PitchBook News - VCs bet on cloud, ID security in 2021

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The Daily Pitch: VC

February 1, 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:

Our 2021 Annual Information Security Report takes a look at VC activity and emerging opportunities in the sector as cyberattacks continue to increase.

Vista Equity Partners and Elliott Management have agreed to acquire software specialist Citrix for $16.5 billion, marking the third-largest SaaS take-private deal on record for PE.

Crypto exchange operator FTX has garnered a $32 billion valuation in its third round in six months.

Today's Top Stories

VCs made concentrated bets on cloud and identity security in 2021

Cyberattacks and breaches are on the rise, demonstrating how legacy information security vendors have not sufficiently evolved to address the vulnerabilities of software supply chains and cloud environments.

Our 2021 Annual Information Security Report dives deep into the sector's investment activity and adoption trends, comprehensively assessing emerging opportunities across market segments led by endpoint security, network security, and identity & access management. Key takeaways include:

Given the limitations faced by incumbents, infosec startups are capitalizing on emerging spaces such as cloud vulnerability scanning, fraud prevention and passwordless authentication.

On the investment side of the equation, VCs funneled $25.6 billion into 938 infosec deals during 2021, a deal value increase of 130% year-over-year.

read the preview

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FTX's valuation swells to $32B in fundraise for crypto exchange

(da-kuk/Getty Images)

Cryptocurrency exchange operator FTX has raised a $400 million Series C at a $32 billion valuation. The Bahamas-based company has now raised close to $2 billion across three rounds since July.

FTX says it is now the world' third-largest crypto exchange, but it does not operate in the US. For that purpose, the company created FTX US, an affiliate exchange, which last week raised its first outside round of $400 million at a valuation of $8 billion.

All investors in FTX's Series C, such as Temasek, SoftBank's Vision Fund 2 and Tiger Global, also participated in its US affiliate's round.

Earlier this month, the company launched a $2 billion venture fund for investing in crypto-focused startups.

The flurry of activity comes amid a sharp pullback in the prices of cryptocurrencies and shares of FTX's main rival Coinbase, which has seen its price fall nearly 45% since its IPO in April.

Since there is often a lag between the signing of terms and public announcements, it is possible that investors agreed to the price of the FTX deal before the market sell-off began this month.

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How Vista, Elliott's $16.5B Citrix buyout stacks up to other SaaS take-privates

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Vista Equity Partners and Elliott Management have agreed to acquire workplace SaaS company Citrix for $16.5 billion, marking the third-largest SaaS take-private deal on record for private equity.

The Citrix deal illustrates PE's continuing investment in the evolving employment ecosystem, as many employers make a permanent shift to remote work. It comes a week after Vista invested $200 million in software-focused employment specialist Globalization Partners at a $4.2 billion valuation.

Under the agreement, Vista and Elliott—through its private equity arm Evergreen Coast Capital—will pay $104 a share in cash for the virtual-workspace software provider.

Recommended Reads

The University of California system is seeking $1.22 billion in a lawsuit against 8minute Solar Energy, alleging that it misappropriated funds from a $150 million investment. [The Wall Street Journal]

Germany has embarked on an ambitious but challenging plan to transition to clean energy. Can the country show the rest of the world how to leave coal behind? [The New Yorker]

A look inside the controversial face-recognition technology that retailers like Macy's and Bloomingdale's are using to combat a rise in organized crime. [Forbes]

Since yesterday, the PitchBook Platform added:

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VC valuations

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Funds

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Quick Takes


	The Daily Benchmark
	2012 Vintage Global Secondaries Funds
	People
	Bolt founder hands off CEO seat to Maju Kuruvilla
	VC Deals
	Brazilian HR tech startup Gupy raises $94M
	Gandeeva brings in $40M Series A
	Qlub emerges from stealth with $17M seed
	Brokerage app provider Bamboo banks $15M
	Fundraising
	TCV snags $460M for latest fund
	Equity Alliance raises $28.6M to back female and minority fund managers

The Daily Benchmark

2012 Vintage Global Secondaries Funds

Median IRR

12.20%

Top Quartile IRR

16.10%

1.38x

Median TVPI

Select top performers

Dover Street VIII

Pomona Capital VIII

Keyhaven Secondaries Fund I

*IRR: net of fees

13 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Bolt founder hands off CEO seat to Maju Kuruvilla

Founder Ryan Breslow has stepped aside as CEO of Bolt, the San Francisco-based developer of a checkout platform for digital retailers. Maju Kuruvilla, who became the company's COO in August of last year, will replace Breslow as CEO. Backed by investors including Invus Opportunities and HIG Growth, the company raised a $355 million Series E in January. Breslow will become Bolt's executive chairman.

View details

VC Deals

Brazilian HR tech startup Gupy raises $94M

Gupy has raised 500 million reais (around $94 million) in a round co-led by SoftBank and Riverwood, with support from Endeavor Catalyst. Based in São Paulo and founded in 2015, the company offers an AI-based HR tech platform to help organizations recruit, select and train employees.

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Gandeeva brings in $40M Series A

Gandeeva Therapeutics has raised $40 million in a round co-led by Lux Capital and Leaps by Bayer, with support from Obvious Ventures, Amgen Ventures, Amplitude Ventures and Air Street Capital. The precision biotech company is developing therapeutics using cryogenic electron microscopy.

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Qlub emerges from stealth with $17M seed

Qlub has raised $17 million in seed financing co-led by Cherry Ventures and Point Nine Capital. The company is the developer of a payments platform for restaurants that enables customers to split and pay the bill by scanning a QR code.

Additional Investors:

FinTech Collective, Heartcore Capital, Raed Ventures, STV, Shorooq Investments

View round

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Brokerage app provider Bamboo banks $15M

Bamboo has raised a $15 million Series A round co-led by Greycroft and Tiger Global. Based in Nigeria, the company's investment platform gives people in Africa access to US stocks.

Select Additional Investors:

Saison Capital, Chrysalis Capital, Motley Fool Ventures

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View similar company »

Fundraising

TCV snags $460M for latest fund

TCV has raised $460 million for a fund that will make expansion-stage investments. In January 2021, the firm amassed $4 billion for its 11th flagship vehicle, its largest fund to date.

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View 388 investments »

Equity Alliance raises $28.6M to back female and minority fund managers

Equity Alliance has closed a $28.6 million fund to invest in venture funds led by women and minority managers, The Wall Street Journal reported. The firm is chaired by Richard Parsons, the former CEO of Time Warner.

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View 1 investments »

Chart of the Day

"Economic resurgence paved the way for a record-setting 2021 in North American M&A, with 18,539 deals closing for a combined $2.8 trillion. The US and Canada have followed a similar trajectory, recovering their pre-pandemic GDP levels early in the year and, by the end of 2021, exceeding historical growth trendlines. Strong stock prices, low borrowing costs, and a positive economic outlook—inflation notwithstanding—spurred buyers."

Source: PitchBook's 2021 Annual Global M&A Report