PitchBook News - Mapping VC's road to net zero

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The Daily Pitch: VC

December 16, 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:

US PE middle-market activity in 2021 has already surpassed that of the previous record year in both deal count and value.

Our latest Emerging Tech Research explores VC opportunities in climate tech, including energy storage, building efficiency and clean industrial processes.

VC-backed IPOs of European startups have smashed records in 2021—but public market performance hasn't been as stellar.

Today's Top Stories

Mapping VC's role on the road to net zero

(Andriy Onufriyenko/Getty Images)

Most greenhouse gas emissions can be reduced using existing technology, but climate tech startups could scale breakthroughs to help close the gap.

VCs and other private investors can provide over two-thirds of the estimated $125 trillion needed to reach the goal of net-zero carbon emissions by 2050, as laid out in the 2021 UN Climate Change Conference.

Our latest installment of Emerging Tech Research explores the outcomes of the summit that are particularly relevant to the climate tech industry. Our analysts also examine investment strategies from the Glasgow Financial Alliance for Net Zero—focusing on energy storage, building efficiency, clean industrial processes and more.

read it now

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US PE middle market smashes annual records in 2021

Middle-market private equity firms have sustained a feverish pace of activity throughout 2021, as investors push to capitalize on booming economic growth and low interest rates before the macroeconomic tide turns.

Going into year's end, dealmaking had already broken annual records in both volume and value, with nearly 2,900 transactions comprising $438.6 billion, according to our Q3 US PE Middle Market Report, sponsored by Antares, Canton & Company, and LBMC. Other takeaways include:

US middle-market exits also continued at a remarkable pace, with a combined $184 billion in value through Q3—also an annual record.

Inflation remains top of mind for middle-market firms, with increased labor, raw materials and energy costs driving down earnings growth in industries such as manufacturing.

The fundraising environment favors large funds and established managers, prompting many firms to launch additional middle-market strategies.

Recommended Reads

A growing list of business and finance executives are leaving blue-chip jobs to work on tackling climate change. [Financial Times]

In a bad year for biotech stocks, some investors are thriving by focusing on mergers, short selling and vaccine investments. [The Wall Street Journal]

How one European city's innovative approach to mental health is inspiring a global fight against loneliness. [The New York Times]

Since yesterday, the PitchBook Platform added:

20

VC valuations

1482

People

394

Companies

30

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2014 Vintage Global VC Funds
	People
	Katie Haun departing a16z to start new crypto fund
	VC Deals
	Anchorage Digital picks up $3B+ valuation
	Home rental startup books $160M Series B
	Noname Security valued at $1B with $135M round
	Venture accelerator Brinc nabs $130M
	Customer service startup lands $65M
	Cequence Security locks down $60M in Series C funding
	Crypto payment startup Ramp banks $53M
	Bill payment startup raises $50M
	NEA leads $40M round for Belong Health
	Carbon America loads up with $30M in new funding
	Exits & IPOs
	Samsara raises $805M in IPO, sees stock climb over 7%

The Daily Benchmark

2014 Vintage Global VC Funds

Median IRR

21.73%

Top Quartile IRR

29.35%

2.27x

Median TVPI

Select top performers

CRCM Opportunity Fund

Earlybird Digital East Fund I

4BIO Ventures I

*IRR: net of fees

65 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Katie Haun departing a16z to start new crypto fund

Katie Haun, a general partner at Andreessen Horowitz, is set to leave the firm to create a new fund that will invest in startups related to cryptocurrency and Web3, as first reported by Axios. Haun, who has been with a16z since 2018 and co-leads its $2.2 billion crypto fund, will reportedly take several colleagues with her. She currently serves on the boards of Coinbase and HackerOne.

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VC Deals

Anchorage Digital picks up $3B+ valuation

KKR has led a $350 million Series D for Anchorage Digital, a San Francisco-based digital asset platform for institutions and investors. The new funding values Anchorage at over $3 billion. Backers including PayPal Ventures, Andreessen Horowitz, Thoma Bravo and Goldman Sachs also participated. Anchorage offers crypto-native financial solutions including custody and trading, staking, governance and financing services.

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Home rental startup books $160M Series B

AvantStay, a Hollywood, Calif.-based hospitality startup, has raised a $160 million round led by Tarsadia Investments and 3L Capital, with participation from Capital One Ventures, Plus Capital, Convivialité Ventures, Bullpen Capital and others. The company designs and provides short-term home rentals in more than 100 destinations. AvantStay was valued at $80 million with a $20 million round in 2019, according to PitchBook data.

