Stock market sell-off hits pre-IPO valuations

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The Daily Pitch: VC

January 26, 2022

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:

How the recent stock market sell-off is impacting late-stage funding and the secondary market.

US PE deal value totaled $1.2 trillion in 2021, marking one of the most dramatic records in an astonishing year.

Plenty is the latest vertical farming startup to raise new funding, as companies in the sector work to address food shortages.

Today's Top Stories

Stock market sell-off is already taking a toll on pre-IPO valuations

Traders on the floor of the NYSE (Timothy A. Clary/Getty Images)

The recent stock market sell-off has been so severe that it's impacting late-stage funding rounds and the trading of secondary stakes.

Growth-stage investors are pausing or slowing down their investment pace and, in some cases, even repricing deals, sources tell PitchBook.

Meanwhile, many investors looking to buy secondary stakes in pre-IPO companies are pulling their offers or asking to buy at lower prices.

Recommended Reads

Why VC titan NEA decided to place its bets on a three-person esports company. [Fast Company]

How one 40-year-old hedge fund is reinventing itself around technology, transparency and alternative strategies. [Institutional Investor]

NASA's newest spinoff tech is coming back home to Earth—in the form of everything from robot gloves to vertical farming. [Wired]

Since yesterday, the PitchBook Platform added:

34

VC valuations

1485

People

475

Companies

28

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2018 Vintage Global Real Estate Funds
	VC Deals
	Metagenomi raises $175M Series B
	SparkCognition nabs $123M Series D
	InstaDeep picks up $100M Series B
	Darwinbox secures $72M for HR tech
	Atlas Health lands $40M
	Addionics raises $27M Series A

The Daily Benchmark

2018 Vintage Global Real Estate Funds

Median IRR

11.24%

Top Quartile IRR

14.40%

1.15x

Median TVPI

Select top performers

Invesco Strategic Opportunities III

LEM Multifamily Fund V

Rockpoint Real Estate Fund VI

*IRR: net of fees

82 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Metagenomi raises $175M Series B

Metagenomi has raised $175 million in a round co-led by PFM Health Sciences and Farallon Capital Management. The company is developing therapeutics using gene editing tools to treat metabolic and cardiovascular diseases and more.

Select Additional Investors:

Humboldt Fund, Leaps by Bayer, Agent Capital

View round

View 4 competitors »

SparkCognition nabs $123M Series D

SparkCognition has raised $123 million at a valuation of more than $1.4 billion from investors including March Capital and Doha Venture Capital. The Austin-based company is a developer of AI-based software that helps businesses predict future outcomes, optimize processes and prevent cyberattacks.

Additional Investors:

B. Riley Venture Capital, Boeing HorizonX Global Ventures, Temasek

View round

View 114 competitors »

InstaDeep picks up $100M Series B

InstaDeep has raised $100 million in a round led by Alpha Intelligence Capital with CDIB. The startup, based in London and Tunisia, develops decision-making AI systems.

View round

View 40 competitors »

Darwinbox secures $72M for HR tech

Darwinbox has raised $72 million at a more than $1 billion valuation in a round led by TCV. Founded in 2015, the company offers an HR tech platform for recruiting, onboarding and more.

Additional Investors:

3one4 Capital, Endiya Partners, JGDEV, Lightspeed India, SCB 10X, Salesforce Ventures, Sequoia India

View round

View 24 competitors »

Atlas Health lands $40M

Atlas Health has raised a $40 million Series A led by Felicis Ventures, with support from investors including GreatPoint Ventures and Tribe Capital. The Seattle-based company offers a financial aid platform to help patients access care.

Additional Investors:

Global Founders Capital, MBX Capital

View round

View 3 competitors »

Addionics raises $27M Series A

Addionics has raised $27 million in a round led by Deep Insight. The UK- and Israel-based company uses 3D electrode structures to develop rechargeable batteries for electric vehicles.

Select Additional Investors:

Bridges Israel, 8090 Partners, GiTV, Magna International, NextGear Ventures, Novelis, Union Tech Ventures

View round

View similar company »

Chart of the Day

"In fact, core real estate has only garnered 0.6% of commitments in 2021 thus far, down from 9.9% in 2020 and 24.0% in 2019. Seeing a boost was value-add, which grew from 18.5% in 2019 to 33.8% in 2020 to 47.9% in 2021, as investors saw a need to repurpose real estate assets to accommodate new realities."

Source: PitchBook's Q3 2021 Private Fund Strategies Report