fund

Abry Advanced Securities Fund II

First Eagle Greenway Fund

*IRR: net of fees

25 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Indian fintech startup valued at $1B+ with latest round

Slice, the Bengaluru-based provider of a fintech platform and credit card geared toward Gen Z and millennials, has reportedly collected a $220 million round that values it at more than $1 billion. Tiger Global and Insight Partners are said to have co-led the financing, with Sunley House Capital Management, Moore Strategic Ventures and others also participating. Slice allows users to pay their bills over three months without incurring any extra charges.

Additional Investors:

8i Ventures, Anfa, Blume Ventures, Gunopsy

View round

View 38 competitors »

Used car auction platform Motorway hits unicorn status with Series C

London-based Motorway has raised $190 million at a $1 billion-plus valuation. The startup's platform allows users to sell their cars through auction. Index Ventures and Iconiq Capital led the round, which will be used to expand the company's team. Motorway has now raised $273 million in total funding.

Additional Investors:

BMW i Ventures, Latitude, Unbound

View round

View 27 competitors »

London's Quell Therapeutics lands $156M

Biotech startup Quell Therapeutics has secured a $156 million Series B. The round was led by Jeito Capital, Ridgeback Capital, SV Health Investors and Fidelity Management & Research. Quell, which develops cell therapies for autoimmune and inflammatory diseases, and for the prevention of organ transplant rejection, will use the capital to fund clinical trials.

View round

View 27 competitors »

HotSpot Therapeutics locks in $100M

Boston-based HotSpot Therapeutics has raised a $100 million Series C led by Pivotal BioVenture Partners, with support from LSP, B Capital Group, Tekla Capital Management, MRL Ventures Fund and others. The startup is developing allosteric therapies that target regulatory sites on proteins to treat cancer and autoimmune diseases. HotSpot was valued at $135 million with a $65 million round in May 2020, according to PitchBook data.

Additional Investors:

Atlas Venture, CaaS Capital Management, Monashee Investment Management, Pavilion Capital, Revelation Partners, SR One Capital Management, Sofinnova Partners

View round

View 25 competitors »

Chinese robotics startup grows with $70M

FJDynamics has raised a $70 million Series B from a Chinese internet firm, TechCrunch reported. Based in Shenzhen, the startup is developing robots that focus on automation, digitalization and green energy in sectors including agriculture, gardening, construction, surveying and facility management. FJDynamics will reportedly use the new financing in part to support the growth of its ESG products in more than 60 countries.

View round

View 1 competitors »

Mr Yum cooks up $65M Series A

Mr Yum has reportedly raised a $65 million round led by Tiger Global, with support from Commerce VC, Vu Venture Partners, Ten13, AirTree and several angel investors. The Australian startup, which also operates out of London and Los Angeles, provides a mobile ordering and payments platform for restaurants, hotels, airports and more.

View round

View similar company »

Upbound soars with $60M in new funding

Enterprise cloud management startup Upbound has raised a $60 million Series B led by Altimeter Capital, with support from GV, Intel Capital and Telstra Ventures. Founded in 2017 and based in Seattle, Upbound is the creator of Crossplane, an open-source project that provides users with cloud-native infrastructure management.

View round

View 35 competitors »

Accel leads $45M round for ThreeFlow

ThreeFlow, the creator of a benefits placement platform, has raised a $45 million Series B led by Accel, with support from existing backers Emergence Capital, Equal Ventures and First Trust Capital Partners. ThreeFlow helps insurance brokers and carriers collaborate and manage the placement process through a shared system. The company has over 80 employees and represents 7,600 employer clients.

View round

View similar company »

Algeria's Yassir collects $30M for Series A

Algeria-based Yassir, which offers ridehailing, last-mile delivery and other on-demand services, has reportedly raised $30 million in funding from backers including WndrCo, DN Capital, Kismet Capital, Quiet Capital and Endeavor Catalyst. Operating in Algeria, Canada, France, Morocco and Tunisia, Yassir has over 2 million users.

Additional Investors:

Quiet Capital, FJ Labs, Moving Capital, Nellore Capital, VentureSouq

View round

View 2 competitors »

Portfolio Companies

VC-backed Bolt acquires Sweden's Tipser

Venture-backed checkout and shopper network company Bolt has acquired Tipser, a Swedish ecommerce company. Tipser's embedded technology allows customers to purchase products natively from websites, social media platforms, search engines and more. Bolt is backed by General Atlantic, Activant Capital, Tribe Capital and other firms.

View details

View similar company »

Exits & IPOs

Chegg to pay $436M for language learning specialist

Chegg has agreed to purchase Busuu, a London-based online language learning company, for around $436 million in cash. Founded in 2008, Busuu provides courses in 12 different languages to over 500,000 paying subscribers. It has received prior backing from Profounders Capital, McGraw-Hill, ACE & Company and others. Chegg has been publicly traded on the NYSE since 2013 and provides textbook rentals, tutoring and more.

View details

View 35 competitors »

Tigris, Mesa Verde to exit skincare brand Alastin

Swiss skincare company Galderma has agreed to buy California-based peer Alastin, a few weeks after EQT-backed Galderma was reported to be considering a potential $22 billion IPO in Zurich. Alastin is backed by investors including Mesa Verde Ventures and Tigris Ventures.

View details

View 5 competitors »

Chart of the Day

"Germany, the largest economy in Europe, accounts for the majority of deal activity in the DACH region, and we expect this trend will strengthen. Through Q3 2021, 80.0% of PE deal volume closed in the country, which is on pace with the five-year average."

Source: PitchBook's 2021 DACH Private Capital Breakdown

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PitchBook News - VCs continue betting big on insurtech

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