Additional Investors:

Coller Capital, GreenHawk Corporation, Saluda Grade Ventures

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Noname Security valued at $1B with $135M round

API security startup Noname Security has raised a $135 million Series C at a $1 billion valuation. The financing was led by Georgian and Lightspeed, with support from existing backers such as Insight Partners, Cyberstarts, Next47, Forgepoint and The Syndicate Group. Noname provides an automated platform that detects and responds to API security vulnerabilities, misconfigurations, design flaws and attacks. Operating out of Palo Alto, London and Tel Aviv, the startup has now raised $220 million in total financing since it emerged from stealth a year ago.

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Venture accelerator Brinc nabs $130M

Brinc has closed a $30 million Series B round and an additional $100 million for startup investments led by Animoca Brands. Based in Hong Kong, the firm operates 18 multidisciplinary accelerator programs across seven countries, targeting companies in sectors like connected hardware, robotics and clean energy. The new funding will be used in part to support Brinc's expansion into new locations and verticals.

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Customer service startup lands $65M

Forethought, an AI-based customer service platform, has raised a $65 million Series C led by Steadfast Capital Ventures and supported by NEA, Sound Ventures, Gwyneth Paltrow, Baron Davis, Robert Downey Jr. and others. Forethought's tech is used to predict and prioritize customer support tickets and assist agents with relevant knowledge. Launched in 2018, the startup was valued at $103 million in October 2020, according to PitchBook data.

Select Additional Investors:

K9 Ventures, Collaborative Fund, Frontline Ventures, Cleo Capital, Spearhead

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Cequence Security locks down $60M in Series C funding

Cequence Security has raised a $60 million round led by new backer Menlo Ventures. Icon Ventures, Telstra Ventures and HarbourVest Partners also participated. Founded in 2015 and based in Sunnyvale, Calif., the cybersecurity startup provides an AI-based software platform that protects users' APIs and web-based applications.

Additional Investors:

Dell Technologies Capital, Shasta Ventures, T-Mobile Ventures

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Crypto payment startup Ramp banks $53M

London-based Ramp has raised $53 million in a round led by Balderton Capital. The startup's non-custodial payment infrastructure makes it possible to send or receive crypto without going through an exchange. Ramp has raised $63 million in total funding.

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Bill payment startup raises $50M

Papaya, the creator of a mobile bill payment app, has raised a $50 million Series B led by Bessemer Venture Partners. Sequoia, Acrew Capital, 01 Advisors, Mucker Capital, Fika Ventures, F-Prime and Sound Ventures also participated. The startup's tech lets users take photos of bills like parking tickets, utilities or medical invoices, choose a payment method, and send it through the Papaya app.

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NEA leads $40M round for Belong Health

Philadelphia-based Belong Health has raised a $40 million Series A led by NEA, with participation from seed investor Maverick Ventures. The startup partners with local and regional health plans and hospital systems to deliver Medicare Advantage and Special Needs Plan products. NEA managing general partner Mohamad Makhzoumi will join Belong Health's board of directors as part of the transaction.

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Carbon America loads up with $30M in new funding

Carbon America has raised a $30 million Series A from the Canada Pension Plan Investment Board, ArcTern Ventures, Energy Impact Partners, the Grantham Environmental Trust and Golden Properties. The company's shareholders will have an option to invest another $15 million by April. Based in Colorado, Carbon America is a vertically integrated developer of carbon capture and sequestration projects.

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Exits & IPOs

Samsara raises $805M in IPO, sees stock climb over 7%

Samsara, the developer of a cloud-based fleet and industrial operations management platform, sold 35 million shares priced at $23 apiece in its IPO, raising $805 million in its offering. The San Francisco-based company, which has received backing from Andreessen Horowitz and General Catalyst, saw its stock climb over 7% in its debut.

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Chart of the Day

"Despite uncertainty, a healthy pipeline of public listings carrying robust valuations has been established in 2021. Post-money exit valuations via IPO paced well above 2020 figures through Q3 2021, with the median reaching €61.8 million. Through Q3 2021, 135 public listings have produced a record €99.5 billion, triple the previous record set in 2018."

Source: PitchBook's Q3 2021 European VC Valuations Report