PitchBook News - Fintech pumps up the exits

Charting the VC dealmaking environment; bitcoin specialist NYDIG hits $7B+ valuation; nuclear reactor maker inks SPAC deal; Ophelia snags $50M
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The Daily Pitch: VC
December 15, 2021
Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A
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In today's Daily Pitch, you'll find:
  • With data from 2010 to Q3 2021, our new VC Dealmaking Indicator captures how startup- or investor-friendly the deal environment is across the various stages.

  • The first three quarters of 2021 saw more VC investment in fintech startups than the entire prior decade.

  • Our analysts' predictions for what private capital in Europe will look like in 2022.
Today's Top Stories
Fintech crams a decade's worth of exits into nine months
Fintech investors and entrepreneurs continue to be rewarded by an acceleration in digital transactions, retail trading and other pandemic-era tailwinds. Our Q3 2021 VC Fintech update breaks down the latest trends, including:
  • VC-backed fintech exits surpassed $244 billion in the first three quarters of the year, more than the combined total of the prior decade. The third quarter was headlined by IPOs from trading platform Robinhood and restaurant point-of-sale software maker Toast.

  • Against the backdrop of supersized exits, investors' price sensitivity has plummeted. The median fintech valuation multiple hit 21.7 times, and the typical late-stage pre-money deal value leapt to $265 million.

  • As cryptocurrencies continue to earn mainstream acceptance, one area to watch is institutional crypto custodians, which store private keys, verify access and approve transactions on behalf of clients.
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Is the VC dealmaking environment better for startups or investors?
Using PitchBook's wealth of data on VC deal terms, valuations and fundraising, we've constructed our VC Dealmaking Indicator, which captures how startup- or investor-friendly the deal environment is in the early- and late-stage markets.
  • To construct the indicator, we encoded five different deal terms as well as the time between rounds, valuation step-ups and percent of ownership acquired. We've also included a new metric that seeks to estimate the supply and demand of capital in the VC market.

  • Currently, both the early and late stages are quite startup-friendly, with the recent uptick in median valuation step-ups driving a large portion of that trend. Historically, we see that early-stage deals tend to be more startup-friendly when compared to late-stage deals.
Check out more details about the indicator in a recent analyst note.
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Partner Perspectives
Health tech stands poised to transform the coming decade
Deloitte
Health tech is on a tear. 2021 has seen close to 560 completed transactions accounting for $23.8 billion in deal value, just through the end of September. In the latest edition of Deloitte's Road to Next series, the burgeoning health tech ecosystem is explored in depth, especially considering its acceleration by the COVID-19 pandemic and its myriad ramifications. Highlights include:
  • Analysis of key datasets such as median financing metrics.
  • A spotlight on the consumerization of healthcare.
  • Insights from experienced health tech Deloitte professionals as to critical growth considerations, regulatory changes and more.
Read it now
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Predicting the future for private capital in Europe
(NicoElNino/Getty Images)
At least 15 companies that went through a SPAC merger will be taken private. VC deal value in Europe will smash another annual record. And global carveout deal value will hit a high of €200 billion.

Or so PitchBook analysts predict. Our latest analyst note shares six predictions for European and global private market activity in 2022, including the continuing boom in insurance companies as a source of permanent capital, expected trends in dealmaking and exits, and more.
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Private market mega-funds raise more than $329B in 2021
(uzenzen/Getty Images)
Private equity mega-funds, vehicles of $5 billion or more, had a bumper year in 2021. Hellman & Friedman's latest flagship buyout fund, which raised $24.4 billion, tops a list of 31 private market mega-funds that have together brought in more than $329 billion in 2021, PitchBook data shows.

The growing scale of these behemoths underscores limited partners' appetite for the market's large, established fund managers. That's especially so with buyout funds, which accounted for nearly half of all mega-fund activity in the year.
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Recommended Reads
Ahead of his upcoming retirement, Public Employee Retirement System of Idaho COO Bob Maynard reveals what it was like to take the pension from one of the worst-performing in its peer class to a top-quartile fund. [Institutional Investor]

The digital age has enabled productivity while also inviting procrastination. Can "distraction-free" devices provide a solution? [The New Yorker]

Why a downturn in the property market is bad news for local governments in China. [The Economist]
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Quick Takes
  The Daily Benchmark  
  2012 Vintage Global PE Funds between $250M-$500M  
  VC Deals  
  NYDIG valued at $7B+ with $1B round  
  Course Hero valuation leaps to $3.6B in new round  
  Cadence scoops up $100M round  
  Insight Partners leads $61M Series C for Carto  
  AnHeart Therapeutics collects $61M for cancer treatment  
  Tiger Global backs $50M Mesh round  
  Ophelia snags $50M for opioid addiction treatment  
  TealBook takes in $50M  
  Cybersecurity specialist Guardio picks up $47M  
  Exits & IPOs  
  NuScale to go public via SPAC  
 
 
The Daily Benchmark
2012 Vintage Global PE Funds between $250M-$500M
Median IRR
12.99%
Top Quartile IRR 
21.65%
1.65x
Median TVPI
Select top performers
BVIP Fund VIII
Frontenac X Private Capital
Excellere Capital Fund II
*IRR: net of fees
24 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
VC Deals
NYDIG valued at $7B+ with $1B round
New York-based NYDIG has raised $1 billion in growth equity funding led by WestCap. Previous lead investors Bessemer Venture Partners and FinTech Collective were among the investors participating in the round, which values the bitcoin company at more than $7 billion.
Additional Investors:
Affirm, FIS Ventures, Fiserv, MassMutual Financial Group, Morgan Stanley, New York Life Insurance Company
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Course Hero valuation leaps to $3.6B in new round
Edtech platform Course Hero has raised $380 million in a Series C round that values the Redwood City, Calif.-based company at $3.6 billion. Investors previously valued Course Hero at $1.2 billion after an $80 million round last year. Wellington Management led the latest round, with participation by firms including Sequoia, Omers and D1 Capital Partners.
Additional Investors:
GSV Ventures, NewView Capital, SuRo Capital, TPG, Valiant Capital Partners
View round
 
View 17 competitors »
 
Cadence scoops up $100M round
Healthtech startup Cadence has raised $100 million in a Series B led by Coatue, with participation from existing backers General Catalyst and Thrive Capital. Launched earlier this year, the company provides a remote patient monitoring and virtual care platform designed to track and analyze vital signs like blood pressure, heart rate and glucose levels through daily measurements.
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Insight Partners leads $61M Series C for Carto
Carto, the creator of a cloud-native spatial analysis platform, has raised a $61 million round led by Insight Partners, with support from the European Investment Fund and existing backers Accel, Salesforce Ventures, Hearst Ventures, Earlybird and Kibo. Based in New York, the startup's location intelligence tech is used by organizations to identify efficient delivery routes, improve behavioral marketing, facilitate strategic store placements and more.
View round
 
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AnHeart Therapeutics collects $61M for cancer treatment
Clinical-stage biotech startup AnHeart Therapeutics has raised a $61 million Series B led by Octagon Capital. Innovent Biologics, Cenova, Laurion Capital and Sage Partners also backed the round. Founded in 2018, the New York-based biopharma company is developing oncology drugs to address unmet medical needs and underserved markets. It will use the new capital in part to advance its lead therapy candidate, a treatment for non-small cell lung cancer.
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Tiger Global backs $50M Mesh round
Mesh Payments has raised a $50 million Series B led by Tiger Global, with participation from Entrée Capital, Falcon Edge Capital and existing investors TLV Partners and Meron Capital. Mesh operates an automated corporate payment and spend management platform. The startup raised a $13 million round led by TLV in February.
View round
 
View 35 competitors »
 
Ophelia snags $50M for opioid addiction treatment
Ophelia, a provider of medication-assisted treatment for opioid use disorder, has raised a $50 million Series B led by Tiger Global. Investors including Menlo Ventures, General Catalyst and Refactor Capital also participated. The round values the company at $275 million, Reuters reported. Ophelia is licensed to provide treatment in 27 states and is contracted with Medicaid, Medicare and other commercial insurers.
Additional Investors:
640 Oxford Ventures, Elliot Cohen, Interplay Ventures, Good Friends
View round
 
View 1 competitors »
 
TealBook takes in $50M
Toronto-based TealBook has raised $50 million in a Series B led by Ten Coves Capital. Other backers including BDC Capital, Grand Ventures, Reciprocal Ventures and Workday Ventures also participated, with CIBC providing debt financing. The logistics startup uses AI and machine learning to gather, predict and refine supplier data and provide supplier intelligence.
Additional Investors:
Good Friends, RTP Global, Refinery Ventures, Royal Bank of Canada, S&P Global, StandUp Ventures
View round
 
View 30 competitors »
 
Cybersecurity specialist Guardio picks up $47M
Guardio has raised $47 million for its first round of financing after being bootstrapped for three years. The Tel Aviv-based startup provides a security browser extension that stops unwanted notifications, blocks harmful sites, provides information leak monitoring and more. Guardio's tech is already used by more than 1 million people, TechCrunch reported.
Investors:
Tiger Global, Cerca Partners, Emerge, Samsung Next Ventures, Union Tech Ventures, Vintage Investment 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.

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Exits & IPOs
NuScale to go public via SPAC
NuScale Power has agreed to combine with blank-check company Spring Valley Acquisition Corp. in a deal that will give the combined entity an enterprise value of $1.9 billion. Portland, Ore.-based NuScale, which makes small modular nuclear reactors, could take in $413 million in proceeds from the SPAC deal. Investors in the accompanying PIPE include Samsung C&T, DS Private Equity, Segra Capital Management and Spring Valley sponsor Pearl Energy. Construction specialist Fluor, the majority backer of NuScale, is expected to control around 60% of the combined company.
View details
 
View 4 competitors »
 
Chart of the Day
Source: PitchBook's Q3 2021 European PE Breakdown
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